HomeMy WebLinkAbout8.2 Comp Annual Fin Report/or DUB CITY CLERK
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 17, 2009
SUBJECT: Comprehensive Annual Financial Report (CAFR) and Annual Audit
for Fiscal Year 2007-2008
Report Prepared by: Ad Hoc Audit Subcommittee -Mayor Tim
Sbranti and Councilmember Kate Ann Scholz; and Paul S. Rankin, P~/t,
Administrative Services Director
ATTACHMENTS: 1. Comprehensive Annual Financial Report of June 30, 2008
(Separate Bound Booklet)
2. Auditors Information In Accordance with Statement of
Accounting Standards No. 114 (Communication With
Governing Board)
RECOMMENDATION: Receive the Reports and confirm the Reservations of Fund Balances
/' ~' for Fiscal Year 2007-08.
FINANCIAL STAT NT: See Staff Report.
DESCRIPTION: The City of Dublin has compiled and published its Comprehensive Annual
Financial Report (CAFR) for the Fiscal Year ending June 30, 2008. This report, which is included as
Attachment 1, includes audited financial statements reviewed by Caporicci and Larson, CPA's (C&L).
This firm is the independent auditor selected by the City Council and this is the fifth year that C&L has
conducted the financial audit for the City.
The financial section of the report includes an unqualified opinion issued by C&L. The Auditors also met
with the City Council Ad Hoc Audit Committee (Mayor Tim Sbranti and Councilmember Scholz) on
January 28, 2009 to review the results of the audit. Overall, based on their testing and review the Auditors
found no matters of concern, involving the City's internal controls and financial reporting that were
considered to be a material weakness and the City received a clean opinion.
The professional standards adhered to by the Auditors require them to record a formal process of
communicating with the City Council. The new standards require that the Auditors communicate directly
with those charged with governance. The Auditors met with the Ad-Hoc Committee in advance of
performing the work as well as at the conclusion to review the final report. This effort by the professional
audit community is intended to assure that those on the governing board are familiar with the information
in the financial reports as well as any findings.
COPY TO:
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ITEM NO. •
G:\Audit\FY 07-08 Annual Audit\Agenda Statements\CAFR_CityCouncil\Audit-agend statement 2008.doc
FINANCIAL STATEMENTS
The City Financial Statements are included in the Comprehensive Annual Financial Report (CAFR). The
scope included in a CAFR exceeds the minimum amount of information required. The format is in
compliance with the requirements for a Certificate of Achievement from the Government Finance Officers
Association. The goal of this program is to provide financial information of the highest quality. Certain
elements of the report are mandatory and it goes beyond the minimum reporting that is required for audits
of basic financial statements.
The City's audit report for Fiscal Year 2007-2008 begins with a transmittal letter (pages v - ix). This
provides a general overview of the components which make up the report. The opinion issued by the
Independent Auditor is included on pages 1 and 2. Beginning on page 3 and continuing to page 16, is the
required Management Discussion and Analysis (MD&A). These initial sections provide a good overview
of the financial activities of the City. The focus is on significant trends, as well as major changes
associated with the City's major funds (i.e. General Fund and Impact Fee funds). The General Fund
represents the largest portion of the City's revenues and expenditures and is of primary importance in
evaluating the City's fiscal condition. The focus of the MD&A section is on the major funds.
A significant portion of the CAFR is comprised of financial statements and schedules for the various
funds used to account for the City's revenue and expenditures. Since some funding sources have
restricted uses, Governmental Accounting standards require the information to be maintained in a manner
which will accurately account for transactions.
In addition the financial statements include a Government Wide Statement of Net Assets (pages 21 and
22), which is similar to financial statements presented by private corporations. It is important for readers
to keep in mind the unique nature of government services and what is reported as assets. For example,
land dedicated for streets and parks are reported as part of the Noncurrent Assets retained by the City.
This category is $417.1 million (76%) of Total Assets. It is important to recognize that these are not
liquid assets available to fund programs or on-going activities. The remaining assets may also have legal
restrictions on their use such as Impact Fee Funds, which can only be used for specific projects.
Pages 127 - 151 comprise the unaudited statistical section of the CAFR includes graphs of relevant
historical data. Beginning with the Fiscal Year 2005/06 CAFR, the Government Accounting Standards
Board required new schedules and comparisons in the statistical section. This section can be helpful
background which allows for comparisons over a longer period. The multi-year comparison makes it
easier to identify trends and/or the timing of key changes which have impacted the City's financial
condition.
The Government -Wide Financial Statements report the City's net assets and changes in them. This view
consolidates information from all of the various funds and for all activities considered governmental in
nature. Net assets -the difference between assets and liabilities -are one way to measure the City's
financial condition.
As shown in the two year comparison on the following page, the total Net Assets reported at
$531,997,992 as of June 30, 2008 were $24.6 million more than the $507,069,022 reported June 30, 2007.
It is important to recognize that 77.3% of the City's net assets reflect investment in capital assets (e.g.
land, infrastructure, buildings ,and equipment). These are not liquid assets readily available for future
spending. The total assets also include $50.8 million (9.5% of the total) which are subject to external
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restrictions on how they can be used. Although Net Assets is one method of measurement it is also
important to consider non-financial factors such as: changes in property tax values; sales tax outlets; and
the condition of infrastructure in terms of how well it is maintained. Overall, the fact that Net Assets
increased in Fiscal Year 2007/2008 is a positive result. Using the budget and more detailed data the City
Council will need to monitor trends to make assure that expenditures and revenues can be balanced.
Item
Current and other assets
Capital assets
Total assets
June 30, 2008
$136,714,378
411,192,237
547,906,615
Governmental Activities
Other liabilities
Total Liabilities
Invested in capital assets
Restricted
Unrestricted
(See Note 8 to Financials
for Council Designations)
Total net assets
June 30, 2007 $ Change °l° Change
$123,684,017 $13,030,361 10.5%
399,631,407 11,560,830 2.9°l0
523,315,424 24,591,191 4.7%
15,908,623 16,246,402 (337,779) -2.1
15,908,623 16,246,402 (337,779) -2.1
411,192,237 399,631,407 11,560,830 2.9%
50,789,419 45,647,928 5,141,491 11.3%
70,016,336 61,789,687 8,226,649 13.3%
$531,997,992 $507,069,022 $24,928,970 4.9%
DESIGNATIONS OF FUND BALANCES
One part of the closing entries recorded on the financial statements is the designation of funds for
specified uses. A complete listing of both fund reserves and designations for all funds is shown on page
57 of the report. A "Reservation" implies that there is a strong legal basis which restricts the discretion of
the City Council to use the funds for any desired purpose. A "Designation" is-less restrictive and subject
to policy decisions by the City Council. Some of the key designations are discussed below.
A. Designation For Authorized Expenditures
This designation is established to allow the City Council to carryover any unused funds as of June 30,
2008, to fund future year operations and projects for each of those funds with a positive fund balance. As
part of the Fiscal Year 2008-2009 Budget discussions, the City Council identified priorities for the
allocation of projected increased General Fund reserves resulting from the Fiscal Year 2007-2008
operations. Establishing the new designations will be discussed in a later section of this report.
B. Other General Fund Designations of Fund Balance
The City Council is requested to confirm these designations as part of accepting the final audit report.
The current CAFR includes designations made by the City Council following the acceptance of last year's
CAFR. As a result of the Fiscal Year 2007/2008 financial results, changes occurred in the reported
designations in the General Fund include:
1) A new reserved fund balance of $100,000 was established for the Storm Water Treatment Basin
Maintenance. The source of these funds was a grant from CalTrans that was to off-set the future
maintenance.
2) The long-term advance to the Fire Impact Fee Fund from the General Fund increased as a result
of interest costs exceeding the fees collected.
3) The long-term advance for the PERS Side Fund was reduced by $305,681.
4) The amount designated for CIP Carryovers was reduced by $17,852.
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5) A separate designation is now shown for Accrued Leave Payable - $744,041. In the prior year
CAFR the designation was not segregated from other amounts reported as "Designated For
Authorized Expenditures".
6) A reserve is designated for the Investment Market Value Adjustment. The City is required to
calculate the market value of investments as of 3une 30, 2008. Although the Market Value was
$1,508,906 more than the current book value the City did not realize the gain. By isolating it in a
separate reserve it helps to identify that it is not available to spend.
7) The reserve of $2,356,353 for Shannon Center, which was shown in the June 30, 2007 report,
was fully eliminated based on construction costs incurred and no longer appears in the list of
designations as of June 30, 2008.
8) The Fiscal Year 2006/2007 CAFR included $44,328,550 as "Designated For Authorized
Expenditures." Any increase or decrease in fund balance that is not related to a specific
designation will impact this category. Following the acceptance of the Fiscal Year 2006/2007
CAFR, the City Council established the following specific designations which now appear in the
current CAFR.
Civic Center Expansion $ 1,200,000
Fallon Park Artificial Turf 1,120,000
Historic Park Development 3,180,000
Maintenance Facility / Emer ency Operations Center 1,500,000
Fire Retiree Benefits 500,000
TOTAL $ 7,500,000
The General Fund amount "Designated For Authorized Expenditures" in the current CAFR is
$42,181,292. A discussion of designations for the amount contributed in Fiscal Year 2007/08 will
be addressed in a separate report to be presented at the City Council meeting on March 3, 2009.
NO AUDIT RECOMMENDATIONS /DISCLOSURES
As part of the Audit Review the independent auditors can present recommendations for consideration by
the City. These can be items that do not impact the overall "clean opinion". Rather the process allows the
Auditors to note certain practices and policies, and allow Management to respond to the input. The
Auditors are obligated to communicate any recommendations to management, the audit committee and
those in the position of governance. There are three categories which the auditors will issue as part of the
Management Letter. The labels used are standardized throughout the accounting industry.
1. A "Control Deficiency", which is the lowest of the three deficiencies, 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 misstatements on a timely basis.
2. A "Significant Deficiency" is a control deficiency or a combination of control deficiencies, that
adversely effects the City's ability to initiate, authorize, record, process or report financial data in
accordance with the Generally Accepted Accounting Principles, and that the likelihood of a
misstatement of the City's financial statement that is more than inconsequential which will not be
prevented or detected by the City's established internal controls.
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3. A "Material Weakness", is a significant deficiency or a combination of significant deficiencies,
that results in more than a remote likelihood that a material misstatement of the financial
statements which will not be prevented or detected by the City's established internal controls.
As part of their work reviewing the financial statements for the period ending June 30, 2008, the auditors
did not identify any items which required disclosure.
AD-HOC AUDIT COMMITTEE OBSERVATIONS
The Ad Hoc Audit Committee met with the Auditor and Staff on January 28, 2009 and discussed the
report. The interaction of the Auditors directly with representatives of the elected body is a key
component to current audit standards. The Auditors reviewed the fact that a clean opinion was provided.
They also discussed with the Committee comparative information in key areas. Staff discussed the fact
that in some areas direct comparisons could be skewed based on unique transactions, such as the
Developer funding of the Fallon Interchange. The Committee members were provided with an
opportunity to discuss the report.
DESIGNATION OF FUND BALANCE INCREASES IN THE GENERAL FUND
The City has a practice of determining the use of any General Fund increases in reserves, following the
acceptance of the annual Audit. The final change in reserves can only be determined after all financial
entries were complete. As discussed with the City Council Audit Subcommittee, Staff will be bringing
this discussion forward as a separate item at the March 3, 2009 City Council meeting.
RECOMMENDATION
Staff recommend that the City Council receive the reports and confirm the reservations of Fund Balances
for Fiscal Year 2007-08.
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I~f'l~l
Comprehensive
Annual
Financial
Report
For Fiscal Year Ended
June 30, 2008
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City of
Dublin
Dublin, California
Comprehensive Annual Financial Report
For the year ended June 30, 2008
Ci of Dublin ~ ~ r `
ty
Comprehensive Annual Financial Report
For the year ended June 30, 2008
Table of Contents
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INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................... i
Letter of Transmittal ......................................................................................................................................................... v
Government Finance Officers Association (GFOA) Award ....................................................................................... x
Principal Officers .............................................................................................................................................................. xi
..
Organizational Chart ...................................................................................................................................................... xii
FINANCIAL SECTION
,~
Independent Auditors' Report ......................................................................................................................................1
Management's Discussion and Analysis .....................................................................................................................
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets .................................................................................................................................... 21
,x ..
Statement of Activities and Changes m Net Assets ......................................................................................
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ................................................................................................................................................ 24
Reconciliation of the Governmental Funds Balance Sheet
..........................................................................
~' to the Government-Wide Statement of Net Assets
Statement of Revenues, Expenditures and Changes in Fund Balances ............................................... 28
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government-Wide
Statement of Activities and Changes in Net Assets ......................................................................... 30
Proprietary Fund Financial Statements:
Statement of Net Assets .............................................................................................................................. 31
Statement of Revenues, Expenses and Changes in Net Assets ............................................................. 32
............................................................................................................................
``~ Statement of Cash Flows
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets ............................................................................................................ 34
Index to Notes to Basic Financial Statements ....................................................................................................... 35
Notes to Basic Financial Statements ....................................................................................................................... 37
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City of Dublin
Comprehensive Annual Financial Report
For the year ended June 30, 2008
Table of Contents, Continued
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FINANCIAL SECTION, Continued
Required Supplementary Information:
Budgets and Budgetary Accounting ............................................................................................................... 70
Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual:
General Fund ................................................................................................................................................ 71
Housing and Noise Mitigation Special Revenue Fund .......................................................................... 72
Schedule of Funding in Progress:
Miscellaneous Plan of the California Public Employee Retirement System ....................................... 73
Other Post Employment Benefit (OPEB) .................................................................................................. 73
Supplementary Information:
General Fund:
Schedule of Budget Versus Actual Revenues by Sources ............................................................................ 78 ~,
Schedule of Budget Versus Actual Department Expenditures ................................................................... 80
Major Funds:
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual:
Traffic Impact Fees Capital Projects Fund ............................................................................................... 83 ~
Public Facilities Fees Capital Projects Fund ............................................................................................ 84
Public Art Fees Capital Projects Fund ...................................................................................................... 85
Fire Impact Fees Capital Projects Fund .................................................................................................... 86 ~.
Non-Major Governmental Funds:
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual:
Combining Balance Sheet ........................................................................................................................... 90
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................... 94
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual:
Special Criminal Activity Special Revenue Fund .................................................................................. . 99
Vehicle Abatement Special Revenue Fund ............................................................................................ 100
Supplemental Law Enforcement Special Revenue Fund ..................................................................... 101
Traffic Safety Special Revenue Fund ...................................................................................................... 102
State Gas Tax Special Revenue Fund ...................................................................................................... 103
CDBG Special Revenue Fund .................................................................................................................. 104
T.E.A. Special Revenue Fund ................................................................................................................... 105
Measure B Sales Tax Transportation Special Revenue Fund .............................................................. 106
State Transportation Improvement Special Revenue Fund ................................................................ 107
Measure D Recycling Special Revenue Fund ........................................................................................ 108
Garbage Service Special Revenue Fund ................................................................................................. 109
Local Recycling Program Special Revenue Fund ................................................................................. 110
Measure B Bike and Pedestrian Special Revenue Fund ....................................................................... 111
EMS Special Revenue Fund ..................................................................................................................... 112
Traffic Congestion Relief Special Revenue Fund .................................................................................. 113
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City of Dublin
Comprehensive Annual Financial Report
For the year ended June 30, 2008
Table of Contents, Continued
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Pale
FINANCIAL SECTION, Continued
Supplementary Information, Continued
Non-Major Governmental Funds, Continued:
Schedule of Revenues, Expenditures and Changes in Fund Balances -
' Budget and Actual, Continued:
Highway Safety Traffic Reduction Fund (Prop 1B) ..............................................................................114
Street Lighting Special Revenue Fund ...................................................................................................115
, Stagecoach Landscape Special Revenue Fund
Dougherty Landscape and Lighting Special Revenue Fund ...............................................................117
Santa Rita Assessment District 97-1 Special Revenue Fund ................................................................118
East Dublin Street Lighting Assessment Special Revenue Fund ........................................................119
Internal Service Funds:
.............................................................................................................1
Combining Statement of Net Assets
Combining Statement of Revenues, Expenses and Changes in Net Assets ............................................123
Combining Statement of Cash Flows ............................................................................................................124
Agency Fund:
Statement of Changes in Net Assets ...........................................................................................................................126
STATISTICAL SECTION
General Governmental Activities Tax Revenues by Source and
Governmental Activities Tax Revenues by Source ..................................................................................... 128
Net Assets by Component ..................................................................................................................................... 129
Changes in Net Assets ........................................................................................................................................... 130
Fund Balances of Governmental Funds .............................................................................................................. 132
Changes in Fund Balances of Governmental Funds ......................................................................................... 134
Assessed Value and Estimated Actual Value of Taxable Property ................................................................. 136
Direct and Overlapping Property Tax Rates ......................................................................................................
.
137
Principal Property Taxpayers ............................................................................................................................... 138
Property Tax Levies and Collections ................................................................................................................... 139
Direct and Overlapping Dept ...............................................................................................................................
e 140
Legal Debt Margin Information ........................................................................................................................... 142
~' Demographic and Economic Statistics ................................................................................................................ 144
Property Value, Construction and Bank Deposits ............................................................................................. 145
Principal Employers ............................................................................................................................................... 146
~' Full-time Equivalent City and Contact Government Employees by Function .............................................. 147
Operating Indicators by Function ........................................................................................................................ 148
Capital Assets Statistics by Function ................................................................................................................... 149
~' Top 25 Sales Tax Producers ................................................................................................................................... 150
Miscellaneous Statistical Data ............................................................................................................................... 151
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City of Dublin
Comprehensive Annual Financial Report ,~
For the year ended June 30, 2008
Table of Contents, Continued ~,
Page ""
Independent Auditors' Report on Compliance and on
Internal Control over Financial Reporting Based on
an Audit of Basic Financial Statements Performed in Accordance
With Government Auditing Standards ........................................................................................................ 153
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December 22, 2008
CITY OF DUBLIN
100 Civic Plaza Dublin, California 94568 Website: www.ci.dublin.ca.us
Honorable Mayor and
Members of the City Council
Presented with this transmittal is the City of Dublin (City) Comprehensive Annual Financial Report (CAFR)
for the year ended June 30, 2008. The information in this Comprehensive Annual Financial Report is prepared
in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental
Accounting Standards Board (GASB).
The responsibility for the accuracy and fairness of this report rests with the City. Management Staff are
responsible for preparing a complete report which is based upon reliable information. Caporicci & Larson, a
firm of licensed public accountants, has issued an unqualified ("clean") opinion on the City of Dublin s
financial statements for the year ended June 30, 2008. The independent auditor's report has been included in
this Comprehensive Annual Financial Report.
