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HomeMy WebLinkAbout5.3 Annual Comprehensive Financial Report (ACFR) and Annual Audit for Fiscal Year Ending June 30, 2024 and Supplemental Reports Completed by the City’s Independent Auditorsr DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL Agenda Item 5.3 DATE: TO: FROM: SUBJECT: December 17, 2024 Honorable Mayor and City Councilmembers Colleen Tribby, City Manager Annual Comprehensive Financial Report (ACFR) and Annual Audit for Fiscal Year Ending June 30, 2024 and Supplemental Reports Completed by the City's Independent Auditors Prepared by: Wendy Lam, Accounting Manager EXECUTIVE SUMMARY: The City Council will receive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending June 30, 2024. This report includes financial statements prepared by Staff along with the audit prepared by Badawi and Associates, the independent auditors selected by the City Council. The ACFR is a report which encompasses information beyond minimum financial reporting requirements. The auditors have provided a "clean opinion" based on their review. The auditors have also completed the following supplemental reports: 1) a compliance audit of Alameda County Transportation Commission Measure B Funds; 2) a compliance audit of Alameda County Transportation Commission Measure BB Funds; 3) a compliance audit of Alameda County Transportation Commission Measure F Fund Vehicle Registration Fee Program; 4) a compliance audit of the State of California Transportation Development Act (TDA) Fund; 5) a compliance examination of the American Rescue Plan Act (ARPA) Fund; 6) a review of the City's Annual Appropriations Limit Calculation; and 7) a report on Internal Controls. The reports have been reviewed by the City Council Ad -Hoc Audit Subcommittee. STAFF RECOMMENDATION: Receive the reports. FINANCIAL IMPACT: Financial information is summarized in this 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 3-10. Page 1 of 6 1 DESCRIPTION: The City of Dublin has prepared its Annual Comprehensive Financial Report (ACFR) for the Fiscal Year (FY) ending June 30, 2024. 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 Mayor McCorriston and Councilmember Thalblum, 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 -8). Financial Overview Attachment 1 provides a guide to key elements contained in the ACFR. Some of the important financial results include an increase of $42.3 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. $551.3 million (57% of total net assets) in investments in capital assets (e.g. land, infrastructure, buildings, and equipment). 2. $118.6 million (12% of total net assets) that is subject to external restrictions on how it can be used, such as development impact fee funds. 3. $294.8 million (31% of total net assets) in net assets that are unrestricted. Page 2 of 6 2 TABLE 1: SUMMARY OF NET POSITION June 30, 2024 and 2023 Current and Other Assets Notes Receivable (Note 5) Leases Receivable (Note 6) OPEB Asset (Note 12) Capital Assets (Note 7) Total Assets Deferred Outflows of Resources Current Liabilities Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources Net Investment in Capital Assets Restricted Unreshicted Total Net Position Governmental Activities June 30. 2024 $ 439.003.341 14.532.180 2,632.916 3.412.032 573.219.493 1,032,799,962 June 30. 2023 $ 406.803.601 14.541.072 3,050.260 2.865.050 568.081.126 995,341,109 $ Change $ 32,199,740 (8.892) (417.344) 546.982 5.138.367 % Change 7.9% -0.1% -13.7% 19.1% 0.9% 37,458,853 3.8% 12,226,603 12,331,418 (104,815) -0.85% 32.656.445 41.920.700 38.087.433 40.984.861 74,577,145 79,072,294 5,742,177 6,199,022 (5.430.988) 935.839 (4,495,149) (456,845) 551.319.606 545.146.807 6.172.799 118.584.995 115.479.147 3.105.848 294.802.642 261.775.257 33.027.385 -14.3% 2.3% - 5.7% - 7.4% 1.1% 2.7% 12.6% $ 964,707,243 $ 922,401,211 $ 42,306,032 4.6% 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 does not note any issues for Fiscal Year 2023-24. Designation of Fund Balances The City's designation of fund balances conforms to required standards enacted by the Governmental Accounting Standards Board (GASB). A listing of the FY 2023-24 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 3 TABLE 2: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2024 and 2023 General Fund Affordable Housing Fund Capital Improvement Funds Other Governmental Funds Total Governmental Funds June 30, 2024 $ 290,432,954 25,285,171 56,116,205 19,529,130 June 30, 2023 $ 249,736,610 30,243,024 58,331,196 21,704,791 S 391,363,460 S 360,015,621 $ Change $ 40,696,344 (4,957,853) (2,214,991) (2,175,661) S 31,347,839 Change 16.3% -16.4% -3.8% -10.0% 8.7% As shown above, General Fund Reserves totaled $290.4 million as of June 30, 2024. Of that amount, $50.4 million is available for cash flow purposes, equating to approximately 5.5 months of budgeted operating expenditures in FY 2024-25. 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 six 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 compliance audit of the Transportation Development Act (TDA) Fund. 5. A compliance examination of the American Rescue Plan Act (ARPA) Fund. 6. 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, 2024, the Measure B Fund had expended all funds for Local Streets and Roads and had $980 restricted for Bicycle and Pedestrian improvements. During FY 2023-24, the following projects were funded by Measure B: • Annual Street Resurfacing • Iron Horse Trail Bridge 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 $8 billion over 30 years funded by an additional half -cent sales tax to be used for transportation related expenditures. The program includes four categories of projects: 1) Transit; 2) Affordable Transit for Seniors and People with Disabilities; 3) Local Streets and Roads; and 4) Bicycle and Pedestrian Path and Safety. Page 4 of 6 4 As of June 30, 2024, the Measure BB Fund had a restricted fund balance of $1,848,929 for Local Streets and Roads, and $977,646 restricted for Bicycle and Pedestrian improvements. During FY 2023-24, the following projects were funded by Measure BB: • Annual Street Resurfacing • Citywide Bicycle and Pedestrian Improvements • Citywide Signal Communication Upgrade • Iron Horse Trail Bridge • Traffic Signal Re-Lamping 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, 2024, the ACTC VRF Measure F Fund had a balance of $488,305 in restricted funds. During FY 2023-24, the following projects were funded by Measure F: • Citywide Bicycle and Pedestrian Improvements • Citywide Signal Communication Upgrade • Intelligent Transportation System Upgrades Transportation Development Act (TDA) Fund Report (Attachment 7) TDA grants are granted by the State and distributed through the Metropolitan Transportation Commission (MTC) which is the agency responsible for allocation of funds to eligible agencies within the greater San Francisco Bay area. The TDA grants, in the amount of $78,499, allocated to the City are for bicycle and pedestrian improvements. During FY 2023-24, $17,317 was spent on the Citywide Bicycle and Pedestrian Improvements project, and the remaining amount of $53,809, has been carried over to FY 2024-25. American Rescue Plan Act (ARPA) Fund Examination (Attachment 8) The City is required to complete the Alternative Compliance Examination if total Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) and/or ARPA funds received directly from the Federal Government Treasury or received (through states) as a non -entitlement unit (NEU) of local government is at or below $10 million and other federal award funds that have been expended are less than $750,000 during the fiscal year, which is the threshold that the City of Dublin met. In FY 2023-24 the City had $1,006,483 in expenditures of American Rescue Plan Act fund. The examination reported that the City complied, in all material respects, with the specified requirements during the year ended June 30,2024. Appropriation Limit Schedule Report (Attachment 9) State law requires the adoption of an Appropriations Limit which must be included in the budget Page 5 of 6 5 document. The City Council adopts the Limit by resolution, and it is adjusted annually based on factors established 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 $485,074,181 limit as presented in the FY 2024-25 Budget, and there were no exceptions noted in the findings. Report on Internal Controls (Attachment 10) The purpose of the Internal Controls Report is to describe the scope of the Auditors testing of internal control and compliance and the results of that testing, to obtain reasonable assurances about whether the City's financial statements are free from material misstatement. The results of these tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Summary - Key Information 2) Annual Comprehensive Financial Report Fiscal Year 2023-24 3) Fiscal Year 2023-24 Auditors' Communication with Those Charged with Governance 4) Fiscal Year 2023-24 Measure B Report 5) Fiscal Year 2023-24 Measure BB Report 6) Fiscal Year 2023-24 Measure F Report 7) Fiscal Year 2023-24 Transportation Development Act Fund Report 8) Fiscal Year 2023-24 ARPA Examination 9) Appropriations Limit Fiscal Year 2024-25 10) Report on Internal Control Page 6 of 6 6 Attachment 1 SUMMARY - KEY INFORMATION ANNUAL COMPREHENSIVE FINANCIAL REPORT FO R T H E YEAR ENDING JU N E 30, 2024 City Council Meeting December 17, 2024 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-xvi): 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 193-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 78 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 2023-24 does 7 Attachment 1 not note any findings. This information is presented as a separate document and is included as Attachment 3. 8 Attachment 2 City of Dublin CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year ended June 30, 2024 Attachment 2 City of Dublin Dublin, California Annual Comprehensive Financial Report For the year ended June 30, 2024 Prepared by: Finance Department J 10 Attachment 2 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2024 Table of Contents Page INTRODUCTORY SECTION Table of Contents i Letter of Transmittal v Principal Officers xvii Organizational Chart xviii GFOA Certificate of Excellence in Financial Reporting xix FINANCIAL SECTION Independent Auditor's Report 1 Management's Discussion and Analysis 5 Basic Financial Statements: Government -Wide Financial Statements: Government -Wide Statement of Net Position 24 Government -Wide 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 39 Affordable Housing Special Revenue Fund 40 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 11 Attachment 2 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2024 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 97 Schedule of Contributions - Last 10 Years 98 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 99 Schedule of City Retiree Health Plan Contributions - Last 10 Years 100 Supplementary Information: General Fund - Budget Versus Actual Schedule of Budget Versus Actual Revenue by Sources 103 Schedule of Budget Versus Actual Departmental Expenditures 104 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 108 Parks Projects Capital Projects Fund 109 Streets Projects Capital Projects Fund 110 Public Art Capital Projects Fund 111 Public Facilities Impact Fees Capital Projects Fund 112 Fire Impact Fees Capital Projects Fund 113 Traffic Impact Fees Capital Projects Fund 114 Dublin Crossing Contribution Capital Projects Fund 115 11 12 Attachment 2 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2024 Table of Contents, Continued Page FINANCIAL SECTION, Continued Non -Major Governmental Funds: Combining Balance Sheet 120 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 129 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 138 Internal Service Funds: Combining Statement of Net Position 180 Combining Statement of Revenues, Expenses and Changes in Net Position 182 Combining Statement of Cash Flows 184 Custodial Funds: Combining Statement of Fiduciary Net Position 188 Combining Statement of Changes in Fiduciary Net Position 190 STATISTICAL SECTION (Unaudited) Net Position by Component 194 Changes in Net Position 196 Fund Balances of Governmental Funds 198 Changes in Fund Balances of Governmental Funds 200 Assessed Value of Taxable Property 202 Direct and Overlapping Property Tax Rates 204 Principal Property Taxpayers 206 Property Tax Levies and Collections 207 Direct and Overlapping Debt 208 Ratios of Outstanding Debt by Type 209 Legal Debt Margin Information 210 Demographic and Economic Statistics 212 Property Value, Construction, and Bank Deposits 213 Principal Employers 214 Full -Time Equivalent City Employees by Department 218 Operating Indicators by Function/Program 220 Capital Asset Statistics by Function/Program 222 Top 25 Sales Tax Producers 224 Miscellaneous Statistical Data 225 111 13 Attachment 2 This page intentionally left blank iv 14 Attachment 2 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/1T 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 17, 2024 Honorable Mayor, City Council, and Citizens: Presented with this letter is the City of Dublin Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024. 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, 2024. The independent auditor's report has been included in this ACFR. This letter of transmittal is designed to assist with an individual's review of the City's financial statements. Specifically, it is intended to offer the reader useful information in assessing the economic conditions impacting the City of Dublin. It also complements the separate Management's Discussion and Analysis (MD&A) narrative section, which provides financial highlights of the City and additional analysis of trends reported as part of the financial statements. The MD&A is located immediately following the report of the independent auditors. CITY PROFILE The City of Dublin was incorporated in 1982 and is located in the East Bay of the San Francisco Bay Area and is approximately 30 miles east of San Francisco and 30 miles northeast of the Silicon Valley. In 2011 Dublin was named an "All -America City" by the National Civic League, and in 2018 it 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 106 full-time equivalent City employees in FY 2023-24, in addition to temporary and contract personnel. According to the California Department of Finance as of January 2024, the City of Dublin serves a population of 72,917, and covers 15.23 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 is responsible for the City's ordinances, resolutions, adoption of the annual budget, hiring of the City Manager and City Attorney, and confirming the appointments made by the Mayor to commissions and committees. The City Council currently consists of a directly elected Mayor, who serves a two-year term, and four at -large Councilmembers each elected to a four-year term. In September 2022, the City Council amended the Dublin 15 Attachment 2 Municipal Code to establish district -based elections, beginning with the 2024 election. 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 hiring City staff. The City Attorney provides legal counsel regarding 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, and 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, and 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 Funds. Current City services include the City Manager's Office (General Administration, Human Resources/Risk Management, Communications, City Clerk/Records, Disaster Preparedness, Information Systems, and Economic Development), Finance, City Attorney, Police Services, Fire Services, Community Development (Building/Planning/Housing), Parks and Community Services, and Public Works (Engineering/Capital Improvement Program/Transportation/Maintenance/Environmental Sustainability/Special Districts). The City contracts with public agencies and private firms to provide a variety of key services including Building Inspection, Fire Services, Police Services, and Maintenance. 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, the City has added new housing options including a mix of transit -oriented developments adjacent to the City's two Bay Area Rapid Transit (BART) stations, as well as single family homes and condominium/townhome developments. The proximity to additional job centers and colleges and universities in the Bay Area creates an attractive environment. Much of the recent growth in the community, which is now in its final phases of completion, was planned in the voter -approved 1994 Eastern Dublin Specific Plan. This vision has allowed a strong foundation and quality neighborhoods and public facilities to be built citywide. New developments in the Downtown Dublin Specific Plan area, specifically in the Transit District, have provided housing opportunities as well as retail space that supports a high quality of life in Dublin. Dublin's community, neighborhood, and sports parks offer a variety of recreational and competitive opportunities, and the City's aquatics complex, The Wave, offers residents and visitors a recreation destination with pools, slides, and play structures situated in the center of the community. Development over the past decade has had positive budgetary impacts, allowing the City to make significant investment in our 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 community's long-term fiscal health to continue to provide high -quality services as the City reaches build -out. Key City activities and accomplishments during Fiscal Year 2023-24 include the following: 16 Attachment 2 Economic Development The Economic Development Division continued building upon many successes from the prior year and facilitated new opportunities in support of the business community. The Business Spotlight, a bi-monthly video series, continued providing additional community exposure to Dublin small businesses, and the Small Business Navigator Program provided such businesses with access to free and timely technical support in key functional areas via qualified service providers. The functional areas included: business planning and development; marketing and advertising; architecture and space design; technology consulting; graphic design; and financial guidance. The City's notable Business Concierge Program remained a popular, well -utilized service. The City guided and assisted businesses with opening new locations in Dublin, expanding current locations, or relocating to a new space in Dublin. In FY 2023-24, the program supported more than 100 businesses through the business license, planning, building permitting, and other processes. The City hosted Minority -Owned and General Business Roundtables and facilitated a Business Webinar on Holiday Safety Tips for Businesses. These Roundtables provided business owners the opportunity to discuss their thoughts and concerns with staff, connect with fellow businesses, and it allowed staff to share information on the City's programs and services. The City welcomed many new businesses to Dublin in the dining, services, and retail sectors including Cherie's Southern Kitchen, Demiya Restaurant, 10 Seconds YunNan Rice Noodle, Hong Kong Cafe, Relo Vietnamese Sandwich & Coffee, Turmeric Indian Supermarket, Learn and Play Montessori School, FreshMeatz, Egg Happiness, Myungrang Hot Dog, Teavoli Boba, TeaZenTea, Gong cha, Safelite AutoGlass, Stanford Blood Center, SEV Laser, Five Below, Hanmi Bank, AT&T Retail Store, Kailash Parbat, Anjappar Chettinad Indian Restaurant, Cuppa Yo, Falafel Town, Parsons Xtreme Golf (PXG), YGF Malatang Hotpot, Grocery Outlet, Bag 0 Crab, Dublin Taqueria, and BodyBar Pilates. There were a few noteworthy corporate leases during FY 2023-24, including Orchestro.ai's sublease of 4,217 square feet of office space at the Dublin Corporate Center campus, Keller Supply Company's renewed lease of 20,160 square feet at the Sierra Trinity Business Park, and Cornerstone OnDemand Inc.'s renewed lease of 19,430 square feet at the Dublin Corporate Center. Staff introduced Small Business Night at the Farmers' Market, a new networking and promotional opportunity for the small business community in Dublin. Twenty-three businesses participated in the event. The City once again offered Dublin businesses participation in the Holiday Gift Guide, which provides businesses an opportunity to advertise their products and services at a reduced rate. The Guide is mailed to more than 34,000 households in Dublin and Pleasanton. The Business Visitation Program continued, which provides an opportunity for business owners, City officials, and staff to have direct conversations with business leaders, learning about any potential challenges and opportunities. The City continued in partnership with Visit Tri-Valley on the Taste Tri-Valley Restaurant Week, which featured 12 Dublin restaurants. Three of the participating restaurants were in the top five businesses with the most redemptions/check-ins. The City hosted the first annual Tri-Valley Artificial Intelligence Summit at Patelco Credit Union headquartered in Dublin. The event featured four subject matter experts and included time for networking both before and after the event. 17 Attachment 2 Staff also partnered with Startup Tri-Valley to conduct an Artificial Intelligence (Al) Series on Al's New Role in Developing Patents, Attracting Investment, and Conducting Trials, and Implementation Strategies in Your Company. The Startup Tri-Valley Al Series sessions were held at Dublin Technology Center in Dublin. Twenty-two Dublin businesses participated in the City of Dublin Poetry Walk 2024 by displaying poems at their establishments in celebration of National Poetry Month. In FY 2023-24, the update to the Economic Development Strategy and General Plan Economic Development Element kicked off with stakeholder interviews, business and community surveys, data gathering, and analysis. An Economic Development Strategy Framework was prepared and presented to the City Council. Staff introduced Open Office Hours this year to provide an opportunity for businesses to connect with the City in a relaxed atmosphere. The events were held at local business offices around Dublin , with the first event being held at 580 Executive Center. The City Council approved the Citywide Outdoor Seating Design Guidelines which help to facilitate the design of permanent outdoor seating within parking lots for eating and drinking establishments. The City Council also eliminated parking requirements in the Downtown Dublin Specific Plan Areas, which include the Retail District, Transit -Oriented District, and the Village Parkway District. Lastly, the City received the California Association for Local Economic Development Award of Merit in the category of Programs and Promotions for the Small Business Navigator Program. Community Development Dublin Fallon 580 The Dublin Fallon 580 project is located on 42.6 acres of land at the northeast corner of Dublin Boulevard and Fallon Road. The project includes eliminating the Public/Semi-Public land use designation, converting 42.6-acres of open Space to Parks/Public Recreation, establishing development standards for the future development of 238 residential units and up to 3,299,670 square feet of commercial/campus office use, and subdividing the 192-acre site into 11 parcels. On June 11, 2024, the Planning Commission reviewed the project and recommended that the City Council approve the related General Plan and Eastern Dublin Specific Plan Amendments, Planned Development Zoning with a Stage 1 Development Plan, Stage Development Plan for the residential use, Vesting Tentative Tract Maps, and a Development Agreement. Housing Element The California Department of Housing and Community Development certified the City's adopted 2023- 2031 Housing Element in Fiscal Year 2023 -24. 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 is now working on implementing the policies and programs included in the Housing Element. Inclusionary Zoning Ordinance The City Council adopted amendments to the City's Inclusionary Zoning Regulations (Dublin Municipal Code Section 8.68), the methodology for establishing the Affordable Housing In -Lieu Fee, and the Non - Residential Development Affordable Housing Impact Fee. The amendments include lowering the applicability of the regulations to residential development projects of 10 or more units, creating separate affordability requirements for different product types, resetting the 55-year affordable resale restriction upon transfer of ownership units, and applying selection criteria to resale of ownership 18 Attachment 2 units. The Affordable Housing In -Lieu Fee program was revised to establish fees on a per -square -foot basis for each product type. The Non-residential Development Affordable Housing Impact Fee program was retained with an inflationary index and combined Research & Development and Office uses into a single category. Affordable Housing The City continues to work with Eden Housing to implement their 113-unit Dublin Family Affordable Apartments, an affordable housing project for seniors. This includes implementation of a $3.3 million Local Housing Trust Fund Grant the City secured from the State of California for this project. This grant is in addition to the City's dedication of the site to Eden Housing and $5 million the City allocated from its share of the Alameda County Measure A-1 Bond Funds to the project. The developer is pursuing their building permit while finalizing the project funding. The City continued to work with the development team, Related Communities of California and BRIDGE Housing, on the 300-unit Amador Station affordable housing development. The City provided the development team with a $4.3 million Predevelopment Loan. The City is also continuing to implement this project, including the administration of a $3.3 million Local Housing Trust Fund Grant. 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 allocated to this project. City staff continues to work with the Alameda County Surplus Property Authority to acquire a 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 Council approved an Affordable Housing Agreement with an affiliate of Trumark Homes associated with the development of the Francis Ranch project. The project will develop a 165.5-acre site with 573 residential units. The agreement requires the developer to make a payment of $6.5 million to the City's Affordable Housing Fund, dedicate a two -acre site for a future affordable housing project affordable to low-income and special needs households, construct 18 homes that will be affordable to moderate -income households, and construct 50 accessory dwelling units that will be affordable to low-income households. Public Safety Dublin Police Services (DPS) Crime Prevention Unit (CPU) continued its crime enforcement and community policing programs during FY 2023-24, including the National Drug "Take -Back Initiative" event to collect prescription drugs, community engagement events such as National Night Out, Coffee with a Cop, Stuff the Cruiser, and Alameda County Food Bank's Move for Hunger charity event, among others. In July 2023, CPU worked with the Dublin Unified School District (DUSD) to re-establish the Drug Awareness Resilience Education (DARE) program in the 8th grade. The program was successfully rolled out. At the conclusion of the school year approximately 1,000 DUSD students graduated from the program. In September 2023, CPU presented to the City Council changes to the massage establishment element of the Municipal Code. These changes were put in place to meet state guidelines, prevent human trafficking, and provide a safer experience for Dublin citizens. These changes were unanimously approved due to the research and effort put in by DPS CPU staff. CPU also re-established the Neighborhood Watch Program and hosted nine separate meetings with an approximate total attendance of 260 community members. The DPS Traffic Unit was awarded a grant in the amount of $81,000 from the California Office of Traffic Safety. The grant funds were used for both education and enforcement to reduce the number or injury accidents and accidents caused by impaired drivers. 19 Attachment 2 On July 4, 2023, DPS deployed an additional 22 sworn staff members to ensure the safety of the community during the evening of the 4th of July holiday. During the operational period, DPS responded to 57 calls for service relating to fireworks. Four park locations were patrolled by DPS, including Shannon Park, Emerald Glen Park, Alamo Creek Park, and Dublin Sports Grounds. Approximately 150 pounds of illegal fireworks were confiscated, and one subject was arrested for selling illegal fireworks. DPS purchased two Star Chase GPS launchers in FY 2023-24. This technology allows a dart to be shot from a patrol vehicle onto a suspect vehicle when it fails to yield. The dart has GPS capabilities, eliminating the need to pursue the fleeing vehicle. This reduces the threat to public safety while still allowing officers to track the suspect vehicle. Public Works 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. In support of the CAP, staff coordinated with the Building & Safety Division to develop a low carbon concrete building code which was approved in September of 2024 The code would require any project subject to a building permit to use concrete with a reduced amount of cement in the mixture, when using ready -mix concrete. Cement production is highly energy intensive and reducing the amount of cement in the concrete mix decreases associated greenhouse gas emissions. Staff has also been working on an electric vehicle infrastructure plan that will identify where future chargers should be installed to help encourage the transition to electric vehicles in alignment with State goals. To meet new requirements in the Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit, staff participated in a working group of the Alameda Countywide Clean Water Program to update the model stormwater ordinance template. The model ordinance will be used as the framework for a comprehensive update to the City of Dublin Municipal Code, Stormwater Management and Discharge Control Ordinance. Geographic Information System (GIS) The Geographic Information System (GIS) was integrated with the City's new Enterprise Permitting and Licensing Software system. The integration enables every permit, license, and application to be associated with a geographical location such as a property address or tax parcel number. To increase access to City data, several projects were undertaken to link documents and other data sources to the GIS data system,. This streamlines the process to locate information associated with specific assets, capital and development projects, and facilities. Interactive web -based applications, such as the Election District Map and the Adopt -a -Bench Program StoryMap, were created to increase both public and staff engagement with City projects and data. Staff were trained to collect data in the field using GIS-based mobile applications which makes the data collection process more efficient and accurate. Infrastructure and Capital Improvement Projects The following projects were undertaken, continued, or completed in FY 2023-24: — Annual Street Resurfacing —Citywide The City Council awarded several construction contracts for the resurfacing of City streets, including the 2023 Slurry Seal, 2024 Cape Seal, 2024 Overlay, and 2024 Slurry Seal projects. These projects maintain and preserve streets based upon the City's Pavement Management System, which optimizes the resurfacing treatment in relation to the available project budget. 