This report has been formatted to comply with the financial reporting model developed by Governmental
Accounting Standards Board (GASB) Statement 34. The required format includes Government-wide financial
statements, designed to provide readers with a broad overview of the City in a manner similar to a private
sector business, including a statement of net assets and statement of activities. This letter of transmittal is
designed to assist with an individual's review of the City's financial statements. It also complements a
separate narrative section called Management's Discussion and Analysis (MD&A). The MD&A reports on the
financial highlights of the City and provides additional analysis on the variances and trends reported as part
of the financial statements. In addition, the MDA discloses significant items affecting the financial condition
of the City. The MD&A is located immediately following the report of the independent auditors.
CITY PROFILE
The City of Dublin was incorporated in 1982 and is located in Alameda County, a growing area in the eastern
portion of the San Francisco Bay Area. The City has a permanent staffing level of approximately 91 City
employees and serves an estimated population of 46,934, with estimated population growth to 60,000 covering
a land area of 14.01 square miles. The City's strategic location offers opportunities for employers, retail
outlets, and high quality residential neighborhoods.
The City operates under the Council-Manager form of government. Policy making and legislative authority
are vested in the City Council, which consists of an elected mayor, which serves a two year term and four
Council members each elected to a four year term. The City Council. is responsible for the City's ordinances,
operating resolutions, adoption of the anzlual budget, hiring the City Manager and City Attorney and
confirming the appointments made by the Mayor to commissions and corrunittees. The City Manager is
_, responsible for the following activities: implementing the policies, ordinances, and directives of the Cite
Council; overseeing the day-to-day operations of the City; and appointing the Directors of the City's
departments.
Area Code (925) City Manager 833-6650 City Council 833-6650 Personnel 833-6605 Economic Development 833-6650
Finance 833-6640 Public Works /Engineering 833-6610 Parks & Community Sewices 833-6645 Police 833-6670
Planning /Code Enforcement 833-6610 Building Inspection 833-6620 Fire Prevention Bureau 833-6606
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Current .City services include: Administrative Services (Finance/Information Systems); City Manager and
Central Services (Human Resources); City Attorney; City Clerk; Police; Fire; Animal Control; Crossing Guards;
Community .Development (Building/ Planning/Housing); Economic Development; Parks and Community
Services; and Public Works (including Engineering and Maintenance). The City contracts with both public
agencies and private firms to provide a variety of key services including: Building Inspection; Fire; Police; and
Public Works maintenance. A total of 132 FTE contract employees are identified in the City budget.
ECONOMIC CONDITION AND OUTLOOK
The City of Dublin is located at the intersection of Interstates 580 and 680 approximately 35 miles east of San
Francisco. The City has a wide range of housing types available to meet the demands of various employers
throughout the region. The City has a large retail base which serves local residents as well as those in
surrounding communities. The largest employers include: public agencies such as the County of Alameda
and the Dublin Unified School District; corporate and technical production offices such as United States
Headquarters of Sybase, Micro Dental Laboratories, and Zeiss Meditec; retailers such as Best Buy, Home Expo
Design, and Target; and auto dealers with new car dealers in the City representing the following
manufacturers: Chevrolet, Nissan, Honda, Toyota, Volkswagen, Chrysler, Dodge, Jeep, Pontiac, Buick, GMC,
Cadillac, Saturn, Saab, and Hummer. Over the past several years residential builders and developers have
constructed a variety of new housing opportunities, which includes a mix of transit oriented development
adjacent to a Bay Area Rapid Transit (BART) station as well as single family homes and condominium /
townhome developments. The relatively close proximity to additional job centers and colleges and
universities in the Bay Area create an attractive environment.
Retail Sales are an obvious indicator of the general economic climate. The General Fund Sales Tax in Fiscal
Year 2007/2008 increased by 1.4% over the amount attributable to the prior year ($14.0 million in Fiscal Year
2006/2007 vs. $14.2 million in Fiscal Year 2007/2008). This occurred at a time when retail sales in general
were slowing. The fact that there was an increase was largely attributable to new outlets that did not exist the
previous year. This would include Hummer, Saab, Saturn automobile dealers and a Lowes Home
Improvement Warehouse. With such a large concentration of retail sales tax derived from the auto sales, the
City is preparing for a continued decline in sales.
Over the past several years the City has experienced property tax related growth as a result of both residential
and non-residential development. During Fiscal Year 2007/ 2008 the City continued to issue final inspections
on a number of residential projects. However, the volume of new permits slowed as the housing industry
began to struggle with availability of mortgages and general recessionary trends. The total number of
residential units receiving a final inspection declined by 15% from the previous year (789 units in Fiscal Year
2007/2008 compared to 909 in Fiscal Year-2006/2007).
The City Council does not control property tax rates. These rates are an outgrowth of the 1978 voter approved
Proposition 13. Although the City has experienced significant growth in Assessed Valuation of properties, in
recent years, the current slowdown in sales and increase in foreclosure activity are expected to stifle property
tax growth. The City has had new- development occurring on vacant properties that carried a low base value.
Also there have been several government-owned parcels such as those surrounding the BART Transit Center
that were sold for private development. These transactions in part, along with general real estate trends, have
fueled the growth in Property Tax Revenue in recent years. In Fiscal Year 2007/ 2008 General Fund Property
tax Revenue increased by approximately 9.7% over Fiscal Year 2006/2007.
The future economic outlook for the City is expected to show slower growth in terms of new construction and
retail sales. In general retail sales have been lagging in many sectors and not just automobile sales. The Fiscal
Fear ,2008 J2009 Sales Tax Budget assumes a decrease of 2.5 %. As the Comprehensive Annual Financial Report
(CAFR} was being prepared, the City was advised of retailers closing operations. This environment requires
the City to carefully plan for an alignment of General Fund expenditures with General Fund Revenue. The
direction provided by the City Council is to initially consider deferring discretionary General Fund Capital
Projects and provide suggested revisions that do not compromise public services.
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The economic outlook for the City of Dublin for Fiscal Year 2008/2009 is based on an expectation that external
economic factors will slow the pace of new construction. The City is also anticipating a slower growth in
Property Tax. The County Assessor is expected to reduce the Assessed Values on several properties in
accordance with State Law and based on new market values. There is also uncertainty related to the State of
California facing a budget deficit. In the past the State has taken actions which impact local revenue.
Although the voters have restricted the ability of State government to permanently "borrow' without
repayment from local government revenue sources, the City Staff remain concerned with the inability of State
government to establish a balanced budget. The City anticipates that there will be sufficient reserves to cover
any unanticipated revenue shortfalls for Fiscal Year 2008/2009.
In taking a long term view the City will continue to take steps to enhance the existing economic base, while
seeking opportunities for expansion and adding diversity to the current retail base. The City has exciting
regional serving retail projects in the plan approval process such as The Green on Park Place. There is also the
ability to accommodate significant new development projects in the City's Eastern Dublin Specific Plan Area,
as evidenced by several development agreements entered into with the Alameda County Surplus Property
~N+ Authority and the developers for Dublin Ranch during the past several fiscal years. There is also additional
planned development adjacent to older commercial areas as a second Bay Area Rapid Transit (BART) station is
now under construction and should offer service in Fiscal Year 2009/2010.
MAJOR INITIATIVES
The City of Dublin is an active and vibrant community, with a municipal government that is proactive and
prepared to respond to changes which are occurring. Each year the City Council adopts Goals and Objectives
for the upcoming year and evaluates the progress achieved on the goals previously established. The City's
,, Goals and Objectives program is the process by which the City Council formulates major initiatives for the
City.
In Fiscal Year 2007/2008, the City completed several significant high priority goals and objectives, including
the following:
• Completed an independent review of the City's computer system needs for financial applications
as well as permit services, which recommended proceeding with a procurement of new systems.
• Completed loans as part of a First Time Home Buyer loan program utilizing inclusionary housing
fees.
• Completed a Community Needs Assessment of Parks & Community Services Programs.
• Conducted an expanded Day on the Glen Festival including a community fireworks show in
honor of the City celebrating 25 years as an incorporated City.
• Relocation of Inspection Trailers to accommodate park development.
• Initiated the design of Fallon Sports Park.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
Note 1 in the Basic Financial Statements provides a detailed explanation of the significant accounting policies.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of controls.
Internal accounting controls are designed to provide reasonable assurance regarding: safeguarding of assets
against loss, accuracy and reliability of accounting data, and adherence to prescribed policies. The concept of
reasonable assurance recognizes that the cost of a control should not exceed benefits likely to be derived and
that the evaluation of costs and benefits require estimates and judgments by management.
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The City Manager develops and presents a budget for approval by the City Council on an annual basis. The
budget includes appropriations for both operating programs and capital improvement projects. The budget is
approved by budget activity based upon the identified funding sources. The adopted accounting procedures
authorize the City Manager to make budget adjustments between line items which are within the same
Department. Expenditures may not exceed budgeted appropriations at the departmental level without City
Council approval. However, the City Manager is authorized to transfer funds from the contingent reserve to
operating departments' salary and benefit accounts when required due to A) employee turnover or change in
status B) City Council approved funding for increases in employees salaries and benefits; and C) City Council
approved funding for increase in contract or labor rates.
DEBT ADMINISTRATION
The City has no outstanding General Obligation debt. However, the City does administer funds for debt
issued pursuant to the 1915 Improvement Act for the Dublin Boulevard Extension Assessment District. The
total amount of bonds originally issued in 1992 was $2,350,000. The total amount of assessment debt
outstanding at June 30, 2008 is $ 910,000. The debt service schedule will result in full repayment by 2012. This
amount is repayable from property assessments levied on properties benefiting from the improvements, and
the City has no legal, contingent or moral obligation for the repayment of this debt. Revenues collected were
sufficient to finance all required debt service expenditures for the year ending June 30, 2008. There were no
material delinquent assessment revenues at year end.
RISK MANAGEMENT
The City of Dublin is a member of ABAG PLAN Corporation. This is a public agency pool providing liability ~
insurance coverage to many Bay Area cities. The coverage limit for Fiscal Year 2007/2008 was $15 million per ~
occurrence for general liability claims, which does not cover damage resulting from an earthquake. The City
of Dublin has selected a $50,000 deductible. The pool also provides property insurance coverage with a $5,000
deductible, except for vehicle losses, which carry a $10,000 deductible. The insurance pool purchases the
required employee bonds from a commercial surety company. The actual cost for liability claims paid by the
City for Fiscal Year 2007/2008 was $33,454. In addition, the City is also a member of the Cities Group, a Joint •~
Powers Authority which provides insurance coverage for worker's compensation. In accordance with GASB
~,.
10, the City established a liability of $271,916 for claim deductibles in both the General Liability and Workers
Compensation Programs. This includes a provision for losses which may be "incurred but not reported" ~-
(IBNR).
CASH MANAGEMENT
Cash temporarily idle during the year was invested in accordance with adopted investment policies. The
City's average yield was 3.5 %, based on all of its investments for the period of July 1, 2007 through June 30,
2008. This was a decrease from 4.37% reported for the year ended June 30, 2007. As of June 30, 2008, the City's
portfolio of Federal Security investments had an average weighted maturity of 1.9 years. In addition, the City
has sufficient investments in the State's Local Agency Investment Fund (LAIF) and money market accounts,
which offer same day liquidity.
The City has positioned its cash needs to allow it to hold all securities to maturity. On a quarterly basis the .~
City Council is provided with a report on investment activity. The investment strategy emphasizes the safety
of the portfolio and liquidity to match anticipated cash flow needs. The portion of the portfolio containing
U.S. Notes and Agency Obligations does not include any repurchase agreements. ~
INDEPENDENT AUDIT
Each year the City of Dublin obtains an independent annual audit of the City's financial records. The
information presented includes a review of operations and changes in financial position. This report includes
the Auditor's unqualified opinion on the City's combined financial statements.
..
viii
~' AWARDS
II ~~~ l~l
The Government Finance Officers' Association (GFOA) has recognized the City of Dublin for its
~+ Comprehensive Annual Financial Report covering the period ending June 30, 2007. A copy of the award from
this entity is included in this report. This award represents the 18th consecutive year that the City's report was
recognized by the GFOA. In order to be recognized, the City was required to produce an easily readable and
efficiently organized report. The report must also meet the standard for generally accepted accounting
principles and legal requirements.
~« ACKNOWLEDGMENTS
The preparation of this report would not have been possible without contributions from City Staff in several
Departments. I wish to especially recognize the efforts of Vivian Gong, Finance Manager, who coordinated the
details necessary to provide a comprehensive report. The value placed by City Staff in assuring that the City
finances are professionally administered is appreciated.
The City is fortunate to have dedicated staff members who devoted extensive time and energy in preparing
such a comprehensive report. The City has had its financial reports recognized by GFOA for many years,
which is a significant accomplishment. Staff also appreciates the professional effort and input provided by the
independent auditors of Caporicci & Larson, Certified Public Accountants.
~+ The City Council is recognized for its continued support and encouragement. Staff intends for the report to be
a source of pride and accomplishment; representing excellence in financial reporting and exemplifying the
` high priority given to the provision of quality services.
Sincerely,
~~ ~.~
,~ Paul S. Rankin
Administrative Services Director
ix
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Presented to
~1,t~ of Dublin
Cali~onl.ia
Far its Comprehensive Aru~ual
Financial Report
for the Fiscal'Year Ended
Tune 30, 2007
A C:crtiGcatc of Ac],icvement :for Excellence in Financial
Reporting is presented by tho Govemnient Finance t7f1'icers
Association of the United States and Canada to
govet'tttnettt llrtits trnd public empk~ycc retirement
systems whose comprehensive artnugl financial
reports (CAFRs) achieve the lughest
standards in government acc[funfing
and futancial reporting.
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CITY OF DUBLIN
PRINCIPAL OFFICERS
June 30, 2008
Mayor
Janet Lockhart
Vice Mayor Councilmember
Tim Sbranti Kasie Hildenbrand
Councilmember Councilmember
Tony Oravetz Kate Ann Scholz
ADMINISTRATION PERSONNEL
City Manager Richard Ambrose
Assistant City Manager Joni Pattillo
Administrative Services Director Paul Rankin
City Attorney John Bakker
City Clerk -Interim Carolyn Parkinson
Chief of Police Gary Thuman
Public Work Director Melissa Morton
Community Development Director Jeri Ram
Park & Community Services Director Dinane Lowart
Fire Marshal Bonnie Terra
xi
CITY OF DUBLIN
PRINCIPAL OFFICERS
June 30, 2008
Mayor
Janet Lockhart
Vice Mayor Councilmember
Tim Sbranti Kasie Hildenbrand
Councilmember Councilmember
Tony Oravetz Kate Ann Scholz
ADMINISTRATION PERSONNEL
City Manager Richard Ambrose
Assistant City Manager Joni Pattillo
Administrative Services Director Paul Rankin
City Attorney John Bakker
City Clerk -Interim Carolyn Parkinson
Chief of Police Gary Thuman
Public Work Director Melissa Morton
Community Development Director Jeri Ram
Park & Community Services Director Diane Lowart
Fire Marshal Bonnie Terra
xi
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Legend
. Bected
Appdnled
vowrneers
Cb Sttfr
CITY OF DUBLIN ORGANIZATIONAL CHART
Herita e & Parks & Communi
9 tY
Cultural Arts Services
City Manager
City Clerk
Fle3etinr~.s
Planning City
Commission Attorney
Central Services
nior Human Resouces
rater Disaster Preparedness
isory Waste Management
.r,;ffaQ Community Cade TV
Police Services
Police
Animal Contrd
Community
Development
Building& Safety
Plarning
Houslrig
Parks &
Community Services
Recreation
Library Sen+ices
Cultural Acfvities
Heritac„~ Corder
Dublin Cemetery
Parks & Facilities Mgmnt
Child Care
Administrative
Services
Finance
Information
Systems/
Technology
Public Works
Building Management
Traffic Signals
Street Light rag
Street Maintenance
Street Swooping
Street Tree Maintenance
Sreet Landscaping Maint
Park Maintenance
Committee
(Pilot}
Fire
Services
CL
Caporicci & Larson
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Dublin
Dublin, California
We have audited the accompanying financial statements of governmental activities, each major fund, and
the aggregate remaining fund information of the City of Dublin, California (City), as of and for the year
ended June 30, 2008, which collectively comprise the City's basic financial statements as listed in the table of
~° contents. These financial statements are the responsibility of the City's management. Our responsibility is
to express an opinion on these basic financial statements based on our audit.
"` We conducted our audit in accordance with generally accepted auditing standards in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the basic financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall basic financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, each major fund, and the aggregate remaining fund
information of the City as of June 30, 2008, and the respective changes in financial position and cash flows,
where applicable, thereof for the year then ended in conformity with generally accepted accounting
principles in the United States.
Subsequent to the basic financial statements date of June 30, 2008 and the year then ended the United States
has entered into a Financial Credit Crisis. Although the United States Federal Government has taken actions
which, at least in part, are intended to relieve and correct this Financial Credit Crisis, investments are
subject to significant impairment and losses. To dates the City has not been informed and is not aware of
any investment losses. Accordingly, such investment losses, if any, have not been reflected in the
accompanying basic financial statements.
As described in Note 1 to the basic financial statements, the City adopted Statement of Governmental
Accounting Standards Board No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-
Entity Transfers of Assets and Future Revenues and No. 50, Pension Disclosures, an Amendment of GASB
~° Statements No. 25 and No. 27.
Toll Free Ph: (877) 862-2200
Oakland
180 GrandAve.,Suite 1365
Oakland, California 94612
Orange County
9 Corporate Park, Suite 100
Irvine, California 92606
Toll Free Fax: (866) 436-0927
Sacramento San Diego
777 Campus Commons Rd., Suite 200 4858 Mercury, Suite 106
Sacramento, California 95825 San Dielo, California 92111
a
To the Honorable Mayor and Members of the City Council
of the City of Dublin
Dublin, California
Page 2
/~~ ~~~
In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2008, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grants. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be considered
in assessing the results of our audit.
The accompanying Required Supplementary Information, such as management's discussion and analysis,
budgetary comparison information and other information as listed in the table of contents are not a
required part of the basic financial statements but are supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
Required Supplementary Information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial ,statements. The accompanying supplementary information is presented
for purpose of additional analysis and is not a required part of the basic financial statements. The
supplementary information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole. The introductory section and statistical tables have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly,
we express no opinion on them.
Oakland, California
December 22, 2008
~.
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~~-~ ~~ ~e~ CITY OF DUBLIN
``~(~~~~ Management's Discussion and Analysis (MDA) June 30, 2008
~4LIFOR~
As management of the City of Dublin (City), we offer readers of the City's financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30,
2008. Please read this overview in conjunction with the accompanying letter of transmittal and the
accompanying basic financial statements.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements, which are comprised of three components:
• Government-wide financial statements -These include the Statement of Net Assets and
Statement of Activities. These statements provide information about the activities of the
City as a whole and about the overall financial condition of the City in a manner similar to
aprivate-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 AND FINANCIAL ANALYSIS
These statements include all assets and liabilities of the City using the accrual basis of accounting,
which is similar to the accounting used by most private sector companies. All current year's revenues
and expenses are accounted for regardless of when the cash is paid or received.
These statements report the City's net assets and changes in them. Net assets -the difference between
assets and liabilities -are one way to measure the City's financial position. Over time, increases or
decreases in net assets are among indicators used to assess whether the financial condition of the City is
improving or deteriorating. However, it is also important to consider other non-financial factors, such
as: changes in the City's property tax values; sales tax outlets; and the condition of the City's
infrastructure (i.e. parks and streets), to accurately assess the overall health of the City.
The Government-Wide statements present information about the City's activities, all of which are
considered governmental in nature. These include services provided for police, fire, community
development, streets and culture and leisure. These services are funded from monies received from
property, sales, and other taxes, direct charges for services provided, grants, contributions from other
agencies and impact fees collected from new development.
3
~~~ Ot~DUB~y
19~~-;__x,`82
~~ ~~/
~~ rFOR~
CITY OF DUBLIN
is ~ ~~~
Management's Discussion and Analysis (MDA) June 30, 2008
As shown in Table 1, during Fiscal Year 2007/2008, the City's net assets, representing the difference
between total assets and total liabilities, increased by $24.6 million (4.8%) to $532 million from $507
million in Fiscal Year 2006/2007. Factors which contributed to the increase were: lower than expected
expenditures; the receipt of impact fees due to new development occurring within the City; and
increased assets primarily as a result of dedication of infrastructure in new developments. Table 1
below summarizes the year to year change in the net assets reported for the City of Dublin.
TABLE 1 SUMMARY OF NET ASSETS
June 30, 2008 and 2007
Item
Current and other assets
Capital assets
Total assets
Other liabilities
Total Liabilities
Invested in capital assets
Restricted
Unrestricted
(See Note 8 to Financials for
Council Designations)
Total net assets
Governmental Activities
June 30, 2008 June 30, 2007 $ Change % Change
$ 136,714,378 $ 123,684,017 $ 13,030,361 10.5%
411,192,237 399,631,407 11,560,830 2.9%
547,906,615 523,315,424 24,591,191 4.7%
16,218,882 16,246,402 (27,520) -0.2%
16,218,882 16,246,402 (27,520) -0.2%
411,192,237 399,631,407 11,560,830 2.9%
50,789,419 45,647,928 5,141,491 11.3%
69,706,077 61,789,687 7,916,390 12.8%
$ 531,687,733 $ 507,069,022 $ 24,618,711 4.9%
The City's total liabilities of $16.2 million represents primarily obligations outstanding for current
operations (such as accounts payable), capital projects (such as retention payable), deposits held for
development projects, and compensated absences.
A significant portion of the City's net assets ($411.2 million or 77.3 %) reflects its investment in capital
assets (e.g. land, infrastructure, buildings, equipment). The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending.
$50.8 million or 9.5% of the assets as of June 30, 2008 represent resources that are subject to external
restrictions on how they may be used. These restrictions may be imposed by outside agencies, state
regulations, or legal restrictions which would limit the discretionary use of these assets.
Unrestricted net assets ($69.7 million or 13.1 %) may be used to meet the government's ongoing
obligations to citizens and creditors. However, as discussed in the notes to the financial statements,
much of the unrestricted net assets includes the unreserved portion of General Fund balance which has
either been designated for future equipment replacement, or that has been designated by the City
Council for use on several future projects and to cover economic uncertainties. The unrestricted net
assets show an increase of $7.9 million compared to amount reported for Fiscal Year 2006/2007.
Total revenues from all sources were $98.1 million and total expenditures for all City programs were
$73.4 million. For Fiscal Year 2007-08, the City had no long term debt outstanding at June 30, 2008.
.~
4
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~~~°~ °°8~y CITY OF DUBLIN
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'``~w'w~~ Management's Discussion and Analysis (MDA) June 30, 2008
04LIFOR~
Governmental Activities The charts on the following pages summarize major expenditure program
categories, program revenues used to fund specific expenditure programs, and general City revenues
available for funding all City programs.
Table 2 -Summary of Changes in Net Assets for the Years Ended June 30, 2008 and 2007
Fiscal Year Ending June 30th
2008 2007 $ Change % Change
Revenues
Program Revenues
Charges For Services
Operating Contributions & Grants
Capital Grants & Contributions
General Revenues
Property Taxes
Sales Tax
Motor vehicle in lieu, unrestricted
Other Taxes
Investment income, unrestricted
Other general revenues
Total Revenues
$ 12,155,377 $ 16,664,154 $ (4,508,777)
2,747,497 2,813,079 (65,582)
37,393,930 25,973,730 11,420,200
22,229,039 20,266,216 1,962,823
14,225,661 14,025,869 199,792
197,245 261,276 (64,031)
3,504,501 3,508,587 (4,086)
4,399,908 4,053,187 346,721
1,202,074 1,109,734 92,340
$ 98,055,232 $ 88,675,832 $ 9,379,400
$ 7,790,286 $ 8,866,758 $ (1,076,472)
23,282,634 22,306,240 976,394
20,196,496 17,182,208 3,014,288
1,689,353 1,816,800 (127,447)
12,200,759 14,080,040 (1,879,281)
8,276,993 11,157,417 (2,880,424)
$ 73,436,521 $ 75,409,463 $ (1,972,942)
$ 24,618,711 $ 13,266,369
507,069,022 493,802,653
(37.1 %)
(2.4 %)
30.5%
8.8
1.4%
(32.5%)
(0.1 %)
7.9
7.7%
9.6%
(12.1 %)
4.4
17.5%
(7.0%)
(13.3 %)
(25.8%)
(2.6 %)
Net Assets -End of Year $ 531,687,733 $ 507,069,022 $ 24,618,711 4.9%
The $24.6 million increase in net assets this fiscal year is attributable to increased revenues including
capital contributions as well as decreased spending.
Expenses:
Governmental activities:
General government
Public safety
Highways and streets
Health and welfare
Culture and leisure services
Community development
Total governmental activities expenses
Increase In Net Assets
Net Assets -Beginning of Year (as Restated)
ti
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19' ~- _=x,,82
~~ ~~/
~~trFOC~~'`~
CITY OF DUBLIN
Management's Discussion and Analysis (MDA) June 30, 2008
Revenues
Overall, total revenues increased by $13.8 million or 13.5%, for the period ending June 30, 2008
compared to the previous Fiscal Year. The following factors contributed to these results.
Charges for Services decreased by approximately $4.5 million (-37.1 %) less than the previous year. A
combination of factors contributed to this decrease including: A) Approximately $1 million of the
reduction reflects a decrease in development related processing services; B) Approximately $550,000
reflects aone-time collection of Fire Service Fees based on audits of prior year billings; and C)
approximately $3 million is related to accounting entries associated with a restatement of the fund
balance as part of the June 30, 2007 report. The restatement was related to accounting for Affordable
Housing loans outstanding on the Fairway Ranch project.
Overall, Capital Contributions and Grants increased by $11.4 million (30.5%). There have been a
variety of factors that contributed to this change including: A) In Fiscal Year 2007/2008 the City
received one-time grants totaling approximately $950,000 that were used on the Dougherty Road /
Dublin Boulevard intersection improvement project. B) Traffic Impact Fee revenue including interest
increased by $12.2 million more than was received the previous Fiscal Year. This reflected a significant
lump sum contribution towards the construction of the Interstate 580 / Fallon Road Interchange. C)
Developer payments to the Affordable Housing Fund increased by approximately $1.2 million. These
fees are typically collected at the time of the first building permit for an entire project. D) These
increases were offset by a $2.8 million decrease in Public Facility Fees collected in Fiscal Year 2007/2008
compared to Fiscal Year 2006/2007.
Property Taxes increased by approximately $1.9 million based upon increased assessed valuations
resulting from changes in the market value of properties as well as new construction being added to
the tax roll.
Motor Vehicle taxes decreased by approximately $64,031. Although the dollar amount is relatively
minor this was a decrease of 32.5%. This reflects a decrease in auto sales throughout the State as well as
increased tax revenues diverted by the State as administrative costs.
Investment income increased approximately $347,000 which represents increased investment yields
compared to the previous year as well as increased balances invested. The total reported as earnings is
also impacted by a $1.5 million unrealized adjustment to reflect the market value of investments as of
June 30, 2008.
Program Expenses
Overall, total expenses decreased by $2.0 million approximately 2.5%. The total expenses reported as
of June 30, 2008 were $73.4 million compared to $75.4 million in the previous fiscal year. The following
factors contributed to these results:
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~~ or DU~ CITY OF DUBLIN
~~,
1\~~~~ Management's Discussion and Analysis (MDA) June 30, 2008
~trFOC~~
The following table summarizes the differences in expenses in order to observe the fluctuation between
components.
ANALYSIS OF MAJOR COMPONENTS CONTRIBUTING TO CHANGE IN EXPENSES
(Fiscal Year 2007/2008 Compared To Fiscal Year 2006/2007)
Governmental
Year Ending Fund Program Internal Service Fixed Asset TOTAL
June 30, Expenses Funds Additions Depreciation Other EXPENSES
2008 $ 49,189,652 $ 913,772 $7,516,671 $15,766,762 $ 49,664 $73,436,521
2007 $ 47,168,501 $8,210,417 $3,589,609 $16,399,064 $ 41,872 $75,409,463
Difference
2008 vs. 2007 $ 2,021,151 ($7,296,645) $3,927,062 ($ 632,302) $ 7,792 ($1,972,942)
Overall Governmental Fund Expenses increased by approximately $2 million. This represents a 4.3%
increase and generally reflects increased costs associated with providing services. In addition to
inflationary increases in service costs there were increases in public safety staffi ng as well as additions
to infrastructure such as new parks, streets and infrastructure.
The expenses associated with Internal Service Funds decreased by approximately $7.5 million in the
current Fiscal Year. This significant change is due largely as a result of one-time entries made in the
year ending June 30, 2007 to amortize the contribution to a Trust Fund for Other Post Employment
Benefits (OPEB -Retiree Health) and the prepayment of a Public Employee Retirement System Side
Fund obligation. The City elected to amortize these items over a single year.
As a result of completion of Capital Projects and Developer dedications, in Fiscal Year 2007/ 2008 the
City had approximately $7.5 million in fixed asset additions. This was $4.0 million more than was
recorded in the previous fiscal year. Due to the fact that completion of capital projects and acquisition
assets do not follow consistent patterns it is typical to have fluctuations.
The Charts on the following page display both the Revenue and Expenses by program in a pie chart
format. This highlights the proportionate elements of the Fiscal Year 2007/2008 Revenues and
Expenses. As shown in the Revenue Chart the largest source is contributions of capital and grants
accounting for 38.1 %. Property Taxes and Sales tax represented 22.7% and 14.5% respectively. In terms
of expenses the largest program expense is Public Safety representing 31.7%, followed by Highways
and Streets which represented 27.5%. Culture and Leisure was the third largest program expense
representing 16.6%. Expenses in both Highways and Streets and Culture & Leisure included capital
projects.
7
as ~ 17~
G``~~ OF~DUe~y CITY OF DUBLIN
i9~~=~=~~ez Management's Discussion and Analysis (MDA) June 30, 2008
~~ ~ ~~
~~LIFOR~~
Revenues By Source (In Millions) Total Revenue $98.06 Million
Other Taxes - 3.6% $3.5
Charges for Services -
Sales Tax - 14.5% $14.2 ~ 12.4% $12.2
Op Contrib 1 Grants -
2.8% $2.7
Investment Income -
4.5% $4.4 _~
Other Revenues - 1.4°fo
$1,4 Capital./Grants - 38.1%
$37.4
Property Taxes - 22.7%
$22.2
EXPENSES BY PROGRAM (In Millions)
Total Expenses - $73.5 Million
Community Development
iizoieuz
Culture and Leisure
16.6% $12.2
General Government -
Public Safety - 31.7%
$23.3
Health and Welfare - 2.3%
$1.6
Highways and Streets -
27.5% $20.2
:.
~~,~ OF~jDU~
19~~_;-=x,,82
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~AFOR~
CITY OF DUBLIN
~~~~/~~
Management's Discussion and Analysis (MDA) June 30, 2008
FUND FINANCIAL STATEMENTS
These statements provide more detailed information about the City's major funds. A fund is a
grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
M The City maintains twenty-seven individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the: General Fund; Housing and Noise Mitigation
Special Revenue Fund; four Capital Project Funds: Traffic Impact Fees, Public Facilities Fees, Public Art
Fees, and the Fire Impact Fee Capital Project Funds. These funds either qualify or the City requested
them to be classified as major funds due to their significance in the financing of new capital assets.
,~ Data from the other twenty-one governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds is provided in the
form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for each of its governmental funds. A budgetary
comparison statement has been provided for each governmental fund to demonstrate compliance with
this budget.
Proprietary funds The City maintains one type of proprietary fund. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the City's various functions
and to build up reserves for future replacement of capital assets. These funds are also used to collect
funds for future retiree medical costs, which are then transferred to a trust. In Fiscal Year 2006-2007,
the City established a component related to the pre-payment of the Public Employees Retirement
System side fund obligation. Charges are made to departments based on payroll to fully recover
advanced retirement payment over time. The City uses internal service funds to account for its fleet of
vehicles, computer systems, other furniture and equipment, certain retiree costs and contributions, and
improvements to City buildings. Because these services solely benefit the governmental function, they
have been included within governmental activities in the government-wide financial statements.
9
a~~ ~7~
~~~o~~DUB~ CITY OF DUBLIN
'`~~]'w~~ Management's Discussion and Analysis (MDA) June 30, 2008
~~ IFpR~
Proprietary fund financial statements provide the same type of information as the government-wide
financial statements, only in more detail. All five internal service funds are combined into a single,
aggregated presentation in the proprietary fund financial statements. Individual fund data for the
internal service funds is provided in the form of combining statements elsewhere in this report.
Fiduciary Funds The fiduciary fund section consists of an Agency Fund. The Agency Fund is related
to the City of Dublin role as a trustee, or fiduciary, in collecting assessments and remitting bond
payments for one Assessment District. The City has no legal, contingent or moral obligation for the
repayment of this debt and merely ensures that the assets received are used for their intended
purposes.
In Fiscal Year 2006-2007 the City transferred $5.5 million to the irrevocable trust to provide retiree
medical benefits The City has continued to make contributions to the Trust in Fiscal Year 2007/2008
based upon the actuarial study. The financial status of the third party Trust is not included as part of
the City's financial statements.
These fiduciary activities are excluded from the City's fund financial statements because these assets
cannot be used to finance operations. The activity for these funds, however, is provided for in a
separate combining statement contained elsewhere in this report.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As of June 30, 2008, the City's governmental funds reported combined ending fund balances of $112.4
million, an increase of $12.4 million over the prior year. The City General Fund had an increase of $5.1
million; Capital Funds increased by $4.6 million; Housing Fund increased by approximately $2.5
million and Non-Major Funds increased by only $204,594. The following sections provide a more
detailed financial analysis by fund type.
GENERAL FUND
The General Fund is the chief operating fund of the City. At the end of Fiscal Year 2007-08, unreserved
fund balance of the General Fund was $57.8 million and total fund balance of the General Fund was
$63.4 million. As discussed in Note 8 to the financial statements, the entire amount of unreserved fund
balance has been designated by Council for use on several future projects and to cover economic
uncertainties.
During Fiscal Year 2007-08, the General Fund revenues exceeded its expenditures by $5.0 million.
These results include the recording of $1.5 million as revenue from the "Change in Market Value of
Investments:' A separate designation has been established for the investment portfolio gains which
were not realized at June 30, 2008. The General Fund revenues net of this adjustment exceeded
expenses by $3,532,722. In the preparation of both the Fiscal Year 2007/2008 Budget and the Fiscal
Year 2008/2009 Budget it was projected that there would be revenues exceeding expenses. The City
Council has discussed potential priorities for programming of these monies towards long term goals,
however, they determined that any specific determinations for the designation of additional reserves
should be made after the actual amount is known and upon acceptance of the Comprehensive Annual
Financial Report (CAFR). Although the total expense in the General Fund was $2.8 million more than
the previous year. Included in this amount was the use of $2,356,353 from reserves for the Shannon
Center Reconstruction project.
in
~.
~.
~,
~~ I~l
'l OF Dp8 CITY OF DUBLIN ~I
G~~ ~y
19`~~~~~ Management's Discussion and Analysis (MDA) June 30, 2008
~LI~~
HOUSING FUND
The Housing Fund is a special revenue fund which accounts for funds associated with the Affordable
Housing programs. This fund is also used to account for Noise Mitigation funds collected as a
mitigation measure under the original Eastern Dublin Specific Plan, to mitigate noise impacts on
existing residential properties. Several of the subject properties have been redeveloped without the
need to make mitigation improvements. The fund balance totaled $12,855,510 at June 30, 2008
compared to $10,356,456 a year earlier. The change is due to Affordable Housing fees collected as well
as the repayment of loans made by this fund to facilitate the private development of housing
opportunities at the Fairway Ranch Project.
CAPITAL PROJECT FUNDS
As previously described the City has included four specific capital funds in the information presented
as part of the governmental funds.
Traffic Impact Fee Fund - This fund includes fees collected to construct major traffic
improvements necessary to facilitate development. Fees are levied and collected on
development in proportion to its impact on the transportation needs. Total revenue collected in
Fiscal Year 2007/2008 was $11.3 million more than the amount collected in the prior year. The
City also expended $4.4 million more than in the previous fiscal year. Significant expenditures
were made to address the intersection improvements at Dublin Boulevard and Dougherty
Road, as well as the start of construction on the Interstate 580 / Fallon Road Interchange.
Because these funds are collected for construction or improvements the entire $24.8 million
fund balance is reserved for designated capital projects.
Public Facilities Fee Fund -This fund includes fees collected to develop parks and other public
facilities. Total revenue collected in Fiscal Year 2007/2008 was $3.1 million less than the
amount collected in the prior year. This is representative of the slow down in development
projects which are subject to the fees. The City also expended $3.5 million less than in the
previous fiscal year. The reduced spending is reflective of project construction and acquisition
timelines which can fluctuate from year to year. Because these funds are collected for
construction or improvements the entire $7.7 million fund balance is reserved for designated
capital projects.