20 Attachment 2 - 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. Construction of the project continued through the year, including the completion of traffic signal hydrogen fuel cell and battery backup systems, new emergency backup generators at several City buildings, and solar microgrid systems at The Wave and Senior Center. In June the City Council approved an easement to PG&E for a project -related transformer on Dublin Sports Grounds. Construction will continue next fiscal year. The Disaster Preparedness Improvements portion of the project allows for the design and repair of seven damaged sites throughout the City resulting from the January 2023 storms. - Civic Center Rehabilitation (2nd Floor Renovation) Design and construction were completed on the remodeling of three existing spaces on the second floor of City Hall into six spaces. The finished work created three office spaces, a copier and printer alcove, storage room, and small meeting space. — Dublin Arts Center Construction continued on the 13,000-square-foot cultural arts center on the first floor of the former Dublin Police Services building at the Civic Center. The project will also renovate the second -floor space to accommodate offices for the Parks and Community Services Department. — Dublin Boulevard Extension — Fallon Road to North Canyons Parkway The project is currently in the design phase 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. — Fiber Interconnect on Dublin Boulevard Conduit installation for future fiber optic communications was installed on Dublin Boulevard, between Civic Center and San Ramon. A future project phase will install the fiber optic cable and connect all signalized intersections with a faster, more reliable, and higher bandwidth network connection. — Forest Park (formerly Jordan Ranch Neighborhood Square) The City Council approved "The Forest" concept plan for a two -acre neighborhood square park, which includes a multi -use sports court, flex lawn, playground, fitness stations, and picnic areas. The design was completed, and the project went out to bid. Construction is anticipated to begin in fall 2024. — Green Stormwater Infrastructure The design for the Green Stormwater Infrastructure project was completed and the City Council awarded the construction project in June 2024. The project will construct a bio- retention and hydromodification management facility located south of Amador Valley Boulevard along the Iron Horse Regional Trail corridor. Construction will begin in summer 2024. — Iron Horse Nature Park and Open Space — Phase 1 The design was completed and in October 2024, the City Council awarded the construction contract for Phase 1 of a 12.13-acre nature park and open space adjacent to the Iron Horse Trail, from the northern City limit to the confluence of the Alamo and South San Ramon Creeks. Phase 1 includes approximately 2,000 linear feet of new trail, soil remediation, new gathering 21 Attachment 2 spaces, benches, and interpretive signs, as well as a trail connection to and shade structure in Stagecoach Park. — Iron Horse Trail Bridge at Dublin Boulevard Construction continued on the Iron Horse Trail Bridge over Dublin Boulevard. In October 2023, Dublin Boulevard was closed over a weekend while the 230-foot free -span pedestrian and bicycle bridge was lifted over Dublin Boulevard and placed onto the permanent bridge abutments. - Irrigation System Upgrades In February, the City Council created a Capital Improvement Program project and accepted a $1,380,000 grant from the State of California for the Irrigation System Upgrades project. The project provides for the design and replacement of approximately 50 irrigation controllers, improved communication between the central station and controllers, and site -specific watering schedules all which will reduce the amount of needed to irrigate these sites. — Library Tenant Improvements In February 2024, the City Council reviewed the concept plan for the Library Tenant Improvements project. The project provides for the design and construction of improvements to the Dublin Library, including the completion of 5,150 square feet of currently unoccupied space within the library building. There will be additional improvements included with the project to address the age of the building along with outdated and inefficient systems. — Regional Street Crosswalk Improvements Project The design for the Downtown Dublin Streetscape Plan, Regional Street Crosswalk improvements was started. The project will construct a mid -block crosswalk with a Rectangular Rapid Flashing Beacon between Amador Valley Boulevard and Dublin Boulevard. — Safe Routes to School Improvements Project The design for the Safe Routes to School Improvements project was completed in April 2024 and the project went out to bid. The project will include the installation of Rectangular Rapid Flashing Beacons at three intersections, curb ramp upgrades in accordance with the Americans with Disabilities Act (ADA), and traffic signal modification at the intersection of Central Parkway/Hibernia Drive. Construction is anticipated to begin in fall 2024. — 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. — Village Parkway Reconstruction and Complete Streets In February 2024, the City Council approved the concept plan for the Village Parkway Reconstruction project. The project will transform the segment of Village Parkway between Amador Valley Boulevard and the northern City limits, to a pedestrian and bicycle friendly roadway, which will incorporate complete streets elements. Project design will begin in summer 2024. — Wallis Ranch Community Park 22 Attachment 2 The design was completed and in August 2023, the City Council awarded the construction contract for Wallis Ranch Community Park. The project will construct an 8.75-acre community park which includes a 0.9-acre dog park, lighted pickleball, tennis, and basketball courts, 25 stall parking lot, picnic areas, two playground areas, large turf area, landscaping, and pathways for circulation. Intergovernmental Relations The City continued to provide janitorial, pest management, and solid waste and recycling services on Parks Reserve Forces Training Area (Camp Parks) through the Intergovernmental Support Agreement (IGSA) for Municipal Services with U.S. Army Garrison Fort Hunter Liggett. The IGSA term runs from 2019 through December 2028. 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. Parks & Community Services In FY 2023-24, the Parks and Community Services Department (PCS) continued to provide the community with a robust array of services, including 250+ contract classes, 30,000+ hours of field and shelter rentals, 60,000+ visits to the Wave for recreation swimming, 4,000+ swim lesson participants, and 25,000+ senior lunches served at the Open Heart Kitchen. These offerings contribute to a vibrant and inclusive community experience. FY 2023-24 included crowd -drawing events like Splatter and St. Pat's celebrations, collectively attracting more than 100,000 attendees. The Shamrock 5k Fun Run, part of the St. Pat's festivities, was the largest to date, with more than 2,500 participants. Additionally, innovative community events and programs include the Backyard Block Party and the Community Garage Sale. The People of the Parks Program and a new exhibit at the Heritage Park Museum called Old St. Raymond's Church: Past and Present was introduced. Several Public Art projects were installed, including "The Junction" and "Ripples in Time" at the Heritage Park and Museums. Planning and selecting the next round of Utility Box Art, which included 10 utility boxes, was completed. Artists were also sought out to paint functional murals directly adjacent to 10-20 storm drain inlets throughout Dublin. The City Council approved the artwork in January 2024 and the artwork was completed by mid -year. In partnership with the Dublin Arts Collective, the "High Life" student art show took place at Splatter 2023, and the annual Nature in Your Backyard Photo Contest took place as part of Dublin Pride Week. The department also forged a partnership with Futures Explored, an organization dedicated to supporting individuals with intellectual and developmental disabilities (I/DD), successfully placing eight individuals in various City positions, including roles at The Wave, Senior Center, and Heritage Park. FINANCIAL OUTLOOK AND GENERAL FUND SUMMARY Fiscal Year 2023-24 Overall growth in the City's revenue continues to reflect a healthy and thriving community. Property Tax revenue increased $2.9 million (4.9%) from FY 2022-23, led by a gain in net assessed valuation of $1.20 billion (5.7%) over the prior year and stronger -than -anticipated property sales in the second part of the fiscal year, despite high interest rates. Overall home values have remained stable, new developments continue to come online, and there were no significant delinquencies in the fiscal year. Sales Tax came in $2.4 million (8.3%) higher than FY 2022-23, as household spending and Dublin business activity continued to outpace forecasts. City staff and consultants had originally projected Sales Tax to see a slight decrease year -over -year due to inflation and economic uncertainty of interest 23 Attachment 2 rates, but strong sales in the Autos and Transportation sector, along with a change by the State in how certain auto sales were reported, resulted in revenue exceeding the updated mid -year projections. Interest earnings came in significantly higher than the prior year $3.1 million (58.5%), due to high interest rates and a relatively high General Fund cash balance resulting from revenues exceeding expenditures by $39 million, as well as the timing of expenditures on capital projects. Development -related revenue has typically been one of the City's larger revenue streams, but can vary significantly from year to year based on factors outside of the City's control, most notably the timing of projects. Development revenue in FY 2023-24 saw a $1.7 million (20.2%) decrease year over year according to project activity, which was offset by a corresponding decrease in expenditures. The City also maintains a Service Continuity Reserve in the General Fund to ensure there are future funds to cover expenditures when development activity slows. Lastly, revenue from Charges for Service increased $1.0 million (11.9%) from FY 2022-23, as recreation classes and activities continued to see high demand, specifically in Aquatics and Family programs. In addition, the annual Santa Rita Services payment was approximately $550k higher than the prior year and $996k higher than the Amended Budget. This revenue is a reimbursement for the cost of Alameda County Fire's response to service calls from the Santa Rita Jail. A change in this program was implemented midyear in FY 2023-24, which is anticipated to decrease the amount of service calls and reimbursement revenue starting in FY 2024-25. Moving forward, staff is cautiously optimistic. It was originally anticipated that the economy would start to see a slowdown in 2024, due to a multitude of factors, including inflation, but as the City moves into FY 2024-25, inflation seems to have cooled, and the Federal Reserve Bank has begun to reduce interest rates. Staff and the City's consultants will continue monitoring for any signs of an economic slowdown, carefully following discussions on inflation, interest rates, and the uncertainty of the economy's reaction to world affairs. 10-Year Forecast While FY 2023-24 finished with General Fund revenue exceeding expenditures by approximately $39.9 million, long-term fiscal sustainability remains at the forefront of budget discussions. Despite the continued growth in revenues, staff is continuing to analyze the City's rising costs, most notably contracted services as well as the City's aging infrastructure, for which repairs and maintenance are becoming both more frequent and more expensive. Based on these factors and as the City approaches build out, staff projects a budget deficit beginning in FY 2031-32 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. 24 Attachment 2 Figure 1. 10-Year Forecast 200,000,000 175,000,000 150,000,000 125,000,000 100,000,000 75,000,000 SO 000,000 25,000,000 a 10 Year Forecast !III!!! 1 1 1 I I I I - - F L L L k aryyea scot �• co c• o co coL ��c4� ,co k°` • <° 947 w- Expenditures • Licenses & Pern1it5 • Rents & Leases • Property Tax • Other Taxes • Intergovernmental • Sales Tax • Fines • Charges for Services 1 • Development IF Interest • Other Revenue 1 • - FINANCIAL PLANNING AND POLICIES In June 2024, the City Council adopted the City's Bi-Annual Budget for Fiscal Years 2024-25 and 2025- 26. As in previous years, the primary goals addressed in this budget cycle are: 1) fully fund current City operations and continue to provide excellent levels of community service; 2) plan for costs associated with aging facilities, by allocating funds for long term infrastructure maintenance and setting aside of specific reserves for future infrastructure reinvestment; and 3) proactively allocating funds to operating reserves to address long term liabilities. 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 that was taking place in the first quarter of FY 2021-22, the City Council authorized the sale and 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 25 Attachment 2 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. GOVERNMENT FINANCE OFFICERS ASSOCIATION (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, 2023. A copy of the award from this entity is included in this report. This award represents the 33rd consecutive year that the City's report was recognized by the GFOA. In order to be recognized, the City was required to produce an easily readable and efficiently organized report. The report must also meet the standard for generally accepted accounting principles and legal requirements. ACKNOWLEDGEMENTS The preparation of this report was made possible by the collaborative efforts of staff in the Finance Department and other departments, as well as the City's audit firm, Badawi & Associates. A special thanks and acknowledgement to Stephanie Tsoi, Senior Accountant, and Wendy Lam, Accounting Manager, 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, Colleen Tribby City Manager Jay Baksa Finance Director 26 Attachment 2 CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2023/2024 Mayor Michael McCorriston Vice Mayor Sherry Hu Councilmember Jean Josey Councilmember Councilmember Kashef Qaadri Janine Thalblum ADMINISTRATION PERSONNEL City Manager Colleen Tribby Assistant City Manager Jeff Baker Deputy City Manager Hazel Wetherford City Attorney John Bakker Finance Director Jay Baksa City Clerk Marsha Moore Chief of Police Victor Fox Community Development Director Vacant Fire Marshal Bonnie Terra Human Resources Director Sarah Monnastes Parks & Community Services Director Jackie Dwyer Public Works Director Andrew Russell 27 Attachment 2 Organizational Chart Citizens of Dublin 1 City Council 1 1 1 City Attorney City Manager Police Services Economic Development Assistant City Manager Non- _ Departmental Public Works - Office of the City Manager 1. Fire Services 1 Community Development Finance Parks and Community Services 28 Attachment 2 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, 2023 Executive Director/CEO 29 Attachment 2 This page intentionally left blank 30 Attachment 2 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, 2024, 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, 2024, 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 31 Attachment 2 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, and the required pension and OPEB schedules on pages 5-20 and 97-100 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 consistency with 2 32 Attachment 2 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 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 33 Attachment 2 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 10, 2024 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. Badawi & Associates, CPAs Berkeley, California December 10, 2024 4 34 Attachment 2 Management's Discussion and Analysis (MDA) June 30, 2024 As management of the City of Dublin, 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, 2024. 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 the 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 - is 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 35 Attachment 2 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, 2024 and 2023 Governmental Activities June 30, 2024 June 30, 2023 $ Change % Change Current and Other Assets $ 439,003,341 $ 406,803,601 $ 32,199,740 7.9% Notes Receivable (Note 5) 14,532,180 14,541,072 (8,892) -0.1% Leases Receivable (Note 6) 2,632,916 3,050,260 (417,344) -13.7% OPEB Asset (Note 12) 3,412,032 2,865,050 546,982 19.1% Capital Assets (Note 7) 573,219,493 568,081,126 5,138,367 0.9% Total Assets 1,032,799,962 995,341,109 37,458,853 3.8% Deferred Outflows of Resources 12, 226, 603 12, 331, 418 (104,815) -0.85% Current Liabilities 32,656,445 38,087,433 (5,430,988) -14.3% Noncurrent Liabilities 41,920,700 40,984,861 935,839 2.3% Total Liabilities 74,577,145 79,072,294 (4,495,149) -5.7% Deferred Inflows of Resources 5,742,177 6,199,022 (456,845) -7.4% Net Investment in Capital Assets 552,568,250 545,146,807 7,421,443 1.4% Restricted 121,997,027 115,479,147 6,517,880 5.6% Unrestricted 290,141,966 261,775,257 28,366,709 10.8% Total Net Position $ 964,707,243 $ 922,401,211 $ 42,306,032 4.6% As illustrated in the above table, the City's net position increased by $42.3 million (4.6%) during FY 2023- 24. This is due to the following: • Total assets increased $37.5 million, due primarily to increases totaling $32.2 million in Current and Other Assets. This was the result of operating revenue exceeding expenditures for the fiscal year and investment asset appreciation. Capital assets increased by $5 1 million due to the progression of capital projects during the year (e.g., $5.6 million on the Cultural Arts Center, $3.8 million on Wallis Ranch Community Park and $3.1 million on the Iron Horse Trail Bridge) net of depreciation expense. OPEB (Other Post Employment Benefits) Assets also increased $0.5 million, which was a result of positive investment performance and changes in plan experiences. The OPEB Plan continues to be super -funded (i.e., assets are larger than anticipated liabilities). • Total liabilities decreased $4.5 million in FY 2023-24 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. Current liabilities decreased $5.4 million mainly due to prior year (FY 2022-23) accounts payable balance being paid in FY 2023-24, which included $3.7 million for police services. Noncurrent liabilities increased $0 9 million mainly due to an increase in net pension liability, resulting from the Ca1PERS pension fund returns underperforming the annual benchmark. • The City's $552.6 million in Net Investment in Capital Assets represents 57.3% of the reported net position. Capital asset investments include the City's investments in land, infrastructure, buildings, and 6 36 Attachment 2 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 2023-24, the City's restricted net positions increased by a net of $6.5 million, attributed to highways and streets improvement capital project expenses. Approximately $290.1 million of the City's total assets (an increase of $28.4 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 is already placed in committed and assigned reserves for specific purposes. 7 37 Attachment 2 GOVERNMENTAL ACTIVITIES Table 2 below provides a summary of major program revenue categories, program expense categories 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 CS-1NGES LN NET POSITION June 30, 2024 and 2023 June 30, 2024 June 30, 2023 $ Change % Change Revenues Program Revenues Charges for Services $ 27,452,306 $ 27,548,071 $ (95,765) -0.3% Operating Contributions and Grants 7,306,850 8,446,008 (1,139,158) -13.5% Capital Grants and Contributions 10,219,385 9,634,240 585,145 6.1% Total Program Revenue 44,978,541 45,628,319 (649,778) -1.4% General Revenues Property Taxes 61,967,658 59,056,139 2,911,519 4.9% Special Assessments Taxes 1,647,782 1,607,028 40,754 2.5% Sales Taxes 32,794,253 30,541,735 2,252,518 7.4% Other Taxes 9,129,368 8,729,684 399,684 4.6% Investment Income, Unrestricted 16,228,168 2,759,385 13,468,783 488.1% Intergovernmental Unrestricted 441,518 305,729 135,789 44.4% Other General Revenues 5,393,897 4,355,226 1,038,671 23.8% Total General Revenue 127,602,644 107,354,926 20,247,718 18.9% Total Revenues 172,581,185 152,983,245 19,597,940 12.8% Expenses Governmental Activities: General Government 25,885,878 27,027,922 (1,142,044) -4.2% Police 30,091,877 27,849,316 2,242,561 8.1% Fire 17,453,636 16,308,574 1,145,062 7.0% Public Works and Transportation 31,202,172 30,353,850 848,322 2.8% Park and Community Services 12,102,695 11,207,229 895,466 8.0% Community Development 12,929,904 6,969,557 5,960,347 85.5% Interest on Long -Term Debt 608,991 583,787 25,204 4.3% Total Governmental Activities 130,275,153 120,300,235 9,974,918 8.3% Total Expenses Increase In Net Position Net Position - Beginning of Year Net Position - End of Year 130,275,153 120,300,235 9,974,918 8.3% 42,306,032 32,683,010 9,623,022 29.4% 922,401,211 889,718,201 32,683,010 3.7% S 964,707,243 S 922,401,211 S 42,306,032 4.6% As shown in Table 2, revenues from all sources totaled $172.6 million and expenses for all City programs totaled $130.3 million in FY 2023-24. The City's net position increased $42.3 million. 8 38 Attachment 2 Revenues Total revenues increased $19.6 million, or 12.8%, in FY 2023-24 from the prior year. Details of changes are as follows: • Investment Income increased $13.5 million from FY 2022-23. The change is attributed to the continued high -interest rate environment that resulted in an accounting increase for unrealized gains on investments at year end and additional interest income from a high cash balance due to the timing of expenditures on capital projects. • Property Taxes increased $2.9 million, reflecting an increase in the net assessed valuation of $1.2 billion over the prior year and the strong home sales in the second part of FY 2023-24. • Sales Taxes increased $2.3 million as local businesses remained strong. There was also a change made by the State in how certain auto sales are reported, resulting in the reallocation of $2 5 million in auto sales tax to the City in FY 2023-24. • Other General Revenue can vary year to year, as many of these funds are non -recurring. FY 2023- 24 revenue increased $1.0 million due to the receipt of funds from a legal settlement. Expenses Total expenses increased $10.0 million, or 8.3%, in FY 2023-24 compared to the prior year. The following factors contributed to the increase: • General Government expenses decreased $1.1 million due to a one-time additional payment of $3.5 million towards the Dougherty Regional Fire Authority (DRFA) unfunded pension liability in FY 2022-23. • Police Services expenses increased $2.2 million mainly due to cost -of -living adjustments in the Police contract, the use of various grant funds, and an overall increase in the cost of dispatch services. • Fire Services expenses increased $1.1 million due to cost -of -living adjustments and benefit increases provided for in the Fire contract. • Community Development expenses increased $6.0 million mainly due to the affordable housing and development loans totaling $5.3 million toward two development projects: the Eden Housing Regional Street Project and the Amador Station Affordable Housing Project. 9 39 Attachment 2 Revenues and Expenses by Category The following chart presents the Government -Wide FY 2023-24 revenues. Approximately 70.8% of the total revenue is from three sources: 1) Property taxes, 35.9%; 2) Sales Taxes, 19.0%; and 3) Charges for Services, 15.9%. This is relatively consistent with the prior year. Sales Taxes 32,794,253 19.0% Special Assessments 1,647,782 1.0% Property Taxes 61,967,658 35.9% Other Taxes 9,129,368 5.3% Investment Income, Unrestricted 16,228,168 9.4% Intergovernmental, Unrestricted 441,518 0.3% Other General Revenues 5,393,897 3.1% Charges for Services 27,452,306 15.9% Operating Contributions & Grants 7,306,850 4.2% Capital Grants & Contributions 10,219,385 5.9% 10 40 Attachment 2 The following chart demonstrates the allocation of Government -Wide expenses in FY 2023-24. Of the $130 3 million in total expenses, Public Safety (Police and Fire Services), Public Works and Transportation are the largest program costs, making up a combined 60.5% of the total, followed by General Government and Parks and Community Services, at 19.9% and 9.3%, respectively. Community Development $12,929,904 9.9% Parks & Community Services $12,102,695 9.3% Public Works and Transportation $31,212,172 24.0% Fire Services $17,453,636 13.4% FUND FINANCIAL STATEMENTS — DESCRIPTIONS Interest on Long -Term Debt $608,991 0.5 % General Government $25,885,878 19.9% Police $30,091,877 23.1% 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, 11 41 Attachment 2 and changes in fund balances provide a reconciliation to facilitate this comparison between Governmental funds and governmental activities. The City maintains 89 individual Governmental funds. Information is presented separately in the Governmental fund balance sheet and in the Governmental fund statement of revenues, expenditures, and changes in fund balances for the following 10 funds: General Fund; Affordable Housing Fund; four Capital Project Funds (General Improvement Projects; Parks Projects; Streets Projects; Public Art); 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 79 Governmental funds are combined into a single aggregated presentation, labeled as Non -Major Governmental Funds. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for each of its Governmental funds. A budgetary comparison statement has been provided for each Governmental fund to demonstrate compliance with this budget. Proprietary funds: The City maintains one type of Proprietary fund, the internal service fund (ISF), which is an accounting device used to accumulate and allocate costs internally among the City's various functions and to build up reserves for future replacement of capital assets. The City uses five ISFs to account for its fleet of vehicles, equipment, improvements to City buildings, computer systems and certain retiree costs. Because these services solely benefit the governmental function, they have been included within governmental activities in the Government -wide financial statements. Proprietary fund financial statements provide the same type of information as the Government -wide financial statements, only in more detail. All five ISF's are combined into a single, aggregated presentation in the Proprietary fund financial statements. Individual fund data for the ISF's is provided in the form of combining statements elsewhere in this report. Fiduciary funds: The Fiduciary fund section consists of the City's eight Custodial Funds. The Dublin Boulevard Extension Assessment District; The Community Facilities District (CFD) No. 2015-1 "Dublin Crossing" an improvement district with outstanding bonds; CFD No. 2023-1 "East Ranch:, an improvement and services district; Dublin Boulevard Extention (CFD), created to account for cost associated with a future CFD, for the mitigation cost of the future Dublin Boulevard Extension project; Dublin Centre CFD No. 2024-1, to account for costs associated with the cost of creating a proposed CFD for the Dublin Centre project. 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 42 Attachment 2 GOVERNMENTAL FUNDS — FINANCIAL ANALYSIS As of June 30, 2024, the City's governmental funds reported combined ending fund balances of $391.4 million, an increase of $31.3 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: GOVERNNIENTAL FUND BALANCE CHANGES June 30, 2024 and 2023 General Fund Affordable Housing Fund Capital Improvement Funds Other Governmental Funds Total Governmental Funds GENERAL FUND June 30, 2024 $ 290,432,954 25,285,171 56,116,205 19,529,130 June 30, 2023 $ Change % Change $ 249,736,610 30,243,024 58,331,196 21,704,791 S 391,363,460 S 360.015.621 $ 40,696,344 16.3% (4,957,853) -16.4% (2,214,991) -3.8% (2,175,661) -10.0% S 31,347,839 8.7% The General Fund is the chief operating fund of the City. At the end of FY 2023-24, the total fund balance was $290.4 million. The unassigned amount of $43.4 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 $50.4 million, representing approximately 5.5 months of budgeted FY 2024-25 expenditures. The remaining balances are committed or assigned as discussed in Note 9 to the financial statements. During FY 2023-24, General Fund revenues exceeded expenditures by $39.9 million, before transfers in/out and the recognition of unrealized gains. Compared to the prior year, General Fund operating revenues came in $9.7 million higher, from $134.6 million in FY 2022-23 to $124.9 million in FY 2023-24. Revenues, including an unrealized gain adjustment of $7.0 million, totaled $141.6 million, an increase of $19.8 million from the prior year. Operating expenditures in General Fund departments totaled $94.7 million in FY 2023-24, which was $9.0 million under the final budget (not including transfers out) and $2.7 million higher than actual expenditures in the prior year. The expenditures came in higher mainly due to planned increases in police services, fire services, and maintenance contract costs. In addition, police dispatch costs came in higher than anticipated, and other contracted services increased due to the continued health of the City's recreation programs. AFFORDABLE HOUSING FUND The Affordable Housing Fund is a special revenue fund which accounts for funds associated with affordable housing programs. The fund balance totaled $28.3 million as of June 30, 2024, a decrease of $5.0 million over the prior year due to the funding of two development projects: the Eden Housing Regional Street Project ($1 million) and the Amador Station Affordable Housing Project ($4.3 million). 13 43 Attachment 2 CAPITAL PROJECT FUNDS As previously described, the City has included eight specific Capital Project Funds in the information presented as part of the governmental funds. Four of the funds are used to capture expenditures related to active capital projects that are underway. The four funds are: General Improvement Projects, Parks Projects, Streets Projects, and Public Art Projects. Public Art Capital Projects Fund was created in FY 2022-23 to account for promoting the public interest and general welfare through the acquisition, installation, maintenance, and promotion of public art. Funding for the expenditures in these funds occurs via transfers in from other funds. The following four 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 2023-24 was $2 1 million (including interest earned), an increase of $0.2 million from the prior year. This revenue is collected when developers process final maps, resulting in payments of fees. Due to variations in project construction and acquisition timelines, expenditure patterns will fluctuate. 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 2023-24 was approximately $44,000 (including interest earned), about $33,000 lower than was collected in the prior year, due to a decrease in developer contributions. With all impact fees, 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 transportation needs. Revenue collected in FY 2023-24 totaled $2.1 million (including interest earned), approximately $686,000 lower 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 2023-24 totaled $365,000 (including interest earned), $114,000 higher than was collected in the prior year, due primarily to an increase in interest revenue. 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 decreased $2.2 million in these funds. Based on the designated use of the funds they can be arranged by function as shown in Table 4 below: 14 44 Attachment 2 TABLE 4: ANALYSIS OF FUND BALANCES - NON -MAJOR GOVERNMENTAL FUNDS, ARRANGED BY FUNCTION June 30, 2024 and 20223 June 30, 2024 June 30, 2023 $ Change % Change SPECIAL REVENUE FUNDS: Public Safety $ 1,515,761 $ 1,260,237 $ 255,524 20.3% Transportation 8,556,701 8,335,750 220,951 2.7% Environmental 1,390,620 1,616,697 (226,077) -14.0% Parks, Culture, Arts 2,062,683 3,481,832 (1,419,149) -40.8% Health & Welfare 414,424 132,694 281,730 212.3% Maintenance Districts 4,340,297 4,034,536 305,761 7.6% CAPITAL PROJECTS FUND: Energy Improvement Lease Bond 1,248,644 2.843.045 (1.594.401) -56.1% TOTAL FUND BALANCE $ 19,529,130 S 21.704,791 S (2.175.661) -10.0% 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 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 45 Attachment 2 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 ORIGLNAL AND FLNAL BUDGET AND ACTUAL Period Ending June 30, 2024 REVENUE Taxes Intergovernmental Licenses and Permits Charges for Services Use of Money and Property Fines and Forfeitures Development Revenue Other Revenue Total Revenue EXTENDITURE General Government Police Fire Public Works Park and Community Services Community Development Debt Principal Interest and Fiscal Charges Total Expenditure OTHER FINANCING SOURCES (USES) Transfer In Transfer Out Total Other Financing Sources (Uses) NET CHANGE LN FUND BALANCE Budget Amounts Original Final $ 94,801,500 290,000 286,417 7,389,683 4,158,021 50,000 7,109,829 1,806,412 $ 97,797,400 405,000 286,417 7,389,683 7,148,021 50,000 6,903,536 1,938,367 Actual Amount $ 102,000,466 441,518 309,959 9,678,380 17,694,147 98,693 6,782,241 4,591,468 Variance from Final Budget $ 4,203,066 36,518 23,542 2,288,697 10,546,126 48,693 (121,295) 2,653,101 115,891,862 121,918,424 141,596,872 19.673.448 17,294,965 28,283,479 17,315,342 21,706,751 8,997,878 5,642,960 680,000 651,850 100,573,225 56,600 (19,929,893) (19,873,293) S (4,554,656) 18,230,860 28,591,266 17,317,732 23,130,326 9,343,691 5,799,028 680,000 651,850 14,183,999 28,688,615 17,172,568 19,191,341 8,810,002 5,320,362 680,000 651,850 4,046,861 (97,349) 145,164 3,938,985 533,689 478,666 103,744,753 94,698,737 9,046,016 129,582 (53,207,754) (53,078,172) S(34,904,501) 120,825 (6,322,616) (8,757) 46,885,138 (6,201,791) 46,876.381 S 40,696,344 S 75,600,845 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 46 Attachment 2 The General Fund total revenues was $19.7 million higher than the final budget as of June 30, 2024, due mainly to the following factors: • Taxes: $4.2 million higher than budget - Property Tax revenue was $2.1 million over budget in FY 2023-24 due to stronger than anticipated property sales in the second part of FY 2023-24. Sales tax revenue was $1 3 million over budget as it was originally projected that overall consumer spending would slow in FY 2023-24, and sales activity outpaced forecasts. • Charges for Services: $2.3 million higher than budget — This increase is attributed to Parks and Recreation programming revenue, specifically in Aquatics and Family programs. Overall, Dublin Parks and Community Services programs continued to see high demand. In addition, the annual Santa Rita Services payment was approximately $996k higher than the Amended Budget. This revenue is a reimbursement for the cost of Alameda County Fire's response to service calls from the Santa Rita jail. A change in this program was implemented midyear in Fiscal Year 2023-24, which is anticipated to decrease the amount of service calls and reimbursement revenue starting in Fiscal Year 2024-25. • Use of Money and Property Revenue: $10.5 million higher than budget — Interest earnings revenue came in $3.0 million over the budget due to the continued high -interest rate environment, with the Federal Funds Rate staying between 5.25% to 5.50% for the majority of FY 2023-24. In addition, the City maintained a higher -than -anticipated General Fund cash balance that was the result of the operating budget's revenues exceeding expenditures, as well as the timing of expenditures on capital projects. Additionally, the City's portfolio saw an unrealized gain on investment of approximately $7.0 million in FY 2023-24. General Fund expenditures came in $9.0 million lower than the final budget, reflecting overall savings across departments. The following is a discussion of the changes. • General Government: $4.0 million lower than budget. Budget savings were a result of lower - than -anticipated expenditures in contract services and salaries and benefits. Contract Services expenditures came in under budget due to savings related to the timing of projects. Staffing costs came in lower than the budget due to a number of vacant positions and the timing of hiring; and the extra unfunded liability contribution to CalPERS being unspent and set aside in a General Fund designated reserve, which has become the City's practice over the past several years. • Public Works: $3.9 million lower than budget. Budget savings resulted from lower -than - anticipated costs related to maintenance and engineering, specifically contract services, the timing of projects, and lower utilities costs. Overall, Staff had anticipated double digit growth in utilities due to rate increases in the electric and gas rates; however, year -over -year expenditures decreased for both, as well as the overall amount spent on water in response to another wet and rainy winter. 17 47 Attachment 2 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities as of June 30, 2024, amounts to $573.2 million (net of accumulated depreciation). These capital assets include land and streets right-of-way, buildings, park and roadway improvements, vehicles and other equipment, Construction in Progress, and subscription based I.T. agreements, as summarized in Table 6 below. During FY 2023-24, the City's investment in capital assets increased by approximately $5.1 million (0.9%), due primarily to additions to Construction in Progress net of the accumulated depreciation, as the City is currently undertaking multiple large Capital Improvement Projects, as shown in Table 7. TABLE 6: SUMMARY OF INVESTMENT IN CAPITAL ASSETS June 30, 2024 and 2023 Land Streets Right of Way Construction in Progress Infrastructure Buildings and Improvements Machinery and Equipment Subscription Based I.T. Agreements Subtotal Less: Accumulated Depreciation Total Net of Depreciation Captial Assets for Governmental Activities June 30, 2024 $ 182,170,145 37,760,857 132,096,481 448,236,611 118,093,759 26,850,793 3,263,114 948,471,760 June 30, 2023 $ Change % Change $ 182,170,145 37,760,857 114,604,256 448,086,898 118,093,759 25,709,973 1,479,702 $ - 0.0% - 0.0% 17,492,225 15.3% 149,713 0.0% - 0.0% 1,140,820 4.4% 1,783,412 120.5% 927,905,590 20,566,170 2.2% (375,252,267) (359,824,464) (15,427,803) 4.3% $ 573,219,493 $ 568,081,126 $ 5,138,367 0.9% 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 2023-24 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 48 Attachment 2 TABLE 7: SUMMARY OF CAPITAL IMPROVEMENT PROJECT ACTIVITY As of June 30, 2024 PROJECT NAME ACTUAL FY 2023/24 STATUS GENERAL IMPROVEMENTS 8,686,152 Police Services Building 1,022 In Progress IT Infrastructure Improvement 16,788 In Progress Civic Center HVAC and Roof Replacement 118 In Progress Cultural Arts Center 5,620,033 In Progress Citywide Energy Improvements 1,661,064 In Progress Civic Center Rehabilitation 722,132 In Progress Dublin Standard Plans Update 56,744 In Progress Marquee Signs 237 In Progress EV Charging Stations 38,456 In Progress Resiliency and Disaster Preparedness 302,161 In Progress Exterior Painting 24,030 In Progress Irrigation System Upgrades 22,000 In Progress Financial System Replacement 141,275 In Progress Municipal Fiber 246 In Progress Audio Visual System Upgrade 18,288 In Progress Maintenance Yard Facility 81 In Progress Library Tenant Improvements 60,727 In Progress Situational Awareness Camera 750 In Progress PARKS 5,990,943 Emerald Glen Park Recre & Aquatic 592 In Progress Don Biddle Community Park 326,497 In Progress Fallon Sports Park Phase 3 301,250 In Progress Alamo Creek Pk and Assmt Dist Fence Replacement 15,977 In Progress Persimmon Dr Ped Path Rehab 3,860 In Progress Parks Playground Replacement 82 In Progress Downtown Dublin Town Square Park 122 In Progress Kolb Park Renovation 493 In Progress Restrooms Replacement 6,441 In Progress Jordan Ranch Neighborhood Square 148,940 In Progress Wallis Ranch Community Park 3,833,153 In Progress Iron Horse Nature Park and Open Space 1,347,990 In Progress Imagine Playground at Dublin Sports 5,546 In Progress PUBLIC ART 244,478 Camp Parks Sign 24,643 In Progress Downtown Dublin 16,640 In Progress Don Biddle Community Park 9,327 In Progress Heritage Park 193,731 In Progress Sean Diamond Park 82 In Progress Imagine Playground 55 In Progress STREETS 6,099,577 Tassajara Road Realignment and Design 347,853 In Progress Annual Street Resurfacing 1,677,145 In Progress Iron Horse Trail Bridge at Dublin Blvd 3,135,774 In Progress Tassajara Rd Impro - N Dublin to Quarry 99,879 In Progress Green Stormwater Infrastructure 60,130 In Progress Dublin Blvd Extension 56,451 In Progress San Ramon Road Landscape Renovation 1,214 In Progress Downtown Dublin Street Grid Network 246 In Progress Traffic Signal Re-Lamping 841 In Progress Village Parkway Reconstruction 156,543 In Progress Golden Gate Drive Improvement 101,930 In Progress Citywide Bicycle & Pedestrian Improvements 220,514 In Progress Intelligent Trans System Upgrade 31,203 Completed Citywide Signal Comm. Upgrade 209,854 In Progress TOTAL 21,021,150 19 49 Attachment 2 Long -Term 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. Beginning in fiscal year 2023, as required by the Governmental Accounting Standards Board, the City began recognizing subscription -based information technology arrangements (SBITA) as a long-term liability. A summary of the long-term debt is shown in Table 8 below. TABLE 8: SUMMARY OF LONG-TERM DEBT June 30, 2024 and 2023 Bonds and premium Subscription Based I.T. Agreements Total Long -Term Debt Long -Term Debt June 30, 2024 $ 18,871,853 917,422 $ 19,789,275 June 30, 2023 $ Change $ 19,675,709 $ (803,856) 1,221,058 (303,636) $ 20,896,767 $ (1,107,492) % Change -4.1% -24.9% -5.3% The City's long-term debt as of June 30, 2024 amounted to $19,789,275, a decrease of $1.1 million from FY 2022-23. The decrease is primary due to the bond payments and the amortization of premium on bonds. For more detailed information of long-term debt balances, see Note 8 to the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET In Fiscal Year 2023-24, the City experienced strong performances in all revenue categories. In particular, Property Tax and Sales Tax, the City's two largest revenue sources, continued to increase as prices remained strong in the East Bay despite rising interest rates. Interest earnings came in significantly higher than the prior year, as the Federal Reserve raised rates 11 times between March 2022 and July 2023, and the City maintained a relatively high cash balance, due to the timing of expenditures on capital projects. In the upcoming budget, Staff believes that there will be slight growth in Property Tax and that Sales Tax will level off and possibly decrease slightly before slowly growing again. Charges for Services are projected to continue to grow based on the strong demand for Parks and Community Services classes and activities. On the expenditure side, contracted services costs (Police, Fire, and Maintenance) are anticipated to rise between 5-6% in FY 2024-25 and personnel costs (salaries and benefits) are anticipated to increase a combined 11.0%. The City finished FY 2023-24 with a General Fund surplus and is also projecting a surplus in the FY 2024- 25 budget, but it is the long-term fiscal sustainability of the City that continues to be at the forefront of budget discussions. Based on conservative estimates, as the City starts to reach buildout, Staff is projecting an operating deficit by FY 2031-32. Accordingly, in the next budget cycle the City will focus not only on continuing to provide a high level of community services and maintaining top-notch facilities, but also on considering long-term budget -balancing solutions and shoring up reserves for future use. 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 50 Attachment 2 BASIC FINANCIAL STATEMENTS Attachment 2 This page intentionally left blank 22 52 Attachment 2 GOVERNMENT -WIDE FINANCIAL STATEMENTS Attachment 2 City of Dublin Government -Wide Statement of Net Position June 30, 2024 Primary Government Governmental Activities ASSETS Current assets: Cash and investments (Note 3) $ 418,659,294 Accounts receivable 17,561,016 Leases receivable, current portion (Note 6) 323,143 Accrued interest receivable 2,337,240 Prepaids 445,791 Total current assets 439,326,484 Noncurrent assets: Notes receivable (Note 5) 14,532,180 Leases receivable (Note 6) 2,309,773 Net OPEB asset - City of Dublin (Note 12) 3,412,032 Capital assets (non -depreciable) (Note 7): Land 182,170,145 Streets right of way 37,760,857 Construction in progress 132,096,481 Capital assets (depreciable): Infrastructures 448,236,611 Building and improvements 118,093,759 Vehicles and equipment 26,850,793 Subscription based I.T. agreements 3,263,114 less accumulated depreciation (375,252,267) Total capital assets 573,219,493 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) 593,473,478 1,032,799,962 9,159,405 3,067,198 Total deferred outflows of resources 12,226,603 See accompanying Notes to Basic Financial Statements 24 54 Attachment 2 City of Dublin Government -Wide Statement of Net Position (Continued) June 30, 2024 Primary Government Governmental Activities LIABILITIES Current liabilities: Accounts payable 18,106,029 Accrued wages and other payroll liabilities 812,680 Deposits payable 4,707,853 Contract retention payable 2,110,612 Other payables 442,321 Unearned revenue 4,114,561 Compensated absences - due within one year 1,366,580 Long-term debt - due within one year (Note 8) 995,809 Total current liabilities 32,656,445 Noncurrent liabilities: Claims payable 201,107 Compensated absences - due in more than one year 151,843 Long-term debt - due in more than one year (Note 8) 18,793,466 Net pension liability (Note 11) 22,774,284 Total noncurrent liabilities 41,920,700 Total liabilities 74,577,145 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases (Note 6) 2,266,883 Deferred inflows of resources related to pension (Note 11) 1,574,250 Deferred inflows of resources related to OPEB - City of Dublin (Note 12) 1,901,044 Total deferred inflows of resources 5,742,177 NET POSITION Net investment in capital assets 552,568,250 Restricted for: Public safety 1,515,761 Impact fee projects 60,687,676 Highways and streets 19,933,208 Health and welfare 26,689,421 Culture and leisure 407,128 Pension 9,351,801 OPEB 3,412,032 Total restricted 121,997,027 Unrestricted 290,141,966 Total net position $ 964,707,243 See accompanying Notes to Basic Financial Statements 25 55 Attachment 2 City of Dublin Government -Wide Statement of Activities For the year ended June 30, 2024 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 $ 25,885,879 30,091,877 17,453,636 31,202,172 12,102,695 12,929,903 608,991 $ 11,533,104 445,758 2,625,459 2,545,389 5,825,924 4,476,672 $ 259,293 $ - $ 11,792,397 $ (14,093,482) 678,516 - 1,124,274 (28,967,603) - - 2,625,459 (14,828,177) 5,979,980 9,564,440 18,089,809 (13,112,363) 93,676 - 5,919,600 (6,183,095) 295,385 654,945 5,427,002 (7,502,901) - - (608,991) $ 130,275,153 $ 27,452,306 $ 7,306,850 $ 10,219,385 $ 44,978,541 (85,296,612) 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 61,967,658 1,647,782 32,794,253 9,129,368 105,539,061 441,518 5,393,897 16,228,168 127,602,644 42,306,032 922,401,211 $ 964,707,243 See accompanying Notes to Basic Financial Statements 26 56 Attachment 2 FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 27 57 Attachment 2 This page intentionally left blank 28 58 Attachment 2 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 Art Capital Projects Fund - The Public Art Fund was created following the adoption of Dublin Municipal Code 8.58 "Public Art Program Contribution." The purpose of the adoption of the ordinance, and Public Art Fund fund is to: promote the public interest and general welfare through the acquisition, installation, maintenance and promotion of public art; establish requirements and procedures for developer contributions to public art; provide funding to support the acquisition, installation, maintenance and promotion of public art; and implement the goals of the Public Art Master Plan. Bi-Annually Staff identifies and develops Public Art projects that will be funded utilizing the Public Art Fund. These projects are included in the City's Capital Improvement Program and subject to City Council approval. Since inception, the Public Art Fund has been funded entirely by developer contributions that are subject to the Public Art Program Contribution ordinance. 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 59 Attachment 2 City of Dublin Balance Sheet Governmental Funds June 30, 2024 ASSETS Special Revenue Fund Capital Project Funds General General Affordable Improvement Parks Streets Fund Housing Projects Projects Projects Cash and investments $ 258,489,391 $ 11,785,063 $ 2,817,852 $ 3,427,917 $ 1,691,007 Accounts receivable 11,668,512 - 73,306 3,000 Accrued interest receivable 2,337,240 - - Due from other funds 29,584,182 - - Notes receivable - 14,521,942 - Leases receivable 2,632,916 - - Advances to other funds 4,901,566 - - Prepaids 54,708 - - Total assets $ 309,668,515 $ 26,307,005 $ 2,891,158 $ 3,430,917 $ 1,691,007 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable $ 9,856,276 $ 1,009,060 $ 1,693,865 $ 2,986,559 $ 1,198,139 Accrued wages and other payroll liabilities 766,409 12,774 6,335 8,545 9,027 Deposits payable 4,450,377 - - - Contract retention payable - - 1,190,958 435,813 483,841 Other payables 390,267 - - Unearned revenue 1,505,349 - - Due to other funds - - - Advances from other funds - - - Total liabilities Deferred inflows of resources: Related to leases Unavailable revenue - accounts receivable 16,968,678 1,021,834 2,891,158 3,430,917 1,691,007 2,266,883 Total deferred inflows of resources 2,266,883 Fund Balances: Nonspendable 54,708 - Restricted 9,351,801 25,285,171 Committed 84,215,445 - Assigned 153,402,585 Unassigned 43,408,415 Total fund balances 290,432,954 25,285,171 Total liabilities, deferred inflows of resources, and fund balances $ 309,668,515 $ 26,307,005 $ 2,891,158 $ 3,430,917 $ 1,691,007 See accompanying Notes to Basic Financial Statements 30 60 Attachment 2 City of Dublin Balance Sheet (Continued) Governmental Funds June 30, 2024 Capital Project Funds Public Dublin Facilities Fire Impact Traffic Impact Crossing Public Art Impact Fees Fees Fees Contribution ASSETS Cash and investments $ 6,210 $ 42,059,849 $ 178,376 $ 31,469,188 $ 12,407,696 Accounts receivable - - 181,110 Accrued interest receivable - - - Due from other funds - - - Notes receivable - - - Leases receivable - - - Advances to other funds - - - Prepaids - - - Total assets $ 6,210 $ 42,059,849 $ 178,376 $ 31,650,298 $ 12,407,696 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable $ 6,210 $ - $ - $ 119,536 $ Accrued wages and other payroll liabilities - - - Deposits payable - - - Contract retention payable - - - Other payables - - - Unearned revenue - - - Due to other funds - 25,152,485 - Advances from other funds - 4,901,566 - Total liabilities Deferred inflows of resources: Related to leases Unavailable revenue - accounts receivable Total deferred inflows of resources 6,427 6,210 30,054,051 119,536 6,427 Fund Balances: Nonspendable - - - Restricted - 12,005,798 178,376 31,530,762 12,401,269 Committed - - - Assigned - - - Unassigned - - - Total fund balances - 12,005,798 178,376 31,530,762 12,401,269 Total liabilities, deferred inflows of resources, and fund balances $ 6,210 $ 42,059,849 $ 178,376 $ 31,650,298 $ 12,407,696 See accompanying Notes to Basic Financial Statements 31 61 Attachment 2 City of Dublin Balance Sheet (Continued) Governmental Funds June 30, 2024 Other Total Governmental Governmental Funds Funds ASSETS Cash and investments $ 26,617,113 $ 390,949,662 Accounts receivable 5,389,074 17,315,002 Accrued interest receivable 2,337,240 Due from other funds 29,584,182 Notes receivable 10,238 14,532,180 Leases receivable 2,632,916 Advances to other funds 4,901,566 Prepaids 54,708 Total assets $ 32,016,425 $ 462,307,456 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable $ 1,105,482 $ 17,975,127 Accrued wages and other payroll liabilities 9,590 812,680 Deposits payable 251,049 4,707,853 Contract retention payable 2,110,612 Other payables 390,267 Unearned revenue 2,609,212 4,114,561 Due to other funds 4,371,470 29,523,955 Advances from other funds 4,901,566 Total liabilities 8,346,803 64,536,621 Deferred inflows of resources: Related to leases 2,266,883 Unavailable revenue - accounts receivable 4,140,492 4,140,492 Total deferred inflows of resources 4,140,492 6,407,375 Fund Balances: Nonspendable 54,708 Restricted 23,691,326 114,444,503 Committed 84,215,445 Assigned 153,402,585 Unassigned (4,162,196) 39,246,219 Total fund balances 19,529,130 391,363,460 Total liabilities, deferred inflows of resources, and fund balances $ 32,016,425 $ 462,307,456 See accompanying Notes to Basic Financial Statements 32 62 Attachment 2 City of Dublin Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position June 30, 2024 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. 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. Interest payable is not due and payable in the current period and, therefore are not reported in the governmental funds balance sheet. 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 Internal Service of Net Position Funds $ 391,363,460 Total $ 352,027,483 $ (19,061,253) 332,966,230 221,192,010 (21,712,158) 199,479,852 $ 573,219,493 $ (40,773,411) 532,446,082 Government - Wide Statement Internal Service of Net Position Funds 68,011,589 4,140,492 (52,054) 9,159,405 3,067,198 (1,574,250) (1,901,044) Total $ (1,366,580) $ (201,107) (151,843) (995,809) (18,793,466) 3,412,032 (22,774,284) (1,366,580) (201,107) (151,843) 285,809 (710,000) 631,613 (18,161,853) 3,412,032 (22,774,284) $ (40,871,057) $ 917,422 (39,953,635) $ 964,707,243 See accompanying Notes to Basic Financial Statements 33 63 Attachment 2 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2024 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: Special Revenue Fund Capital Project Funds General General Affordable Improvement Parks Streets Fund Housing Projects Projects Projects $ 61,967,658 $ - $ - $ - $ - 30,903,440 9,129,368 - - - - 441,518 - 309,959 - - - - 9,678,380 83,661 - - - 8,499,828 387,177 - - - 2,172,046 377,644 7,022,273 - - - - 98,693 - - - - 6,782,241 - - - - 4,591,468 141,596,872 848,482 Current: General government 14,183,999 - - - - Police 28,688,615 - - - - Fire 17,172,568 - - - - Public works and transportation 19,191,341 - - - - Park and community services 8,810,002 - - - - Community development 5,320,362 5,806,335 - - - Capital outlay: General improvements - - 7,118,484 - - Parks - - - 5,990,942 - Public art - - - - Streets - - - - 6,099,577 Debt service: Principal 680,000 - - - - Interest and fiscal charges 651,850 - - - - Total expenditures 94,698,737 5,806,335 7,118,484 5,990,942 6,099,577 REVENUES OVER (UNDER) EXPENDITURES 46,898,135 (4,957,853) (7,118,484) (5,990,942) (6,099,577) OTHER FINANCING SOURCES (USES): Transfers in 120,825 - 7,118,484 5,990,942 6,099,577 Transfers out (6,322,616) - - - - Total other financing sources (uses) (6,201,791) - 7,118,484 5,990,942 6,099,577 Net change in fund balances 40,696,344 (4,957,853) - - - FUND BALANCES (DEFICITS): Beginning of year 249,736,610 30,243,024 End of year $ 290,432,954 $ 25,285,171 $ - $ - $ - See accompanying Notes to Basic Financial Statements 34 64 Attachment 2 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Capital Project Funds Public Dublin Facilities Fire Impact Traffic Impact Crossing Public Art Impact Fees Fees Fees Contribution REVENUES: Property taxes $ - $ - $ - $ - $ - Sales tax - - - - - Other taxes - - - - - Intergovernmental - - - - - Licenses and permits - - - - - Charges for service - - - - - Interest income - 1,113,243 4,746 852,031 365,434 Use of property - - - - - Unrealized gains (losses) on investments - - - - - Fines and forfeitures - - - - - Development revenue - 1,032,573 39,021 1,189,675 - Other revenue - - 12,273 Special assessments - Total revenues EXPENDITURES: 2,145,816 43,767 2,053,979 365,434 Current: General government - 9,050 - 47,481 Police - - - Fire - - - Public works and transportation - - - Park and community services - - - Community development - - - Capital outlay: General improvements - - - Parks - - - Public art 244,479 - - Streets - - - Debt service: Principal - - - Interest and fiscal charges - - - Total expenditures 244,479 9,050 - 47,481 REVENUES OVER (UNDER) EXPENDITURES (244,479) 2,136,766 43,767 2,006,498 365,434 OTHER FINANCING SOURCES (USES): Transfers in 244,479 Transfers out (6,011,344) - (606,112) (150,000) Total other financing sources (uses) 244,479 (6,011,344) - (606,112) (150,000) Net change in fund balances - (3,874,578) 43,767 1,400,386 215,434 FUND BALANCES (DEFICITS): Beginning of year - 15,880,376 134,609 30,130,376 12,185,835 End of year $ - $ 12,005,798 $ 178,376 $ 31,530,762 $ 12,401,269 See accompanying Notes to Basic Financial Statements 35 65 Attachment 2 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Other Total Governmental Governmental Funds Funds REVENUES: Property taxes $ - $ 61,967,658 Sales tax - 30,903,440 Other taxes - 9,129,368 Intergovernmental 9,000,223 9,441,741 Licenses and permits - 309,959 Charges for service 8,936,318 18,698,359 Interest income 650,991 11,873,450 Use of property - 2,549,690 Unrealized gains (losses) on investments - 7,022,273 Fines and forfeitures 116,831 215,524 Development revenue 530 9,044,040 Other revenue 201,499 4,805,240 Special assessments 1,647,782 1,647,782 Total revenues 20,554,174 167,608,524 EXPENDITURES: Current: General government 9,528,800 23,769,330 Police 1,025,613 29,714,228 Fire 263,821 17,436,389 Public works and transportation 3,190,576 22,381,917 Park and community services 31,836 8,841,838 Community development 220,560 11,347,257 Capital outlay: General improvements - 7,118,484 Parks 5,990,942 Public art 244,479 Streets 6,099,577 Debt service: Principal 680,000 Interest and fiscal charges 651,850 Total expenditures 14,261,206 134,276,291 REVENUES OVER (UNDER) EXPENDITURES 6,292,968 33,332,233 OTHER FINANCING SOURCES (USES): Transfers in 19,574,307 Transfers out (8,468,629) (21,558,701) Total other financing sources (uses) (8,468,629) (1,984,394) Net change in fund balances (2,175,661) 31,347,839 FUND BALANCES (DEFICITS): Beginning of year 21,704,791 360,015,621 End of year $ 19,529,130 $ 391,363,460 See accompanying Notes to Basic Financial Statements 36 66 Attachment 2 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, 2024 Net Change in Fund Balances - Total Governmental Funds $ 31,347,839 Amounts reported for governmental activities in the Statement of Activities were different because: Govemmental 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. 18,069,858 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 $3,343,754. (12,294,149) 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. (216,920) Interest payable is not due and payable in the current period and, therefore are not reported in the governmental funds balance sheet. (52,054) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long- term liabilities in the Government -Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government -Wide Statement of Net Position. Long-term debt repayments 680,000 Amortization of premium on long-term debt 123,856 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 109,858 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. 2,545,779 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. (3,983,679) 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. (346,515) 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. 4,140,492 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. 2,181,667 Change in Net Position of Governmental Activities $ 42,306,032 See accompanying Notes to Basic Financial Statements 37 67 Attachment 2 This page intentionally left blank 38 68 Attachment 2 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund For the year ended June 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes $ 59,896,000 $ 59,896,000 $ 61,967,658 $ 2,071,658 Sales tax 26,625,000 29,620,900 30,903,440 1,282,540 Other taxes 8,280,500 8,280,500 9,129,368 848,868 Intergovernmental 290,000 405,000 441,518 36,518 Licenses and permits 286,417 286,417 309,959 23,542 Charges for services 7,389,683 7,389,683 9,678,380 2,288,697 Investment income (loss) 2,510,000 5,500,000 8,499,828 2,999,828 Use of property 1,648,021 1,648,021 2,172,046 524,025 Unrealized gains (losses) on investments - - 7,022,273 7,022,273 Fines and forfeitures 50,000 50,000 98,693 48,693 Development revenue 7,109,829 6,903,536 6,782,241 (121,295) Other revenues 1,806,412 1,938,367 4,591,468 2,653,101 Total revenues 115,891,862 121,918,424 141,596,872 19,678,448 EXPENDITURES: Current: General government 17,294,965 18,230,860 14,183,999 4,046,861 Police 28,283,479 28,591,266 28,688,615 (97,349) Fire 17,315,342 17,317,732 17,172,568 145,164 Public works and transportation 21,706,751 23,130,326 19,191,341 3,938,985 Parks and community services 8,997,878 9,343,691 8,810,002 533,689 Community development 5,642,960 5,799,028 5,320,362 478,666 Debt service: Principal 680,000 680,000 680,000 Interest and fiscal charges 651,850 651,850 651,850 Total expenditures 100,573,225 103,744,753 94,698,737 9,046,016 REVENUES OVER (UNDER) EXPENDITURES 15,318,637 18,173,671 46,898,135 28,724,464 OTHER FINANCING SOURCES (USES): Transfers in 56,600 129,582 120,825 (8,757) Transfers (out) (19,929,893) (53,207,754) (6,322,616) 46,885,138 Total other financing sources (uses) (19,873,293) (53,078,172) (6,201,791) 46,876,381 Net change in fund balance $ (4,554,656) $ (34,904,501) 40,696,344 $ 75,600,845 FUND BALANCE: Beginning of year 249,736,610 End of year $ 290,432,954 See accompanying Notes to Basic Financial Statements 39 69 Attachment 2 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Affordable Housing For the year ended June 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services $ 80,855 $ 80,855 $ 83,661 $ 2,806 Interest 125,000 125,000 387,177 262,177 Use of property - - 377,644 377,644 Total revenues 205,855 205,855 848,482 642,627 EXPENDITURES: Current: General government 68,000 68,000 - 68,000 Community development 632,920 6,189,852 5,806,335 383,517 Total expenditures 700,920 6,257,852 5,806,335 451,517 REVENUES OVER (UNDER) EXPENDITURES (495,065) (6,051,997) (4,957,853) 1,094,144 Net change in fund balance $ (495,065) $ (6,051,997) (4,957,853) $ 1,094,144 FUND BALANCE: Beginning of year 30,243,024 End of year $ 25,285,171 See accompanying Notes to Basic Financial Statements 40 70 Attachment 2 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 71 Attachment 2 City of Dublin Statement of Net Position Proprietary Funds June 30, 2024 Govemmental Activities - Internal Service Funds ASSETS Current assets: Cash and investments $ 27,709,632 Accounts receivable 246,014 Prepaids and other 391,083 Total current assets 28,346,729 Noncurrent assets: Capital Assets: Land 10,774,792 Construction in progress 8,286,461 Infrastructure 745,014 Building and improvements 63,219,783 Vehicles and equipment 11,737,672 Subscription based I.T. agreements 2,216,045 Less accumulated depreciation (56,206,356) Net capital assets 40,773,411 Total assets 69,120,140 LIABILITIES Current liabilities: Accounts payable and accruals 130,902 Due to other funds 60,227 SBITA liabilities, due in one year 285,809 Total current liabilities 476,938 Long-term liabilities: SBITA liabilities, due in more than one year 631,613 Total long-term liabilities 631,613 Total liabilities 1,108,551 NET POSITION Net investment in capital assets Unrestricted 39,855,989 28,155,600 Total net position $ 68,011,589 See accompanying Notes to Basic Financial Statements 42 72 Attachment 2 City of Dublin Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the year ended June 30, 2024 Governmental Activities - Internal Service Funds OPERATING REVENUES: Charges for services $ 5,559,659 Other revenue 1,346,890 Total operating revenues 6,906,549 OPERATING EXPENSES: Supplies and services 3,205,222 Retiree health premiums 963,526 Depreciation 3,343,754 Total operating expenses 7,512,502 OPERATING INCOME (LOSS) (605,953) NONOPERATING REVENUES (EXPENSES): Interest income 832,169 Interest and fiscal charges (28,943) Total nonoperating revenues (expenses) 803,226 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS: 197,273 Transfers in Transfers (out) Total transfers Change in net position NET POSITION: 2,000,000 (15,606) 1,984,394 2,181,667 Beginning of year 65,829,922 End of year $ 68,011,589 See accompanying Notes to Basic Financial Statements 43 73 Attachment 2 City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2024 Governmental Activities - Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from other funds $ 8,062,895 Payments to suppliers and service providers (6,686,274) Other revenues 1,346,890 Net cash provided by (used in) operating activities 2,723,511 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds Cash disbursements to other funds 2,235,695 (918,166) Cash provided by (used in) noncapital financing activities 1,317,529 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (2,706,412) Cash used in capital and related financing activities (3,038,991) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 832,169 Cash flows provided by (used in) investing activities 832,169 Net Cash Flows 1,834,218 CASH AND CASH EQUIVALENTS - Beginning of year 25,875,414 CASH AND CASH EQUIVALENTS - End of year $ 27,709,632 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ (605,953) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 3,343,754 Change in assets and liabilities Accounts receivable 335,649 Prepaids (39,926) Accounts payable and accruals (310,013) Net cash provided by (used in) operating activities $ 2,723,511 See accompanying Notes to Basic Financial Statements 44 74 Attachment 2 FIDUCIARY FUND FINANCIAL STATEMENTS Custodial funds are used to account for fiduciary activities not required 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 75 Attachment 2 City of Dublin Statement of Fiduciary Net Position Fiduciary Fund June 30, 2024 Custodial Funds ASSETS Cash and investments $ 49,052,926 Accounts receivable 216,515 Total assets 49,269,441 LIABILITIES Accounts payable Total liabilities NET POSITION Restricted for: Individuals, organizations, and other governments Total net position 191,488 191,488 49,077,953 $ 49,077,953 See accompanying Notes to Basic Financial Statements 46 76 Attachment 2 City of Dublin Statement of Changes in Fiduciary Net Position Fiduciary Fund For the year ended June 30, 2024 Custodial Funds ADDITIONS: Special assessments $ 10,156,807 Investment income 857,516 Proceeds from bonds 18,363,562 Property tax distribution 26,535 Other 479,102 Total additions 29,883,522 DEDUCTIONS: Administration 10,594,563 Project payments 757,442 Payments of bonds principal 670,000 Interest expense 5,829,334 Total deductions Change in net position NET POSITION: 17,851,339 12,032,183 Beginning of year 37,045,770 End of year $ 49,077,953 See accompanying Notes to Basic Financial Statements 47 77 Attachment 2 This page intentionally left blank 48 78 Attachment 2 NOTES TO BASIC FINANCIAL STATEMENTS Attachment 2 This page intentionally left blank 50 80 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2024 was 72,917. 