Public Art Fees -This fund includes fees collected under the zoning ordinance to further the
development of public art in the community. Total revenue collected in Fiscal Year 2007/2008
was $16,911 more than the amount collected in the prior year. The City has not expended funds
from this program. The first project will begin in Fiscal Year 2008/09. Because these funds are
collected solely for Public Art the entire balance of $379,623 is reserved for this purpose.
~, Fire Impact Fees -This fund includes fees collected from new development to pay for the capital
cost associated with the provision of Fire Services. Total revenue collected in Fiscal Year
2007/2008 was only $28,309 which was $152,313 less than the amount collected in the prior
year. The expenses associated with these funds represent the repayment of a long term advance
made from the City General Fund. In Fiscal Year 2007/2008 the amount owed to the General
11
C~~/~j~OF~D~U~\~2
19I V- -=iN),82
04GIFOR~~
CITY OF DUBLIN
a~ ~~ 171
~--.
Management's Discussion and Analysis (MDA) June 30, 2008
Fund increased because the annual collections were less than the accrued interest on the
outstanding balance. The reduction in the amount of revenue collected reflects the decline in
new development activity. The total balance owed to the General Fund as of June 30, 2008 is
$1,837,021.
NON-MAJOR FUNDS
The City's non-major funds are presented in the basic financial statements in the aggregate. At June 30,
2008 these funds had a total fund balance of $5,074,376. The full amount has been reserved under the
following programs: $420,379 Recycling Programs; $477,440 Public Safety Programs; $3,661,275 Street
Maintenance & Construction; and $515,282 for Health & Welfare programs. More information about
these aggregated non-major funds can be found in the combining statements following the required
supplementary information.
GENERAL FUND BUDGETARY HIGHLIGHTS
Over the course of the year, the City Council revised the City budget with adjustments that generally
fall into one of the following three categories:
• Changes made to adjust appropriations for capital project carryovers from the prior year.
• Changes made in .the mid year report to adjust revenues and augment current year
appropriations.
• Other revenue and expenditure adjustments approved after the original budget was
adopted.
In the General Fund total actual revenues exceeded the final budget by $1.6 million. Overall this
represented a 3 % deviation. It should be noted that $1.5 million of this deviation is related to the
market adjustment for investments, which was not realized as of June 30, 2008. Expenses were
approximately $6.3 million less than the amount budgeted. Capital projects contributed significantly to
these results. If the $4 million related to capital projects is excluded, budgeted operating expenses were
only $2.3 million less than the budget. With the capital expenditures the savings includes the impact
from projects being carried over to Fiscal Year 2008/2009 as well as project cost savings.
~~
,~.,
i2
`~~~~ 171
~~OFDpR, CITY OF DUBLIN ''
~~
1`~~i~~ Management's Discussion and Analysis (MDA) June 30, 2008
~trFOV~
A summary of the budgetary comparison schedule for the General Fund is shown below. The
complete schedule as required is included in the supplementary information following the notes to the
financial statements.
Variance
Original Final from Final
~' Budget Budget Actual Budget
Revenue
~, Taxes $ 40,444,835 $ 39,994,835 $ 39,828,593 $ (166,242)
Licenses & permits 2,306,445 1,564,645 1,784,644 219,999
Fines & forfeitures 143,000 143,000 156,520 13,520
,, Use of money & property 2,964,212 2,387,671 2,955,279 567,608
Investment adjustment
market value - - 1,508,906 1,508,906
Intergovernmental 672,876 1,049,669 1,079,088 29,419
Charges for services 6,337,596 6,262,056 6,482,093 220,037
Other revenue 1,303,853 1,651,012 866,991 (784,021)
Total revenue $ 54,172,817 $ 53,052,888 $ 54,662,114 $ 1,609,226
Expenses
General government $ 5,871,085 $ 5,959,860 $ 5,253,337 $ (706,523)
Public safety 22,679,010 22,752,302 22,664,835 (87,467)
Highways & streets 2,329,419 2,239,419 2,017,084 (222,335)
`' Health & welfare 33,913 52,004 51,304 (700)
Culture & leisure 7,408,783 7,529,844 7,205,291 (324,553)
Community development 8,621,645 8,218,211 1,305,546 (6,912,665)
°~ Capital projects 8,072,487 9,158,490 5,123,089 (4,035,401)
Total expenditures $ 55,016,342 $ 55,910,130 $ 43,620,486 $ (12,289,644)
General Fund Taxes consist of primarily Property Taxes ($22.1 million in Fiscal Year 2007/2008) and
~' Sales Taxes ($14.2 million in Fiscal Year 2007/2008). The final amount collected in property taxes was
very close to the budget ($95,771). However, Sales Tax collection more quickly mirrors the general
economy. As part of the mid-year adjustments in Fiscal Year 2007/2008 Staff recommended that the
'"~ sales tax revenue be adjusted downward by $450,000. The final amount collected in sales tax was
actually $614,338 less than the original budget. With the large volume of City Sales tax derived from
automobile related sales, this revenue is expected to continue to be subject to a decline. Further
deterioration of sales tax revenue is projected in the budget for Fiscal Year 2008/2009.
F Licenses and permit revenue had a positive variance from the final budget. This reflected primarily
~` Building permits obtained for new construction. This category also shows a significant reduction from
the original budget to the final budget. As part of the mid-year analysis a reduction was made to
reflect the slow-down in new development. The City was also able to reduce contract inspection
expenses in the Community Development Department to reduce the impact of the decline in revenue.
Permit fees can be paid in one fiscal year with the inspection expenses incurred across multiple years.
`"~ , ~
~~~ OF~Dp~R,
~~ ~~/~~
~~ rFOR~
CITY OF DUBLIN
~~~~~~~
Management's Discussion and Analysis (MDA) June 30, 2008
Use of money and property also had a positive budget variance at year end. This was attributable to
higher interest rates and a larger balance invested as well as increased rental of City facilities.
Although as part of mid-year budget adjustments interest revenue was reduced based on declining
interest rates, the final results as of June 30, 2008 were very close to the initial budget.
The significant deviation in "other Revenue" primarily reflects reimbursements associated with capital
projects. Due to a delay in the construction timing fewer expenses were also incurred and therefore the
decrease in revenue was offset by savings in capital project expenditures.
With General Fund Expenditures, all of the operating programs had savings over the final budget.
Savings were attributable to vacancies in staff positions, savings in contract service costs, and less than
expected expenditures for Insurance premiums and claims expense. In Community Development
expenses were less than budget due to a delay in the timing of special studies (such as the Downtown
Specific Plan) and a reduction in contract services required as development applications and inspection
activities began to slow. The overall results among all programs also reflect the effort by City Staff to
aggressively manage spending given the early signs of an economic slowdown.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its governmental activities as of June 30, 2008, amount to
$411.2 million (net of accumulated depreciation). This investment in capital assets includes land and
streets right of way, buildings, park and roadway improvements, vehicles and other equipment and
construction in progress, as summarized in the schedule bellow. During the current fiscal year, the
City's investment in capital assets increased by approximately $11.5 million (2.9%).
Item
Land
Streets right of way
Construction in progress
Infrastructure
Buildings and Improvements
Machinery and equipment
Less accumulated depreciation
Total
Governmental Activities
June 30, 2008 June 30, 2007 $ Change % Change
$ 158,623,470 $ 157,756,897 $ 866,573 0.5%
29,778,062 29,374,557 403,505 1.4%
21,522,458 7,188,098 14,334,360 199.4%
324,436,764 310,907,968 13,528,796 4.4%
57,254,299 57,245,108 9,191 0.0%
6,489,500 6,431,411 58,089 0.9%
(186,912,316) (169,272,632) (17,639,684) 10.4%
$ 411,192,237 $ 399,631,407 $ 11,560,830 2.9%
is
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G~~~ OF~DpB~y
~~ ~~/
O~LIFOR~
CITY OF DUBLIN
Management's Discussion and Analysis (MDA) June 30, 2008
~ ~ ~,~~
The City had an active Capital Improvement Program with significant progress made on a variety of
community assets. Selected major capital activities undertaken during the current fiscal year included
the projects listed below:
Ca ital Pro'ect
Status of
Pro'ect Fiscal Year
2007-2008
Ex enditures
Soundwall Paintin -Villa e Pkw and San Ramon Road Com leted $ 115,351
Dublin Historic Park Ac uisition Com leted $ 866,573
Street Overla and Slur Seal Maintenance Com leted $1,016,916
Shannon Center Reconstruction In Pro ress $ 4,839,312
Historic Park Develo ment Desi In Pro ress $ 310,463
Dublin Ranch Parks Devan uare /Piazza Sorrento In Pro ress $1,653,798
Fallon S orts Park Desi In Pro ess $ 928,559
Dublin Boulevard Bart Corridor Im rovements Desi n In Pro ress $ 307,857
Interstate 580 / Fallon Rd Interchan a In Pro ress $ 761,178
Dou her Road /Dublin Blvd. Intersection Im rovements In Pro ress $ 7,876,249
In addition, approximately $15.6 million of street improvements were dedicated to the City by
developers during Fiscal Year 2007-2008. Additional information on the City's capital assets can be
found in Note 5 of this report.
Long-term debt
At the end of Fiscal Year 2007-08, the City had no debt outstanding. State statutes limit the amount of
general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation.
~" The current debt limitation for the City is $308.5 million. Additional information on long-term debt is
located in note 6 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
The economic conditions observed as the Fiscal Year 2008/2009 Budget was prepared suggested
slowing in revenue growth for the City. The budget estimated revenue to be approximately 7% less
than the estimate for Fiscal Year 2007/2008. The City expects a reduction in sales tax, as well as a
smaller percentage of growth in the property tax revenue. Sales tax had been the bedrock of the City's
financial success since incorporation and the projected revenue for Fiscal Year 2008/2009 was projected
to be less than the tax received in Fiscal Year 2003/2004. Total General Fund revenues are only
estimated to increase by 0.5%. Despite these trends the Budget presented for Fiscal Year 2008/2009
was balanced and included a very small $64,565 year-end surplus.
In the past as a City with significant new growth the City Council has been prudent in managing on-
going cost increases and focused the programming of reserves for one-time expenditures and financing
long-term obligations. The City has also utilized contract service providers to supplement City Staff
especially as the workload expands. In times when the workload decreases the City can adjust the
amount of contract service hours.
1.5
~~ OF~D1f8~G
~~
~~ttFOR~
CITY OF DUBLIN
Management's Discussion and Analysis (MDA) June 30, 2008
Expenditures planned in Fiscal Year 2008/2009 Budget exceed the previous years estimate by $16.5
million. A significant amount of the expenditures are related to capital projects that will be financed
partially from reserves or Developer contributed improvements subject to fee credits. Other operating
increases include inflationary costs as well as the additional cost of supporting expanded
infrastructure. The Fiscal Year 2008/2009 Budget includes a net decrease of 5.45 positions (includes
contract service hours) compared to Fiscal Year 2007/2008. One of the major reasons for the decrease is
the slumping economy and slow down in development.
In preparing the Fiscal Year 2008/2009 Budget the City recognized that key revenue sources had
become stagnant, however, in Fiscal Year 2008/2009 it would still be possible to fund $4.2 million in
capital projects from the General Fund. With the tightening economy these opportunities are expected
to diminish. The City Staff are preparing amulti-year forecast to be used as part of the decision
making tools available for future budgets. The City Council is presented with information on the costs
associated with new programs or higher service levels so that they can make decisions that take into
consideration the City's ability to sustain on-going costs before they are added.
It is important to acknowledge that the City does not control many of the conditions that will have a
financial impact. This includes the down-turn in the economy, decrease in new development, the real
estate lending crisis, and the State Budget. As the City prepared for Fiscal Year 2008/2009, the State
had not resolved a major budget deficit. The City identified preliminary steps that could be taken to
reduce costs by delaying a Landscape Renovation Project. When the State adopted its budget there
were not any significant impacts on the City of Dublin. As the year has progressed the State Budget
deficit has widened and legislators are re-examining how the State of California deficit will be
addressed. The City remains vigilant in monitoring revenues and controlling expenses in order to
respond with corrections to the City Budget. A copy of the adopted Budget and Financial Plan for
Fiscal Year 2008/2009 is available on-line at www.ci.dublin.ca.us.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the financial position of the City for
all those with an interest in the government's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
following address: City of Dublin, Finance Department, 100 Civic Plaza, Dublin, CA 94568. A copy of
this financial report is also located at the City's website - www.ci.dublin.ca.us.
16
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~~ ~,~~~
BASIC
FINANCIAL STATEMENTS
1~
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3a~ X71
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18
ENT WISE
GpVERNM
FINANCIAL STATEMENTS
p.
~` 19
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.~
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20
City of Dublin
Statement of Net Assets
June 30, 2008
~~~ i~ i
Governmental
Activities
ASSETS
Current assets:
Cash and investments $ 125,759,416
Restricted cash and investments 158,658
Accounts receivable 3,832,430
Accrued interest receivable 955,524
Prepaids 37,583
Total current assets 130,743,611
Noncurrent assets:
Notes Receivable 4,720,767
Long-term receivable 1,250,000
Capital assets (non-depreciable):
Land 158,623,470
Streets right of way 25,756,564
Construction in progress 21,522,458
Capital assets (depreciable):
Infrastructure 328,458,262
Buildings and improvements 57,254,299
Machinery and equipment 6,489,500
Less accumulated depreciation (186,912,316)
Total capital assets 411,192,237
Total noncurrent assets 417,163,004
Total assets 547,906,615
LIABILITIES
Current liabilities:
Accounts payable 12,675,595
Accrued wages 271,618
Deposits payable 1,683,387
Unearned revenue 252,895
Contract retention payable 443,102
Compensated absences 223,212
Liabilities insurance claims payable 271,916
Total current liabilities 15,821,725
Noncurrent liabilities:
Net OPEB obligation -City (Note 12.A) (211,418)
Net OPEB obligation - DRFA (Note 12.B) 87,746
Compensated absences 520,829
Total noncurrent liabilities 397,157
Total liabilities 16,218,882
NET ASSETS
Invested in capital assets 411,192,237
Restricted for:
Public safety 477,440
Impact fee projects 32,859,532
Highways and streets 3,661,275
Health and welfare 13,791,172
Total restricted 50,789,419
Unrestricted 69,706,077
Total net assets $ 531,687,733
See accompanying Notes to Basic Financial Statements.
21
~~~ ,~i
City of Dublin
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2008
Net (Expenses)/
Revenue and
Changes in
Program Revenues Net Assets
Operating Capital Total
Charges for Contributions Contributions Program Governmental
Expenses Services and Grants and Grants Revenues Activities
Governmental activities:
General government $ 7,790,286 $ 216,334 $ - $ - $ 216,334 $ (7,573,952)
Public safety 23,282,634 1,301,328 363,762 28,309 1,693,399 (21,589,235)
Highways and streets 20,196,496 13,794 1,653,125 32,395,910 34,062,829 13,866,333
Health and welfare 1,689,353 3,301,877 316,139 1,938,729 5,556,745 3,867,392
Culture and leisure 12,200,759 1,722,627 4,862 3,030,982 4,758,471 (7,442,288)
Community development 8,276,993 5,599,417 409,609 - 6,009,026 (2,267,967)
Total governmental activities $ 73,436,521 $ 12,155,377 $ 2,747,497 $ 37,393,930 $ 52,296,804 (21,139,717)
General revenues:
Taxes:
Property taxes
Sales tax
Vehicle license taxes
Other taxes
Total taxes
Intergovernmental (unrestricted)
Miscellaneous
Unrestricted investment earnings
Total general revenues
Change in net assets
Net assets:
Beginning of year
End of year
22,229,039
14,225,661
197,245
40,156,446
218,312
983,762
45,758,428
L4,6125, % 11
507,069,022
$ 531,687,733
See accompanying Notes to Basic Financial Statements.
22
~~ ~ ~ 7
FUND FINANCIAL STATEMENTS
The City reports the following major governmental funds:
The General Fund - is the government's primary operating fund. It accounts for all financial resources of
the City, except those required to be accounted for in another fund.
The Traffic Impact Fees Capital Projects Fund - is used to account for fees received from developers of
properties, which can only be used for the design, development and construction of street projects within
the City.
°~ The Public Facilities Fees Capital Project Fund - is used to account for impact fees received from
.~ developers of properties, which can only be used for the design, development, and construction of new
public facilities within the City.
The Public Art 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 Public Art projects within the
,~
City.
The Fire Impact Fees Capital Projects Fund - is used to account for fees received from developers of
properties, which can only be used for the design, development, and construction of fire capital expansion
projects within the City.
The Housing and Noise Mitigation Special Revenue Fund- is used to account for fees received from
developers of properties, which can only be used for the design, development, and construction of
citywide affordable housing projects and noise mitigation projects in Eastern Dublin.
~ 23
3$ ~ 17 I
City of Dublin
Balance Sheet
Governmental Funds
June 30, 2008
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Accrued interest receivable
Notes Receivable
Due from other funds
Prepaids
Long-term receivables
Advances to ISF PERS Side Fund
Advances to other funds
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and other payroll liabilities
Deposits payable
Contract retention payable
Liabilities insurance claims payable
Deferred Revenue
Due to other funds
Advances from other funds
Total liabilities
Fund Balances:
Reserved
Unreserved, designated reported in:
General fund
Unreserved, undesignated, reported in:
Capital projects funds
Total fund balances
Total liabilities and fund balances
See accompanying Notes to Basic Financial Statements.
Special Revenue Capital Projects Funds
Housing and Traffic Public
Noise Impact Facilities
General Mitigation Fees Fees
$ 66,161,183 $ 13,278,874 $ 24,663,964 $ 8,677,701
- - 158,658 -
3,227,389 61,783 - -
955,006 - 518 -
- 4,720,767 - -
105,176 - - -
37,583 - - -
- - 1,250,000 -
3,264,073 - - -
1,837,021 - -
$ 75,587,431 $ 18,061,424 $ 26,073,140 $ 8,677,701
$ 10,143,605 $ 26,278 $ 891,296 $ 977,374
271,618 - - -
1,224,518 458,869 - -
10,570 - 402,261 -
271,916 - - -
252,895 4,720,767 - -
12,175,122 5,205,914 1,293,557 977,374
5,623,014 12,855,510 24,779,583 7,700,327
57,789,295 - - -
63,412,309 12,855,510 24,779,583 7,700,327
$ 75,587,431 $ 18,061,424 $ 26,073,140 $ 8,677,701
24
39~I~1
Capital Projects Funds
Fire Non-Major
Public Art Impact Governmental
Fees Fees Funds Total
$ 379,623 $ - $ 5,291,969 $ 118,453,314
- - - 158,658
- - 531,636 3,820,808
- - - 955,524
- - - 4,720,767
- - - 105,176
- - - 37,583
- - - 1,250,000
- - - 3,264,073
- - - 1,837,021
$ 379,623 $ - $ 5,823,605 $ 134,602,924
$ - $ - $ 613,782 $ 12,652,335
- - - 271,618
- - - 1,683,387
- - 30,271 443,102
- - - 271,916
- - - 4,973,662
- - 105,176 105,176
- 1,837,021 - 1,837,021
- 1,837,021 749,229 22,238,217
379,623 - 5,074,376 56,412,433
- - - 57,789,295
- (1,837,021) - (1,837,021)
379,623 (1,837,021) 5,074,376 112,364,707
$ 379,623 $ - $ 5,823,605 $ 134,602,924
25
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26
City of Dublin
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
June 30, 2008
Fund Balances of Governmental Funds
~i~ ~~i
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not current financial resources and therefore are
not reported in the Governmental Funds Balance Sheet.