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 the Mayor and four Council members served by a full-time City Manager and staff. At June 30, 2024, the City's staff comprised 106 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. As of June 30, 2024, the City had approximately 251 temporary and seasonal personnel that were on active payroll status. B. Basis of Presentation The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A. These Standards require that the financial statements described below be presented. Government -wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 51 81 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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 82 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued The Public Art Capital Projects Fund - The Public Art Fund was created following the adoption of Dublin Municipal Code 8.58 "Public Art Program Contribution." The purpose of the adoption of the ordinance, and Public Art Fund is to: promote the public interest and general welfare through the acquisition, installation, maintenance and promotion of public art; establish requirements and procedures for developer contributions to public art; provide funding to support the acquisition, installation, maintenance and promotion of public art; and implement the goals of the Public Art Master Plan. Bi-Annually Staff identifies and develops Public Art projects that will be funded utilizing the Public Art Fund. These projects are included in the City's Capital Improvement Program and subject to City Council approval. Since inception, the Public Art Fund has been funded entirely by developer contributions that are subject to the Public Art Program Contribution ordinance. 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 statements, but are presented in separate Fiduciary Fund financial statements. Custodial Funds use the economic resources measurement focus and are used to account for assets held by the City as an agent for the following purposes: 53 83 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued 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. 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. The CFD East Ranch is used to account for bond issuances to finance the maintenance of and construction of public improvements within the East Ranch development project within 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. CFD Dublin Boulevard Extension is used is used to account for developing a facilities CFD to cover City mitigation costs which the City is advancing as part of the Dublin Boulevard Extension project. CFD Dublin Center is used to account for developing a facilities CFD to finance the maintenance of and construction of public improvements within the Dublin Center project. 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. 54 84 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting, Continued 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. 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. 55 85 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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 o Overall o Custodial Credit Risk o Concentrations of Credit Risk In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. 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. 56 86 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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. 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, 2024: General Leave Compensated Leave Total Beginning Balance $ 1,289,135 $ 12,368 $ 1,301,503 Additions 1,439,160 17,374 1,456,534 Payments (1,211,774) (27,840) (1,239,614) Ending Balance $ 1,516,521 $ 1,902 $ 1,518,423 Current Portion $ 1,364,870 $ 1,710 $ 1,366,580 Noncurrent Portion $ 151,651 $ 192 $ 151,843 57 87 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Capital Assets Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park improvements), are reported in the Governmental Activities columns of the Government -Wide Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for general capital assets and $100,000 for infrastructure capital assets. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. 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 88 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2023 June 30, 2023 July 1, 2022 to June 30, 2023 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 89 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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 90 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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 2024, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standard Board Statements: GASB Statement No. 100, Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62. This main purpose of this Statement is to strengthen accounting and financial reporting standards with respect to accounting changes and corrections of errors. The statement provides detailed descriptions (1) changes in accounting principles; (2) changes in accounting estimates; (3) changes in reporting entity. Those changes need to disclose the nature and reasons in the financial statements to ensure the better transparency and consistency in financial reporting. 61 91 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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. • 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, 2024. 62 92 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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. 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 $ 418,659,294 Fiduciary Funds: Cash and investments 49,052,925 Total cash and investments $ 467,712,219 63 93 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 3. CASH AND INVESTMENTS, Continued B. Classification, Continued Cash and investments as of June 30, 2024 consisted of the following: Cash on hand Deposits with financial institutions Investments Section 115 Trust Cash and investments with fiscal agent Total cash and investments $ 4,316 4,850,820 432,722,594 2,071,236 28,063,253 $ 467,712,219 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 10 years 10 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 10 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% 64 94 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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 less 13 to 24 25 to 60 More than 60 Months Months months Total Asset -Backed Securities U.S. Treasury Notes Supranationals Medium -Term Notes U.S. Government Agency Securities Local Agency Investment Fund California Asset Management Program Commercial Mortgage -Backed Securities (CMBS) Money Market Funds $ 3,786,775 12,950,419 9,149,193 26,987,365 114,468,288 1,878,259 805,810 $ 3,758,342 13,127,500 9,954,273 11,995,649 6,866,656 $ 12,208,959 25,971,328 13,504,658 2,587,341 $ 15,166,260 79,747,334 12,563,609 37,503,625 11,078,881 1,922,263 4,739,807 $ 31,133,561 118,846,162 26,304,657 75,954,351 29,682,071 26,987,365 114,468,288 8,540,329 805,810 Total Investments $ 170,026,109 $ 45,702,420 $ 56,194,549 $ 160,799,516 $ 432,722,594 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, 2024, 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, 2024, the City had $26,987,365 invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.78 % in the previous year. The LAIF fair value factor of 0.996316042 was used to calculate the fair value of the investments in LAIF. 65 95 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2024, these investments have an average maturity of 26 days. The City's investments include Asset -Backed Securities in the amount of $31,133,561 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, 2024: Investments By Fair Value Level: Asset -Backed Securities U.S. Treasury Notes Supranationals Medium -Term Notes U.S. Government Agency Securities Commercial Mortgage -Backed Securities (CMBS) Total Investments Exempt From Disclosure: Local Agency Investment Fund California Asset Management Program Money Market Funds Level 1 $ Level 2 Total - $ 31,133,561 - 118,846,162 - 26,304,657 - 75,954,351 - 29,682,071 - 8,540,329 $ - $ 290,461,131 $ 31,133,561 118,846,162 26,304,657 75,954,351 29,682,071 8,540,329 290,461,131 26,987,365 114,468,288 805,810 Total $ 432,722,594 66 96 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2024 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, 2024. Commercial State Asset California Mortgage LocalAgency U.S. Medium Backed U.S. Gov't AssetMgmt Backed Money Investment Rating Treasuries TermNotes Securities Supranationals Agency Program Securities Market Fund Total AAA $ AA+ 118,846,162 AA AA- A+ A A- AAAm BBB+ Not rated $ $ 24,814,741 $26,304,657 $ 114,468,288 $ 1,922,263 $ - $ $ 167,509,949 3,197,888 - - 29,682,071 - 6,618,066 - - 158,344,187 6,826,819 6,826,819 4,459,079 4,459,079 14,583,766 14,583,766 25,589,021 25,589,021 20,334,699 20,334,699 805,810 805,810 963,079 963,079 6,318,820 26,987,365 33,306,185 Total $ 118,846,162 $ 75,954,351 $ 31,133,561 $26,304,657 $ 29,682,071 $ 114,468,288 $ 8,540,329 $ 805,810 $26,987,365 $ 432,722,594 G. Concentration of Credit Risk None of the City's investments in the table at Note F above exceeded 5% in any one issuer excluding U.S. Treasury securities, mutual funds, and external investment pools. 67 97 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 4. INTERFUND TRANSACTIONS A. Transfers between Funds Transfers between funds during the year ended June 30, 2024 were as follows: Transfers In Transfers Out General General Improvements Projects Capital Projects Parks Projects Capital Projects Streets Projects Capital Projects Non -major Governmental Internal Funds Service Funds Total Major Funds General Fund Public Facilities Impact Fees Capital Projects Traffic Impact Fees Capital Projects Dublin Crossing Contribution Capital Projects Non -major Governmental Funds Governmental funds subtotal Internal Service Funds Total - $ 4,083,446 $ 16,986 $ 222,184 $ 120,825 1,400,913 4,610,431 1,618,519 1,363,525 - $ 2,000,000 $ 6,322,616 606,112 - 150,000 5,121,281 244,479 6,011,344 606,112 150,000 8,468,629 120,825 7,102,878 5,990,942 6,099,577 244,479 2,000,000 21,558,701 15,606 - - 15,606 $ 120,825 $ 7,118,484 $ 5,990,942 $ 6,099,577 $ 244,479 $ 2,000,000 $ 21,574,307 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, 2024, the following funds have balances due to the General Fund: Due to General Fund: Public Facilities Impact Fees Capital Projects Fund Non -Major Governmental Funds Internal Service Funds Total $ 25,152,485 4,371,470 60,227 $ 29,584,182 68 98 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 4. INTERFUND TRANSACTIONS, Continued C. Advances between Funds During the 2021-2022, 2022-2023, and 2023-2024 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, Jordan Ranch Neighborhood Square, and Library Tenant Improvements. The following interfund advance balance existed at June 30, 2024: Advances from General Fund Public Facilities Impact Fees Capital Projects Fund $ 4,901,566 Total $ 4,901,566 5. NOTES RECEIVABLE The following table summarizes the notes receivable outstanding as of June 30, 2024: First Time Homebuyer Loan Program $ 1,072,743 Eden (Wicklow) Square Senior Affordable Housing 3,079,326 SBA Microloan Program Receivables 10,238 Arroyo Vista Predevelopment/Construction Loan - Family Housing 2,064,634 Arroyo Vista Predevelopment/Construction Loan - Senior Housing 802,526 Veterans Family Apartment Development Loan 7,502,713 Total $ 14,532,180 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, 2024 was $1,072,743. As of June 30, 2024, there were no loans in default. 69 99 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 5. NOTES RECEIVABLE, Continued Details of the Revolving Home Loans as of June 30, 2024 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 $ 11,496 $ - $ 31,106 #07-04 10/31/2007 50,000 29,171 - 79,171 #07-15 12/4/2007 24,536 14,236 - 38,772 #07-16 12/28/2007 8,000 4,623 - 12,623 #07-18 2/29/2008 24,170 13,819 - 37,989 #08-07 4/10/2009 27,425 14,615 42,040 #08-08 6/30/2009 39,576 20,782 60,358 #09-02 9/29/2009 36,595 18,898 - 55,493 #11-01 12/9/2011 26,025 11,456 - 37,481 #11-05 1/13/2012 29,999 13,087 43,086 #11-08 1/31/2012 35,249 15,316 50,565 #12-01 10/30/2012 29,999 12,253 - 42,252 #12-04 4/12/2013 36,749 14,432 51,181 #12-05 4/26/2013 35,249 13,795 - 49,044 #12-06 6/12/2013 31,499 12,186 - 43,685 #13-04 12/9/2013 40,000 14,784 - 54,784 #17-01 5/25/2018 40,000 8,542 48,542 #19-02 11/22/2019 40,000 6,452 - 46,452 #21-01 10/29/2021 40,000 3,740 - 43,740 #22-01 7/12/2023 40,000 1,357 - 41,357 #23-01 10/24/2023 40,000 960 40,960 #23-02 11/20/2023 40,000 857 40,857 #23-03 11/20/2023 40,000 857 - 40,857 #23-04 4/1/2024 40,000 348 - 40,348 Totals $ 814,681 $ 258,062 $ - $ 1,072,743 70 100 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2024, the outstanding loan amount was $3,079,326. 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, 2024, the outstanding loan amount was $10,238. 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, 2024, the outstanding loan amounts for the Family Project and the Senior Project were $2,064,634 and $802,526, respectively. 71 101 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2024, the outstanding loan amount was $7,502,713. 6. LEASES RECEIVABLE Cell Tower Leases 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, 2024, the City recognized $11,433 of lease revenue and $239 of interest revenue under the lease. In July 2022, the City entered into a lease with New Cingular Wireless PCS , LLC. Under the lease, the lessee pays the City $10,824 per year (with 2% increase every year) for 7 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 3.66%, which is FY22-23 Q1 market yield of the City's portfolio. For the year ended June 30, 2024, the City recognized $9,954 of lease revenue and $1,925 of interest revenue under the lease. Crown Castle Lease In July 2000, the City entered into a lease with Crown Castle. Under the lease, the lessee pays the City $2,653 per month for 20 years in exchange for space to be used for a cellular tower site. 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 0.60%, which is FY21-22 Q2 market yield of the City's portfolio. For the year ended June 30, 2024, the City recognized $21,720 of lease revenue and $30,975 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, 2024, the City recognized $150,566 of lease revenue and $119,624 of interest revenue under the lease. 72 102 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 6. LEASES RECEIVABLE, Continued 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, 2024, the City recognized $255,950 of lease revenue and $45,868 of interest revenue under the lease. U.S. Bank National Association Lease - Building/Park In November 2022, the City entered into a lease with U.S. Bank National Association. Under the lease, the lessee pays the City based on a rent schedule for 60 months in exchange for 11805 Dublin Blvd, Dublin, CA 94568 for Bank Branch/Park. 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 3.66%, which is the FY22- 23 Q1 market yield of the City's portfolio. For the year ended June 30, 2024, the City recognized $47,936 of lease revenue and $96,492 of interest revenue under the lease. The future payments on the leases as of June 30, 2024 were as follows: Year Ending Ce11 Tower Leases ACFD Fleet ACFD Fire June 30, Principal Interest Principal Interest Principal Interest 2025 $ 25,968 $ 32,468 $ 101,555 $ 113,473 $ 160,911 $ 6,309 2026 28,283 31,676 108,593 106,435 2027 30,772 30,752 129,425 98,503 2028 33,447 29,683 138,396 89,532 2029 23,886 28,460 162,094 79,511 2030-2034 92,974 125,288 1,094,503 202,240 - - 2035-2039 174,640 78,387 - - 2040-2042 120,786 10,911 - - - - Total $ 530,756 $ 367,625 $ 1,734,566 $ 689,694 $ 160,911 $ 6,309 Year Ending 11805 Dublin Blvd Total June 30, Principal Interest Principal Interest 2025 $ 34,709 $ 84,331 $ 323,143 $ 236,581 2026 53,429 65,611 190,305 203,722 2027 82,246 36,794 242,443 166,049 2028 36,299 3,381 208,142 122,596 2029 - - 185,980 107,971 2030-2034 1,187,477 327,528 2035-2039 - - 174,640 78,387 2040-2042 - - 120,786 10,911 Total $ 206,683 $ 190,117 $ 2,632,916 $ 1,253,745 73 103 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 7. CAPITAL ASSETS A. Current Year Activities Capital asset activities during the year ended June 30, 2024 were as follows: Balance Reclasses/ Balance July 1, 2023 Additions Retirements Transfers June 30, 2024 Non -depreciable assets: Land $ 182,170,145 $ Streets right of way 37,760,857 Construction in progress 114,604,256 19,344,005 $ - $ $ 182,170,145 - 37,760,857 - (1,851,780) 132,096,481 Total non -depreciable assets 334,535,258 19,344,005 - (1,851,780) 352,027,483 Depreciable assets: Infrastructure 448,086,898 - 149,713 448,236,611 Buildings and improvements 118,093,759 - 118,093,759 Vehicles and equipment 25,709,973 1,350,921 (210,101) 26,850,793 Subscription based I.T. agreements 1,479,702 81,345 - 1,702,067 3,263,114 Total depreciable assets 593,370,332 1,432,266 (210,101) 1,851,780 596,444,277 Less accumulated depreciation/ amortization: Infrastructure (283,377,218) (9,347,366) - (292,724,584) Buildings and improvements (61,698,754) (3,847,810) - (65,546,564) Vehicles and equipment (14,143,894) (1,979,269) 210,101 (15,913,062) Right of way (264,142) (93,423) - (357,565) Subscription based I.T. agreements (340,456) (370,036) - (710,492) Total accumulated depreciation/ amortization (359,824,464) (15,637,904) 210,101 (375,252,267) Total depreciable assets, net 927,905,590 20,776,271 (210,101) 1,851,780 948,471,760 Total capital assets $ 568,081,126 $ 5,138,367 $ - $ - $ 573,219,493 74 104 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 7. CAPITAL ASSETS, Continued B. Project Commitments As of June 30, 2024, the City had outstanding commitments with contractors for the following projects: Project Commitment General Improvement Projects $ 1,234,110 Parks Projects 7,865,805 Streets Projects 1,393,398 Public Art Projects 3,113 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: General Government $ 1,899,951 Police 595,451 Fire 568,176 Public Works 7,049,701 Parks and Community Service 4,231,662 Community Development 1,292,963 Total depreciation expense $ 15,637,904 8. LONG TERM DEBT A. Current Year Transactions and Balances Long-term debt transactions and balances during the year ended June 30, 2024 were as follows: Due in Balance Balance Due Within More than July 1, 2023 Deletions June 30, 2024 One Year One Year Governmental Activities: 2021 Lease Revenue Bonds $ 17,405,000 $ (680,000) 16,725,000 $ 710,000 $16,015,000 Premium on bond 2,270,709 (123,856) 2,146,853 - 2,146,853 Subscription based I.T. agreements 1,221,058 (303,636) 917,422 285,809 631,613 Total long-term debt $ 20,896,767 $(1,107,492) $19,789,275 $ 995,809 $18,793,466 75 105 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 8. LONG TERM DEBT, Continued 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, 2024, including unamortized bond premium of $2,146,853 amounted to $18,871,853. The annual debt service requirements on the bonds at June 30, 2024 are as follow: 2021 Lease Revenue Bonds For the Years Ending June 30, Principal Interest Total 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 795,000 536,250 1,331,250 2029 830,000 504,450 1,334,450 2030-2034 4,660,000 1,998,050 6,658,050 2035-2039 5,670,000 988,650 6,658,650 2040-2041 2,560,000 102,800 2,662,800 Total $ 16,725,000 $ 5,917,950 $ 22,642,950 C. Subscription Based Information Technology Arrangements The City implemented Governmental Accounting Standards Board Statement No. 96, Subscription -Based Information Technology Arrangements, in fiscal year 2023. The City has four software arrangements that require recognition under GASBS No. 96. The software amortization expense is included on the Statement of Revenues, Expenses and Changes in Fund Net Position related to the City's intangible asset of four software systems, which is included in Note 7 as subscription based I.T. agreements. The City now recognizes a subscription -based information technology arrangements (SBITA) liability and an intangible right -to -use asset for the four software arrangements described below. OpenGov software arrangement is a five-year agreement, initiated in fiscal year 2020 with an annual payment of $52,472. The City has used a 2.4% discount rate for this arrangement based on similar debt during the same fiscal year. There are no options to extend the arrangement or purchase the software. Tyler Technologies software arrangement is a seven-year agreement, initiated in fiscal year 2021 with an annual payment of $238,326. The City has used a 2.4% discount rate for this arrangement based on similar debt during the same fiscal year. There are no options to extend the arrangement or purchase the software. 76 106 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 8. LONG TERM DEBT, Continued C. Subscription Based Information Technology Arrangements, Continued The annual debt service requirements on the bonds at June 30, 2024 are as follow: Subscription Based I.T. Agreements For the Years Ending June 30, Principal Interest Total 2025 $ 285,809 $ 20,071 $ 305,880 2026 305,437 13,085 318,522 2027 326,176 5,620 331,796 Total $ 917,422 $ 38,776 $ 956,198 77 107 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 9. FUND BALANCES Detailed classifications of the City's Fund Balances, as of June 30, 2024, are stated below: Major Funds Public Dublin Other General Affordable Facilities Fire Impact Traffic Impact Crossing Governmental Fund Housing Impact Fees Fees Fees Contribution Funds Total Nonspendable: Prepaids 54,708 $ - $ - $ - $ - $ $ - $ 54,708 Subtotal Non -Spendable Fund Balance 54,708 - - - 54,708 Restricted for: Cemetery Endowment 60,000 - - - - - - 60,000 Public Safety Programs - - - - - - 1,515,761 1,515,761 Street Maintenance and Construction - - - - - - 15,792,716 15,792,716 Health and Welfare Programs - - - - - - 1,404,250 1,404,250 Heritage Park Maintenance 750,000 - - - - - - 750,000 Culture and Leisure - - - - - - 407,128 407,128 Impact Fee Capital Projects - 12,005,798 178,376 31,530,762 43,714,936 Capital Improvement Projects - 12,401,269 4,571,471 16,972,740 Developer Contribution- Heritage Park 19,000 - - - 19,000 Developer Contribution - Nature Park 60,000 - - - 60,000 Developer Contribution Downtown 1,490,000 - - - - - - 1,490,000 Public Facilities Advance 4,901566 - - - - - - 4,901,566 Pension 2,071,235 - - - - - - 2,071,235 Housing - 25,285,171 - - - - - 25,285,171 Subtotal Restricted Fund Balance 9,351,801 25,285,171 12,005,798 178,376 31,530,762 12,401,269 23,691,326 114,444,503 Committed to: Economic Stability 8,000,000 - - - 8,000,000 Downtown Public Improvements 36,118 491 - - - - - - 36,118,491 Emergency Communications 532,113 - - - - - - 532,113 Fire Services OPEB 2,211,094 - - - - - - 2,211,094 Innovations and New Opportunities 894498 - - - - - - 894,498 Maintenance Facility 55,008 - - - - - - 55,008 Don Biddle Community Park 675,193 - - - - - - 675,193 One Time Initiatives 2,421,708 - - - - - - 2,421,708 Contribution to Public Facility Fee 6,000,000 - - - - - - 6,000,000 Fallon Sports Park 100,000 - - - - - - 100,000 Utility Undergrounding 3,500,000 - - - - - - 3,500,000 Lease Revenue Bonds Payment 8,000,000 - - - - - - 8,000,000 Public Safety 4,600,000 - - - 4,600,000 Cultural Arts Center 4,402,990 - - - - 4,402,990 Advance to Public Facility Fee 6,704,350 - - - 6,704,350 Subtotal Committed Fund Balance 84,215,445 - - - 84,215,445 Assigned to: Non -street CIP 3,253,486 - - - - - - 3,253,486 Employees Accrued Leave 1,518,423 - - - - - - 1,518,423 Operating Carryovers 963,754 - - - 963,754 CIP Carryovers 16,670,673 - - - 16,670,673 Catastrophic Loss and Recovery 17,714,064 - - - 17,714,064 Service Continuity Obligations 3,150,000 - - - 3,150,000 Pension and Post Employment Benefits 18,000,000 - - - - - - 18,000,000 Municipal Regional Permit 1,809,022 - - - - - - 1,509,022 HVAC Replacement 2,288,697 - - - - - - 2,288,697 Relocate Parks 500,000 - - - - - - 500,000 Parks and Street Contingency Maintenance 201,270 - - - - - - 201,270 Commercial Facade Improvement Grant 429,972 - - - - - - 429,972 Library Tenant Improvement 1,000,000 - - - - - - 1,000,000 Village Parkway Pavement 20,743,613 - - - - - - 20,743,613 Climate Action Plan 2,669,424 - - - - - - 2,669,424 ARPA Revenue Replacement 990,187 - - - - - - 990,187 Dublin Boulevard Extension 59,500,000 - - 59,500,000 Pavement Management 2,000,000 - - 2,000,000 Subtotal Assigned Fund Balance 153,402,585 - - - - - - 153,402,585 Unassigned Fund Balance: Fund Balance Deficits - - - - - - (4,162,196) (4,162,196) Unrealized Gain/(Loss) onlnvestments (7,039,428) - - - - - - (7,039,428) Cash Flow Per City Policy 50,447,843 - - - - - - 50,447,843 Subtotal Unassigned Fund Balance 43,408,415 - - - - - (4,162,196) 39,246,219 Total Fund Balance (Deficit) $ 290,432,954 $ 25,285,171 $ 12,005,798 $ 178,376 $ 31,530,762 $ 12,401,269 $ 19,529,130 $ 391,363,460 78 108 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2024 the cash flow reserves, which are part of the Unassigned Fund Balance, were above the minimum at approximately 7 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, 2024. These deficits are expected to be eliminated by future revenues. Fund Fund Deficit Measure BB Grants $ 1,823,740 Transportation for Clean Air (TFCA) 8,293 State Grant Park 1,905,144 Building Homes and Jobs Act 13,410 Measure RR - Safe Routes to BART 411,609 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. Ca1PERS 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 Ca1PERS website. 79 109 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 11. PENSION PLAN, Continued A. General Information about the CalPERS Pension Plan, Continued Benefits Provided - Ca1PERS 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, 2024, are summarized as follows: Miscellaneous Miscellaneous PEPRA Hire Date Prior to January 1, 2013 After January 1, 2013 Benefit formula 2.7% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payment Monthly for life Monthly for life Retirement age 55 62 Monthly benefits, as a % of annual salary 2.70% 2.00% Required employee contribution rates 8.00% 6.25% Required employer contribution rates 15.95 % 7.68 % Required unfunded liability payment $1,429,680 $0 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, 2023, the City's contributions to the Plan were $2,194,205. B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported $22,774,284 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, 2023, 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, 2022 rolled forward to June 30, 2023 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. 80 110 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2022 and 2023 was as follows: Proportion - June 30, 2022 Proportion - June 30, 2023 Change - Increase (Decrease) 0.17861 % 0.18255% 0.00395 % For the year ended June 30, 2024, the City recognized net pension expense of $3,983,679 for the Miscellaneous Plan on the Statement of Activities. As of June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Pension contributions subsequent to measurement date $ 2,240,690 $ - Changes of assumptions 1,374,986 - Differences between expected and actual experience 1,163,434 180,477 Changes in employer's proportion 692,934 Differences between the employer's contribution and the employer's proportionate share of contributions - 1,393,773 Net differences between projected and actual earnings on plan investments 3,687,361 - Total $ 9,159,405 $ 1,574,250 81 111 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 11. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued The $2,240,690 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, 2025. 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: 2025 $ 1,470,950 2026 1,028,124 2027 2,739,587 2028 105,804 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 5.90% $ 35,341,017 6.90% $ 22,774,284 7.90% $ 12,430,784 82 112 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2023, the total pension liabilities were determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2023 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) June 30, 2022 June 30, 2023 Entry -Age Normal Cost Method 6.90% 2.30% Varies by entry age and service 6.90% Mortality Derived by Ca1PERS' Membership Data for all Funds (1) Net of pension plan administrative expenses All other actuarial assumptions used in the June 30, 2022 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 6.90% 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 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% 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. In determining the long-term expected rate of return, Ca1PERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. The table on the following page 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. 83 113 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 11. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued Asset Class Global Equity - Cap -Weighted Global Equity - Non -Cap - Weighted Private Equity Treasury Mortgage -Backed Securities Investment Grade Corporates High Yield Emerging Market Debt Private Debt Real Assets Leverage Total Assumed Asset Allocation Real Return(1)(2) 30.00% 4.45% 12.00% 3.84% 13.00% 5.00% 5.00% 10.00% 5.00% 5.00% 5.00% 15.00% -5.00% 100.00% (1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study. 7.28% 0.27% 0.50% 1.56% 2.27% 2.48% 3.57% 3.21% -0.59% Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued Ca1PERS financial reports. Payable to the Pension Plan - There were no outstanding contributions to the pension plan as of June 30, 2024. 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. 84 114 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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 2022-23, the City contributed $284,727. Employees Covered Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees 79 108 Total 187 Net OPEB Liability The City's net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions: Valuation Date June 30, 2023 Measurement Date June 30, 2023 Actuarial Cost Method Entry -Age Normal Cost Method Actuarial Assumptions: Discount Rate 5.50% Inflation 2.50% Contribution Policy Contributes full ADC Salary Increases Varies by Entry Age and Service Investment Rate of Return 5.55 % Mortality CaIPERS 2021 Experience Study Post Retirement Benefit Increase MacLeod Watts Scale 2022 Healthcare Trend 6.5% in 2025 fluctuating down to 3.9% by 2075 85 115 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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. CERBT Strategy 2 Years 1-5 Years 6-20 Asset Class Target Allocation General Inflation Expected Real Rate of Return Compound Return General Inflation Expected Real Rate of Return Compound Return Global Equity Fixed Income Global Real Estate (REITs) Treasury Inflation Protected Securities Commodities 34.00% 41.00% 17.00% 5.00% 3.00% 2.40% 2.40% 2.40% 2.40% 2.40% 4.40% -1.00% 3.00% -1.80% 0.80% 6.80% 1.40% 5.40% 0.60% 3.20% 2.30% 2.30% 2.30% 2.30% 2.30% 4.50% 2.20% 3.90% 1.30% 1.20% 6.80% 4.50% 6.20% 3.60% 3.50% Volatility I 9.90% Weighted I 4.20% Weighted I 5.90% Discount Rate The discount rate used to measure the total OPEB liability was 5.50 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. 86 116 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/ (Asset) Balance at June 30, 2023 $ 20,705,919 $ 23,570,969 $ (2,865,050) Changes in the year: Service cost 564,680 - 564,680 Interest on the total pension liability 1,147,181 - 1,147,181 Differences between actual and expected experience (1,063,544) (1,063,544) Changes in assumptions (77,341) - (77,341) Contribution - employer - 284,727 (284,727) Net investment income - 839,987 (839,987) Administrative expenses - (6,756) 6,756 Benefit payments , including refunds of employee contributions (1,201,325) (1,201,325) - Net changes (630,349) (83,367) (546,982) Balance at June 30, 2024 $ 20,075,570 $ 23,487,602 $ (3,412,032) 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, 2023: 1% Decrease (4.50%) Current Discount Rate (5.50%) 1% Increase (6.50%) Net OPEB Liability (Asset) $ (1,001,859) $ (3,412,032) $ (5,406,783) 87 117 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2023: 1% Decrease Current Healthcare Trend Rate 1% Increase Net OPEB Liability (Asset) $ (5,519,977) $ (3,412,032) $ (865,630) 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, 2024, the City recognized OPEB expense (income) of $346,515. 