Non depreciable assets (Land and construction in progress)
Depreciable buildings, property, equipment and infrastructure, net
Total capital assets
Compensated absences payable, are not due and payable in the current period and therefore are not
reported in the governmental fund financial statements.
OPEB obligations are not due and payable in the current period and therefore are not reported in
the governmental fund financial statements.
Deferred revenues recorded in Governmental Fund Financial Statements resulting from activities in
which revenues were earned but funds were not available are reclassified as revenues in the
Government-Wide Financial Statements.
Internal service funds are used by management to charge the cost of certain activities, such as asset
replacement and retiree health care to individual funds. The assets and liabilities of the internal
service funds are included in the Government-Wide Statement of Net Assets.
Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
$ 112,364,707
192,469,456
359,885,300
(744,041)
(87,746)
55,548,746
$ 531,687,733
27
~°~ ~~~~
City of Dublin
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2008
Special Revenue Capital Projects Funds
Housing and Traffic Public
Noise Impact Facilities
General Mitigation Fees Fees
REVENUES:
Property taxes $ 22,098,429 $ - $ - $ -
Sales tax 14,225,662 - - -
Other taxes 3,504,502 - - -
Intergovernmental 1,079,088 - - -
Licenses and permits 1,784,644 - - -
Charges for service 6,482,093 122,605 - -
Interest 4,129,034 506,514 838,574 393,720
Use of property 335,151 - - -
Fines and forfeitures 156,520 - - -
Developer fees - 1,432,215 14,139,022 2,501,495
Other revenue 866,991 1,595,181 - -
Special assessments
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Highways and streets
Health and welfare
Culture and leisure
Community development
Capital outlay:
General
Community improvement
Parks
Streets
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfer in
Transfer out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year, as restated
End of year
See accompanying Notes to Basic Financial Statements.
54,662,114 3,656,515 14,977,596 2,895,215
5,253,337 156,535 106,807 -
22,664,835 - - -
2,017,084 - - -
51,304 - - -
7,205,291 - - 2,605
7,305,546 1,007,526 - -
384,620 - - 26,673
218,058 - - -
4,249,294 - - 4,509,206
271,117 - 8,762,562 -
49,620,486 1,164,061 8,869,369 4,538,484
5,041,628 2,492,454 6,108,227 (1,643,269)
70,928 6,600 - -
70,928 6,600 - -
5,112,556 2,499,054 6,108,227 (1,643,269)
58,299,753 10,356,456 18,671,356 9,343,596
28
~~~ ~~~
Capital Projects Funds
Fire Non-Major
Public Art Impact Governmental
Fees Fees Funds Total
$ - $ - $ 130,610 $ 22,229,039
- - 458,429 14,684,091
- - - 3,504,502
- - 2,352,226 3,431,314
- - - 1,784,644
- - 1,497,237 8,101,935
10,767 - 223,127 6,101,736
- - - 335,151
- - 203,976 360,496
125,000 28,309 - 18,226,041
- - 35,077 2,497,249
- - 797,520 797,520
135,767 28,309 5,698,202 82,053,718
- 73,568 - 5,590,247
- - 965,119 23,629,954
- - 702,448 2,719,532
- - 1,655,614 1,706,918
- - - 7,207,896
- - 22,033 8,335,105
- - - 411,293
- - - 218,058
- - 61,729 8,820,229
- - 2,009,137 11,042,816
- 73,568 5,416,080 69,682,048
135,767 (45,259) 282,122 12,371,670
- - - 77,528
- - (77,528) (77,528)
- - (77,528) -
135,767 (45,259) 204,594 12,371,670
243,856 (1,791,762) 4,869,782 99,993,037
$ 379,623 $ (1,837,021) $ 5,074,376 $ 112,364,707
29
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City of Dublin
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes
in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2008
Net Change in Fund Balance -Total Governmental Funds $ 12,371,670
Amounts reported for governmental activities in the Statement of Activities differs from the amounts
reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because:
Governmental funds report acquisition of capital assets as expenditures in various functions and in
capital outlay. However, in the Government-Wide Statement of Activities and Changes in Net
Assets, the cost of those assets is allocated over their estimated useful lives as depreciation expense.
This is the amount of capital assets additions recorded in the current period. This amount excludes
the internal service funds capital asset additions of $297,544.
12,686,778
In the Statement of Activities, capital assets donated to the City are reported as general revenue,
whereas in the governmental funds, capital assets donated do not increase financial resources.
Thus, the change in net assets differs from the change in fund balances by the value of the asset
donated. This amount excludes the internal service funds capital asset donated of $4,844,496.
11,622,998
Changes in long term compensated absences in governmental activities are not reported in
governmental funds. (93,677)
Depreciation expense on capital assets is reported in the Government-Wide Statement of Activities
and Changes in Net Assets, but it does not require the use of current financial resources. Therefore,
depreciation is not reported as an expenditure in governmental funds. This amount excludes the
internal service funds depreciation of $2,596,439. (15,766,762)
Accrual of OPEB obligations does not require the use of current financial resources and therefore is
not recorded as expenditures on the governmental fund financial statements. (43,733)
Revenues that have not met the revenue recognition criteria in the Fund Financial statements are
recognized as revenue in the Government-Wide Financial Statements. This amount represents the
change in deferred revenue from prior year. (752,567)
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The net (expense) of the internal service funds is reported with governmental activities.
a SAa nna
Change in Net Assets of Governmental Activities $ 24,618,711
See accompanying Notes to Basic Financial Statements.
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30
City of Dublin
Statement of Net Assets
Proprietary Funds
June 30, 2008 ~s~. ' 70
Governmental
Activities
Internal Service
Funds
ASSETS
Current assets:
Cash and investments $ 7,306,102
Accounts receivable 11,622
Total current assets 7,317,724
Capital Assets:
Land 6,842,037
Construction in progress 6,590,999
Buildings and improvements 50,818,224
Machinery and equipment 5,797,683
Less: accumulated depreciation (18,742,006)
Total capital assets 51,306,937
Total assets 58,624,661
LIABILITIES
Current liabilities:
Accounts payable 23,260
Total current liabilities 23,260
Noncurrent liabilities:
Advance from other funds 3,264,073
Net OPEB Obligation (211,418)
Total noncurrent liabilities 3,052,655
Total liabilities 3,075,915
NET ASSETS
Invested in capital assets 51,306,937
Restricted for retiree health care 211,418
Unrestricted 4,030,391
Total net assets $ 55,548,746
See accompanying Notes to Basic Financial Statements.
31
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City of Dublin
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the year ended June 30, 2008
Governmental
Activities
Internal Service
Funds
OPERATING REVENUES:
Charges for services $ 2,086,071
Other revenue 414,846
Total operating revenues 2,500,917
OPERATING EXPENSES:
Supplies and services 402 772
OPEB expenses 511,000
Other
Depreciation 2,224,224
Total operating expenses 3,037,996
Operating income (loss) (537,079)
NONOPERATING REVENUES:
Interest income 286,587
Total nonoperating revenues 286 587
Capital contribution 4,844,496
Change in net assets 4,594,004
NET ASSETS:
Beginning of year 50,954,742
End of year $ 55,548,746
See accompanying Notes to Basic Financial Statements.
32
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City of Dublin
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2008
Governmental
Activities
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipt from customers $ 1,959,218
Payments to suppliers (1,237,531}
Other
414,846
Net cash provided (used) by operating activities 1,136,533
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Payments on advances from other funds (305,681)
Net cash provided (used) by noncapital financing activities (305,681)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (297,544)
Net cash provided (used) by capital and related financing activities (297,544)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 286,587
Net cash provided (used) by investing activities 286,587
Net increase (decrease) in cash and cash equivalents 819,895
CASH AND CASH EQUIVALENTS:
Beginning of year 6,486,207
End of year $ 7,306,102
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) $ (537,079)
Adjustments to reconcile operating income (loss) to
net cash provided (used} by operating activities:
Depreciation 2,124,224
Net effect of changes in:
Accounts receivable (9,312)
Prepaid items 3,967
Accounts payable (4,392)
Net OPEB obligation (440,875)
Net cash provided (used) by operating activities $ 1,136,533
NONCASH CAPITAL AND RELATED
FINANCING TRANSACTIONS:
Contribuhion of capital assets
$
4,844,496
Total noncash capital and related financing transaction $ 4,844,496
See accompanying Notes to Basic Financial Statements.
33
~s~ ~~
City of Dublin
Statement of Fiduciary Net Assets
Fiduciary Fund
June 30, 2008
Agency Fund
ASSETS
Cash and investments $ 196,883
Restricted cash and investments 329,286
Contributions receivable 378
Total assets $ 526,547
LIABILITIES
Due to bondholders $ 526,547
Total liabilities $ 526,547
See accompanying Notes to Basic Financial Statements.
34
~9~ X71
City of Dublin
Index to Notes to Basic Financial Statements
For the year ended June 30, 2008
Page
1. Summary of Significant Accounting Policies ....................................................................................................38
2. Cash, Cash Equivalents and Investments ..........................................................................................................47
3. Notes Receivable ....................................................................................................................................................51
4. Interfund Transactions ..........................................................................................................................................53
5. Capital Assets .........................................................................................................................................................54
p ~' ~ g Y) ..............................................................................................
6. S ecial Assessment Ci Debt Non-Obli ator 56
7. Joint Powers Agreements .....................................................................................................................................56
8. Fund Equity ............................................................................................................................................................56
9. Risk Management ..................................................................................................................................................58
10. Compensated Absences ........................................................................................................................................59
11. Pension Plan ...........................................................................................................................................................59
~. 12. Post Employment Health Care Plan ...................................................................................................................61
13. Commitment and Contingent Liabilities ...........................................................................................................66
14. Deficit Fund Balance .............................................................................................................................................68
15. Prior Period Adjustments .....................................................................................................................................68
This page intentionally left blank.
~ ~:~ ~ ~~
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NOTES TO BASIC
FINANCIAL STATEMENTS
37
City of Dublin
Notes to Basic Financial Statements
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
~~~ ~~i
The basic financial statements of the City of Dublin, California, (City) have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental
Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental
accounting and financial reporting principles. The more significant of the City's accounting policies are
described below.
A. Reporting Entity
The City is a residential community with a significant regional commercial base, located in the Tri-
Valley area of Alameda County, California at the crossroads of Interstate Freeways 580 and 680. The
City was incorporated as a municipal corporation on February 1, 1982. The population estimated at
January 1, 2008 by the California Department of Finance was 46,934 including prisoners housed at the
Alameda County Sheriff's Department Santa Rita Jail and at the Federal Correctional Institute.
The City operates under the Council-Manager form of government, with five elected Council members
served by a full-time City Manager and staff. At June 30, 2008, the City's staff was comprised of 90
City's permanent employees who were responsible for City-provided services. The City provides many
traditional municipal services through contracts with both public and private agencies. Approximately
132 contract employees whom provided a variety of municipal services from City facilities. At of June
30, 2008, the City had approximately 191 temporary and seasonal personnel that were on active payroll
status.
The basic financial statements of the City include the financial activities of the City as well as the Dublin
Information, Inc. (DII). DII is a separate legal entity, which assists in providing financing to the City.
DII is governed by the same governing board as the City plus the City Manager and Administrative
Service Director and is dependent on the City for its cash flows. The financial activity of DII is merged
(termed'blended') with that of the City and is accounted for in a Special Revenue Fund. The ownership
of assets previously owned by DII was transferred to the City as of February 1,1999, in conjunction with
the early retirement of the 1933 Certificates of Participation. Due to inactivity, the Board of Directors
adopted a Resolution to pursue dissolution on October 21, 2008.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as
appropriate. Government resources are allocated to and accounted for in individual funds based upon
the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and Changes in Net Assets. These statements present summaries of Governmental Activities
for the City. Fiduciary activities of the City are not included in these statements.
38
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City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Government-Wide Financial Statements, Continued
These statements are presented on an "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all of the City's assets and liabilities, including capital assets and
infrastructure as well as long-term debt, are included in the accompanying Statement of Net Assets.
The Statement of Activities presents changes in net assets. Under the accrual basis of accounting,
revenues are recognized when earned and expenses are recorded in the period in which the liability is
incurred, regardless of the timing of the related cash flows. The Statement of Activities demonstrates
the degree to which the direct expenses of a given function are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function. The types of programs revenues
for the City are reported in three categories: 1) charges for services, 2) operating grants and
contributions, and 3) capital grants and contributions. Charges for services include revenue from
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function. Grants and contributions include revenues restricted to meeting the
operational or capital requirements of a particular function. Taxes and other items not properly
included among program revenue are reported instead as general revenue.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables, and receivables. All internal balances in the Statement of Net Assets have been
eliminated.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues,
~` Expenditures, and Changes in Fund Balances for all major governmental funds and aggregated non-
.,, major funds. An accompanying schedule is presented to reconcile and explain the differences in net
assets as presented in these statements to the net assets presented in the Government-Wide Financial
~ Statements. The City has presented the General Fund, Housing Noise Mitigation Special Revenue
~, Fund, and the Traffic Impact Fee Capital Projects Fund as major funds because they met the
qualifications of GASB Statement No. 34. In addition, the City has elected to present the following
,~
funds as major because of their significance to the City as a whole: the Public Facilities Fees Capital
Project Fund, Public Art Capital Projects Fund, and the Fire Impact Fees Capital Projects Fund.
~ All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are generally included on the balance sheets. The reported fund balance is the net current
~ assets, which is considered only to be a measure of available spendable resources. Governmental fund
operating statements present a summary of sources and uses of available spendable resources during a
period by presenting increases and decreases in net current assets. Under modified accrual basis of
accounting, revenues are recognized in the accounting period in which they both become measurable
and available to finance expenditures of the current period. Accordingly, revenues are recorded when
received in cash, except that revenues subject to accrual (generally 60 days after year-end) are property
taxes, sales taxes, transient occupancy taxes, interest revenues, charges for services, and courts fines.
~+ 39
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Governmental Fund Financial Statements, Continued
~~r~' X71
Licenses, use of property, and permit revenues are not susceptible to accrual because they generally are
not measurable until received in cash.
As part of efforts by the State of California to address a State Budget deficit, the legislature enacted
Assembly Bill 7 on February 16, 2008 which provided afive-month deferral of the Highway Users Tax
(Sections 2104, 2105, 2106, 210, and 2107.5 of the Streets and Highways Code) payments to Cities and
Counties. The bill provided a delay in payments of the revenues for Apri12008 thru August 2008 to be
repaid as a lump sum payment in September 2008. The legislation also provided an authorization to
accrue beyond the 60 days accrual period. The gas tax revenues received in September 2008 as
repayment of the suspensions for April, May, and June 2008 were recorded as revenues in FY 2007-08.
Expenditures are generally recognized under the modified accrual basis of accounting when the related
fund liability is incurred, except for principal and interest on general long term obligations which are
recognized when due. Because of their current financial resources focus, expenditures recognition for
governmental fund types excludes amounts represented by non-current liabilities. Since they do not
affect net current assets, such long-term amounts are not recognized as governmental fund expenditures
or fund liabilities.
The City reports the following major governmental funds:
The General Fund - is the government's primary operating fund. It accounts for all financial
resources of the City, except those required to be accounted for in another fund.
The Housing and Noise Mitigation Special Revenue Fund - is used to account for in-lieu housing fees
and noise mitigation impact fees received from developers of properties, which can only be used for
the design, development, and construction of citywide affordable housing projects and noise
mitigation projects in Eastern Dublin.
The Traffic Impact Fees Capital Projects Fund - is used to account for fees received from developers of
properties, which can only be used for the design, development and construction of street projects
within the City.
The Public Facilities Fees Capital Project Fund - is used to account for impact fees received from
developers of properties, which can only be used for the design, development, and construction of
new public facilities within the City.
The Public Art Capital Projects Fund - is used to account for 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.
The Fire Impact Fees Capital Projects Fund - is used to account for fees received from developers of
properties, which can only be used for the design, development, and construction of fire capital
expansion projects within the City.
.~
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40
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Proprietary Fund Financial Statements
~s~ / ~ ~
Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of Revenues,
Expenses, and Changes in Net Assets, and a Statement of Cash Flows. All proprietary funds are
accounted for using the accrual basis of accounting and the "economic resources" measurement focus.
Their revenues are recognized when they are earned, and their expenses are recognized when they are
incurred. All liabilities associated with their activity are also included on the Statement of Net Assets.
The City's proprietary funds are: Internal Service Funds which are used to account for the financing of
goods or services provided by department or agency to other department or agencies of the City on a
cost-reimbursement basis. The City uses internal service funds to account for asset replacement and
internal charges collected for the purpose of funding post-retirement health care activities.
Because the principal users of the internal services are the City's governmental activities, the financial
information of the internal services funds are consolidated into the governmental activities column
when presented in the government-wide financial statements. To the extent possible, the cost of these
services is reported in the appropriate functional activity.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services in connection with a proprietary fund's
principal ongoing operations. The principal operating revenues of the City's proprietary funds are
`~ charges to customers for services. Operating expenses include the cost of services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Fiduciary Fund Financial Statements
~' Fiduciary Fund Financial Statements include a Statement of Net Assets. The fiduciary funds are used to
report assets held in a trustee or agency capacity for others and therefore are not available to support
City programs. Since these assets are being held for the benefit of a third party, these funds are not
incorporated into the government-wide statements. The City's fiduciary fund consists of one agency
+~ fund.
The Dublin Boulevard Extension Special Assessment District is an agency fund, which uses the accrual
basis of accounting to account for amounts held for debt service on the Dublin Boulevard Extension
Project. The Agency fund is custodial in nature (assets equal liabilities) and therefore does not involve
measurement of results of operations. The City is not responsible for payment of the bonds and acts
only as an agent to collect assessments, pay bondholders, and initiate foreclosure proceedings.
~r 41
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Capital Assets
s~~ ~7~
Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park
improvements), are reported in the Governmental Activities columns of the Government-Wide
Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of
more than $2,500 for general capital assets and $100,000 for infrastructure capital assets. Such assets are
recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated
capital assets are valued at their estimated fair market value on the date donated.
Capital assets are depreciated over their estimated useful lives using the straight-line method. This
means the cost of the asset is divided by its expected 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, is reported on the
Statement of Net Assets of the government-wide financial statements as a reduction in the book value of
the capital assets.
The City has assigned the useful lives listed below to capital assets.
Building and improvements 20-38 Years
Machinery and equipment 3-15 Years
Infrastructure Streets 20-75 Years
D. 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.
E. Cash and Investments
GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and External Pools",
requires governmental entities to report certain investments at fair value in the balance sheet and
recognize the corresponding change in the fair value of investments in the year in which the change
occurred. In accordance with GASB Statement No. 31, the City has adjusted investments to fair market
value.
Proprietary fund type cash and investments are used in the preparation of the statement of cash flows
as investments are not allocated to specific funds. Each of these funds' allocation of pooled cash and
investments is considered cash and cash equivalents.
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City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
E. Cash 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
' Foreign Currency 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.
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 pool 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. 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 u1 an emergency as
defined by the Plan. In accordance with GASB Statement No. 32, the funds have been placed in a trust
administered by ICMA Retirement Corporation and are not available to the City's general creditors.
Accordingly, the City does not report the assets in the financial statements.
G. Property Tax
,~
Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The
County remits the entire amount paid and handles the collection of all delinquencies. The City receives
proportionate shares of prior year collections including interest and penalties. Secured and unsecured
property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are
formally due on November 1 and February 1, and become delinquent as of December 10 and April 10,
respectively. Taxes become a lien on the property effective January 1 of the preceding year.
H. Post Employment Health Care Benefits
The City provides certain health care benefits for retirees, as required under a contract signed with
PERS. All former employees who retire with the City under PERS are eligible for these benefits.
43
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Post Employment Health Care Benefits, Continued
s~~~ ~~i
GASB 45 requires public agencies to estimate their Other Post Employment Benefits (OPEBs) and
account for them future liability. Rather than use the "pay as you go" system and account for retiree
benefits as they are due, GASB 45 requires the agencies to account for the expenses as benefits are
accrued for the employees. The City engaged in an Actuarial Study Update with Bartel Associates, LLC
and based on the 2007 actuarial result, the use of the CALPERS trust will reduce City contribution
towards Retiree Medical in the future. On June 29, 2007 the City established an agreement with the
California Public Employees' Retirement System (CALPERS) to set aside funds and deposit into the
California Employer's Retiree Benefit Trust (CERBT) fund to accumulate, and distribute assets for the
exclusive benefit of retirees and their beneficiaries. Plan assets are irrevocable and may not be used for
any purpose other than funding post retirement health care. The CERBT fund is an agent multiple
employer plan and in order to ensure that the CERBT fund remains compliant with all reporting
requirements, the CALPERS is responsible for publishing aggregate GASB 43 compliance Financial
Statements, Notes, and Required Supplementary Information (RSI). The information may be found on
CALPERS web site at www.calpers.ca.gov.
The City also provides health care benefits for certain former employees who retired from the
Dougherty Regional Fire Authority (DRFA). The DRFR is a closed Joint Power Authority. The cost of
those retiree health care benefits is recognized as expenditures in the general fund as premiums are
paid. The Cost is recognized on the full accrual basis in the government wide statements. The City of
Dublin and the City of San Ramon share the cost, with Dublin paying 57.51 % and San Ramon paying
42.49% of the "pay as you go" cost.
I. Net Assets
Government-Wide Financial Statements
In the Government-Wide Financial Statements, net assets are classified in the following categories:
Invested in Capital Assets, Net of Related Debt -This amount consists of capital assets net of
accumulated depreciation and reduced by outstanding debt that attributed to the acquisition,
construction, or improvement of the assets.
Restricted Net Assets -This amount is restricted by external creditors, grantors, contributors, or laws
or regulations of other governments.
Unrestricted Net Assets -This amount is all net assets that do not meet the definition of "invested in
capital assets, net of related debt" or "restricted net assets."
Fund Financial Statements
.~
Governmental fund balances represent the net current assets of each fund. Net current assets generally '~"
represent a fund's cash and receivables, less its liabilities. Portions of a fund's balance may be reserved
or designated for future expenditures.
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44 ,~,
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
I. Net Assets, Continued
~~~ iii
Reserves are restrictions placed by outside entities, such as other governments, which restrict the
expenditures of the reserved funds to the purpose intended by the entity which provided the funds.
The City cannot modify or remove these restrictions or reserves. In addition, the City Council may
reserve funds by resolution to set aside funds which are not available for current appropriation or
expenditure.
Designations are imposed by City Council to reflect future spending plans or concerns about the
availability of future resources. Designations may be modified, amended or removed by City Council
action.
The City had the following reserves and designations:
Reserved for prepaid expenditures is the portion of fund balance set aside to indicate that these items do
not represent available, spendable resources even though they are a component of assets.
Reserved for cemetery endowment is the portion of fund balance to be retained. This represents funds
4 transferred by the Dublin Cemetery Association, when the City acquired the cemetery.
Reserved~or Culvert Maintenance is the portion of fund balance to be set aside for the improvement
and maintenance agreement for the Box Culvert to channel drainage from Dublin Ranch
development. In 2008, additional funds were added to address long term maintenance of
specialized storm drains installed under an agreement with California Department of
Transportation.
Reserve~or loner-term advances is the portion of fund balance set aside to indicate that these items do
~` not represent available, spendable resources even though they are a component of assets.
Reserved for recycling programs is the portion of fund balance set aside for revenue received from the
Alameda County Waste Management Authority to be used solely for recycling.
Reserve~or public safety programs represents the net amounts available from grant and other sources
restricted to use on public safety programs.
Reserved~or street maintenance and construction represents amounts available and restricted to use on
projects related to street maintenance and construction.
~' Reserved for health and welfare programs includes amounts restricted for use on programs including
housing, noise mitigation, and garbage services.
~, Reserved~or Public Art includes amounts restricted for use on programs that are funded by Public Art
developer impact fees.
w Reserved for Noise Mitigation includes amounts restricted for use on Noise Mitigation programs that
~' are funded by the Housing and Noise Mitigation developer impact fees.
'^ Reserved for Non Residential Housing In-Lieu includes amounts restricted for use on programs that are
~, funded by the Housing and Noise Mitigation developer impact fees.
~+ 45
~ ° ~ ~ `Jl I
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
I. Net Assets, Continued
Reserved for A{{ordable Housi~ includes amounts restricted for use on affordable housing programs
that are funded by the Housing and Noise Mitigation developer impact fees.
Reserved {or capital improvement projects represents amounts collected from developers to be spent on
specific projects impacted by the development.
Desi ng ated for economic uncertaini~ is the portion of fund balance to be used in the event of economic
uncertainty.
Designated for authorized expenditures represents the amount not specifically identified with an
individual project.
All Other Desi nations represents the amount of resources set aside to fund or partially fund the
various projects.
j. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions. These estimates and assumptions affect the ••
reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In
addition, estimates affect the reported amount of expenses. Actual results could differ from these
estimates and assumptions. ,,,
K New Pronouncements
In 2008, the City adopted new accounting standards in order to conform to the following Governmental
Accounting Standards Board Statements:
• GASB Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-
Entity Transfers of Assets and Future Revenues -This Statement establishes accounting and
financial reporting standards for transactions in which a government receives, or is
entitled to, resources in exchange for future cash flows generated by collecting specific
receivables or specific future revenues. In addition, this Statement establishes accounting
and financial reporting standards that apply to all infra-entity transfers of assets and
future revenues.
• GASB Statement No. 50, Pension Disclosures - An amendment of GASB Statements No. 25
and 27 -This Statement more closely aligns the financial reporting requirements for
pensions with those for other postemployment benefits (OPEB) and, in doing so,
enhances information disclosed in notes to financial statements or presented as required
supplementary information (RSI).
46
...
~~~ iii
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
2. CASH, CASH EQUIVALENTS AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of
all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated
to the funds based on average monthly cash and investment balances in these funds.
A. Cash Deposits
At June 30, 2008, the carrying amount of the City's cash deposits was $1,148,453. Deposits in transit were
$586,029. The total outstanding checks were $2,423,712. Bank balances before reconciling items were
$2,874,532 at that date, the total amount of which was insured or collateralized with securities held by the
pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law
also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value
of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits,
which are fully insured up to $100,000 per depositor by the Federal Deposit Insurance Corporation. 'The
City, however, has not waived the collateralizationrequirernents.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be
held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and
investments is allocated on an accounting period basis to the various funds based on the period-end cash
.~ and investment balances. Interest income from cash and investments with fiscal agents is credited directly
to the related fund.
B. Investments
Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California
Government Code, the City is authorized to investor deposit in the following investments:
• Bankers' Acceptances
• Commercial paper
• Local Agency Investment Fund
• Negotiable Certificates of Deposit
• Repurchase Agreements
• Mutual Funds
• Securities of the Federal government or its agencies
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for
External Investments Pools, investments should be stated at fair value. The City reported its investments at
~' fair value. For the year ended June 30, 2008, the unrealized gain on investments amounted to $1,508,906.
s Interest and investment earnings before recognition of unrealized gain were $4,592,830 as of June 30, 2008.
~, 47
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
2. CASH, CASH EQUIVALENTS AND INVESTMENTS
C. Summary of Cash and Investments
~a a~ ~ ~7 ~
The following is a summary of pooled cash and investments, including restricted cash and investments
at June 30, 2008:
Cash and investments
Restricted cash and investments
Total
D. Risks Disclosures
Government-Wide
Statement of Fiduciary
Net Assets Funds
Governmental Statement of
Activities Net Assets Total
$ 125,759,416 $ 196,883 $ 125,956,299
158,658 329,286 487,944
$ 125,918,074 $ 526,169 $ 126,444,243
Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affect
the fair value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to fair
value losses arising from rising interest rates, the City's investment policy provides that final maturities
of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At
June 30, 2008, the City's pooled cash and investments had the following maturities:
Percentage of
Maturity Investment
Less than one year 49%
One to three years 26%
Three to five years 25%
The average maturity of the total portfolio was 1.89 years and the average life of the federal security
portfolio was 3.66 years.
i
.~.
.~
48
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
D. Risks Disclosures, Continued
Deposits and investments held by the City at June 30, 2008 are summarized below:
Investment Type
City Treasury
Deposits:
Cash on hand
Deposits with banks
Total deposits
~3~ 171
Investment Maturities (in years)
Fair Market Value 1 year or less 1-5 years
$ 1,650 $ 1,650 $ -
1,148,453 1,148,453 -
1,150,103 1,150,103 -
Investments:
Federal Agricultural Mortgage Corporation
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Money Market/Mutual Funds
California Asset Management Program Fund
California Local Agency Investment Fund
Total Investments
Total City Treasury
Cash with fiscal agents
Total City and fiscal agents cash and investments
9,853,972 - 9,853,972
34,243,130 - 34,243,130
7,088,820 1,000,648 6,088,172
13,585,170 - 13,585,170
15,390,620 15,390,620 -
4,646,475 4,646,475 -
39,998,009 39,998,009 -
124,806,196 61,035,752 63,770,444
125,956,299 62,185,855 63,770,444
487,944 - 487,944
$ 126,444,243 $ 62,185,855 $ 64,258,388
Credit Risk. Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. At June 30, 2008, the City had the following investments credit risk ratings:
The Credit Risk Ratings listed below meet or exceed the acceptable credit risk ratings established in the
City's investment policy and required, where applicable, by the California Government Code.
Credit Quali Ratings
Moody's S&P
Investments:
~° Federal Home Loan Bank AAA AAA
Federal Home Loan Mortgage Corporation AAA AAA
Federal National Mortgage Association AAA AAA
Federal Farm Credit Bureau AAA AAA
Mutual Funds AAA AAA
California Asset Management Program Fund Not Rated AA+
California Local Agency Investment Fund Not Rated Not Rated
Cash with fiscal agents Not Rated Not Rated
49
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
D. Risks Disclosures, Continued
~~ ~ !71
Concentration of Credit Risk. The primary objectives, in order of priority, of the City's investment
activities is be based on: 1) Safety; 2} Liquidity; 3) Yield; 4) Diversification. The table below identifies
the investment types that are authorized by the City's investment policy or stipulated by the California
Government Code.
Authorized Investment Type
United States Treasury
Federal Agency Obligations
Bankers Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Time Certificates of Deposit
Money Market Mutual Funds
State of CA Local Agency Investment Fund (LAIF)
California Asset Management Program (CAMP)
Maximum
Maturity Maximum
Percentage of
Portfolio Maximum
Investment in
One Issuer
None None None
None None 40%*
180 days 40% 20%
270 days 25% 10%**
None 30 % 20
365 days 10% CA only
None 20% None
None 75% None
None None None
*There is no limitation as to the percentage of the portfolio that may be invested in this category.
However, the Treasurer should strive to limit the portfolio's exposure to any one federal agency issuer
to 40% of the total portfolio and limit the portfolio's exposure to callable securities to 25% of the overall
portfolio.
**The amount invested in commercial paper of any one issuer in combination with any other debt from
that issuer shall not exceed 20 percent of the portfolio.
Custodial Credit Risk. For an investment, custodial credit risk 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. Of the City's investments, $487,944 of securities is held by
the fiscal agents not in the name of the City. As of June, 2008 there were $329,286 on deposit at US Bank
for the Dublin Boulevard Extension Special Assessment District and $158,658 on deposit with State
Condemnation Fund.
E. Investments in Local Agency Investment Fund
The Local Agency Investment Fund (LAIF) is a voluntary investment program created by statute. It
began in 1977 as an investment alternative for California's local governments and special districts and
continues today under the State Treasurer administration.
The LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1955 and
oversight is provided by the Pooled Investment Board (PMIB) and an in-house Investment Committee.
The PMIB members are the State Treasurer, Director of Finance, and State Controller.
The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The Board consists of five
members as designated by statute. The Chairman is the State Treasurer or his designated
representative.
50
~,
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
E. Investments in Local Agency Investment Fund, Continued
~ c~~ ~~~
Two members qualified by training and experience in the field of investment of finance, and the State
Treasurer appoints two members who are treasurers, finance or fiscal officers or business managers
employed by any county, city or local district, or municipal corporation of the State of California. The
term of each appointment is two years or at the pleasure of the appointing authority.
The City valued its investments in LAIF as of June 30, 2008, at amortized cost which approximates the
fair value. If the fair value was to be calculated it would be calculated by multiplying the account
balance with LAIF times a fair value factor of 99.9950%, which is determined by LAIF. This fair value
factor was determined by dividing all LAIF participants' total aggregate amortized cost by total
aggregate fair value.
,~• The City's investments with Local Agency Investment Funds (LAIF) at June 30, 2008, included a portion of
the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments included
the following:
• Structured Notes are debt securities (other than asset backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or
~~ more indices and/or that have embedded forwards or options. Typical Structured Notes
are issued by most corporations and government sponsored, for example, the Federal
National Mortgage Association and the Federal Home Loan Bank.
• 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, small business loans, or credit card
receivables.
`~ As of June 30, 2008, the City had a balance of $39,998,009 of market value invested in LAIF, which had
invested 14.72% of the pooled investment funds ($69,955,386,488), in Structured Notes ($6,113,006,000) and
in Asset-Backed Securities ($4,188,272,000). The fair value of the City's position in the pool is materially
~` equivalent to the value of the pool share.
3. NOTES RECEIVABLE
The following table summarizes the notes receivable outstanding as of June 30, 2008:
Revolving Home Loans $ 624,065
Eden Senior Affordable Housing Loan 2,455,019
Fairway Ranch Loan 1,500,000
Arroyo Vista Predevelopment Loan 141,683
~ Total
$ 4,720,767
51
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
3. NOTES RECEIVABLE, Continued
~~ ~ »~
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, for first time homebuyers within a certain
income range to buy their first home in Dublin. Monthly payments of principal and interest are generally
deferred until the homes are sold, in default, and in Market Rate homes, when the home owners refinance
their primary mortgage. The outstanding amount due to the City as of June 30, 2008 was $624,065.
Eden Senior A{fordable Housing Loan - 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
Blvd 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 55~ anniversary of the Initial Disbursement Date February, 18 2004. Repayments commenced on June 1,
2006, and on the first day of each June, 60% of the Surplus Cash generated by the project during the
previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when
due shall bear interest at a rate equal to 10% annum from the due date until it is paid in full. The
outstanding amount as of June 30, 2008 was $2,455,019.
Fairwai~Ranch Loan - On December 1, 2003, the City entered into a loan agreement with the Dublin Ranch
Senior Apartment LLP to support the Senior Housing and Multi Family Affordable Housing project at the
Fairway Ranch development. The original amount of the loan was $4,500,000. 'The interest on the
outstanding principal balance of the loan is accrued at the rate of 3% simple interest per annum. Principal
and interest payments are due on October 12, 2008, October 12, 2009, October 12, 2010, the 48~, 60~, and
72nd month, respectively following the initial loan disbursement date of October 12, 2004. The City received .~
in January 2008 an early payment of $1,500,000 for principal and $90,000 for interest. The outstanding M
amount as of June 30, 2008 was $1,500,000.
Arroyo Vista predevelopment Loan - On December 18, 2007, the City approved a loan in the amount of
$325,000 to Eden Housing for predevelopment activities on the Arroyo Vista Redevelopment project. Total
amount disbursed as of 6/30/2008 was $141,683. The loan was approved to pay for Environmental Review
Costs, the Transaction Costs, and other predevelopment costs incurred by Eden Housing, such as architect,
legal, and consultant fees. The loan shall be paid in full on the third anniversary date of the loan origination
date and interest is not accrued on any portion of the loan provided that Eden Housing is not in default
under the terms of the loan agreement.
52
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
4. INTERFUND TRANSACTIONS
Due To/From
~~~i~i
During the normal course of business the General Fund may advance to other funds to cover deficit cash
balances caused by expenditures for reimbursement type grants. During the fiscal year advances were
made to the Community Development Block Grant Fund, the Housing Incentive Program Fund through
Metropolitan Transportation Commission, and the Garbage Service Fund in the amounts of $21,126,
$42,219, and $41,831 respectively. When the reimbursement is received, normally shortly after year end, the
interfund liability is liquidated. The following interfund balances existed at June 30, 2008:
Due to other funds
Non Major Funds
Advances To/From
Due from other funds
Major Fund
General Fund
$ 105,176
During the 2004-2005 and 2005-2006 Fiscal Years, the General Fund advanced funds to the Fire Impact Fees
Capital Projects fund to aid in the financing of fire station construction projects. The advance will be repaid
through future revenues to the Fire Impact Fees Fund. Interest accrues on the advance at a rate equal to the
City's return on its investment portfolio.