88 118 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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 For the fiscal year ended June 30, 2024, the City reported deferred outflows of resources related to OPEB from the following sources: OPEB contributions subsequent to measurement date Differences between actual and expected Deferred Outflows Deferred Inflows of of Resources Resources $ 305,089 $ experience - 1,669,453 Changes in assumptions 1,186,221 231,591 Net differences between projected and actual earnings on plan investments Total 1,575,888 - $ 3,067,198 $ 1,901,044 The $305,089 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: Fiscal Year Ending June 30: 2025 $ (91,867) 2026 (41,584) 2027 1,079,754 2028 102,497 2029 (28,960) Thereafter (158,775) 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, 2024 those cost totaled $40,342. 89 119 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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. 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, 2024, the City paid The Cities Group $2,689 in premium. Financial Statements may be obtained from The Cities Group, P.O. Box 111, Burlingame, CA 94011-0111. 90 120 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 13. HEALTH, GENERAL LIABILITY, AND WORKERS' COMPENSATION COVERAGE, Continued C. Liability for Uninsured Claims The GASB requires municipalities to record their liability for uninsured claims and reflect the current portion of this liability as 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, $201,107, is adequate to cover IBNR claims. Therefore no adjustment was made in fiscal year 2023-2024 as the City's exposure is for the $5,000 deductible per general liability claim. 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 2023-2024, the City contributed $251,241 or 14.72% toward the annual operating shelter services and $29,242 representing 2.40% 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. 91 121 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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. 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, 2024, was $2,596,630 which is net of the $23,971 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, 2024 was $99,099,694. The reduction of $806,781 to the credit balance was mainly due to credit used for the fiscal years which was $403,983. 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. 92 122 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 15. OTHER COMMITMENTS AND CONTINGENT LIABILITIES, Continued C. Alameda County Fire Department (ACFD), Continued 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 a net OPEB asset of $1,723,000. At June 30, 2024, the Actuarial Value of the Plan Asset was $15,595,925. 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. 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. 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. In November 2023, the City Council issued special tax bonds in the total amount of $18.65 million through its Community Facilities District No. 2015-1 (Dublin Crossing) Improvement Area No. 5. The proceeds are to be used for public improvements and fees related to the Boulevard Project. 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, 2024 was $135,315,000. 93 123 Attachment 2 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2024 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, 2024, under these sales -tax reimbursement agreements, the City has abatements totaling $390,267. 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. 94 124 Attachment 2 REQUIRED SUPPLEMENTARY INFORMATION Attachment 2 This page intentionally left blank 96 126 Attachment 2 City of Dublin Required Supplementary Information For the year ended June 30, 2024 1. DEFINED BENEFIT PENSION PLAN A. Schedule of the City's Proportionate Share of the Net Pension Liability - Last 10 Years Fiscal year: 2024 2023 2022 2021 2020 Measurement date: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Proportion of the net pension liability 0.18255% 0.17861% 0.16280% 0.15646% 0.15132% Proportionate share of the net pension liability $ 22,774,284 $ 20,630,516 $ 8,804,512 $ 17,023,464 $ 15,505,908 Covered payroll $ 12,738,446 $ 11,245,216 $ 10,751,196 $ 10,591,772 $ 10,124,753 Proportionate Share of the net pension liability as percentage of covered payroll 172.31% 183.46% 81.89% 160.72% 153.15% Plan fiduciary net position as a percentage of the total pension liability 76.21% 76.68% 88.29% 75.10% 75.26% Fiscal year: 2019 2018 2017 2016 2015 Measurement date: 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportion of the net pension liability 0.14569% 0.14518% 0.15006% 0.14788% 0.12593% Proportionate share of the net pension liability $ 14,038,811 $ 14,398,145 $ 12,984,969 $ 10,150,590 $ 7,835,901 Covered payroll $ 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 143.94% 137.86% 140.10% 119.94% 89.89% Plan fiduciary net position as a percentage of the total pension liability 75.26% 73.31% 74.06% 78.40% 79.82% Notes to Schedule: The Ca1PERS discount rate was increased from 7.5%to 7.65%in fiscalyear2016,decreased from 7.65%to 7.15%in fis calyear 2018, and then decreased from 7.15%to 6.9%in fiscalyear2023. The Ca1PERS mortality assumptions were adjusted in fis calyear 2019. 97 127 Attachment 2 City of Dublin Required Supplementary Information For the year ended June 30, 2024 1. DEFINED BENEFIT PENSION PLAN, Continued B. Schedule of Contributions - Last 10 Years Fiscal year Contractually required contribution (actuarially determined) Contribution in relation to the actuarially determined contributions Contribution deficiency (excess) 2024 2023 2022 2021 2020 $ 2,240,690 $ 2,194,205 $ 1,928,720 $ 1,712,167 $ 1,522,330 (2,240,690) (2,194,205) (1,928,720) (1,712,167) (1,522,330) - $ - $ - $ - $ Covered payroll $ 13,216,926 $ 12,738,446 $ 11,245,216 $ 10,751,196 $ 10,591,772 Contributions as a percentage of covered payroll Fiscal year Contractually required contribution (actuarially determined) Contribution in relation to the actuarially determined contributions N/A 17.23% 17.15% 15.93% 14.37% 2019 2018 2017 2016 2015 $ 1,241,065 $ 1,018,096 $ 988,634 $ 869,497 $ 1,411,959 (1,241,065) (1,018,096) (1,738,634) (869,497) (1,411,959) Contribution deficiency (excess) $ - $ - $ (750,000) $ $ Covered payroll $ 10,124,753 $ 9,753,107 $ 10,443,838 $ 9,268,029 $ 8,463,027 Contributions as a percentage of covered payroll Note to Schedule Methods and assumptions used to determine contribution rates: Fiscal year: 2024 2023 2022 Valuation date : Actuarial cost method: Amortization method: Assets valuation method: Inflation: Salary increases: Investment rate of return: Retirement age: Mortality: (1) (2) (3) (4) 12.26% 10.44% 2021 2020 2019 26.79% 2018 2017 22.41% 2016 18.59% 2015 6/30/2021 Entry Age (1) Market Value 2.30% (2) 6.80% 6/30/2020 Entry Age (1) Market Value 2.50% (2) 7.00% 6/30/2019 Entry Age (1) Market Value 2.50% (2) 7.00% 6/30/2018 Entry Age (1) Market Value 2.50% (2) 7.00% 6/30/2017 Entry Age (1) Market Value 2.63% (2) 7.25% 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) Market Market Market Market 15 Year Value Value Value Value Smoothed Market Method 2.75% 2.75% 2.75% 2.75% 2.75% (2) (2) (2) (2) (2) 7.375% 7.50% 7.50% 7.50% 7.50% (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Level percentage of payroll, closed Depending on age, service, and type of employment 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62 Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study adopted by the Ca1PERS Board. 98 128 Attachment 2 City of Dublin Required Supplementary Information For the year ended June 30, 2024 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 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability Service Cost $ 564,680 Interest on the total OPEB liability 1,147,181 Differences between expected and actual experience (1,063,544) Changes of assumptions (77,341) Benefit payments (1,201,325) Net change in total OPEB liability (630,349) Total OPEB liability - beginning 20,705,919 $ 483,571 $ 895,299 $ 869,222 $ 843,905 $ 852,382 $ 827,000 1,158,191 1,164,147 1,103, 053 1,169,182 1,099,559 1,032,000 1,459,903 (1,185,363) 1,916,302 18,789,617 (775,744) 307,694 (1,065,659) 525,737 18,263,880 (976,033) 996,242 17,267,638 (1,450,926) (716,501) (882,052) (1,036,392) 18,304,030 (776,911) 1,175,030 17,129,000 (805,000) 1,054,000 16,075,000 Total OPEB liability - ending (a) $ 20,075,570 Plan Fiduciary Net Position Contributions - employer Net investment income Benefit payments Administrative expense Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) $ 20,705,919 $ 18,789,617 $ 18,263,880 $ 17,267,638 $ 18,304,030 $ 17,129,000 $ 284,727 839,987 (1,201,325) (6,756) (83,367) 23,570,969 $ 252,514 (3,327,511) (1,185,363) (7,026) (4,267,386) 27,838,355 $ 411,587 6,149,340 (1,065,659) (8,444) 5,486,824 22,351,531 $ 1,116,396 763,014 (976,033) (10,512) 892,865 21,458,666 $ 1,073,623 $ 1,588,507 $ 1,878,000 1,244,479 1,431,381 1,665,000 (882,052) (776,911) (805,000) (6,155) (33,206) (8,000) 1,429,895 2,209,771 2,730,000 20,028,771 17, 819, 000 15,089,000 $ 23,487,602 $ 23,570,969 $ 27,838,355 $ 22,351,531 $ 21,458,666 $ 20,028,771 $ 17,819,000 Net OPEB liability/(asset) - ending (a) - (b) $ (3,412,032) $ (2,865,050) $ (9,048,738) $ (4,087,651) $ (4,191,028) $ (1,724,741) $ (690,000) Plan fiduciary net position as a percentage of the total OPEB liability 117.0% 113.8% 148.2% 122.4% 124.3% 109.4% 104.0% Covered -employee payroll $ 12,640,215 $ 11,706,708 $ 10,751,196 $ 10,533,380 $ 10,037,794 $ 9,997,000 $ 10,431,000 Net OPEB liability as a percentage of covered - employee payroll -27.0% (1) Fiscal year 2018 was the 1' year of implementation. -24.5% -84.2% -38.8 -41.8 -17.3% -6.6% 99 129 Attachment 2 City of Dublin Required Supplementary Information For the year ended June 30, 2024 2. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued B. Schedule of City Retiree Health Plan Contributions - Last 10 Years 0) Fiscal Year Ended June 30 2024 2023 2022 2021 2020 2019 2018 Actuarially Determined Contribution (ADC) $ - $ - $ - $ 122,000 $ 138,000 $ 851,000 $ 861,000 Contributions in relation to the ADC 305,089 284,727 252,514 (411,587) (1,116,396) (1,075,930) (1,589,000) Contribution deficiency (excess) (305,089) (284,727) (252,514) (289,587) (978,396) (224,930) (728,000) Covered -employee payroll $ 13,223,301 $ 12,640,215 $ 11,706,708 $ 10,751,196 $ 10,533,380 $ 10,037,794 $ 9,997,000 Contributions as a percentage of covered - employee payroll (1) Fiscal year 2018 was the 1st year of implementation. -2.31% -2.25% -2.16% 3.83% 10.60% 10.72% 15.89% Notes to Schedule - assumptions to develop Actuarially Determined Contributions Valuation date Actuarial cost method Amortization method Amortization period Asset valuation method Inflation Healthcare cost trend rates Salary increases Investment rate of return Retirement age Mortality Mortality improvement 6/30/2021 6/30/2019 6/30/2017 Entry Age Normal Entry Age Normal Entry Age Normal Level % of pay Level % of pay Level % of pay 30 yrs remain 8 yrs remain 9 yrs remain 10 yrs remain 11 yrs remain Market Value Actuarial Value Actuarial Value 2.50% 2.75% 2.75% 5.7% in 2022 fluctuating down to 4.0% by 2076 Non -Medicare - 7.25% and Medicare 6.3% for 2021, both decreasing to ultimate 4 % rate in Non -Medicare - 7.5% and Medicare 6.5% for 2019, both decreasing to ultimate 4 % rate in 3.00% 3.00% 3.00% 6.10% 6.25% 6.25% From 50 to 75 From 50 to 75 From 50 to 75 Ca1PERS 2017 Experience Study Ca1PERS 1997-2015 Experience Study Ca1PERS 1997-2011 Experience Study MacLeod Watts Scale 2022 Scale MP-2019 Scale MP-2017 100 130 Attachment 2 SUPPLEMENTARY INFORMATION Attachment 2 This page intentionally left blank 102 132 Attachment 2 City of Dublin Schedule of Budget Versus Actual Revenues By Sources General Fund For the year ended June 30, 2024 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 Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 59,896,000 $ 59,896,000 $ 61,967,658 26,625,000 29,620,900 30,903,440 8,280,500 8,280,500 9,129,368 290,000 405,000 441,518 286,417 286,417 309,959 1,715,000 1,715,000 2,080,888 20,750 20,750 45,127 1,497,000 1,497,000 2,602,544 33,000 33,000 50,193 4,123,255 4,123,255 4,898,963 678 678 665 2,510,000 5,500,000 8,499,828 1,648,021 1,648,021 2,172,046 - - 7,022,273 50,000 50,000 98,693 7,109,829 6,903,536 6,782,241 1,806,412 1,938,367 4,591,468 $ 2,071,658 1,282,540 848,868 36,518 23,542 365,888 24,377 1,105,544 17,193 775,708 (13) 2,999,828 524,025 7,022,273 48,693 (121,295) 2,653,101 Total revenues $ 115,891,862 $ 121,918,424 $ 141,596,872 $ 19,678,448 103 133 Attachment 2 City of Dublin Schedule of Budget Versus Actual Departmental Expenditures General Fund For the year ended June 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) General government: City council $ 599,803 $ 644,552 $ 576,233 $ 68,319 City manager 1,783,450 1,798,028 1,649,552 148,476 City clerk 799,709 861,435 720,487 140,948 Election 217,170 217,170 2,265 214,905 Human resources 1,141,756 1,244,896 1,028,356 216,540 Insurance 3,471,600 3,610,015 3,563,649 46,366 Finance 2,527,616 2,672,681 2,288,834 383,847 Non -departmental 2,123,600 2,172,882 585,116 1,587,766 Disaster preparedness 325,428 325,428 176,328 149,100 Crossing guards 307,732 370,896 363,121 7,775 Animal control 313,224 401,297 280,483 120,814 Waste management 28,248 28,248 4,586 23,662 Community TV 136,127 136,127 133,174 2,953 Communications 619,140 619,140 531,548 87,592 Economic development 1,015,532 1,199,907 941,482 258,425 Human services 183,490 208,168 133,480 74,688 Library services 1,129,398 1,148,048 1,011,205 136,843 Dougherty Regional Fire Authority 571,942 571,942 194,100 377,842 Sub -total 17,294,965 18,230,860 14,183,999 4,046,861 Police: Police operations 25,589,662 25,680,985 26,087,099 Police operations support 2,693,817 2,910,281 2,601,516 Sub -total (406,114) 308,765 28,283,479 28,591,266 28,688,615 (97,349) Fire: Fire operations 16,450,447 16,450,447 16,363,506 86,941 Fire prevention 546,113 546,113 525,614 20,499 Fire station maintenance 318,782 321,172 283,448 37,724 Sub -total 17,315,342 17,317,732 17,172,568 145,164 Public works: Maintenance 14,844,255 15,279,827 13,347,036 1,932,791 Engineering 3,859,595 4,182,177 3,136,707 1,045,470 Public works administration 1,855,024 2,275,974 1,876,053 399,921 Environmental services 1,147,877 1,392,348 831,545 560,803 Sub -total 21,706,751 23,130,326 19,191,341 3,938,985 104 134 Attachment 2 City of Dublin Schedule of Budget Versus Actual Departmental Expenditures (Continued) General Fund For the year ended June 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Parks and community services: Cultural and special events 1,038,853 1,102,479 1,067,199 35,280 Heritage Center and programs 350,745 322,757 267,906 54,851 Parks and community services administration 1,982,344 2,139,844 2,080,084 59,760 Shannon Center and programs 1,193,759 1,193,759 1,068,522 125,237 Stager and other facility operations 1,424,795 1,484,795 1,303,821 180,974 Senior Center and programs 720,974 705,974 666,144 39,830 The Wave and programs 2,286,408 2,394,083 2,356,326 37,757 Sub -total 8,997,878 9,343,691 8,810,002 533,689 Community development: Planning 2,629,651 2,642,156 2,229,420 412,736 Building and safety 3,013,309 3,156,872 3,090,942 65,930 Sub -total 5,642,960 5,799,028 5,320,362 478,666 Debt service: Principal 680,000 680,000 680,000 Interest and fiscal charges 651,850 651,850 651,850 Sub -total 1,331,850 1,331,850 1,331,850 Total current expenditures 100,573,225 103,744,753 94,698,737 9,046,016 Total expenditures $ 100,573,225 $ 103,744,753 $ 94,698,737 $ 9,046,016 105 135 Attachment 2 This page intentionally left blank 106 136 Attachment 2 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 Art Capital Projects Fund - The Public Art Fund was created following the adoption of Dublin Municipal Code 8.58 "Public Art Program Contribution." The purpose of the adoption of the ordinance, and Public Art Fund fund is to: promote the public interest and general welfare through the acquisition, installation, maintenance and promotion of public art; establish requirements and procedures for developer contributions to public art; provide funding to support the acquisition, installation, maintenance and promotion of public art; and implement the goals of the Public Art Master Plan. Bi-Annually Staff identifies and develops Public Art projects that will be funded utilizing the Public Art Fund. These projects are included in the City's Capital Improvement Program and subject to City Council approval. Since inception, the Public Art Fund has been funded entirely by developer contributions that are subject to the Public Art Program Contribution ordinance. 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. 107 137 Attachment 2 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, 2024 EXPENDITURES: Capital outlay: General improvements Total expenditures OTHER FINANCING SOURCES (USES): Transfers in 2,696,840 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 2,696,840 $ 25,284,884 $ 7,118,484 $ 18,166,400 2,696,840 25,284,884 7,118,484 18,166,400 25,269,885 7,118,484 (18,151,401) Total other financing sources (uses) 2,696,840 25,269,885 7,118,484 (18,151,401) Net change in fund balance $ - $ FUND BALANCE: Beginning of year End of year (14,999) - $ 14,999 108 138 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Parks $ 3,894,115 $ 26,188,648 $ 5,990,942 $ 20,197,706 Total expenditures 3,894,115 26,188,648 5,990,942 20,197,706 OTHER FINANCING SOURCES (USES): Transfers in 3,894,115 26,188,648 5,990,942 (20,197,706) Total other financing sources (uses) 3,894,115 26,188,648 5,990,942 (20,197,706) Net change in fund balance $ - $ - - $ FUND BALANCE: Beginning of year - End of year $ - 109 139 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Streets $ 17,851,382 $ 68,340,072 $ 6,099,577 $ 62,240,495 Total expenditures OTHER FINANCING SOURCES (USES): Transfers in Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year 17,851,382 68,340,072 6,099,577 62,240,495 17,851,382 68,340,072 6,099,577 (62,240,495) 17,851,382 68,340,072 6,099,577 (62,240,495) $ $ - $ 110 140 Attachment 2 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Art Capital Projects Fund For the year ended June 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Public art $ 500,000 $ 1,471,045 $ 244,479 $ 1,226,566 Total expenditures OTHER FINANCING SOURCES (USES): Transfers in Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year 500,000 1,471,045 244,479 1,226,566 500,000 1,471,045 244,479 (1,226,566) 500,000 1,471,045 244,479 (1,226,566) $ 111 141 Attachment 2 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, 2024 REVENUES: Interest Development revenue Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 342,550 $ 342,550 $ 1,113,243 $ 486,893 486,893 1,032,573 770,693 545,680 829,443 829,443 2,145,816 1,316,373 Current: General government - 9,050 9,050 Total expenditures - 9,050 9,050 REVENUES OVER (UNDER) EXPENDITURES 829,443 820,393 2,136,766 1,316,373 OTHER FINANCING SOURCES (USES): Transfers out (2,279,875) (22,843,452) (6,011,344) 16,832,108 Total other financing sources (uses) (2,279,875) (22,843,452) (6,011,344) 16,832,108 Net change in fund balance $ (1,450,432) $ (22,023,059) (3,874,578) $ 18,148,481 FUND BALANCE: Beginning of year 15,880,376 End of year $ 12,005,798 112 142 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 2,000 $ 2,000 $ 4,746 $ Development revenue 26,712 26,712 39,021 2,746 12,309 Total revenues 28,712 28,712 43,767 15,055 EXPENDITURES: Current: General government 100,000 100,000 - 100,000 Total expenditures 100,000 100,000 - 100,000 REVENUES OVER (UNDER) EXPENDITURES (71,288) (71,288) 43,767 115,055 Net change in fund balance $ (71,288) $ (71,288) 43,767 $ 115,055 FUND BALANCE: Beginning of year 134,609 End of year $ 178,376 113 143 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 298,000 $ 298,000 $ 852,031 $ 554,031 Development revenue 300,816 300,816 1,189,675 888,859 Other revenues - - 12,273 12,273 Total revenues 598,816 598,816 2,053,979 1,455,163 EXPENDITURES: Current: General government 60,000 85,000 47,481 37,519 Total expenditures 60,000 85,000 47,481 37,519 REVENUES OVER (UNDER) EXPENDITURES 538,816 513,816 2,006,498 1,492,682 OTHER FINANCING SOURCES (USES): Transfers out (613,880) (23,109,934) (606,112) 22,503,822 Total other financing sources (uses) (613,880) (23,109,934) (606,112) 22,503,822 Net change in fund balance $ (75,064) $ (22,596,118) 1,400,386 $ 23,996,504 FUND BALANCE: Beginning of year 30,130,376 End of year $ 31,530,762 114 144 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 80,000 $ 80,000 $ 365,434 $ 285,434 Total revenues 80,000 80,000 365,434 285,434 OTHER FINANCING SOURCES (USES): Transfers out - (350,000) (150,000) 200,000 Total other financing sources (uses) - (350,000) (150,000) 200,000 Net change in fund balance $ 80,000 $ (270,000) 215,434 $ 485,434 FUND BALANCE: Beginning of year 12,185,835 End of year $ 12,401,269 115 145 Attachment 2 This page intentionally left blank 116 146 Attachment 2 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. Emergency Medical Services (EMS) established to account for excise taxes received to fund the costs of providing Emergency Medical Services. Enforcement Grants established to account for miscellaneous grants received for police expenditures not reported in the above funds. Transportation: State Gas Tax established to account for the receipt of state gasoline taxes and expenditures. SAFETEA-LU established to account for the revenue received from the U.S. Department of Transportation under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legal for Users fund. 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. 117 147 Attachment 2 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. 118 148 Attachment 2 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 adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sith-cycle Regional Housing Needs Assessment. 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 Rescue Plan Act Fund is used to account for funds authorized under the Federal American Recovery Plan Act (ARPA) to cover the costs of COVID-19 response as well as for making any necessary investments in infrastructure. Measure 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. Federal Grants - General accounts for revenue and related expenditures of federal grants. County Grants - General accounts for revenue and related expenditures of county grants. Capital Project Funds are used to account for financial resources used 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. 119 149 Attachment 2 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2024 Special Revenue Funds Special Supplemental Emergency Criminal Vehicle Law Traffic Medical Activity Abatement Enforcement Safety Services ASSETS Cash and investments $ 391,402 $ 422,849 $ 497,899 $ 106,059 $ 238,378 Accounts receivable - 11,078 751 Notes receivable - - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued wages and other payroll liabilities Deposits payable Unearned revenue Due to other funds $ 391,402 $ 422,849 $ 497,899 $ 117,137 $ 239,129 $ - $ - $ - $ 8,292 $ 248,986 - - Total liabilities 248,986 - 8,292 - Deferred inflows of resources: Unavailable revenue - accounts receivable Total deferred inflows of resources Fund Balances: Restricted: Public safety programs Street maintenance and construction Health and welfare programs Culture and leisure Capital improvement projects Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 142,416 422,849 497,899 108,845 239,129 142,416 422,849 497,899 108,845 239,129 $ 391,402 $ 422,849 $ 497,899 $ 117,137 $ 239,129 120 150 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 Special Revenue Funds Measure B Measure B Enforcement Sales Tax Sales Tax Grants State Gas Tax SAFETEA-LU Local Streets Bike/Pedestrian ASSETS Cash and investments $ 149,433 $ 4,013,170 $ - $ - $ 980 Accounts receivable 4,913 172,605 - - Notes receivable - - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 154,346 $ 4,185,775 $ $ 980 Liabilities: Accounts payable $ 49,723 $ 526,458 $ $ - $ - Accrued wages and other payroll liabilities - - - Deposits payable - - - Unearned revenue - - - Due to other funds - - - Total liabilities Deferred inflows of resources: Unavailable revenue - accounts receivable Total deferred inflows of resources 49,723 526,458 Fund Balances: Restricted: Public safety programs 104,623 - - Street maintenance and construction - 3,659,317 - 980 Health and welfare programs - - - Culture and leisure - - - Capital improvement projects - - - Unassigned - - - Total fund balances Total liabilities, deferred inflows of resources, and fund balances 104,623 3,659,317 - 980 $ 154,346 $ 4,185,775 $ - $ - $ 980 121 151 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 Special Revenue Funds Measure BB Measure BB Transportation Measure B Sales Tax Sales Tax Measure BB for Clean Air Grants Streets and Roads Bike/Pedestrian Grants (TFCA) ASSETS Cash and investments $ 197,573 $ 1,610,618 $ 896,896 $ 1,131 $ (9,943) Accounts receivable 238,311 80,750 1,984,278 1,650 Notes receivable - - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 197,573 $ 1,848,929 $ 977,646 $ 1,985,409 $ (8,293) Liabilities: Accounts payable $ - $ - $ - $ 1 $ - Accrued wages and other payroll liabilities - - - Deposits payable - - - Unearned revenue - - - Due to other funds - 1,985,409 - Total liabilities - 1,985,410 Deferred inflows of resources: Unavailable revenue - accounts receivable - 1,823,739 Total deferred inflows of resources 1,823,739 - Fund Balances: Restricted: Public safety programs - - - Street maintenance and construction 197,573 1,848,929 977,646 - - Health and welfare programs - - - Culture and leisure - - - Capital improvement projects - - - Unassigned - (1,823,740) (8,293) Total fund balances Total liabilities, deferred inflows of resources, and fund balances 197,573 1,848,929 977,646 (1,823,740) (8,293) $ 197,573 $ 1,848,929 $ 977,646 $ 1,985,409 $ (8,293) 122 152 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 ASSETS Special Revenue Funds ACTC Road Maint & Vehicle Rehab Account Registration (RMRA) Fee TDA AVI Economic Benefit/ Business Garbage/ Assistance Recycling Program Cash and investments $ 3,268,196 $ 432,204 $ 1,043 $ 870,317 $ 371,890 Accounts receivable 333,759 56,101 24,689 36,528 25,000 Notes receivable - - 10,238 Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued wages and other payroll liabilities Deposits payable Unearned revenue Due to other funds Total liabilities Deferred inflows of resources: Unavailable revenue - accounts receivable $ 3,601,955 $ 488,305 $ 25,732 $ 906,845 $ 407,128 - $ - $ - $ 165,222 $ 3,079 94 94 168,301 - Total deferred inflows of resources - Fund Balances: Restricted: Public safety programs - - - Street maintenance and construction 3,601,955 488,305 25,638 - - Health and welfare programs - 738,544 - Culture and leisure - - 407,128 Capital improvement projects - - - Unassigned - - - Total fund balances Total liabilities, deferred inflows of resources, and fund balances 3,601,955 488,305 25,638 738,544 407,128 $ 3,601,955 $ 488,305 $ 25,732 $ 906,845 $ 407,128 123 153 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 ASSETS Special Revenue Funds Storm Water Box Management Culvert Public Art Miscellaneous Community Special Development Revenue Block Grant Cash and investments $ 233,263 $ 418,813 $ 3,330,227 $ 622,782 $ Accounts receivable - - 25,618 Notes receivable Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 52,346 $ 233,263 $ 418,813 $ 3,330,227 $ 648,400 $ 52,346 Liabilities: Accounts payable $ - $ - $ 7,400 $ 1,000 $ 6,107 Accrued wages and other payroll liabilities - - - - Deposits payable - - - 2,063 Unearned revenue Due to other funds - - - - 35,951 Total liabilities Deferred inflows of resources: Unavailable revenue - accounts receivable Total deferred inflows of resources - 7,400 3,063 42,058 Fund Balances: Restricted: Public safety programs - - - - Street maintenance and construction 233,263 418,813 - - Health and welfare programs - - - 645,337 10,288 Culture and leisure - - - Capital improvement projects - - 3,322,827 - Unassigned - - - - Total fund balances Total liabilities, deferred inflows of resources, and fund balances 233,263 418,813 3,322,827 645,337 10,288 $ 233,263 $ 418,813 $ 3,330,227 $ 648,400 $ 52,346 124 154 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 Special Revenue Funds Federal Building State COVID-19 American State Grant Homes and Housing Financial Rescue Park Jobs Act Grant Assistance Plan Act ASSETS Cash and investments $ - $ - $ - $ 10,081 $ 2,765,194 Accounts receivable 1,905,144 - - Notes receivable - - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 1,905,144 $ $ $ 10,081 $ 2,765,194 Liabilities: Accounts payable $ - $ - $ - $ - $ 149,471 Accrued wages and other payroll liabilities - - - 6,511 Deposits payable - - - - Unearned revenue - - - 2,609,212 Due to other funds 1,905,144 13,410 - Total liabilities 1,905,144 13,410 - 2,765,194 Deferred inflows of resources: Unavailable revenue - accounts receivable 1,905,144 Total deferred inflows of resources 1,905,144 Fund Balances: Restricted: Public safety programs - - - Street maintenance and construction - - - Health and welfare programs - - 10,081 Culture and leisure - - - Capital improvement projects - - - Unassigned (1,905,144) (13,410) - Total fund balances (1,905,144) (13,410) 10,081 Total liabilities, deferred inflows of resources, and fund balances $ 1,905,144 $ - $ - $ 10,081 $ 2,765,194 125 155 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 Special Revenue Funds Maintenance Districts Measure RR - 1983-1 1983-2 1986-1 1997-1 Safe Routes Street Stagecoach Dougherty Santa Rita to BART Lighting Landscape Landscape Landscape ASSETS Cash and investments $ - $ 695,094 $ 353,498 $ 780,236 $ 1,478,565 Accounts receivable 411,609 938 560 535 463 Notes receivable - - - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued wages and other payroll liabilities Deposits payable Unearned revenue Due to other funds $ 411,609 $ 696,032 $ 354,058 $ 780,771 $ 1,479,028 $ - $ 30,210 $ 53,501 $ 3,789 $ 95,190 411,609 Total liabilities 411,609 30,210 53,501 3,789 95,190 Deferred inflows of resources: Unavailable revenue - accounts receivable 411,609 Total deferred inflows of resources 411,609 - Fund Balances: Restricted: Public safety programs - - - Street maintenance and construction - 665,822 300,557 776,982 1,383,838 Health and welfare programs - - - Culture and leisure - - - Capital improvement projects - - - Unassigned (411,609) - - Total fund balances Total liabilities, deferred inflows of resources, and fund balances (411,609) 665,822 300,557 776,982 1,383,838 $ 411,609 $ 696,032 $ 354,058 $ 780,771 $ 1,479,028 126 156 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable Notes receivable Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Special Revenue Funds Capital Projects Fund Maintenance Districts Energy 1999-1 Dublin Improvement East Dublin Crossing Federal Grants - County Grants - Lease Revenue Street Lighting CFD No. 2017-1 General General Bond $ 664,246 $ 556,375 $ - $ - $ 1,248,644 1,154 441 - 19,853 - $ 665,400 $ 556,816 $ $ 19,853 $ 1,248,644 Liabilities: Accounts payable $ 4,648 $ 4,470 $ - $ - $ - Accrued wages and other payroll liabilities - - - Deposits payable - - - - Unearned revenue - - - - - Due to other funds - - 19,853 - Total liabilities 4,648 4,470 - 19,853 Deferred inflows of resources: Unavailable revenue - accounts receivable Total deferred inflows of resources Fund Balances: Restricted: Public safety programs - - - Street maintenance and construction 660,752 552,346 - - - Health and welfare programs - - - Culture and leisure - - - - Capital improvement projects - - - 1,248,644 Unassigned - - - - Total fund balances Total liabilities, deferred inflows of resources, and fund balances 660,752 552,346 - - 1,248,644 $ 665,400 $ 556,816 $ $ 19,853 $ 1,248,644 127 157 Attachment 2 City of Dublin Combining Balance Sheet (Continued) Governmental Funds June 30, 2024 Total Nonmajor Governmental Funds ASSETS Cash and investments $ 26,617,113 Accounts receivable 5,389,074 Notes receivable 10,238 Total assets $ 32,016,425 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 1,105,482 Accrued wages and other payroll liabilities 9,590 Deposits payable 251,049 Unearned revenue 2,609,212 Due to other funds 4,371,470 Total liabilities 8,346,803 Deferred inflows of resources: Unavailable revenue - accounts receivable 4,140,492 Total deferred inflows of resources 4,140,492 Fund Balances: Restricted: Public safety programs 1,515,761 Street maintenance and construction 15,792,716 Health and welfare programs 1,404,250 Culture and leisure 407,128 Capital improvement projects 4,571,471 Unassigned (4,162,196) Total fund balances 19,529,130 Total