During the fiscal year 2007-2008 Fiscal Year, the General Fund made a long term advance to the Internal
Service Fund -CALPERS Side Fund to prepay CALPERS for the City's Side Fund Obligation. The Side
Fund was created in 2005 when CALPERS assigned agencies with less than 100 participants to a risk
sharing pools. The Side Fund was the City's negative unfunded liability at the time the City assigned to the
pool. As part of CALPERS Employer Contribution Rate, the City was scheduled to pay 4.319% of payroll
for the next 17 years to eliminate the current side fund obligation. The benefit of prepayment resulted in
reduction of the Employer Contribution rate from 15.894% to 11.575%. The advance from General Fund
will be repaid annually, calculated at the rate of 4.319% of the total salary and be recorded as an Internal
Service Fund retirement benefit expenditure with an offset to reduce the General Fund long term advance.
The following inter fund balances existed at June 30, 2008:
Advances fromotherfunds
Fire Impact Fees Special Revenue Fund
Internal Service Fund
Total
Advances to other funds
Major Fund
General Fund
$ 1,837,021
3,264,073
$ 5,101,094
~ 53
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
i~ Cam/?
"'~jj 171
4. INTERFUND TRANSACTIONS, Continued
Transfers In/Out
Interfund transfers for the year ended June 30, 2008 were as follows:
Transfers in:
Transfers out:
Non Major Funds
Total
Major Funds
Housing and Noise
General Fund Mitigation Fund
Total
70,928 6,600 77,528
$ 70,928 $ 6,600 $ 77,528
Transfers In to the General Fund consists of reimbursement in the amount of $18,044 from the Vehicle
Abatement Fund for Vehicle Abatement services and a transfer of $52,884 from the State Transportation
Improvement Fund to reimburse the General Fund and to close out the fund balance.
Transfer In to the Housing and Noise Mitigation Fund in the amount of $6,600 was a reimbursement from
the CDBG fund for administrative costs.
5. CAPITAL ASSETS
A. Government-Wide Financial Statements
Capital assets include land, buildings, and equipment used in City operations. Infrastructure includes
roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and
other improvements used by all citizens.
~_
.~
54
7 r !
~' City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
~-
5. CAPITAL ASSETS, Continued
A. Government-Wide Financial Statements, Continued
The following is a summary of capital assets for governmental activities:
Balance July 1, 2007
Capital assets, not being depreciated:
Land
Streets rigth of way
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Infrastructure
Buildings and improvemetns
Vehicles and equipment
'~ Total capital assets, being depreciated
Less Accumulated depcreciation for
Infrastructure
Buildings and improvemetns
Vehicles and equipment
"° Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
Additions Deletions Balance June 30, 2008
$ 157,756,897 $ 866,573 $ - $ 158,623,470
29,374,557 403,505 - 29,778,062
12,427,150 9,095,308 - 21,522,458
199,558,604 10,365,386 - 209,923,990
305,860,762 18,576,002 - 324,436,764
57,053,263 201,036 - 57,254,299
6,431,411 61,665 (3,576) 6,489,500
369,345,436 18,838,703 (3,576) 388,180,563
(150,469,726) (15,543,716) - (166,013,442)
(14,258,586) (1,994,764) - (16,253,350)
(4,544,321) (104,779) 3,576 (4,645,524)
(169,272,633) (17,643,259) 3,576 (186,912,316}
200,072,803 1,195,444 - 201,268,247
$ 399,631,407 $ 11,560,830 $ - $ 411,192,237
Depreciation expense was charged to functions/programs of the primary government as follows:
General government $ 1,971,388
Public Safety 163,179
Highways and streets 12,631,552
Culture and leisure 2,877,140
Total depreciation expense -governmental activities $ 17,643,259
B. Fund Financial Statements
The fund governmental financial statements do not present general government capital assets but are
shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide
Statement of Net Assets.
~+
55
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
6. SPECIAL ASSESSMENT CITY DEBT (NON-OBLIGATORY)
~~ ~ ~7 ~
~~
The Dublin Boulevard Extension Special Assessment District, formed within City limits, had outstanding
debt with a balance of $910,000 at June 30, 2008. Proceeds of the debt, which was issued in 1991, were used
to finance improvements within City boundaries. The City has no legal, contingent or moral obligation for
the repayment of this debt and acts solely as the collecting and paying agent for the District. Activities of
the District are reported in the Dublin Boulevard Extension Assessment District Agency Fund.
7. JOINT POWERS AGREEMENTS
The City participates in joint ventures with other municipal entities through Joint Powers Agreements
(JPAs) established under the Joint Exercise of Powers Act of the State of California.
Joint Ventures
The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda have entered a joint powers
agreement, dated September 15, 1992, under which Alameda County constructed an animal shelter facility
on County's property. Certificates of Participation were issued to construct the facility. Under the
agreement the entities will share in the debt service costs of the project based upon their use of the animal
shelter. The original total principal portion of the scheduled debt is $4,523,877. The City's share for the
2007-2008 fiscal year debt service requirements was $59,446, based upon the statistics of live animals
handled in the shelter in calendar year 2006 representing 18.73%of the total annual debt service payment.
In addition, $252,546 was paid for the City's share of operating expenses and field service expenses.
The City has not recorded an equity interest for the animal shelter agreement. As noted above the ongoing
financial interest is limited to the statistics of live animals handled in the appropriate fiscal year. No Joint
Powers Authority was established as part of this agreement therefore, separate financial statements are not
issued.
8. FUND EQUITY
In the Fund Financial Statements, reserves and designations segregate portions of fund balance that are
either not available or have been earmarked for specific purposes. The various reserves and designations
are established by actions of the City Council and Management and can be increased, reduced or eliminated
by similar actions.
56
~~ ~ ~
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
~, 8. FUND EQUITY, Continued
In Governmental Funds, fund reservations and designations are presented as a component of fund balance
as follows:
Traffic Public Public Art Fire I busing and
Gesieral Faalifies Ingx~ct lug~act Noise NoirNlajor
Fund Fees Fees Fees Fees Mtigation Hauls Total
Rese<veck
Prepaid expenditures
$ 37,583
$ - $ - $ -
$ - $ -
$ -
$ 37,583
Cey &~w~ 60,000 - - - - - - 6Q000
Storm Water Treatment 100,000 - - - - - - 100,000
~~ ~~~~ 324,337 - - - - - - 324,337
Lang term advanres-Fire Ingaact Fee Fwui 1,837,021 - - - - - - 1,837,021
Lmig-termadvuxrsPII2SSideFtnxl 3,264,073 - - - - - - 3,264,073
~1'~gP~dII~ - - - - - - 42D,379 4211,379
I'ul~lic ~~, ~ _ _ _ - - - 477,440 477,440
Street maintenanceand construction - - - - - - 3,661,275 3,661,275
I-Tealth and w~ifare ~.ogcaa~ _ _ _ _ - - 515,282 515282
Public Art - - - 379,623 - - - 379,623
Noise Nfitigation - - - - ~'~~ - '6'3p
Non Residential I-being In Lieu - - - - - 118,750 - 118,750
Affordable Hrnuuig - - - - - 9,822116 - 9,822,116
~~~ ~~~ prg~ - 24,779,5Hi 7,700,327 - - 2.858,317 35,338,227
Trial ~,~ 5,623,014 24,779,SRi 7,700,327 379,623 - 12855,510 5,074,376 56,412,433
Lharserved, desxg~ated:
Fmmrrric iaicert<iicrty 2,970,722 - - - - - - 2970,722
Lbwt>~wnopcospace 1,378,235 - - - - - - 1,378,235
CII'carryweis 506,099 - - - - - - ~~~
Affordable I busing 1,000,000 - - - - - - 1,000,000
Gvic Center Fxparsion 1,200,000 - - - - - - 1,200,000
Fallon Paris Arfifioai Turf 1,120,000 - - - - - - 1,120,000
HcstoricI'arkl~velopment 3,180,000 - - - - - - 3,180,000
Faality Mainbe~'are 1,500,000 - - - - - - 1,500,000
Fire Retiree Health Ba~efits 500,000 - - - - - ~•~
Aarixcl Leave Payable 744,041 - - - - - - 744,1141
Irnestment Market Value Adjustu~ent 1,508,906 - - - - - - 1,508,`
Desgnated for authorized expenditures 42,181,292 - - - - - - 42181,292
Total tnneserved designated 57,789,295 - - - - - - 57,789,295
Uraeserved, widesignated - - - - (1,837,021) - - (1,837,021)
Total fiord equity $ 63,412,309 $ 24,779,583 $ 7,700,327 $ 379,623 $ (1,837,021) $ 12855,510 $ 5,074,376 $ 112,364,707
57
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
9. RISK MANAGEMENT
A. Risk Pool
7d~I~~
The City participates in the ABAG PLAN Corporation, which covers general liability claims in an
amount up to $10,000,000 and property insurance coverage for members up to $500,000,000. The City
has a deductible or uninsured liability for general liability of up to $50,000 per claim. The deductible for
property claims is $5,000 per occurrence, excluding auto claims, which have a $100,000 deductible.
Once the City's deductible is rnet ABAG PLAN becomes responsible for payment of all claims up to the
limit. During the fiscal year ended June 30, 2008, the City contributed $242,210 toward current year
Property Premium, Public Official Bond, Administrative Premium, and General Liability coverage.
The ABAG PLAN is governed by a board consisting of representatives from member municipalities.
The board controls the operations of the ABAG PLAN including selection of management and approval
of operating budgets, independent of any influence by member municipalities beyond their
representation on the Board.
The City's contributions to the ABAG PLAN for liability coverage are based on a formula which
considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer
of each program, in each program year's loss history and population. Actual surpluses or losses are
shared according to a formula developed from overall loss costs and spread to member entities on a
percentage basis after a retrospective rating.
There have been no significant reductions in any of the City's areas of insurance coverage and no
settlement amounts have exceeded coverage in the past three years.
Audited financial information for the ABAG PLAN can be obtained from ABAG PLAN, P.O. Box 2050,
Oakland, California 94604-2050.
B. Workers Compensation Coverage
The City participates in the Cities Group, created by a joint powers agreement to provide workers
compensation coverage paid from the pooled contributions of its membership with no deductible to the
City. Any claim in excess of $1 million is covered up to $10 million through a separate reinsurance
policy purchased by the Cities Group. The 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, 2008, the City
paid the Group $42,720 in premiums. At June 30, 2008, the City of Dublin s share of equity in the Cities
group amounted to $228,632.
Financial Statements may be obtained from the Cities Group, PO Box 111, Burlingame, CA 94011-0111.
C. Liability for Uninsured Claims
The GASB requires municipalities to record their liability for uninsured claims and reflect the current
portion of this liability as an expenditure in their financial statements. As discussed above, the City has
coverage for such claims, but it has retained the risk for the deductible or the uninsured portion of these
claims in the ABAG PLAN and the Cities Group plans. GASB Statement No. 10, "Financial Reporting
for Risk Financing and Related Insurance Issues' require that this amount be separately identified and
recorded as a liability.
58
.~
.~
.~
~:
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~.
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~' City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
9. RISK MANAGEMENT, Continued
C. Liability for Uninsured Claims, Continued
The City's liability for uninsured claims, limited to general liability and workers compensation claims as
discussed above, includes a provision for incurred but not reported losses. This amount was estimated
based on claims experience. The claim liability for the current and prior year was as follows:
June 30, 2008 June 30, 2007 June 30, 2006
Beginning balance $ 252,547 $ 242,382 $ 238,441
Provision for claims 497,245 310,037 197,084
Claims paid (477,876) (299,872) (193,143)
Ending balance $ 271,916 $ 252,547 $ 242,382
10. 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 total of vacation and other compensated leave is
$744,041. The liability will be paid from future resources primarily from the general fund.
Due within
July 1, 2007 Additions Deletions June 30, 2008 one year
Accrued General Leave $ 624,501 $ 156,820 $ (65,266) $ 716,055 $ 214,817
Accrued Compensated Leave 25,863 8,052 (5,929) 27,986 8,396
$ 650,364 $ 164,872 $ (71,195) $ 744,041 $ 223,212
11. PENSION PLAN
A. PERS
Plan Description -The City's defined benefit pension plan, (Miscellaneous Plan), provides retirement
~, and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and
beneficiaries. The Miscellaneous Plan is part of the Public Agency portion of the California Public
~' Employees Retirement System (Ca1PERS}, a cost sharing multiple-employer plan administered by
~, Ca1PERS, which acts as a common investment and administrative agent for participating public
employers within the State of California. A menu of benefit provisions as well as other requirements is
established by State statutes within the Public Employees' Retirement Law. The City selects optional
,~ benefit provisions from the benefit menu by contract with Ca1PERS and adopts those benefits through
local ordinance or resolution. CalPERS issues a separate comprehensive annual financial report. Copies
of the Ca1PERS's annual financial report may be obtained from the Ca1PERS Executive Office, 400 P
~• Street Sacramento, California 95814.
59
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
11. PENSION PLAN, Continued
A. PERS, Continued
-rye, ~ ~
Funding Polio -Active plan members in the Miscellaneous Plan are required to contribute 8 percent of
theix annual covered salary, 7 percent of which the City pays on behalf of the employees in the amount
of $542,155. The City is required to contribute the actuarially determined remaining amounts necessary
to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by
the Cal PERS Board of Administration. The required employer contribution rate for fiscal year 2007-
2008 was 15.894% for miscellaneous employees. (The City has only miscellaneous employees.) The
contribution requirements of the plan members are established by State statute and the employer
contribution rate is established and may be amended by Ca1PERS.
Annual Pension Cost -For fiscal year 2007-2008, the City's annual pension cost was $1,724,812 and was
equal to the City's required and actual contributions. The required contribution for fiscal year 2007-
2008 was determined as part of the June 30, 2004, actuarial valuation using the entry age normal
actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions
included (a) 7.75 percent investment rate of return net of administrative expenses; (b) projected salary
increases that vary by duration of service ranging from 3.25 percent to 14.45 percent for miscellaneous
members, depending on Age, Service, and type of employment; (c) Inflation component of 3.0 percent;
d) Payroll Growth of 3.25 percent; and e) Individual Salary Growth based on a merit scale varying by
duration of employment coupled with an assumed annual inflation growth of 3 percent and annual
production growth of 0.25 percent. The actuarial value of Miscellaneous Plan s assets was determined
using a technique that smoothes the effect of short-term volatility in the market value of investments
over a two to five year period depending on the size of investment gains and/ or losses. Miscellaneous
Plan s unfunded actuarial accrued liability (or excess assets) is being amortized as a level percentage of
projected payroll on a closed basis. The average remaining amortization period at June 30, 2004 was 14
years for miscellaneous employees for prior and current service unfunded liabilities. The Asset
Valuation Method was 15 Year Smoothed Market.
Three Year Trend Information for the Miscellaneous Plan
Annual Percentage
Pension Cost of APC Net Pension
Fiscal Year (APC} Contributed Obligation
6/ 30/ 2006 1,058,213 100 % -
6/ 30/ 2007 1,673,674 100 % -
6/30/2008 1,724,812 100% -
The City adopted GASB Statement No. 50, Pension Disclosure, an amendment of GASB Statement No.
25 and 27. This Statement aligns the financial reporting for pensions with those for other
postemployment benefits. It also provides enhancement in the information disclosed in the notes to the
financial statements or presented as required supplementary information.
60
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~' City of Dublin
x Notes to Basic Financial Statements, Continued
f For the year ended June 30, 2008
11. PENSION PLAN, Continued
B. Social Security/Public Agency Retirement Systems (PARS)
The Omnibus Budget Reconciliation Act of 1990 COBRA) mandates that public sector employees who
are not members of their employer's existing retirement system as of January 1, 1992, be covered by
either Social Security or an alternate plan. The City's part-time, seasonal and temporary employees are
covered under Social Security, which requires these employees and the City to each contribute 6.2
percent of the employees' pay.
The City entered into an agreement with the PARS to provide an alternative retirement system for the
~' part-time employees. The PARS plan was effective December 25, 2005, and replaced Social Security.
The employees contributed $50,409 or 6% of salary and the City contributed $12,610 or 1.5% of
employee's pay towards PARS.
12. POSTEMPLOYMENT HEALTHCARE PLAN
A. City of Dublin Retiree Health Plan
~' Plan Description. City of Dublin (City) Retiree Health Plan is asingle-employer defined benefit healthcare
plan admuustered by the California Public Employees Retirement System (CaII'ERS). 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 Adtninistration
has the responsibility to approve health benefit plans and may contract with carriers offering health benefit
plans. The Board of Admuustration is responsible for adopting all rules and regulations, including the scope
and content of basic health plans. The California Government Code also defines certain rules for contract
.~ agencies, such as the City of Dublin, to purchase health insurance benefits.
Funding Policy. There is no requirement imposed by CaIPERS, to contribute any amount beyond the pay-as-
you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and the
City. The cost sharing varies depending on: date of hire (a vesting schedule is in place for employees hired
after April 1, 2004); the dependent status; and plan selected. A minimum employer monthly contribution
~+ requirement is established and may be amended by the CaIPERS Board of Administration and applicable
laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to
establish and amend the level of contributions made by the employer towards the monthly cost of the plans.
~+ Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by
the City Council.
The City has established a policy to make contributions to an Internal Service Fund, for the purpose of
funding its calculated obligations over a period of time, with the intent the funds will be transferred to
CALPERS periodically at which time the transfers will be recorded as Cash with Fiscal Agent in a Trust
"~ Fund. The amount necessary to fund future benefits is based on projections from the June 30 2007 Actuarial
R Study completed by Bartel and Associates, LLC in accordance with GASB Statement 45, Accounting and
Financial Reporting for Postemployment Benefits Other than Pensions.
s 61
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued
A. City of Dublin Retiree Health Plan, Continued
For fiscal year 2008, the City made a total of $516,666 in contributions, of which $201,858 represented current
contributions and $314,808 represented amounts added to the City's Retiree Health Care Internal Service
Fund to set aside funds for future benefits. There was no premiums contribution paid by the retirees that
exceeded the monthly contribution established by the City.