liabilities, deferred inflows of resources, and fund balances $ 32,016,425 128 158 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2024 Special Revenue Funds Special Supplemental Emergency Criminal Vehicle Law Traffic Medical Activity Abatement Enforcement Safety Services REVENUES: Intergovernmental $ - $ 66,908 $ 218,094 $ - $ - Charges for service - - - Interest 4,042 12,061 14,953 1,696 8,528 Fines and forfeitures - 116,831 - Development revenue - - - Other revenue 51,149 - - Special assessments - - 214,153 Total revenues 55,191 78,969 233,047 118,527 222,681 EXPENDITURES: Current: General government - - - - Police 40,569 100,000 - - Fire - - 263,821 Public works - 43,353 - Park and community services - - - - Community development - - - - Total expenditures 40,569 - 100,000 43,353 263,821 REVENUES OVER (UNDER) EXPENDITURES 14,622 78,969 133,047 75,174 (41,140) OTHER FINANCING SOURCES (USES): Transfers out - (21,392) - - Total other financing sources (uses) - (21,392) - - Net change in fund balances 14,622 57,577 133,047 75,174 (41,140) FUND BALANCES (DEFICITS): Beginning of year 127,794 365,272 364,852 33,671 280,269 End of year $ 142,416 $ 422,849 $ 497,899 $ 108,845 $ 239,129 129 159 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Special Revenue Funds Measure B Measure B Enforcement Sales Tax Sales Tax Bike Grants State Gas Tax SAFETEA-LU Local Streets /Pedestrian REVENUES: Intergovernmental $ 326,500 $ 1,997,013 $ 40,000 $ - $ - Charges for service - - - Interest - 114,455 1,148 1,001 Fines and forfeitures - - - Development revenue - - - Other revenue - 18,270 - - Special assessments - - - Total revenues 326,500 2,129,738 40,000 1,148 1,001 EXPENDITURES: Current: General government - - - Police 310,256 - - Fire - - - Public works - 1,193,033 - - Park and community services - - - Community development - - - Total expenditures 310,256 1,193,033 REVENUES OVER (UNDER) EXPENDITURES 16,244 936,705 40,000 1,148 1,001 OTHER FINANCING SOURCES (USES): Transfers out - (513,171) (100,132) (68,200) Total other financing sources (uses) - (513,171) (100,132) (68,200) Net change in fund balances 16,244 423,534 40,000 (98,984) (67,199) FUND BALANCES (DEFICITS): Beginning of year 88,379 3,235,783 (40,000) 98,984 68,179 End of year $ 104,623 $ 3,659,317 $ - $ - $ 980 130 160 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Special Revenue Funds Measure BB Measure BB Sales Tax Sales Tax Transportation Measure B Streets and Bike/ Measure BB for Clean Air Grants Roads Pedestrian Grants (TFCA) REVENUES: Intergovernmental $ - $ 1,412,275 $ 478,538 $ 160,539 $ 1,650 Charges for service - - Interest 5,790 44,439 24,078 - Fines and forfeitures - - Development revenue - Other revenue Special assessments Total revenues 5,790 1,456,714 502,616 160,539 1,650 EXPENDITURES: Current: General government Police Fire Public works - 11,810 Park and community services Community development Total expenditures - 11,810 REVENUES OVER (UNDER) EXPENDITURES 5,790 1,456,714 490,806 160,539 1,650 OTHER FINANCING SOURCES (USES): Transfers out - (976,762) (175,969) (2,010,240) (18,000) Total other financing sources (uses) - (976,762) (175,969) (2,010,240) (18,000) Net change in fund balances 5,790 479,952 314,837 (1,849,701) (16,350) FUND BALANCES (DEFICITS): Beginning of year 191,783 1,368,977 662,809 25,961 8,057 End of year $ 197,573 $ 1,848,929 $ 977,646 $ (1,823,740) $ (8,293) 131 161 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Special Revenue Funds ACTC Road Maint & Vehicle Rehab Account Registration (RMRA) Fee TDA AVI Economic Benefit/ Business Garbage/ Assistance Recycling Program REVENUES: Intergovernmental $ 1,915,093 $ 334,165 $ 24,689 $ 376,080 $ Charges for service - - 8,829,581 - Interest 85,165 9,552 492 50,627 9,929 Fines and forfeitures - - - - Development revenue - - - - Other revenue - - 32,080 100,000 Special assessments - - - - Total revenues 2,000,258 343,717 25,181 9,288,368 109,929 EXPENDITURES: Current: General government - - 8,853,392 21,667 Police - - - - Fire - - - - - Public works - 100,000 - 600,513 - Park and community services - - - - - Community development - - - Total expenditures 100,000 - 9,453,905 21,667 REVENUES OVER (UNDER) EXPENDITURES 2,000,258 243,717 25,181 (165,537) 88,262 OTHER FINANCING SOURCES (USES): Transfers out (806,535) (44,623) (17,317) (72,982) - Total other financing sources (uses) (806,535) (44,623) (17,317) (72,982) - Net change in fund balances 1,193,723 199,094 7,864 (238,519) 88,262 FUND BALANCES (DEFICITS): Beginning of year 2,408,232 289,211 17,774 977,063 318,866 End of year $ 3,601,955 $ 488,305 $ 25,638 $ 738,544 $ 407,128 132 162 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Special Revenue Funds Storm Water Box Management Culvert Public Art Miscellaneous Community Special Development Revenue Block Grant REVENUES: Intergovernmental $ - $ - $ - $ - $ 295,385 Charges for service - - 106,737 - Interest 6,970 12,272 101,012 17,208 - Fines and forfeitures - - - - Development revenue - - 530 - Other revenue - - - - Special assessments - - - - Total revenues 6,970 12,272 101,012 124,475 295,385 EXPENDITURES: Current: General government - - 46,566 65,967 Police - - - - Fire - - - - Public works 6,800 - - - - Park and community services - 31,836 - - Community development - - - 219,130 Total expenditures 6,800 - 31,836 46,566 285,097 REVENUES OVER (UNDER) EXPENDITURES 170 12,272 69,176 77,909 10,288 OTHER FINANCING SOURCES (USES): Transfers out - (244,479) - (6,600) Total other financing sources (uses) - (244,479) - (6,600) Net change in fund balances 170 12,272 (175,303) 77,909 3,688 FUND BALANCES (DEFICITS): Beginning of year 233,093 406,541 3,498,130 567,428 6,600 End of year $ 233,263 $ 418,813 $ 3,322,827 $ 645,337 $ 10,288 133 163 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 REVENUES: Intergovernmental Charges for service Interest Fines and forfeitures Development revenue Other revenue Special assessments Total revenues EXPENDITURES: Current: General government Police Fire Public works Park and community services Community development Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) Net change in fund balances FUND BALANCES (DEFICITS): Beginning of year End of year Special Revenue Funds State Grant Park Building Homes and Jobs Act State Housing Grant Federal COVID-19 Financial Assistance American Rescue Plan Act $ - $ 266,438 $ - $ 1,006,483 266,438 1,006,483 998 432 48,993 431,695 574,788 998 432 48,993 1,006,483 265,440 (432) (48,993) (1,347,990) (1,347,990) (1,347,990) 265,440 (432) (48,993) (557,154) (278,850) 432 59,074 $ (1,905,144) $ (13,410) $ - $ 10,081 $ 134 164 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Special Revenue Funds Maintenance Districts Measure RR - 1983-1 1983-2 1986-1 1997-1 Safe Routes Street Stagecoach Dougherty Santa Rita to BART Lighting Landscape Landscape Landscape REVENUES: Intergovernmental $ - $ - $ - $ - $ Charges for service - - Interest - 20,310 11,643 20,580 41,205 Fines and forfeitures - - Development revenue - - Other revenue - - Special assessments - 310,860 123,961 201,846 358,767 Total revenues 331,170 135,604 222,426 399,972 EXPENDITURES: Current: General government - - Police - - Fire - - Public works - 352,510 245,468 77,095 312,344 Park and community services - - Community development - - Total expenditures - 352,510 245,468 77,095 312,344 REVENUES OVER (UNDER) EXPENDITURES - (21,340) (109,864) 145,331 87,628 OTHER FINANCING SOURCES (USES): Transfers out (411,609) (11,983) (3,860) Total other financing sources (uses) (411,609) - (11,983) (3,860) Net change in fund balances (411,609) (21,340) (109,864) 133,348 83,768 FUND BALANCES (DEFICITS): Beginning of year - 687,162 410,421 643,634 1,300,070 End of year $ (411,609) $ 665,822 $ 300,557 $ 776,982 $ 1,383,838 135 165 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Special Revenue Funds Capital Projects Fund Maintenance Districts Energy 1999-1 Dublin Improvement East Dublin Crossing Federal Grants - County Grants - Lease Revenue Street Lighting CFD No. 2017-1 General General Bond REVENUES: Intergovernmental $ - $ - $ 60,520 $ 19,853 $ - Charges for service - - - Interest 17,512 14,320 3 Fines and forfeitures - - - Development revenue - - - Other revenue - - - Special assessments 321,037 117,158 - Total revenues 338,549 131,478 60,520 19,853 3 EXPENDITURES: Current: General government - - 60,520 - Police - - - Fire - - - Public works 241,237 6,413 - Park and community services - - - Community development - - - Total expenditures 241,237 6,413 60,520 - REVENUES OVER (UNDER) EXPENDITURES 97,312 125,065 19,853 3 OTHER FINANCING SOURCES (USES): Transfers out (2,528) - (19,853) (1,594,404) Total other financing sources (uses) (2,528) - (19,853) (1,594,404) Net change in fund balances 94,784 125,065 (1,594,401) FUND BALANCES (DEFICITS): Beginning of year 565,968 427,281 2,843,045 End of year $ 660,752 $ 552,346 $ - $ - $ 1,248,644 136 166 Attachment 2 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds For the year ended June 30, 2024 Total Nonmajor Governmental Funds REVENUES: Intergovernmental $ 9,000,223 Charges for service 8,936,318 Interest 650,991 Fines and forfeitures 116,831 Development revenue 530 Other revenue 201,499 Special assessments 1,647,782 Total revenues 20,554,174 EXPENDITURES: Current: General government 9,528,800 Police 1,025,613 Fire 263,821 Public works 3,190,576 Park and community services 31,836 Community development 220,560 Total expenditures 14,261,206 REVENUES OVER (UNDER) EXPENDITURES 6,292,968 OTHER FINANCING SOURCES (USES): Transfers out (8,468,629) Total other financing sources (uses) (8,468,629) Net change in fund balances (2,175,661) FUND BALANCES (DEFICITS): Beginning of year 21,704,791 End of year $ 19,529,130 137 167 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 420 $ 420 $ 4,042 $ Other revenues - 51,149 51,149 Total revenues EXPENDITURES: Current: 3,622 420 51,569 55,191 3,622 Police 29,547 162,980 Total expenditures 29,547 162,980 REVENUES OVER (UNDER) EXPENDITURES (29,127) (111,411) Net change in fund balance $ (29,127) $ FUND BALANCE: Beginning of year End of year (111,411) 40,569 122,411 40,569 122,411 14,622 126,033 14,622 $ 126,033 127,794 $ 142,416 138 168 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 34,000 $ 34,000 $ 66,908 $ 32,908 Interest 3,150 3,150 12,061 8,911 Total revenues 37,150 37,150 78,969 41,819 REVENUES OVER (UNDER) EXPENDITURES 37,150 37,150 78,969 41,819 OTHER FINANCING SOURCES (USES): Transfers out (50,000) (50,000) (21,392) 28,608 Total other financing sources (uses) (50,000) (50,000) (21,392) 28,608 Net change in fund balance $ (12,850) $ (12,850) 57,577 $ 70,427 FUND BALANCE: Beginning of year 365,272 End of year $ 422,849 139 169 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 100,000 $ 100,000 $ 218,094 $ 118,094 Interest 4,200 4,200 14,953 10,753 Total revenues EXPENDITURES: Current: 104,200 104,200 233,047 128,847 Police 100,000 100,000 100,000 Total expenditures 100,000 100,000 100,000 REVENUES OVER (UNDER) EXPENDITURES 4,200 4,200 133,047 128,847 Net change in fund balance $ 4,200 $ FUND BALANCE: Beginning of year End of year 4,200 133,047 $ 128,847 364,852 $ 497,899 140 170 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 200 $ 200 $ 1,696 $ Fines and forfeitures 100,000 100,000 116,831 Total revenues EXPENDITURES: Current: 1,496 16,831 100,200 100,200 118,527 18,327 Public works and transportation 84,000 103,463 43,353 60,110 Total expenditures 84,000 103,463 43,353 60,110 REVENUES OVER (UNDER) EXPENDITURES 16,200 (3,263) 75,174 78,437 Net change in fund balance $ 16,200 $ FUND BALANCE: Beginning of year End of year (3,263) 75,174 $ 78,437 33,671 $ 108,845 141 171 Attachment 2 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, 2024 REVENUES: Interest Special assessments Total revenues EXPENDITURES: Current: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 4,200 $ 218,000 4,200 $ 218,000 8,528 $ 214,153 4,328 (3,847) 222,200 222,200 222,681 481 Fire 265,610 265,610 263,821 1,789 Total expenditures 265,610 265,610 263,821 1,789 REVENUES OVER (UNDER) EXPENDITURES (43,410) (43,410) (41,140) 2,270 Net change in fund balance $ (43,410) $ FUND BALANCE: Beginning of year End of year (43,410) (41,140) $ 280,269 $ 239,129 2,270 142 172 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 331,681 $ 331,681 $ 326,500 $ (5,181) Total revenues 331,681 331,681 326,500 (5,181) EXPENDITURES: Current: Police 331,681 331,681 310,256 21,425 Total expenditures 331,681 331,681 310,256 21,425 REVENUES OVER (UNDER) EXPENDITURES - - 16,244 16,244 Net change in fund balance $ - $ - 16,244 $ 16,244 FUND BALANCE: Beginning of year 88,379 End of year $ 104,623 143 173 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 2,087,096 $ 2,087,096 $ 1,997,013 $ (90,083) Interest 33,000 33,000 114,455 81,455 Other revenues - - 18,270 18,270 Total revenues 2,120,096 2,120,096 2,129,738 9,642 EXPENDITURES: Current: Public works and transportation 1,372,119 1,476,743 1,193,033 283,710 Total expenditures 1,372,119 1,476,743 1,193,033 283,710 REVENUES OVER (UNDER) EXPENDITURES 747,977 643,353 936,705 293,352 OTHER FINANCING SOURCES (USES): Transfers out (659,460) (3,088,559) (513,171) 2,575,388 Total other financing sources (uses) (659,460) (3,088,559) (513,171) 2,575,388 Net change in fund balance $ 88,517 $ (2,445,206) 423,534 $ 2,868,740 FUND BALANCE: Beginning of year 3,235,783 End of year $ 3,659,317 144 174 Attachment 2 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual SAFETEA-LU Special Revenue Fund For the year ended June 30, 2024 REVENUES: Intergovernmental Total revenues Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ 40,000 $ 40,000 $ 40,000 40,000 $ - $ 40,000 40,000 $ (40,000) 145 175 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 1,148 $ 1,148 Total revenues - - 1,148 1,148 OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year $ (128,223) (100,132) 28,091 - (128,223) (100,132) 28,091 - $ (128,223) (98,984) $ 29,239 98,984 146 176 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 1,001 $ 1,001 Total revenues - - 1,001 1,001 OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year $ (68,200) (68,200) (68,200) (68,200) $ (68,200) (67,199) $ 68,179 $ 980 1,001 147 177 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 5,790 $ 5,790 Total revenues - - 5,790 5,790 Net change in fund balance $ - $ - 5,790 $ 5,790 FUND BALANCE: Beginning of year 191,783 End of year $ 197,573 148 178 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 1,314,556 $ 1,314,556 $ 1,412,275 $ Interest 4,000 4,000 44,439 Total revenues 97,719 40,439 1,318,556 1,318,556 1,456,714 138,158 OTHER FINANCING SOURCES (USES): Transfers out (1,110,000) (1,678,026) (976,762) 701,264 Total other financing sources (uses) (1,110,000) (1,678,026) (976,762) 701,264 Net change in fund balance $ 208,556 $ (359,470) 479,952 $ 839,422 FUND BALANCE: Beginning of year 1,368,977 End of year $ 1,848,929 149 179 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 453,152 $ 453,152 $ 478,538 $ 25,386 Interest 1,000 1,000 24,078 23,078 Total revenues 454,152 454,152 502,616 48,464 EXPENDITURES: Current: Public works and transportation 20,225 20,225 11,810 8,415 Total expenditures 20,225 20,225 11,810 8,415 REVENUES OVER (UNDER) EXPENDITURES 433,927 433,927 490,806 56,879 OTHER FINANCING SOURCES (USES): Transfers out (348,228) (595,578) (175,969) 419,609 Total other financing sources (uses) (348,228) (595,578) (175,969) 419,609 Net change in fund balance $ 85,699 $ (161,651) 314,837 $ 476,488 FUND BALANCE: Beginning of year 662,809 End of year $ 977,646 150 180 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ 2,548,490 $ 160,539 $ (2,387,951) Total revenues - 2,548,490 160,539 (2,387,951) OTHER FINANCING SOURCES (USES): Transfers out - (2,548,490) (2,010,240) 538,250 Total other financing sources (uses) - (2,548,490) (2,010,240) 538,250 Net change in fund balance $ - $ - (1,849,701) $ (1,849,701) FUND BALANCE: Beginning of year 25,961 End of year $ (1,823,740) 151 181 Attachment 2 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, 2024 REVENUES: Intergovernmental Total revenues OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ $ 82,879 $ 1,650 $ (81,229) 82,879 1,650 (81,229) $ (90,936) (18,000) 72,936 (90,936) (18,000) 72,936 $ (8,057) (16,350) $ (8,293) 8,057 $ (8,293) 152 182 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 1,834,514 $ 1,834,514 $ 1,915,093 $ 80,579 Interest 16,500 16,500 85,165 68,665 Total revenues 1,851,014 1,851,014 2,000,258 149,244 OTHER FINANCING SOURCES (USES): Transfers out (1,123,961) (2,660,682) (806,535) 1,854,147 Total other financing sources (uses) (1,123,961) (2,660,682) (806,535) 1,854,147 Net change in fund balance $ 727,053 $ (809,668) 1,193,723 $ 2,003,391 FUND BALANCE: Beginning of year 2,408,232 End of year $ 3,601,955 153 183 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 267,867 $ 993,867 $ 334,165 $ (659,702) Interest 2,500 2,500 9,552 7,052 Total revenues 270,367 996,367 343,717 (652,650) EXPENDITURES: Current: Public works and transportation 100,000 100,000 100,000 Total expenditures 100,000 100,000 100,000 REVENUES OVER (UNDER) EXPENDITURES 170,367 896,367 243,717 (652,650) OTHER FINANCING SOURCES (USES): Transfers out (165,040) (1,064,738) (44,623) 1,020,115 Total other financing sources (uses) (165,040) (1,064,738) (44,623) 1,020,115 Net change in fund balance $ 5,327 $ (168,371) 199,094 $ 367,465 FUND BALANCE: Beginning of year 289,211 End of year $ 488,305 154 184 Attachment 2 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, 2024 REVENUES: Intergovernmental Interest Total revenues OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 17,317 $ 24,689 $ - 492 7,372 492 - 17,317 25,181 7,864 $ (17,317) (17,317) - (17,317) (17,317) - $ - 7,864 $ 17,774 $ 25,638 7,864 155 185 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 374,102 $ 374,102 $ 376,080 $ 1,978 Charges for services 7,820,000 8,854,395 8,829,581 (24,814) Interest 20,350 20,350 50,627 30,277 Other revenues - 32,080 32,080 Total revenues 8,214,452 9,280,927 9,288,368 7,441 EXPENDITURES: Current: General government 7,820,000 8,854,395 8,853,392 1,003 Public works and transportation 520,285 777,838 600,513 177,325 Total expenditures 8,340,285 9,632,233 9,453,905 178,328 REVENUES OVER (UNDER) EXPENDITURES (125,833) (351,306) (165,537) 185,769 OTHER FINANCING SOURCES (USES): Transfers out - (77,342) (72,982) 4,360 Total other financing sources (uses) - (77,342) (72,982) 4,360 Net change in fund balance $ (125,833) $ (428,648) (238,519) $ 190,129 FUND BALANCE: Beginning of year 977,063 End of year $ 738,544 156 186 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 9,929 $ 9,929 Other revenues 100,000 100,000 100,000 Total revenues 100,000 100,000 109,929 9,929 EXPENDITURES: Current: General government 100,000 100,000 21,667 78,333 Total expenditures 100,000 100,000 21,667 78,333 REVENUES OVER (UNDER) EXPENDITURES - - 88,262 88,262 Net change in fund balance $ - $ - 88,262 $ 88,262 FUND BALANCE: Beginning of year 318,866 End of year $ 407,128 157 187 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 2,200 $ 2,200 $ 6,970 $ 4,770 Total revenues 2,200 2,200 6,970 4,770 EXPENDITURES: Current: Public works and transportation 23,600 23,600 6,800 16,800 Total expenditures 23,600 23,600 6,800 16,800 REVENUES OVER (UNDER) EXPENDITURES (21,400) (21,400) 170 21,570 Net change in fund balance $ (21,400) $ (21,400) 170 $ 21,570 FUND BALANCE: Beginning of year 233,093 End of year $ 233,263 158 188 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 5,500 $ 5,500 $ 12,272 $ 6,772 Total revenues 5,500 5,500 12,272 6,772 Net change in fund balance $ 5,500 $ 5,500 12,272 $ FUND BALANCE: Beginning of year 406,541 End of year $ 418,813 6,772 159 189 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 45,000 $ 45,000 $ 101,012 $ 56,012 Total revenues 45,000 45,000 101,012 56,012 EXPENDITURES: Current: Parks and community services 80,250 80,500 31,836 48,664 Total expenditures 80,250 80,500 31,836 48,664 REVENUES OVER (UNDER) EXPENDITURES (35,250) (35,500) 69,176 104,676 OTHER FINANCING SOURCES (USES): Transfers out (500,000) (1,471,045) (244,479) 1,226,566 Total other financing sources (uses) (500,000) (1,471,045) (244,479) 1,226,566 Net change in fund balance $ (535,250) $ (1,506,545) (175,303) $ 1,331,242 FUND BALANCE: Beginning of year 3,498,130 End of year $ 3,322,827 160 190 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services $ 125,000 $ 125,000 $ 106,737 $ (18,263) Interest 2,100 2,100 17,208 15,108 Development revenue 335 335 530 195 Total revenues 127,435 127,435 124,475 (2,960) EXPENDITURES: Current: General government 35,000 46,566 46,566 Total expenditures 35,000 46,566 46,566 REVENUES OVER (UNDER) EXPENDITURES 92,435 80,869 77,909 (2,960) Net change in fund balance $ 92,435 $ FUND BALANCE: Beginning of year End of year 80,869 77,909 $ (2,960) 567,428 $ 645,337 161 191 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 105,600 $ 334,525 $ 295,385 $ (39,140) Total revenues 105,600 334,525 295,385 (39,140) EXPENDITURES: Current: General government 99,000 108,795 65,967 Community development - 219,130 219,130 42,828 Total expenditures 99,000 327,925 285,097 42,828 REVENUES OVER (UNDER) EXPENDITURES 6,600 6,600 10,288 3,688 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 $ - $ - 3,688 $ FUND BALANCE: Beginning of year 6,600 End of year $ 10,288 3,688 162 192 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 271,600 $ 271,600 $ - $ (271,600) Total revenues 271,600 271,600 - (271,600) OTHER FINANCING SOURCES (USES): Transfers out - (1,736,846) (1,347,990) 388,856 Total other financing sources (uses) - (1,736,846) (1,347,990) 388,856 Net change in fund balance $ 271,600 $ (1,465,246) (1,347,990) $ 117,256 FUND BALANCE: Beginning of year (557,154) End of year $ (1,905,144) 163 193 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ - 266,438 $ 266,438 Total revenues - - 266,438 266,438 EXPENDITURES: Current: Community development - 998 998 Total expenditures - 998 998 REVENUES OVER (UNDER) EXPENDITURES - (998) 265,440 266,438 Net change in fund balance $ - $ (998) 265,440 $ 266,438 FUND BALANCE: Beginning of year (278,850) End of year $ (13,410) 164 194 Attachment 2 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, 2024 EXPENDITURES: Current: Community development Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) - 432 432 - 432 432 $ - $ (432) (432) $ 432 $ 165 195 Attachment 2 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, 2024 EXPENDITURES: Current: General government Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ $ - $ $ 48,993 $ (48,993) 48,993 (48,993) (48,993) $ (48,993) 59,074 $ 10,081 166 196 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 1,579,419 $ 1,579,419 $ 1,006,483 $ (572,936) Total revenues 1,579,419 1,579,419 1,006,483 (572,936) EXPENDITURES: Current: General government 1,237,717 1,954,030 431,695 1,522,335 Police 628,102 1,034,461 574,788 459,673 Community development - 593,941 - 593,941 Total expenditures 1,865,819 3,582,432 1,006,483 2,575,949 REVENUES OVER (UNDER) EXPENDITURES (286,400) (2,003,013) - 2,003,013 Net change in fund balance $ (286,400) $ (2,003,013) - $ 2,003,013 FUND BALANCE: Beginning of year - End of year $ - 167 197 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ 411,609 $ - $ (411,609) Total revenues - 411,609 - (411,609) OTHER FINANCING SOURCES (USES): Transfers out - (411,609) (411,609) Total other financing sources (uses) - (411,609) (411,609) Net change in fund balance $ - $ - (411,609) $ (411,609) FUND BALANCE: Beginning of year - End of year $ (411,609) 168 198 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 5,500 $ 5,500 $ 20,310 $ 14,810 Special assessments 314,416 314,416 310,860 (3,556) Total revenues 319,916 319,916 331,170 11,254 EXPENDITURES: Current: Public works and transportation 373,473 373,473 Total expenditures 373,473 373,473 REVENUES OVER (UNDER) EXPENDITURES (53,557) (53,557) Net change in fund balance $ (53,557) $ FUND BALANCE: Beginning of year End of year (53,557) 352,510 20,963 352,510 20,963 (21,340) 32,217 (21,340) $ 32,217 687,162 $ 665,822 169 199 Attachment 2 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, 2024 REVENUES: Interest Special assessments Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 3,300 $ 123,961 3,300 $ 123,961 11,643 $ 123,961 8,343 Total revenues 127,261 127,261 135,604 8,343 EXPENDITURES: Current: Public works and transportation 261,166 261,166 245,468 15,698 Total expenditures 261,166 261,166 245,468 15,698 REVENUES OVER (UNDER) EXPENDITURES (133,905) (133,905) (109,864) 24,041 Net change in fund balance $ (133,905) $ (133,905) (109,864) $ FUND BALANCE: Beginning of year 410,421 End of year $ 300,557 24,041 170 200 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 4,950 $ 4,950 $ 20,580 $ 15,630 Special assessments 201,188 201,188 201,846 658 Total revenues 206,138 206,138 222,426 16,288 EXPENDITURES: Current: Public works and transportation 132,821 132,821 77,095 55,726 Total expenditures 132,821 132,821 77,095 55,726 REVENUES OVER (UNDER) EXPENDITURES 73,317 73,317 145,331 72,014 OTHER FINANCING SOURCES (USES): Transfers out - (370,344) (11,983) 358,361 Total other financing sources (uses) - (370,344) (11,983) 358,361 Net change in fund balance $ 73,317 $ (297,027) 133,348 $ 430,375 FUND BALANCE: Beginning of year 643,634 End of year $ 776,982 171 201 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 11,000 $ 11,000 $ 41,205 $ Special assessments 380,680 380,680 358,767 Total revenues EXPENDITURES: 30,205 (21,913) 391,680 391,680 399,972 8,292 Current: Public works and transportation 362,007 362,007 312,344 49,663 Total expenditures 362,007 362,007 312,344 49,663 REVENUES OVER (UNDER) EXPENDITURES 29,673 29,673 87,628 57,955 OTHER FINANCING SOURCES (USES): Transfers out - (194,928) (3,860) 191,068 Total other financing sources (uses) - (194,928) (3,860) 191,068 Net change in fund balance $ 29,673 $ (165,255) 83,768 $ 249,023 FUND BALANCE: Beginning of year 1,300,070 End of year $ 1,383,838 172 202 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 13,750 $ 13,750 $ 17,512 $ Special assessments 338,543 338,543 321,037 Total revenues 3,762 (17,506) 352,293 352,293 338,549 (13,744) EXPENDITURES: Current: Public works and transportation 283,694 373,695 241,237 132,458 Total expenditures 283,694 373,695 241,237 132,458 REVENUES OVER (UNDER) EXPENDITURES 68,599 (21,402) 97,312 118,714 OTHER FINANCING SOURCES (USES): Transfers out (42,000) (90,147) (2,528) 87,619 Total other financing sources (uses) (42,000) (90,147) (2,528) 87,619 Net change in fund balance $ 26,599 $ (111,549) 94,784 $ 206,333 FUND BALANCE: Beginning of year 565,968 End of year $ 660,752 173 203 Attachment 2 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, 2024 REVENUES: Interest Special assessments Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 2,200 $ 115,000 2,200 $ 115,000 14,320 $ 117,158 12,120 2,158 Total revenues 117,200 117,200 131,478 14,278 EXPENDITURES: Current: Public works and transportation 31,030 31,815 Total expenditures 31,030 31,815 REVENUES OVER (UNDER) EXPENDITURES 86,170 85,385 Net change in fund balance $ 86,170 $ FUND BALANCE: Beginning of year End of year 85,385 6,413 25,402 6,413 25,402 125,065 39,680 125,065 $ 39,680 427,281 $ 552,346 174 204 Attachment 2 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal Grants - General Special Revenue Fund For the year ended June 30, 2024 REVENUES: Intergovernmental Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ 1,440,520 $ 60,520 $ (1,380,000) 1,440,520 60,520 (1,380,000) Current: General government - 60,520 60,520 Total expenditures - 60,520 60,520 REVENUES OVER (UNDER) EXPENDITURES - 1,380,000 - (1,380,000) OTHER FINANCING SOURCES (USES): Transfers out - (1,380,000) - 1,380,000 Total other financing sources (uses) - (1,380,000) - 1,380,000 Net change in fund balance $ $ $ FUND BALANCE: Beginning of year End of year $ 175 205 Attachment 2 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual County Grants - General Special Revenue Fund For the year ended June 30, 2024 REVENUES: Intergovernmental Total revenues OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ 19,853 $ 19,853 $ 19,853 19,853 (19,853) (19,853) (19,853) (19,853) $ 176 206 Attachment 2 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 3 $ 3 Total revenues - - 3 3 OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year $ - (2,568,498) (1,594,404) 974,094 - (2,568,498) (1,594,404) 974,094 - $ (2,568,498) (1,594,401) $ 974,097 2,843,045 $ 1,248,644 177 207 Attachment 2 This page intentionally left blank 178 208 Attachment 2 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. 179 209 Attachment 2 City of Dublin Combining Statement of Net Position Internal Service Funds June 30, 2024 Vehicle Building Equipment Replacement Replacement Replacement ASSETS Current assets: Cash and investments $ 2,867,792 $ 13,919,839 $ 8,487,052 Accounts receivable 3,014 Prepaids and other - Total current assets 2,870,806 13,919,839 8,487,052 Noncurrent assets: Capital assets: Land Construction in progress Infrastructure Building and improvements Vehicles and equipment Subscription based I.T. agreements Less accumulated depreciation and amortization 8,613,435 (4,788,484) 10,774,792 7,383,424 622,831 63,177,051 (48,899,362) 4,563 122,183 3,020,039 655,000 (1,747,696) Net capital assets 3,824,951 33,058,736 2,054,089 Total assets 6,695,757 46,978,575 10,541,141 LIABILITIES Current liabilities: Accounts payable and accruals Due to other funds SBITA liabilities, due in one year 17,115 Total current liabilities - 17,115 Long-term liabilities: SBITA liabilities, due in more than one year - Total long-term liabilities - Total liabilities - 17,115 NET POSITION (DEFICIT) Net investment in capital assets 3,824,951 33,058,736 Unrestricted 2,870,806 13,919,839 2,054,089 8,469,937 Total net position (deficit) $ 6,695,757 $ 46,978,575 $ 10,524,026 180 210 Attachment 2 City of Dublin Combining Statement of Net Position (Continued) Internal Service Funds June 30, 2024 ASSETS Current assets: Cash and investments Accounts receivable Prepaids and other Total current assets Retiree Information Health Care Technology Total $ - $ 2,434,949 $ 27,709,632 243,000 246,014 209,548 181,535 391,083 452,548 2,616,484 28,346,729 Noncurrent assets: Capital assets: Land - 10,774,792 Construction in progress - 898,474 8,286,461 Infrastructure - 745,014 Building and improvements - 42,732 63,219,783 Vehicles and equipment - 104,198 11,737,672 Subscription based I.T. agreements - 1,561,045 2,216,045 Less accumulated depreciation and amortization - (770,814) (56,206,356) Net capital assets 1,835,635 40,773,411 Total assets 452,548 4,452,119 69,120,140 LIABILITIES Current liabilities: Accounts payable and accruals (11,719) 125,506 130,902 Due to other funds 60,227 60,227 SBITA liabilities, due in one year - 285,809 285,809 Total current liabilities 48,508 411,315 476,938 Long-term liabilities: SBITA liabilities, due in more than one year Total long-term liabilities 631,613 631,613 631,613 631,613 Total liabilities 48,508 1,042,928 1,108,551 NET POSITION (DEFICIT) Net investment in capital assets Unrestricted - 918,213 39,855,989 404,040 2,490,978 28,155,600 Total net position (deficit) $ 404,040 $ 3,409,191 $ 68,011,589 181 211 Attachment 2 City of Dublin Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the year ended June 30, 2024 OPERATING REVENUES: Charges for services Other revenue Vehicle Building Equipment Replacement Replacement Replacement $ 638,058 $ 21,444 390,531 $ 801,865 6,985 Total operating revenues 659,502 390,531 808,850 OPERATING EXPENSES: Supplies and services Retiree health premiums Depreciation 184,404 523,380 59,684 277,568 2,088,047 356,954 Total operating expenses 707,784 2,147,731 634,522 OPERATING INCOME (LOSS) (48,282) (1,757,200) 174,328 NONOPERATING REVENUES (EXPENSES): Interest income 90,880 376,497 257,791 Interest and fiscal charges - Total nonoperating revenues (expenses) 90,880 376,497 257,791 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS: 42,598 (1,380,703) Transfers in - 2,000,000 Transfers (out) - 432,119 Total transfers - 2,000,000 Change in net position 42,598 619,297 432,119 NET POSITION (DEFICIT): Beginning of year 6,653,159 46,359,278 10,091,907 End of year $ 6,695,757 $ 46,978,575 $ 10,524,026 182 212 Attachment 2 City of Dublin Combining Statement of Revenues, Expenses and Changes in Fund Net Position (Continued) Internal Service Funds For the year ended June 30, 2024 OPERATING REVENUES: Charges for services Other revenue Retiree Information Health Care Technology Total $ - $ 3,729,205 $ 5,559,659 1,318,461 1,346,890 Total operating revenues 1,318,461 3,729,205 6,906,549 OPERATING EXPENSES: Supplies and services - 2,683,566 3,205,222 Retiree health premiums 963,526 963,526 Depreciation - 375,373 3,343,754 Total operating expenses 963,526 3,058,939 7,512,502 OPERATING INCOME (LOSS) 354,935 670,266 (605,953) NONOPERATING REVENUES (EXPENSES): Interest income 411 106,590 832,169 Interest and fiscal charges (28,943) (28,943) Total nonoperating revenues (expenses) 411 77,647 803,226 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS: 355,346 747,913 197,273 Transfers in - 2,000,000 Transfers (out) - (15,606) (15,606) Total transfers - (15,606) 1,984,394 Change in net position 355,346 732,307 2,181,667 NET POSITION (DEFICIT): Beginning of year 48,694 2,676,884 65,829,922 End of year $ 404,040 $ 3,409,191 $ 68,011,589 183 213 Attachment 2 City of Dublin Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2024 Vehicle Building Equipment Replacement Replacement Replacement CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers $ 2,703,839 $ 390,531 $ 801,865 Payments to suppliers and service providers (2,257,463) (64,601) (292,064) Other revenues 21,444 - 6,985 Net cash provided by (used in) operating activities 467,820 325,930 516,786 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds 2,000,000 Cash disbursements to other funds - Net cash provided by (used in) noncapital financing activities 2,000,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets Interest paid on SBITAs Principal payment made on SBITAs Net cash used in capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Net cash provided by investing activities (397,393) (1,567,669) (595,086) (397,393) (1,567,669) (595,086) 90,880 376,497 257,791 90,880 376,497 257,791 Net Cash Flows 161,307 1,134,758 179,491 CASH AND CASH EQUIVALENTS - Beginning of year 2,706,485 12,785,081 8,307,561 CASH AND CASH EQUIVALENTS - End of year $ 2,867,792 $ 13,919,839 $ 8,487,052 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ (48,282) $ (1,757,200) $ 174,328 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 523,380 2,088,047 356,954 Change in assets and liabilities Accounts receivable 1,986 - Prepaids - Accounts payable and accruals (9,264) (4,917) (14,496) Net cash provided by (used in) operating activities $ 467,820 $ 325,930 $ 516,786 184 214 Attachment 2 City of Dublin Combining Statement of Cash Flows (Continued) Internal Service Funds For the year ended June 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Retiree Information Health Care Technology Total Receipts from customers $ 422,455 $ 3,744,205 $ 8,062,895 Payments to suppliers and service providers (1,074,462) (2,997,684) (6,686,274) Other revenues 1,318,461 - 1,346,890 Net cash provided by (used in) operating activities 666,454 746,521 2,723,511 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds 235,695 - 2,235,695 Cash disbursements to other funds (902,560) (15,606) (918,166) Net cash provided by (used in) noncapital financing activities (666,865) (15,606) 1,317,529 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (146,264) (2,706,412) Interest paid on SBITAs (28,943) (28,943) Principal payment made on SBITAs (303,636) (303,636) Net cash used in capital and related financing activities (478,843) (3,038,991) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 411 106,590 832,169 Net cash provided by investing activities 411 106,590 832,169 Net Cash Flows 358,662 1,834,218 CASH AND CASH EQUIVALENTS - Beginning of year 2,076,287 25,875,414 CASH AND CASH EQUIVALENTS - End of year $ - $ 2,434,949 $ 27,709,632 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ 354,935 $ 670,266 $ (605,953) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 375,373 3,343,754 Change in assets and liabilities Accounts receivable 318,663 15,000 335,649 Prepaids (7,144) (32,782) (39,926) Accounts payable and accruals (281,336) (310,013) Net cash provided by (used in) operating activities $ 666,454 $ 746,521 $ 2,723,511 185 215 Attachment 2 This page intentionally left blank 186 216 Attachment 2 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. CFD East Ranch is used to account for bond issuances to finance the maintenance of and construction of public improvements within the East Ranch development project within 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. CFD Dublin Boulevard Extension is used to account for developing a facilities CFD to cover City mitigation costs which the City is advancing as part of the Dublin Boulevard Extension project. CFD Dublin Center is used to account for developing a facilities CFD to finance the maintenance of and construction of public improvements within the Dublin Center project. 187 217 Attachment 2 City of Dublin Combining Statement of Fiduciary Net Position Custodial Funds June 30, 2024 Dublin Geologic Hazard Abatement Districts Boulevard Fallon Community Extension Crossing Facilities CFD Assessment Fallon Schnaefer (North District East District Village Ranch Tassajara) No. 2015-1 Ranch ASSETS Cash and investments $ 9,897 $ 10,593,587 $ 6,707,736 $ 3,883,953 $ 27,779,044 $ 78,709 Accounts receivable 3,876 4,184 3,425 35,030 - Total assets 9,897 10,597,463 6,711,920 3,887,378 27,814,074 78,709 LIABILITIES Accounts payable 75,311 57,194 7,156 25,000 Total liabilities 75,311 57,194 7,156 25,000 NET POSITION Restricted for: Individuals, organizations, and other governments 9,897 10,522,152 6,654,726 3,880,222 27,814,074 53,709 Total net position $ 9,897 $ 10,522,152 $ 6,654,726 $ 3,880,222 $ 27,814,074 $ 53,709 188 218 Attachment 2 City of Dublin Combining Statement of Fiduciary Net Position (Continued) Custodial Funds June 30, 2024 ASSETS Cash and investments Accounts receivable CFD Dublin CFD Total Boulevard Dublin Custodial Extension Center Funds $ - $ - $ 49,052,926 170,000 216,515 Total assets 170,000 49,269,441 LIABILITIES Accounts payable 8,289 18,538 191,488 Total liabilities 8,289 18,538 191,488 NET POSITION Restricted for: Individuals, organizations, and other governments (8,289) 151,462 49,077,953 Total net position $ (8,289) $ 151,462 $ 49,077,953 189 219 Attachment 2 City of Dublin Combining Statement of Changes in Fiduciary Net Position Custodial Funds For the year ended June 30, 2024 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 CFD Assessment Fallon Schnaefer (North District East District Village Ranch Tassajara) No. 2015-1 Ranch $ - $ 1,256,127 $ 506,474 $ 745,928 $ 7,648,278 $ - 290 291,486 191,212 102,258 270,197 2,073 - - 18,363,562 2,952 887 1,101 21,595 149,102 160,000 290 1,550,565 698,573 849,287 26,452,734 162,073 Administration 10,594,216 347 Project payments 230,886 266,446 78,164 47,102 108,017 Payments of bonds principal 670,000 Interest expense 5,829,334 Total deductions 230,886 266,446 78,164 17,140,652 108,364 Change in net position 290 1,319,679 432,127 771,123 9,312,082 53,709 NET POSITION: Beginning of year 9,607 9,202,473 6,222,599 3,109,099 18,501,992 End of year $ 9,897 $ 10,522,152 $ 6,654,726 $ 3,880,222 $ 27,814,074 $ 53,709 190 220 Attachment 2 City of Dublin Combining Statement of Changes in Fiduciary Net Position (Continued) Custodial Funds For the year ended June 30, 2024 CFD Dublin CFD Total Boulevard Dublin Custodial Extension Center Funds ADDITIONS: Special assessments $ $ $ 10,156,807 Investment income 857,516 Proceeds from bonds 18,363,562 Property tax distribution 26,535 Other 170,000 479,102 Total additions 170,000 29,883,522 DEDUCTIONS: Administration 10,594,563 Project payments 8,289 18,538 757,442 Payments of bonds principal 670,000 Interest expense 5,829,334 Total deductions 8,289 18,538 17,851,339 Change in net position (8,289) 151,462 12,032,183 NET POSITION: Beginning of year End of year 37,045,770 $ (8,289) $ 151,462 $ 49,077,953 191 221 Attachment 2 This page intentionally left blank 192 222 Attachment 2 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. 193 223 Attachment 2 Governmental Activities Net Investment in Capital Assets Restricted Unrestricted Total Primary Government CITY OF DUBLIN, CALIFORNIA Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2015 2016 $ 444,832,546 $ 460,963,292 74,738,217 107,176,361 2017 $ 487,123,214 97,592,438 94,745,655 111, 725,077 120,464,219 $ 626,747,124 $ 670,280,807 Source: City of Dublin Finance Department 2018 $ 501,516,781 107,452,493 141,008,993 2019 $ 531,251,006 105,409,183 177,705,220 $ 702,333,088 $ 749,978,267 $ 814,365,409 194 224 Attachment 2 CITY OF DUBLIN, CALIFORNIA Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) (Continued) Fiscal Year 2020 2021 2022 2023 2024 Governmental Activities Net Investment in Capital Assets $ 539,809,963 $ 537,970,764 $ 554,600,284 $ 545,146,807 $ 552,568,250 Restricted 109,947,040 107,140,245 118,161,236 115,479,147 121,997,027 Unrestricted 193,382,816 211,211,541 216,956,681 261,775,257 290,141,966 Total Primary Government $ 843,139,819 $ 856,322,550 $ 889,718,201 $ 922,401,211 $ 964,707,243 Source: City of Dublin Finance Department 195 225 Attachment 2 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 CITY OF DUBLIN, CALIFORNIA Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2015 $ 11,296,896 15,325,113 12,198,769 15,336,225 12,149,716 5,713,196 156,897 72,176,812 $ 5,777,971 399,802 1,746,581 2,987,235 3,009,383 7,657,467 955,677 21,931,981 2016 $ 19,689,049 18,316,420 14,725,476 13,883,008 14,625,459 11,410,946 147,195 92,797,553 2017 2018 $ 14,276,843 $ 16,803,802 17,080,942 19,423,830 13,687,195 13,315,788 18,351,543 17,147,611 11,193,876 15,640,280 14,249,950 7,074,630 136,867 125,881 88,977,216 89,531,822 2019 $ 15,387,028 21,814,982 14,152,331 24,131,711 12,750,878 5,606,118 93,843,048 $ 5,209,378 $ 5,402,925 $ 6,060,099 $ 6,520,152 362,054 322,231 335,929 330,280 1,633,056 1,426,973 1,551,899 1,708,807 2,698,767 3,386,621 3,517,700 3,132,543 2,931,553 2,950,625 4,638,050 5,287,193 13,217,027 9,334,477 10,139,788 7,742,076 1,629,137 8,008,289 12,577,699 7,633,916 38,433,119 21,133,748 23,438,110 34,517,687 $ 44,466,097 $ 66,114,091 $ 51,965,889 $ 62,259,274 $ 66,872,654 Net (Expense)/Revenue Governmental Activities $ (27,710,715) $ (26,683,462) $ (37,011,327) $ (27,272,548) $ (26,970,394) 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 29,437,951 33,598,601 36,964,785 40,628,040 44,293,602 1,264,204 1,359,212 1,416, 721 1,472,933 1,469, 840 19,211,823 22,070,547 21,186,333 21,134,636 26,297,803 6,159,654 6,606,016 6,834,545 43,787 8,223,510 592,881 2,937,999 (710,595) (558,269) 8,589,252 429,328 3,644,670 3,371,819 3,335,600 2,483,530 57,095,841 70,217,045 69,063,608 66,056,727 91,357,537 Change in Net Position Governmental Activities $ 29,385,126 $ 43,533,583 $ 32,052,281 $ 38,784,179 $ 64,387,143 Source: City of Dublin Finance Department 196 226 Attachment 2 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 CITY OF DUBLIN, CALIFORNIA Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) (Continued) Fiscal Year 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 98,515,396 108,099,850 23,516,577 24,439,146 14,657,052 25,252,334 11,745,611 6,777,210 336,950 106,724,880 $ 7,507,286 $ 9,113,104 $ 244,363 214,223 1,603,243 2,103,228 2,471,032 2,453,787 3,237,611 1,388,778 4,402,789 5,182,639 4,940,586 5,545,115 9,192,691 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 2023 2024 $ 27,027,922 $ 25,885,878 27,849,316 30,091,877 16,308, 574 17,453, 636 30,353,850 31,202,172 11,207,229 12,102,695 6,969,557 12,929,904 583,787 608,991 120,300,235 130,275,153 $ 10,855,746 253,956 2,147,455 2,606,030 5,495,143 6,189,741 11,046,967 7,033,281 $ 11,533,104 445,758 2,625,459 2,545,389 5,825,924 4,476,672 7,306,850 10,219,385 $ 33,599,601 $ 31,675,351 $ 51,391,633 $ 45,628,319 $ 44,978,541 Net (Expense)/Revenue Governmental Activities $ (64,915,795) $ (76,424,499) $ (55,333,247) $ (74,671,916) $ (85,296,612) 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 49,086,335 53,007,086 55,186,388 59,056,139 61,967,658 1,523,257 1,550,479 1,527,036 1,607,028 1,647,782 22,506,975 26,289,165 27,935,894 30,541,735 32,794,253 7,280,323 7,185,319 8,281,142 8,729,684 9,129,368 10,485,543 (975,548) (12,803,156) 2,759,385 16,228,168 2,276,391 2,550,729 8,601,594 4,660,955 5,835,415 93,158,824 89,607,230 88,728,898 107,354,926 127,602,644 Change in Net Position Governmental Activities $ 28,243,029 $ 13,182,731 $ 33,395,651 $ 32,683,010 $ 42,306,032 Source: City of Dublin Finance Department 197 227 Attachment 2 General Fund Unreserved, undesignated: Non -Spendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Non -Spendable Restricted 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 2015 2016 2017 2018 2019 $ 1,475,691 500,000 38,531,179 35,875,264 21,324,360 $ 729,883 579,000 38,928,755 39,078,695 29,867,693 $ 97,706,494 $ 109,184,026 $ - $ 75,646,848 (930,131) $ 198,878 1,762,000 36,213,714 50,126,807 34,114,263 $ 122,415,662 - $ 84,453,929 13,138,509 82,686,743 11,808,233 $ 7,391 1,938,000 43,740,492 57,267,840 39,15 8,943 $ 142,112,666 $ 12,818 1,938,000 47,267,326 60,771,810 61,235,819 $ 171,225,773 $ 650 $ 105 ,476, 681 107, 090, 7 63 (1,998,366) (3,737,589) 74,716,717 97,592,438 94,494,976 103,478,965 103,353,174 $ 172,423,211 $ 206,776,464 Source: City of Dublin Finance Department $ 216,910,638 $ 245,591,631 $ 274,578,947 198 228 Attachment 2 General Fund Unreserved, undesignated: Non -Spendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Non -Spendable Restricted 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) (Continued) Fiscal Year 2020 2021 2022 2023 2024 $ 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 $ 25,000 $ - $ 104,872,535 102,613,783 (3,522,706) (326,876) $ 4,859 4,324,132 76,016,419 125,043,298 44,347,902 $ 249,736,610 $ 54,708 9,351,801 84,215,445 153,402,585 43,408,415 $ 290,432,954 - $ - $ 122,93 9,512 111,155,015 105,092,702 (875,851) (876,004) (4,162,196) 101,374,829 102,286,907 122,063,661 110, 279, 011 100,930,506 $ 292,024,050 Source: City of Dublin Finance Department $ 312,051,403 $ 345,921,167 $ 360,015,621 $ 391,363,460 199 229 Attachment 2 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 Public art 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) CITY OF DUBLIN, CALIFORNIA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2015 2016 2017 2018 2019 $ 29,437,951 $ 33,598,601 $ 36,964,784 25,371,476 28,676,662 28,020,877 3,245,822 3,303,521 9,352,861 301,072 314,206 318,981 13,737,934 13,846,381 14,185,768 1,071,936 3,689,940 168,792 2,352,810 6,751,864 1,539,669 320,629 290,871 260,220 24,276,317 43,038,360 26,866,804 1,264,201 1,359,214 1,416,721 3,499,480 1,3 51,331 1,763,454 104, 879,628 136,220,951 120,858,931 $ 40,628,040 $ 44,293,602 27,089,866 32,949,484 12,415,367 8,961,332 318,400 291,788 17,8 59,770 16,786, 806 666,808 10,345,636 1,669,841 1,519,342 275,665 265,971 24,465,477 21,426,005 1,472,932 1,469,839 7,363,700 4,963,646 134,225, 866 143 ,273,451 11,471,412 20,715,735 13,313,517 14,020,898 14,894,745 15,697,432 17,886,990 17,183,853 19,355,889 21,983,278 11,930,245 12,265,614 13,442,239 13,431,891 14,269,535 8,481,686 8,616,323 13,433,983 10,718,547 14,708,764 9,731,003 10,791,185 8,934,718 13,585,706 9,708,040 6,059,180 11,348,674 11,652,735 6,700,773 5,543,073 1,241,494 666,478 1,922,766 2,380,766 11,240,369 68,190 117,104 3,854 76,795 4,742,328 23,469,847 26,113,810 10,606,254 1,081,809 3,568,142 3,652,808 10,516,675 12,832,455 14,666,554 1,345,484 1,368,186 72,991,112 109,530,758 116,518,150 105,055,458 109,464,353 31,888,516 26,690,193 4,340,781 29,170,408 33,809,098 9,625,456 (9,455,561) 27,912,037 (29,903,351) 5,450,042 38,313,026 (37,969,675) 169,895 (1,991,314) 5,793,393 24,363,489 (24,852,904) 27,100,426 (31,922,207) (489,415) (4,821,781) Net Change in Fund Balances $ 32,058,411 $ 24,698,879 $ 10,134,174 $ 28,680,993 $ 28,987,317 Debt Service as percentage of non - capital expenditures 0.0% 0.0% 0.0% * Some of permits revenue has been considered to be an integral part of development revenue and therefore has been reclassed to development revenue effective in fiscal year 20/21. 1.7% 1.9% Source: City of Dublin Finance Department 200 230 Attachment 2 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 Public art 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 CITY OF DUBLIN, CALIFORNIA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Accrual Basis of Accounting) (Continued) Fiscal Year 2020 2021 $ 49,086,335 $ 53,007,086 28,312,778 31,826,343 7,411,403 10,805,708 236,972 334,852 14,43 3,980 11,934,020 12,006,831 183,258 1,381,729 1,208,739 196,840 177,477 10,178,191 10,891,389 1,523,256 1,550,480 1,675,842 2,124,277 126,444,157 124,043,629 23,151,872 22,177,174 14,244,913 13,821,133 7,228,275 4,989,648 9,828,253 6,180,120 5,488,030 1,368,186 108,477,604 17,966,553 21,651,510 (22,172,960) 22,104,295 23,755,356 14,760,311 14,105,010 6,085,251 10,033,900 6,614,602 4,170,540 3,116,314 1,368,186 106,113,765 17,929,864 14,046,539 (11,949,050) Total Other Financing Sources (Uses) (521,450) 2,097,489 Net Change in Fund Balances $ 17,445,103 $ 20,027,353 Debt Service as percentage of non - capital expenditures 1.5% 1.4% 2022 2023 $ 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 $ 59,056,139 37,309,999 14,287,723 323,098 17,077,374 4,860,720 2,565,042 207,437 11,443,674 1,607,027 3,733,205 2024 $ 61,967,658 40,032,808 9,441,741 309,959 18,698,359 18,895,723 2,549,690 215,524 9,044,040 1,647,782 4,805,240 139,924,038 152,471,438 167,608,524 23,539,492 25,381,768 15,699,080 15,710,181 8,756,857 5,795,288 12,978,975 13,400,686 26,593,651 27,510,001 16,297,807 20,599,510 8,301,423 5,881,891 11,829,805 4,539,778 474,814 4,030,047 13,053,219 505,000 419,521 655,000 678,050 23,769,329 29,714,228 17,436,389 22,381,917 8,841,838 11,347,258 7,118,484 5,990,942 244,479 6,099,577 680,000 651,850 126,216, 895 136,414, 949 134,276,291 13,707,143 16,056,489 21,042,136 30,644,511 (31,524,026) 29,950,377 (31,912,412) 33,332,233 19,574,307 (21,558,701) 20,162,621 (1,962,035) (1,984,394) $ 33,869,764 $ 14,094,454 $ 31,347,839 1.0% * 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. 1.2% Source: City of Dublin Finance Department 201 231 Attachment 2 Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CITY OF DUBLIN, CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years Real Property Residential Property 8,431,051,125 9,662,162,719 10,563,641,612 11,483,621,200 12,705,642,088 14,169,003,039 15,481,016,928 16,240,797,288 17,442,908,549 18,432,121,118 Commercial Property 1,391,578,857 1,481,865,501 1,572,348,815 1,634,851,757 1,713,788,644 1,819,769,185 2,109,649,340 2,126,716,219 2,275,271,038 2,328,369,107 Industrial Unsecured/ Property Other Property 274,410,187 277,588,684 276,986,936 279,900,741 284,936,683 302,957,585 303,634,663 342,361,488 351,898,365 380,739,302 1,138,571,747 1,261,568,728 1,412,347,150 1,494,613,752 1,623,924,258 1,719,280,594 1,516,019,943 1,436,361,129 1,267,996,300 1,401,724,881 Less: Exemptions (185,639,690) (152,705,687) (151,208,054) (91,891,868) (181,733,659) (181,569,809) (240,382,905) (240,405,849) (217,582,049) (222,045,596) Net Taxable Assessed Value 11,049,972,226 12,530,479,945 13,674,116,459 14,801,095,582 16,146,558,014 17,829,440,594 19,169,937,969 19,905,830,274 21,120,492,204 22,320,908,812 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2014/15 through 2023/24 Note: Actual property value data not available in California. City Wide Average Total Direct Tax Rate 0.2373% 0.2367% 0.2365% 0.2364% 0.2363% 0.2360% 0.2359% 0.2358% 0.2347% 0.2347% (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. 202 232 Attachment 2 This page intentionally left blank 203 233 Attachment 2 Fiscal Year 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) Basic Total Bay Area Levy Direct Rapid Transit 2014-15 1.00000 0.23730 2015-16 1.00000 0.23669 2016-17 1.00000 0.23650 2017-18 1.00000 0.23644 2018-19 1.00000 0.23632 2019-20 1.00000 0.23603 2020-21 1.00000 0.23593 2021-22 1.00000 0.23582 2022-23 1.00000 0.23469 2023-24 1.00000 0.23473 0.00750 0.00450 0.00260 0.00800 0.00700 0.01200 0.01390 0.00600 0.01400 0.01340 Castro Valley Unified School Bonds 0.08510 0.08520 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Chabot -Las Positas Community College Boards 0.02140 0.02170 0.01980 0.02460 0.04430 0.04220 0.02140 0.04580 0.03880 0.04160 Dublin Unified Bonds 1A & B 0.11470 0.10770 0.07670 0.09720 0.14520 0.14600 0.14240 0.19640 0.17160 0.16120 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2014/15 through 2023/24 (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. 204 234 Attachment 2 CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of assessed value) (Continued) East Bay Flood Zone 7 Livermore Valley County Wide Total City's Share Regional State Water Joint Unified Go Bond Direct & Overlapping of 1% Levy per Park Bonds School Board Tax Rate Proposition 13 0.00780 0.02570 0.05960 0.00000 1.32180 0.2818 0.00850 0.02500 0.04970 0.00000 1.30230 0.2817 0.00670 0.03430 0.00000 0.00000 1.14010 0.2818 0.00320 0.03330 0.00000 0.00000 1.16630 0.2818 0.00570 0.03320 0.00000 0.01120 1.24660 0.2818 0.00600 0.03090 0.00000 0.01080 1.24790 0.2818 0.00140 0.03090 0.00000 0.00360 1.21360 0.2818 0.00200 0.03070 0.00000 0.00410 1.28500 0.2817 0.00580 0.02790 0.00000 0.01030 1.26840 0.2817 0.00570 0.02670 0.00000 0.00880 1.25740 0.2817 205 235 Attachment 2 Taxpayer Kaiser Avalon Dublin Station LP GH Pacvest LLC Carl Zeiss Pension Trust Properties LLC Dublin Station Owner LP Dublin Corporate Center Owner LLC Ross Dress for Less Avalon West Dublin LP Essex Dublin Owner LP Oak Cottonwood 2017 LLC Turst NOIP Dublin LP 4800 Tassajara Road Apartments Investors Dublin Station Owner, LLC Dublin Corporate Center Acquisitions Bere Island Properties I, LLC Tishman Speyer Archstone Smith Emerald Ross Dress for Less, Inc. Bit Holdings Sixty -Three Inc. Kaiser Foundation Hospitals Essex Dublin Owner LP Subtotal CITY OF DUBLIN, CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago 2023-24 Taxable Assessed Value Rank 346,513,767 1 269,144,408 2 149,498,127 3 131,822,919 4 127,783,773 5 121,657,984 6 120,314,876 7 117,362,800 8 115,701,493 9 108,006,530 10 $ 1,607,806,677 Percentage of Total City Taxable Assessed Value 1.55% 1.20% 0.67% 0.59% 0.57% 0.54% 0.54% 0.52% 0.52% 0.48% 2014-15 Taxable Assessed Value Percentage of Total City Taxable Assessed Rank Value $ 152,798,425 1 1.40% 113,834,785 2 1.05% 106,015,080 3 0.97% 100,576,750 4 0.92% 87,634,958 5 0.81% 84,204,834 6 0.77% 75,034,787 7 0.69% 75,080,421 8 0.69% 66,110,266 9 0.61% 65,728,948 10 0.60% 7.18% $ 927,019,254 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls 8.51% 206 236 Attachment 2 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 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% 2023 59,502,763 59,502,763 100.00% 799,001 60,301,764 100.00% 2024 62,884,696 62,756,758 99.80% 473,504 63,230,262 99.80% Source: Alameda County Assessor Office 207 237 Attachment 2 CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Debt June 30, 2024 Total Property Tax Assessed Value of Taxable Property Percentage Outstanding Debt Applicable to Estimated Share of 6/30/2024 City of Dublin (1) Overlapping Debt OVERLAPPING TAX AND ASSESSMENT DEBT: Alameda County $ 497,295,000 5.586% $ 27,778,899 Bay Area Rapid Transit District 2,445,575,000 2.218% 54,242,854 Chabot -Las Positas Community College District 947,675,000 13.574% 128,637,405 Dublin Joint Unified School District 755,993,070 99.984% 755,872,111 East Bay Regional Park District 144,520,000 3.428% 4,954,146 City of Dublin Community Facilities District 135,315,000 100.00% 135,315,000 California Statewide Communities Development Authority 1915 Act Bonds 728,411 100.00% 728,411 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 1,107,528,826 DIRECT AND OVERLAPPING GENERAL FUND DEBT Alameda County General Fund Obligations 656,746,000 5.586% 36,685,832 Alameda -Contra Costa Transit District Certificates of Participation 10,420,000 0.162% 16,880 City of Dublin General Fund Obligations 19,789,275 100.000% 19,789,275 Dublin Unified School District General Fund Obligations 24,876,714 99.984% 24,872,734 Eden Township Healthcare District General Fund Obligations 13,235,000 0.792% 104,821 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 81,469,542 TOTAL DIRECT DEBT $ 19,789,275 TOTAL OVERLAPPING DEBT $ 1,169,209,093 COMBINED TOTAL DEBT (2) $ 1,188,998,368 RATIOS TO ASSESSED VALUATION: Total Overlapping Tax and Assessment Debt 4.96% Total Direct Debt 0.09% Combined Total Debt 5 33% Source: California Municipal Statistics, Inc. Notes: (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations. 208 238 Attachment 2 CITY OF DUBLIN, CALIFORNIA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Chevron Lease Subscription Year Energy Revenue Based I.T. Percentage Ended Capital Loans Bonds Agreements of Personal Per June 30 Lease Payable Payable Payable Total 2 Income' Capita' 2015 $ 5,749,811 $ $ $ - $ 5,749,811 0.22% $ 100 2016 5,346,352 - - - 5,346,352 0.19% 90 2017 4,917,243 5,450,042 10,367,285 0.33% 170 2018 4,461,243 4,104,558 8,565,801 0.25% 135 2019 2,736,372 2,736,372 0.07% 42 2020 1,368,186 1,368,186 0.03% 19 2021 0.00% - 2022 20,454,565 20,454,565 0.42% 284 2023 19,675,709 1,221,058 20,896,767 0.39% 302 2024 18,871,853 917,422 19,789,275 n/a n/a Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. 1 See Demographic and Economic Statistics schedule for personal and population data. 2 Totals to not include other net pension payable, post -employment beneftis payable, or compensated absences. n/a: not available Source: Annual Comprehensive Financial Reports - City of Dublin, California 209 239 Attachment 2 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 2014-15 2015-16 2016-17 2017-18 $ 416,774,836 $ 469,892,998 $ 512,779,367 $ 555,041,084 $ 416,774,836 $ 469,892,998 $ 512,779,367 $ 555,041,084 (1) Source: City of Dublin Finance Department 0.0% 0.0% 0.0% 0.0% (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. 210 240 Attachment 2 CITY OF DUBLIN, CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years (Continued) Legal Debt Margin Calculation for Fiscal Year 2023-24 Assessed value (net) - June 30, 2024 (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 $ 22,320,908,812 3,348,136,322 $ 3,348,136,322 25% $ 837,034,080 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 $ 605,495,926 $ 668,604,022 $ 718,872,674 $ 746,468,635 $ 792,018,458 $ 837,034,080 $ 605,495,926 $ 668,604,022 $ 718,872,674 $ 746,468,635 $ 792,018,458 $ 837,034,080 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 211 241 Attachment 2 CITY OF DUBLIN, CALIFORNIA Demographic And Economic Statistics Last Ten Calendar Years (Dollars in Thousands) Per Capita Rank in Size Fiscal City Personal Personal Unemployment of Year Population (1) Income, in thousands (1) Income (1) Rate (2) California Cities (3) 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 2022 72,060 4,876,156 67,668 4.6% 121 2023 69,128 5,318,777 76,941 5.2% 119 Sources: (1) US Census Buraeu, most recent estimates July 1, 2023 (2) State of California, Employment Development Department June 2024 (3) State of California, Department of Finance - California Cities Ranked by January 2024 Total Population 212 242 CITY OF DUBLIN, CALIFORNIA Attachment 2 Property Value, Construction, and Bank Deposits Last Ten Fiscal Years Total Number of Commercial Residential Fiscal Year Ended Building Permits Construction Value Construction Value 30-Jun Issued (1) (1) (1) Bank Deposits (2) 2015 2,068 60,793,275 295,988,465 N/A 2016 2,812 102,148,173 323,747,409 N/A 2017 2,806 177,500,725 308,916,668 N/A 2018 2,803 54,086,352 383,817,023 N/A 2019 0 119,498,163 272,846,465 N/A 2020 1,866 45,031,310 157,262,586 N/A 2021 2,393 42,330,706 177,291,325 N/A 2022 2,437 70,148,588 258,217,767 N/A 2023 2,781 223,087,585 173,769,864 N/A 2024 2,078 29,161,104 115,680,532 N/A Source: 1) City of Dublin Community Development Department 213 243 Attachment 2 CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Years (Dollars in thousands) 2015 2016 2017 2018 Estimated Estimated Estimated Estimated Number of Number of Number of Number of Employer Employees Rank Employees Rank Employees Rank Employees Rank United States Government & Federal Correction Institute 2,100 1 2,100 1 2,100 1 2,100 1 County of Alameda 465 6 325 6 860 3 870 4 Dublin Unified School District 1,117 3 915 2 975 2 1,007 2 Ross Stores Headquarters 1,200 2 500 4 800 4 950 3 Zeiss Meditec 535 5 500 4 481 5 465 5 Kaiser Permanente NA NA NA NA Patelco Credit Union - NA NA NA NA Target Stores 388 7 350 5 350 8 325 9 Snowflake, Inc. - NA NA NA NA TriNet - NA NA - NA 343 8 City of Dublin N/A N/A 237 9 377 7 433 6 SAP (Formerly: Sybase Corporation) 604 4 700 3 NA NA De Silva Gates Construction 300 9 300 7 300 9 300 10 Whole Foods - NA 233 10 NA NA Callidus Cloud 350 8 350 5 400 6 410 NA Micro Dental Laboratories NA 300 7 - NA NA Safeway 284 10 280 8 280 10 NA Subtotal 7,343 7,090 6,923 7,203 Source: City of Dublin Office of Economic Development 214 244 Attachment 2 CITY OF DUBLIN, CALIFORNIA Employer Principal Employers Current Year and Prior Years (Dollars in thousands) (Continued) 2019 2020 2021 2022 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 1,450 1 1,400 1 1,608 1 1,589 1 County of Alameda 975 4 1,165 2 1,165 2 1,307 2 Dublin Unified School District 1,096 3 1,115 3 1,070 4 1,200 3 Ross Stores Headquarters 1,100 2 1,100 4 1,100 3 1,160 4 Zeiss Meditec 450 6 450 6 620 5 692 6 Kaiser Permanente 600 5 510 5 600 6 601 7 Patelco Credit Union NA 380 8 404 7 831 5 Target Stores 380 9 380 8 350 9 344 8 Snowflake, Inc. - NA - NA NA 250 9 TriNet 400 8 400 7 363 8 215 10 City of Dublin 400 7 332 10 250 10 NA SAP (Formerly: Sybase Corporation) - NA - NA - NA NA De Silva Gates Construction - NA NA - NA - NA Whole Foods 350 10 NA - NA - NA Callidus Cloud - NA NA - NA - NA Micro Dental Laboratories - NA NA - NA - NA Safeway NA NA - NA - NA Subtotal 7,201 7,232 7,530 8,189 Source: City of Dublin Office of Economic Development 215 245 CITY OF DUBLIN, CALIFORNIA Attachment 2 Employer Principal Employers Current Year and Prior Years (Dollars in thousands) (Continued) 2023 2024 Estimated Estimated Number of Number of Employees Rank Employees Rank United States Government & Federal Correction Institute 3,275 1 3,109 1 County of Alameda 1,274 2 1,308 2 Dublin Unified School District 1,235 3 1,292 3 Ross Stores Headquarters 1,188 4 1,081 4 Zeiss Meditec 831 5 767 5 Kaiser Permanente 662 6 542 6 Patelco Credit Union 442 7 461 7 Target Stores 341 9 352 8 Snowflake, Inc. 350 8 350 9 TriNet 215 10 215 10 City of Dublin - NA 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 Subtotal 9,813 9,477 Source: City of Dublin Office of Economic Development 216 246 Attachment 2 This page intentionally left blank 217 247 Attachment 2 CITY OF DUBLIN CALIFORNIA Full -Time Equivalent City Employees by Department Last Ten Fiscal Years 2015 2016 2017 2018 2019 City Manager Office 18.25 18.50 18.00 19.00 20.10 Finance 7.75 7.75 8.00 8.00 8.00 Community Development 18.45 18.45 19.95 19.95 19.35 Fire Department 1.00 1.00 1.00 1.00 1.00 Police Department 5.00 5.00 4.00 4.00 4.00 Parks & Community Services 22.10 24.10 24.60 24.60 23.10 Public Works 18.95 18.95 19.45 18.45 18.45 Total 91.50 93.75 95.00 95.00 94.00 Source: City of Dublin Finance Department 218 248 Attachment 2 CITY OF DUBLIN CALIFORNIA Full -Time Equivalent City Employees by Department Last Ten Fiscal Years (Continued) 2020 2021 2022 2023 2024 City Manager Office 19.10 22.00 25.00 26.00 28.00 Finance 9.00 9.00 9.00 8.00 8.00 Community Development 19.35 18.00 19.00 19.00 19.00 Fire Department 1.00 1.00 1.00 1.00 1.00 Police Department 4.00 4.00 4.00 4.00 4.00 Parks & Community Services 23.10 22.00 23.00 23.00 24.00 Public Works 18.45 18.00 18.00 21.00 22.00 Total 94.00 94.00 99.00 102.00 106.00 Source: City of Dublin Finance Department 219 249 Attachment 2 Function/Program CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years 2015 2016 2017 2018 2019 Police: Calls for Service 32,496 35,005 38,688 38,568 38,480 Citations Issued 7,175 7,087 7,164 7,051 7,968 Arrests 1,091 1,225 1,315 1,653 1,821 Fire: Emergency calls 2,667 2,734 2,848 3,247 3,245 Inspections 3,948 4,304 4,141 4,034 4,284 Building Plan Reviews and Consultations 1,072 1,633 1,654 1,195 797 Public Works: Street Sign Maintenance (number of signs) 368 510 359 1,838 2,569 Curb Painting (linear feet) 32,512 2,922 3,846 3,216 3,893 Replace Street Asphalt (square feet) 15,800 31,000 73,436 75,087 1,636,012 Street Sweeping (curb miles) 5,953 5,993 6,026 8,033 7,936 Encroachment Permits Issued 208 190 206 173 209 Parks and Community Services: Museum Visitors 5,272 3,591 3,525 3,422 2,757 Afterschool Recreation (participants/day) 364 363 367 405 416 Preschool Classes Participants 327 335 158 131 160 Youth Basketball League Participants 994 1,074 1,156 1,035 1,075 Senior Center Average Daily Attendance 233 236 274 279 299 Community Development: Planning Applications 56 52 58 48 31 Building Permits 2,068 2,812 2,806 2,803 2,350 Building Inspections 20,197 20,784 25,186 25,574 20,951 Source: City of Dublin 220 250 Attachment 2 Function/Program CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years (Continued) 2020 2021 2022 2023 2024 Police: Calls for Service 34,643 30,018 30,414 34,191 34,455 Citations Issued 5,806 5,582 5,367 5,821 4,637 Arrests 1,510 1,514 1,496 1,778 1,596 Fire: Emergency calls 3,443 3,692 4,797 4,565 4,883 Inspections 2,964 2,628 1,875 2,520 2,642 Building Plan Reviews and Consultations 490 606 873 917 1,274 Public Works: Street Sign Maintenance (number of signs) 546 664 428 428 435 Curb Painting (linear feet) 14,502 123 305 2,472 3,814 Replace Street Asphalt (square feet) 2,270,000 117,767 36,695 750,000 26,172 Street Sweeping (curb miles) 7,210 8,146 8,733 8,735 10,349 Encroachment Permits Issued 158 357 353 215 240 Parks and Community Services: Museum Visitors 2,011 147 560 365 1,973 Afterschool Recreation (participants/day) 334 649 528 664 274 Preschool Classes Participants 185 98 308 274 73 Youth Basketball League Participants 792 - 683 1,149 1,195 Senior Center Average Daily Attendance 245 222 166 475 679 Community Development: Planning Applications 40 52 44 44 32 Building Permits 1,866 2,393 2,437 2,781 2,078 Building Inspections 13,339 10,759 14,178 12,633 10,880 Source: City of Dublin 221 251 CITY OF DUBLIN, CALIFORNIA Attachment 2 Function/Program Public safety: Police stations Fire stations Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year 2015 2016 2017 2018 2019 1 3 1 1 1 1 3 3 3 3 Public works: Street Lights 4,520 4,530 4,540 4,631 4,631 Street Centerline Miles 120 120 127 128 151 Signalized Intersections 93 94 95 97 98 Pedestrian Activated Traffic Control Devices 9 9 9 9 9 City Trees 7,521 8,556 8,526 8,776 9,263 Parks and recreation: Number of Community Facilities 6 6 7 7 7 Number of City Parks 18 18 18 20 21 Acres of City Parks 171 171 171 200 210 Acres of Open Space 125 125 125 125 125 Source: City of Dublin 222 252 CITY OF DUBLIN, CALIFORNIA Attachment 2 Function/Program Public safety: Police stations Fire stations Capital Asset Statistics by Function/Program Last Ten Fiscal Years (Continued) Fiscal Year 2020 2021 2022 2023 2024 1 3 1 1 1 1 3 3 3 3 Public works: Street Lights 4,736 5,131 5,095 4,525 5,136 Street Centerline Miles 151 151 148 136 129 Signalized Intersections 98 98 98 98 97 Pedestrian Activated Traffic Control Devices 9 9 9 9 9 City Trees 12,355 12,208 13,130 13,844 13,178 Parks and recreation: Number of Community Facilities 7 7 7 7 7 Number of City Parks 23 23 25 25 25 Acres of City Parks 223 223 267 267 267 Acres of Open Space 125 125 125 125 125 Source: City of Dublin 223 253 Attachment 2 CITY OF DUBLIN, CALIFORNIA Top 25 Sales Tax Producers 2023-24 Business Name Best Buy Carl Zeiss Meditec USA Curtis Blue Line Dick's Sporting Goods Dougherty Road Shell Dublin Buick/GMC/Chevrolet/Infmiti Dublin Hyundai Genesis Dublin Nissan Dublin Infiniti Dublin Toyota Dublin Union 76 Eastbay Motorcars Fallon Gateway Chevron Graybar Electric Honda Lowes Mazda Nordstrom Rack Pace Supply Corp Safeway Safeway Fuel Station Target Tesla Motors TJ Maxx Volkswagen Volvo Cars Dublin Business Category Electronics/Appliances Store Health/Medical Machinery, Equipment, and Supplies Sporting Goods/Bike Store Service Station Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Service Stations Motor Vehicle 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 Family Apparel Motor Vehicle Dealer Motor Vehicle Dealer Source: City of Dublin Office of Economic Development 224 254 Attachment 2 CITY OF DUBLIN, CALIFORNIA Miscellaneous Statistical Data June 30, 2024 General Date of Incorporation February 1, 1982 Form of Government Council/ Manager Total Population (Estimated per the California Dept. of Finance, January, 2024) 72,917 Number of Registered Voters 36,655 Employees (Full Time Equivalent) 106 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 2 Continuation High School 1 Under Construction (Shamrock Hills K-8 open Fall 2026) 2 School Enrollment 12,932 Police Protection Number of Stations 1 Police Personnel (Full Time Equivalent) 4 Fire Protection Number of Stations 3 Fire Personnel (Full Time Equivalent) 1 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 Dublin Arts Center (Under Construction) 1 Source: City of Dublin 225 255 Attachment 3 i City of Dublin Dublin, California Auditor's Communication with Those Charged with Governance For the year ended June 30, 2024 LI BADAWI & ASSOCIATES Certified Public Accountants J 256 Attachment 3 257 Attachment 3 BADAWI & ASSOCIATES Certified Public Accountants December 10, 2024 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited the financial statements of the City of Dublin (City) as of and for the year ended June 30, 2024, and have issued our report thereon dated December 10, 2024. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 24, 2024, our responsibility, as described by professional standards, is to form and express 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 the system 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 system of 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 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. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Address:.355 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 258 Attachment 3 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 4 Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm, 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, 2024. 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 and Related Disclosures Accounting estimates and related disclosures 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. The most sensitive accounting estimates affecting the financial statements are valuations, capital asset depreciation and useful life, and pension and other post -employment benefits (OPEB) plan assumptions. 259 Attachment 3 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 5 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 • 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 procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units. 260 Attachment 3 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 6 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 10, 2024. 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. 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 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 261 Attachment 3 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 7 underlying accounting records used to prepare the financial statements or to the financial statements themselves. Other Information Included in the Annual 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 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. sa, A.4 Badawi & Associates, CPAs Berkeley, California December 10, 2024 262 Attachment 4 City of Dublin Measure B Funds Dublin, California Financial Statements and Independent Auditor's Reports For the year ended June 30, 2024 J 263 Attachment 4 264 Attachment 4 City of Dublin Alameda County Transportation Commission - Measure B Funds Financial Statements For the year ended June 30, 2024 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 17 265 Attachment 4 This page intentionally left blank 266 Attachment 4 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, 2024, 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, 2024, 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. Emphasis of Matter As discussed in Note A, the financial statements present only the Measure B Funds and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2024, and changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 267 Attachment 4 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 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. 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. 268 2 Attachment 4 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 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 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 10, 2024 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. B.t. Badawi & Associates, CPAs Berkeley, California December 10, 2024 3 269 Attachment 4 This page intentionally left blank 4 270 Attachment 4 City of Dublin Alameda County Transportation Commission- Measure B Funds Balance Sheet June 30, 2024 ACTC ACTC Streets and Bikes and Roads Pedestrians ASSETS: Total Cash and investments $ - $ 980 $ 980 Total assets $ - $ 980 $ 980 FUND BALANCES: Restricted Total fund balances $ - $ 980 $ 980 $ $ 980 $ 980 See accompanying Notes to Financial Statements. 5 271 Attachment 4 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, 2024 ACTC ACTC Streets and Bikes and Roads Pedestrians REVENUES: Total Interest income $ 1,148 $ 1,001 $ 2,149 Total revenues 1,148 1,001 2,149 EXPENDITURES: Bikes and Pedestrians Streets and roads 68,200 68,200 100,132 - 100,132 Total expenditures 100,132 68,200 168,332 REVENUES OVER (UNDER) EXPENDITURES (98,984) (67,199) (166,183) FUND BALANCES: Beginning of year 98,984 68,179 167,163 End of year $ - $ 980 $ 980 See accompanying Notes to Financial Statements. 6 272 Attachment 4 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2024 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. 273 7 Attachment 4 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2024 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, 2024: Cash and Investments $ 980 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 Minimum Credit Maturity Quality 5 years 180 days 10 years 10 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 10 years 5 years 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% 8 274 Attachment 4 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2024 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 Rate 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, 2024 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, 2024, the City invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.78% in the previous year. The LAIF fair value factor of .996316042 was used to calculate the fair value of the investments in LAIF. 275 9 Attachment 4 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2024 4. 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. 276 10 Attachment 4 SUPPLEMENTARY INFORMATION 11 277 Attachment 4 City of Dublin Alameda County Transportation Commission - Measure B Funds Supplementary Information For the year ended June 30, 2024 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. 278 12 Attachment 4 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest income $ - $ $ 1,148 $ 1,148 Total revenues - 1,148 1,148 EXPENDITURES: Streets and roads Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year $ 128,223 100,132 28,091 128,223 100,132 28,091 $ (128,223) (98,984) $ 29,239 98,984 $ 13 279 Attachment 4 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, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest income $ - $ $ 1,001 $ 1,001 Total revenues - 1,001 1,001 EXPENDITURES: Bikes and Pedestrians Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year $ 68,200 68,200 68,200 68,200 $ (68,200) (67,199) $ 1,001 68,179 $ 980 14 280 Attachment 4 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 B Funds (Measure B Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated December 10, 2024. Report on 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 281 Attachment 4 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Report on 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 10, 2024 16 282 Attachment 4 BADAWI & 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, 2024. 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, 2024. 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 283 Attachment 4 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. 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. 284 18 Attachment 4 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 Badawi & Associates, CPAs Berkeley, California December 10, 2024 19 285 Attachment 5 City of Dublin Measure BB Funds Dublin, California Financial Statements and Independent Auditor's Reports For the year ended June 30, 2024 J 286 Attachment 5 287 Attachment 5 City of Dublin Alameda County Transportation Commission - Measure BB Funds Financial Statements For the year ended June 30, 2024 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 17 288 Attachment 5 This page intentionally left blank. 289 Attachment 5 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, 2024, 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, 2024, 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. Emphasis of Matter As discussed in Note A, the financial statements present only the Measure BB Funds and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2024, and changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 290 Attachment 5 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 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. 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. 291 2 Attachment 5 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 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 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 10, 2024 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. Badawi & Associates, CPAs Berkeley, California December 10, 2024 3 292 Attachment 5 This page intentionally left blank. 4 293 Attachment 5 City of Dublin Alameda County Transportation Commission - Measure BB Funds Balance Sheet June 30, 2024 ASSETS: Cash and investments Direct local distribution program receivables ACTC ACTC Streets and Bikes and Roads Pedestrians Total $ 1,610,618 $ 896,896 $ 2,507,514 238,311 80,750 319,061 Total assets $ 1,848,929 $ 977,646 $ 2,826,575 FUND BALANCES: Restricted Total fund balances $ 1,848,929 $ 977,646 $ 2,826,575 $ 1,848,929 $ 977,646 $ 2,826,575 See accompanying Notes to Financial Statements. 5 294 Attachment 5 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, 2024 REVENUES: Measure BB revenue Use of money and property Total revenues EXPENDITURES: Bikes and pedestrians Streets and roads Total expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES: ACTC ACTC Streets and Bikes and Roads Pedestrians Total $ 1,412,275 $ 478,538 $ 1,890,813 44,439 24,078 68,517 1,456,714 502,616 1,959,330 187,779 187,779 976,762 - 976,762 976,762 187,779 1,164,541 479,952 314,837 794,789 Beginning of year 1,368,977 662,809 2,031,786 End of year $ 1,848,929 $ 977,646 $ 2,826,575 See accompanying Notes to Financial Statements. 6 295 Attachment 5 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2024 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. 296 7 Attachment 5 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2024 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, 2024: Cash and Investments $2,507,514 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 Minimum Credit Maturity Quality 5 years 180 days 10 years 10 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 10 years 5 years 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% 8 297 Attachment 5 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2024 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 Rate 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, 2024 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, 2024, the City had invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.78% in the previous year. The LAIF fair value factor of .996316042 was used to calculate the fair value of the investments in LAIF. 298 9 Attachment 5 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2024 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, 2024. 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. 299 10 Attachment 5 SUPPLEMENTARY INFORMATION 11 300 Attachment 5 City of Dublin Alameda County Transportation Commission - Measure BB Funds Supplementary Information For the year ended June 30, 2024 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. 301 12 Attachment 5 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, 2024 REVENUES: Measure BB revenue Use of money and property Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,314,556 $ 1,314,556 $ 1,412,275 $ 97,719 4,000 4,000 44,439 1,318,556 1,318,556 40,439 1,456,714 138,158 Streets and roads 1,110,000 1,678,026 976,762 701,264 Total expenditures 1,110,000 1,678,026 976,762 701,264 Net change in fund balance $ 208,556 $ (359,470) 479,952 $ 839,422 FUND BALANCE: Beginning of year End of year 1,368,977 $ 1,848,929 13 302 Attachment 5 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, 2024 REVENUES: Measure BB revenue Use of money and property Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 453,152 $ 453,152 $ 478,538 $ 25,386 1,000 1,000 24,078 23,078 454,152 454,152 502,616 48,464 Bikes and pedestrians 368,453 615,803 187,779 428,024 Total expenditures 368,453 615,803 187,779 428,024 Net change in fund balance $ 85,699 $ (161,651) 314,837 $ 476,488 FUND BALANCE: Beginning of year End of year 662,809 $ 977,646 14 303 Attachment 5 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 BB Funds (Measure BB Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated December 10, 2024. Report on 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 304 Attachment 5 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Report on 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. Bit. 44.4 Badawi & Associates, CPAs Berkeley, California December 10, 2024 16 305 Attachment 5 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, 2024. 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, 2024. 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 306 Attachment 5 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 2023 through June 2024. The Local Street and Roads program has received $1,412,275 and the Bike and Pedestrian program has received $478,538. 307 18 Attachment 5 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 10, 2024 19 308 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, 2024 J 309 Attachment 6 310 Attachment 6 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Financial Statements For the year ended June 30, 2024 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 13 311 Attachment 6 This page intentionally left blank. 312 Attachment 6 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, 2024, 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, 2024, 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. Emphasis of Matter As discussed in Note A, the financial statements present only the VRF Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2024, and changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 313 Attachment 6 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 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. 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. 314 2 Attachment 6 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 10, 2024 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 10, 2024 3 315 Attachment 6 This page intentionally left blank. 4 316 Attachment 6 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Balance Sheet June 30, 2024 ASSETS: Cash and investments Direct local distribution program receivables Total assets LIABILITIES AND FUND BALANCE: Fund Balance: Restricted $ 432,204 56,101 $ 488,305 488,305 Total fund balance 488,305 Total liabilities and fund balance $ 488,305 See accompanying Notes to Financial Statements. 5 317 Attachment 6 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, 2024 REVENUES: Measure F revenues Use of money and property $ 334,165 9,552 Total revenues 343,717 EXPENDITURES: Contractual services Streets and roads 100,000 44,623 Total expenditures 144,623 REVENUES OVER EXPENDITURES FUND BALANCE: Beginning of year End of year 199,094 289,211 $ 488,305 See accompanying Notes to Financial Statements. 6 318 Attachment 6 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2024 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 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 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. 319 7 Attachment 6 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2024 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 $11 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) 320 8 Attachment 6 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2024 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, 2024: Cash and Investments $ 432,204 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 Minimum Credit Maturity Quality 5 years 180 days 10 years 10 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 10 years 5 years 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. 321 9 Attachment 6 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2024 3. CASH AND INVESTMENTS, Continued B. Risk Disclosures Interest Rate 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, 2024, 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, 2024, the City had invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.78% in the previous year. The LAIF fair value factor of 0.996316042 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, 2024. 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. 322 10 Attachment 6 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, 2024, and the related notes to the financial statements, and have issued our report thereon dated December 10, 2024. Report on 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 323 Attachment 6 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Report on 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 10, 2024 12 324 Attachment 6 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, 2024. 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, 2024. 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 325 Attachment 6 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. 326 14 Attachment 6 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 10, 2024 15 327 Attachment 7 City of Dublin Transportation Development Act Fund Dublin, California Financial Statements and Independent Auditor's Reports For the year ended June 30, 2024 J 328 Attachment 7 329 Attachment 7 City of Dublin Transportation Development Act Fund Financial Statements For the year ended June 30, 2024 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 on Internal Control over Compliance for Transportation Development Act Fund 13 330 Attachment 7 This page intentionally left blank. 331 Attachment 7 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 Transportation Development Act Fund (TDA Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2024, 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 TDA Fund of the City, as of June 30, 2024, 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 TDA 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. Emphasis of Matter As discussed in Note A, the financial statements present only the TDA Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2024, and changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 332 Attachment 7 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 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 TDA 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. 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 TDA 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 TDA 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. 333 2 Attachment 7 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 10, 2024 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. Blom 4A46044/ Badawi & Associates, CPAs Berkeley, California December 10, 2024 3 334 Attachment 7 This page intentionally left blank. 4 335 Attachment 7 City of Dublin Transportation Development Act Fund Balance Sheet June 30, 2024 ASSETS: Cash and investments Intergovernmental receivables Total assets $ 1,043 24,689 $ 25,732 LIABILITIES AND FUND BALANCE: Liabilities: Due to City of Dublin $ 94 Total liabilities 94 Fund Balance: Restricted 25,638 Total fund balance 25,638 Total liabilities and fund balance $ 25,732 See accompanying Notes to Financial Statements. 5 336 Attachment 7 City of Dublin Transportation Development Act Fund Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 2024 REVENUES: Intergovernmental revenues Use of money and property $ 24,689 492 Total revenues 25,181 EXPENDITURES: Streets and roads Total expenditures REVENUES OVER EXPENDITURES FUND BALANCE: 17,317 17,317 7,864 Beginning of year 17,774 End of year $ 25,638 See accompanying Notes to Financial Statements. 6 337 Attachment 7 City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2024 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Transportation Development Act (TDA) are reported in a special revenue fund (TDA 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 TDA Fund only and are not intended to fairly present the financial position 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 TDA 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. 338 7 Attachment 7 City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2024 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 TDA grant revenues. 2. CASH AND INVESTMENTS The TDA 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. TDA Fund had the following cash and investments at June 30, 2024: Cash and Investments $ 1,043 339 8 Attachment 7 City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2024 2. CASH AND INVESTMENTS, Continued 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 10 years 10 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 10 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. 340 9 Attachment 7 City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2024 2. CASH AND INVESTMENTS, Continued B. Risk Disclosures Interest Rate 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, 2024, 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, 2024, the City had invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.78% in the previous year. The LAIF fair value factor of 0.996316042 was used to calculate the fair value of the investments in LAIF. 3. 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. 341 10 Attachment 7 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 Transportation Development Act Fund (TDA Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated December 10, 2024. Report on 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 342 Attachment 7 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the TDA Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 10, 2024 12 343 Attachment 7 BADAWI & ASSOCIATES Certified Public Accountants REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS 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 TDA Funds Opinion on Compliance for TDA Funds We have audited City of Dublin's (City) compliance with the types of compliance requirements described in Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (Transportation Development Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission applicable to the City's Transportation Development Act Fund (TDA Fund) for the year ended June 30, 2024. 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 TDA Fund for the year ended June 30, 2024. Basis for Opinion on TDA Funds 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 Transportation Development Act. 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 TDA Fund. Our audit does not provide a legal determination of the TDA 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 TDA Fund. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 344 Attachment 7 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 TDA 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 Transportation Development Act, 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 TDA Fund's compliance with the requirements referred to above. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Transportation Development Act, 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 TDA 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 Transportation Development Act, 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. 345 14 Attachment 7 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 Transportation Development Act 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 Transportation Development Act 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 Transportation Development Act 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 Transportation Development Act. Accordingly, this report is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 10, 2024 15 346 Attachment 8 BADAWI & ASSOCIATES Certified Public Accountants Independent Accountant's Report To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have examined the City of Dublin, California (City)'s compliance with the compliance requirements "activities allowed or unallowed" and "allowable cost/cost principles" (the specified requirements) as described in Part IV "Requirements for an Alternative Compliance Examination Engagement for Recipients That Would Otherwise be Required to Undergo a Single Audit or Program -Specific Audit as a Result of Receiving Coronavirus State and Local Fiscal Recovery Funds" of the CSLFRF section of the 2024 OMB Compliance Supplement (referred to herein as "Requirements for an Alternative CSLFRF Compliance Examination Engagement") during the year ended June 30, 2024. Management of the City is responsible for the City's compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the AICPA; the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States; and in the "Requirements for an Alternative CSLFRF Compliance Examination Engagement." Those standards and requirements require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, the City complied, in all material respects, with the specified requirements referenced above during the year ended June 30, 2024. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 347 Attachment 8 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we are required to report all deficiencies that are considered to be significant deficiencies or material weaknesses in internal control; fraud, and noncompliance with provisions of laws, regulations, contracts, or grant agreements that have a material effect on the City's compliance with the specified requirements and any other instances that warrant the attention of those charged with governance. We are also required to obtain and report the views of responsible officials concerning the findings, conclusions, and recommendations, as well as any planned corrective actions. We performed our examination to express an opinion on the City's compliance with the specified requirements and not for the purpose of expressing an opinion on the internal control over the specified requirements or on compliance and other matters; accordingly, we express no such opinions. The results of our tests disclosed no matters that are required to be reported under Government Auditing Standards. Intended Purpose The purpose of this examination report is solely to express an opinion on whether the City complied, in all material respects with the specified requirements referenced above during the year ended June 30, 2024. Accordingly, this report is not suitable for any other purpose. Blot 4A460E4ai Badawi & Associates, CPAs Berkeley, California December 10, 2024 348 Attachment 9 City of Dublin Dublin, California Independent Accountants' Report on Agreed -Upon Procedures Applied to Appropriations Limit Schedule For the fiscal year ending June 30, 2025 linBADAWI & ASSOCIATES Certified Public Accountants } 349 Attachment 9 350 Attachment 9 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, 2025. 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, 2025, 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 Berkeleyy CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 351 Attachment 9 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. But. Badawi & Associates, CPAs Berkeley, California December 10, 2024 2 352 Attachment 9 City of Dublin Appropriations Limit Schedule For the fiscal year ending June 30, 2025 Amount Source A. Appropriations limit for the year ended June 30, 2024 $ 468,263,521 Prior year resolution B. Calculation Factors: 1. Population increase % 2. Inflation increase % 3. Total adjustment factor % 0.9997 1.0362 1.0359 State Department of Finance City of Dublin B1*B2 C. Annual Adjustment Increase 16,810,660 [(B3-1)A)] D. Other Adjustments - N/A E. Total Adjustments 16,810,660 (C+D) F. Appropriations limit for the year ending June 30, 2025 $ 485,074,181 (A+E) 3 353 Attachment 9 City of Dublin Notes to Appropriations Limit Schedule For the fiscal year ending June 30, 2025 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 2024-2025 represents the annual percentage change in the 4th quarter per capita personal income. 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 2024-2025 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, 2025. 354 4 Attachment 10 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 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, 2024, 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 10, 2024. Report on 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 355 Attachment 10 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Report on 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 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. Zzie. 4 A.4 Badawi & Associates, CPAs Berkeley, California December 10, 2024 356