During Fiscal Year 2006-2007, the City made arrangements with CaIPERS to retain the OPEB assets to
finance future Retiree Health Benefits. On June 29, 2007 the City transferred $5,468,611 from the
Internal Service Fund into the California Employers' Retiree Benefit Trust Fund (CERBT). During fiscal
year 2007-2008, the City made additional quarterly transfers amounted to $751,406. The City has elected
a one year amortization period for the OPEB plan assets deposited into the CERBT, as permitted under
GASB Statement 45, paragraph 13F, amortization periods allow for a maximum of 30 years with no
minimum years. As of June 30, 2008, the Internal Service Fund held a remaining total of $124,488 to be
transferred to CaIPERS during Fiscal Year 2008-2009.
Annual OPEB Cost and Net OPEB Obligation. The City's annual Other Post Employment Benefit (OPEB) cost
(expense) is calculated based on the Annual Required Contribution of the employer (ARC), an amount
actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following
table shows the components of the City of Dublin annual OPEB costs for the year, the amount actually
contributed to the plan, and changes in the City's net OPEB obligation to the City Retiree Health Plan:
Annual required contribution $ 511,000
Interest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB expense (income) 511,000
Contributions made (722,418}
Increase (decrease) in net OPEB obligation (211,418)
Net OPEB obligation (asset) -beguuiing of year
Net OPEB obligation (asset) -end of year $ (211,418)
The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the net OPEB obligation for 2008, and the preceding years were as follows:.
Fiscal
Year
Fiscal Year Ended
Annual
OPEB Cost
6/30/2007 $ 5,179,702
6/30/2008 $ 511,000
Percentage of Net
AnnuaIOPEB OPEB
Cost Contributed Obligation (Asset)
100.00 % $ -
141.37% $ (211,418)
62
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City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued
A. City of Dublin Retiree Health Plan, Continued
~ ~~ ~ 7~
Funded Status and Funding Progress. As of June 30, 2007, the most recent actuarial valuation date, the plan
was 72.7% funded. The Actuarial Accrued Liability (AAL) for benefits was $6,159,000, and the Actuarial
value of Plan Asset was $5,694,000, resulting in an Unfunded Actuarial Accrued Liability (UAAL) of
$465,000. The covered payroll (annual payroll of active employees covered by the plan) was 6,697,747,
and the ratio of UAAL to the covered payroll was 6 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
x are made about the future. The Schedule of Funding Progress, presented as Required Supplementary
Information following the notes to the financial statements, presents multiyear trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits. Since this is the first yeax of including this information in the financial
report, the data presented is limited.
-~ Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and the plan members) and include the
types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
_~ calculations.
In the June 30, 2007 actuarial valuation, the actuarial cost method used is Entry Age Normal (EAN) cost
-~ method. Under the EAN cost method, the plan's Normal Cost is developed as a Level percent of payroll
throughout the participants' working lifetime. Entry age is based on current age minus years of service.
The Actuarial Accrued Liability (AAL) is the cumulative value on the valuation date, of prior Normal
~~' Cost. For the retirees, the AAL is the present value of a1I projected benefit. The Unfunded AAL is being
amortized as a level dollar closed 30 year basis, as a Level percent of payroll with a remaining
amortization period at June 30, 2008 of 30 years.
GASB 45 requires the interest rate to represent the underlying expected return for the source of funds
used to pay benefits. The actuarial methods and assumptions included 7.75 percent interest rate,
~' representing the long term expected rate of return on the Ca1PERS Trust Fund. Annual inflation
assumed to increase at 3 percent per annum and Aggregate Payroll assumed to increase at 3.25 percent
per annum. The study also used assumptions for the salary merit and longevity increases, and
~' demographic assumptions such as mortality, withdrawal, and disability based on Ca1PERS 1997-2002
Experience Study. Retirement assumption was also based on Ca1PERS 1997-2002 Experience Study of
the Miscellaneous Plan 2.7% at 55 years, with expected retirement age of approximate 59 for females
and 60 for males.
63
~s~ 1~1
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued
B. Dougherty Regional Fire Authority Health Plan
Dougherty Regional Fire Authority Background. In 1988, the cities of Dublin and San Ramon formed
Dougherty Regional Fire Authority (DRFA), a joint powers agency (JPA). The JPA provided fire
services to all of Dublin and the southern portion of San Ramon. In 1997, the two cities decided to
change how Fire Services would be provided in each City. As a result JPA personnel were absorbed by
the two new service providers pursuant to a mutual agreement. The JPA has remained intact to
conclude the financial affairs of the entity. This includes residual retiree obligations and workers
compensation liabilities. Dublin s share of all DRFA close-out expenses, including retiree medical
benefits, is 57.51 % of the actual costs, with the City of San Ramon paying 42.49% of the costs. The two
cities have entered into a binding agreement to share these expenses on this basis. The City of Dublin is
presenting information only for its contractual share of the obligations.
Plan Description. City of Dublin share of DRFA Retiree Health Plan is asingle-employer defined benefit ~~
healthcare plan administered by the California Public Employees Retirement System (Ca1PERS). The
Plan provides medical insurance benefits to eligible retirees and their eligible dependents. In accordance
with Public Employee Retirement Law (Article 2), the Public Employees Retirement System Board of
Administration has the responsibility to approve health benefit plans and may contract with carriers
offering health benefit plans. The Board of Administration is responsible for adopting all rules and
regulations, including the scope and content of basic health plans. The California Government Code
also defines certain rules for contract agencies, such as DRFA, to purchase health insurance benefits.
.~
Funding Policy. There is no requirement imposed by Ca1PERS, to contribute any amount beyond the
pay-as-you-go contributions. The cost of monthly insurance premiums may be shared between the
retiree and DRFA. The cost sharing varies depending on: the bargaining unit; dependent status; and
plan selected. A minimum employer monthly contribution requirement is established and may be
amended by the Ca1PERS Board of Administration and applicable laws. Within the parameters of the
law, individual contracting agencies, such as the DRFA, are allowed to establish and amend the level of
contributions made by the employer towards the monthly cost of the plans. Changes to the employer
contribution rate towards retiree benefits are recorded in a resolution adopted by the DRFA
Management Committee.
For fiscal year 2007-2008, the City contributed $66,267 to the plan, all of which was for current ~,
premiums. No other contributions were made.
~:
Annual OPEB Cost and Net OPEB Obligation. The DRFA Retiree Health Plan (City of Dublin Share)
annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the `'
parameters of GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other ~,,
than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover costs. This plan is in a unique status since there are no active members and no "normal" cost ~°
component. Therefore, 100% of the calculated ARC relates to the amortization of unfunded actuarial „~
liabilities (or funding excess) over a period not to exceed thirty years.
.»
64 "'
~9~/7l
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued
B. Dougherty Regional Fire Authority Health Plan, Continued
' The following table shows the components of the City of Dublin share of DRFA annual OPEB cost for
the year, the amount actually contributed to the plan and changes in the Dublin Share of DRFA net
OPEB and the City of Dublin share of the obligation to DRFA Retiree Health Plan:
Annual required contribution $ 111,000
Interest on net OPEB Obligation 2,000
Amortization of Net OPEB Obligation (3,000)
Annual OPEB cost (expense) 110,000
Contributions made (66,267)
~ Increase in net OPEB obligation 43,733
Net OPEB obligation-beginning of year 44,013
r Net OPEB obligation-end of year $ 87,746
` The DRFA Retiree Health (City of Dublin Share) annual OPEB cost, the percentage of annual OPEB cost
~, contributed to the plan, and the net OPEB obligation for 2008 and the previous year were as follows:
. Ended OPEB Cost Cost Contributed Obligation
+~ 6/30/2007 $ 76,206 81.53% $ 44,013
6/30/2008 110,000 60.24% 87,746
~ Funded Status and Funding Progress. As of June 30, 2007, the most recent actuarial valuation date, the plan
was not funded. Therefore, both the actuarial accrued liability for benefits and the unfunded actuarial
accrued liability (UAAL) equaled $1,444,000. Since there are no active employees, it is not possible to
calculate a comparison of the liability to the payroll.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
~, assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about, mortality, and the healthcare cost trend. Amounts determined regarding the funded
*~ status of the plan and the annual required contributions of the employer are subject to continual
,~ revision as actual results are compared with past expectations and new estimates are made about the
future. The Schedule of Funding Progress, presented as Required Supplementary Information following
°" the notes to the financial statements, presents multiyear trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits. Since this is the first year of including this information in the financial report, the data
~' presented is limited.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and the plan members) and include the
~ types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
65
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued
B. Dougherty Regional Fire Authority Health Plan, Continued
~ ~ ~~f
~~
In the June 30, 2007 actuarial valuation prepared by Bartel Associates, LLC the actuarial cost method
used was the Entry Age Normal (EAN) cost method. Under the EAN cost method, the plan's Normal
Cost is developed as a level percent of payroll throughout the participants' working lifetime. The
actuarial assumptions included a 4.5% investment rate of return (net of administrative expenses),
calculated based on the funded level of the plan at the valuation date. An inflation healthcare cost trend
rate of 3% was assumed to increase per annum. The Actuarial Accrued Liability (AAL) is the
cumulative value, on the valuation date, of prior Normal Costs. For retirees, the AAL is the present
value of all projected benefits. The unfunded AAL is amortized over 20 years as a level of dollar
amount.
13. COMMITMENT AND CONTINGENT LIABILITIES
A. Grant Programs
The City participates in several Federal and State grant programs. No cost allowances were proposed as
a result of the City's financial audit; however, these programs are still subject to further examination by
the grantors and the amount, if any, of expenditures, which may be disallowed by the granting agencies
cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
B. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City
Attorney there is no pending litigation, which is likely to have a material adverse effect on the financial
position of the City.
C. Reimbursements to the City of Pleasanton
On January 23,1996, the City adopted a fee for the purpose of reimbursing the City of Pleasanton for the
costs of making improvements to the interchanges on Interstate 580 at Hacienda Drive and Tassajara
Road/Santa Rita Road that benefit development in both Pleasanton and future development in Eastern
Dublin. The Cities entered into an agreement on November 3, 1998, to allow for an automatic annual
escalator factor in the amount of the fee assessed to developers based upon the LAIF interest rate and to
repay the City of Pleasanton. The amount of the contingent liability outstanding at June 30, 2008, was
$4,766,751, which is net of the $64,164 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.
~.
66
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
13. COMMITMENT AND CONTINGENT LIABILITIES, Continued
C. Reimbursements to the City of Pleasanton, Continued
~,~ ,,,,
The City has also entered into an agreement with the City of Pleasanton for the reimbursement of the
cost of construction of a two-lane access road and the extension of Hacienda Drive. Interest accrues on
the reimbursement at 7.48 percent per year. The advance as of June 30, 2008, is $1,636,853 which is net
of the $312,283 in payments made by the City to reduce this contingent liability during the year. The
reimbursement is to be repaid from proceeds of assessments, special taxes or fees imposed on the
property east of Dougherty Road with no specific due date. The City's General Fund shall not be
obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness
since future payments are contingent upon the future collection of development fees assessed for
reimbursement of these improvements.
D. BART Agreement
In 1990, the City and Bay Area Rapid Transit City (BART) entered into a Settlement Agreement
xegarding the City's extension of Dublin Boulevard to the extension of Hacienda Drive. BART
advanced the City $2,285,000 to purchase land and construct the road extensions. The advance was
structured with two components: a Short Term and a Long Terrn Advance. These projects are now
complete.
Short Term Advance
The amount provided as a Short Term Advance came due on December 31, 1995. In accordance with a
separate agreement, the Alameda County Surplus Property Authority repaid this amount. See the
related note on the Alameda County Surplus Property Authority below.
Long Term Advance
BART's long term advance to the City, including accrued interest as of June 30, 2008 is $2,381,727, which
~ has no specific due date. Under the City's agreement with BART, interest on the advance accrues at a
4 rate based on BART's average rate of return on its investments. During the year ended June 30, 2008
unpaid interest incurred was added to the balance owed in the amount of $85,055. The City expects to
repay principal and interest on BART's advance out of developer fees, charges and other non-tax
~, revenues generated by future development in the area of the BART station. The agreement states that in
no event is the advance to be repaid from the City's General Fund or from general revenues. The
agreement provides for the forgiveness by BART of any principal or interest still outstanding on
March 27, 2010. The accounting for the amount due is not recorded as indebtedness since future
payments are contingent upon the future collection of development fees assessed for repayment of the
advance.
~' 67
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2008
13. COMMITMENT AND CONTINGENT LIABILITIES, Continued
E. Alameda County Surplus Property Authority
8a~/`l~
The City entered into an agreement with the Alameda County Surplus Property Authority for the
repayment of the City's Short Term BART Advance by the Authority. Under the terms of the
agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers
return on investments. As of June 30, 2008, the advance is $2,546,712, which includes accrued interest of
$102,181 at 4.18% for the current year. The advance is to be repaid from developer fees, charges, and
other non-tax revenues from the benefiting area and has no specific due date. The City's General Fund
shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as
indebtedness since future payments are contingent upon the future collection of development fees
assessed for repayment of the advance.
F. Other 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, 2008 was $59,320,352. For the
current year, additions to the credits amounted to $14,961,496 and credits used and transferred
amounted to $5,144,597. The accounting for the amounts due are not recorded as indebtedness since the
payments (use of credits) are contingent upon the collection of development fees from building growth
that has not yet occurred.
14. DEFICIT FUND BALANCE
The Fire Impact Fees Fund ended the fiscal year with a $1,837,021 deficit fund balance. The General Fund
has advanced money to this fund to cover current cash flow needs. Repayment of the advance is expected
to come from future revenues to this fund.
15. PRIOR PERIOD ADJUSTMENTS
There were no Prior Period Adjustments made in the Fund Financial statements.
68
~~
d
EM.ENTAR-Y I1~
S~,JPPL
83~ ~ ~~
REQUIRED
FORMAT=
69
City of Dublin
Required Supplementary Information
For the year ended June 30, 2008
1. BUDGETS AND BUDGETARY ACCOUNTING
g~~ (~~
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 a
and the means of financing them.
~,
• The public is given an opportunity to comment on the budget at a noticed City Council meeting.
Prior to July 1, the budget is legally enacted through passage of a resolution.
• The City Manager is authorized to transfer budgeted amounts between line items within any ,„.,
department. Any revisions, which alter total departmental expenditures of the City must be
approved by City Council except as follows: The City Manager will be allowed to transfer funds '"°
from the contingent reserve to operating departments salary and benefits accounts when required ,,
due to employee turnover or change in status, City Council approved funding for increases in
employees salaries and benefits, and City Council approved funding for increase in contract or labor
rates. Expenditures may not exceed budgeted appropriations at the departmental level without City ,~
Council approval.
Formal budgetary integration is employed as a management control device during the year for the ,~
general fund, special revenue funds and capital projects funds.
.~
• Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent
with generally accepted accounting principles in the United States.
.•
• All unexpended appropriations lapse at the end of the fiscal year.
.~
70
4.~ ~ l7 ~
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Required Supplementary Information, Continued
For the year ended June 30, 2008
General Fund
REVENUES:
Property taxes
Sales tax
Other taxes
Intergovernmental
Licenses and permits
Charges for service
Investment Interest
Use of property
Fines and forfeitures
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Highways and streets
Health and welfare
Culture and leisure
Community development
Capital outlay:
General
Community improvement
Parks
Streets
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfer in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year, as restated
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 22,194,200 $ 22,194,200
14,840,000 14,390,000
3,410,635 3,410,635
672,876 1,049,669
2,306,445 1,564,645
6,337,596 6,262,056
2,621,744 2,096,744
342,468 290,927
143,000 143,000
1,303,853 1,651,012
$ 22,098,429 $ (84,133)
14,225,662 (271,481)
3,504,502 93,867
1,079,088 29,419
1,784,644 219,999
6,482,093 318,901
4,129,034 2,032,290
335,151 44,224
156,520 13,520
866,991 (795,659)
54,662,114 1,600,947
5,871,085 5,959,860 5,253,337 706,523
22,679,010 22,752,302 22,664,835 87,468
2,239,419 2,239,419 2,017,084 222,335
33,913 52,004 51,304 700
7,408,783 7,529,844 7,205,291 324,553
8,621,645 8,218,211 7,305,546 856,555
1,396,675 1,564,118 384,620 1,179,498
311,335 329,568 218,058 111,510
5,371,134 6,120,360 4,249,294 1,871,066
993,343 1,144,444 271,117 873,327
54,926,342 55,910,130 49,620,486 6,233,535
(753,525) (2,857,242) 5,041,628 7,834,482
$ (753,525) $ (2,857,242)
iu,y~a iv,y~a
5,112,556 $ 7,905,410
~ VJ,Y IL,JV7
71
g~ ~~~
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Required Supplementary Information, Continued
For the year ended June 30, 2008
Housing and Noise Mitigation Special Revenue Fund
REVENUES:
Interest
Charges for services
Developer fees
Other revenue
Total revenues
EXPENDITURES:
Current:
General Government
Community Development
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Total 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)
$ 575,054 $ 575,054 $ 506,514 $ (68,540)
123,500 123,500 122,605 (49,358)
1,608,900 1,608,900 1,432,215 (176,685)
- - 1,595,181 1,595,181
2,307,454 2,307,454 3,656,515 1,300,598
47,500 156,535 156,535 -
2,494,884 3,994,884 1,007,526 3,043,468
2,542,384 4,151,419 1,164,061 3,043,468
(234,930) (1,843,965) 2,492,454 4,344,066
- - 6,600 6,600
- - 6,600 6,600
$ (234,930) $ (1,843,965)
2,499,054 $ 4,350,666
10,356,456
~l 1L,VJJ,/1V
72
City of Dublin
Required Supplementary Information, Continued
For the year ended June 30, 2008
Schedule of Funding in Progress
Miscellaneous Plan of the California Public Emploi~ee Retirement System
870 ~ ~/
The City contributes to the California Public Employee's Retirement System (Ca1PERS), as an agent
multiple -employer public employee defined benefit pension plan. As part of the actuarial valuation date
of June 30, 2003, the City's miscellaneous plan became part of a CaIPERS Risk Pool for employers with less
than 100 active plan members. As part of a cost sharing, multiple-employer defined benefit plan, disclosure
of the Schedule of Funding progress is not required. Information on the funding schedule for the pool may
be obtained with CaIPERS.
Schedule of Funding in Progress
Other Post EmploUment Benefit (OPEB)
The City contributes to the California Public Employee's Retirement System became part of a Ca1PERS Risk
Pool for employers with less than 100 active plan members. As part of acost-sharing multiple-employer
defined benefit plan, disclosure of the schedule of funding progress is not required
Actuarial
Accrued Unfunded UAAL as a
Actuarial Liability (Overfunded) Percentage of
Actuarial Value of (AAL) - AAL Funded Covered Covered
Valuation Assess Entry Age (UAAL) Ratio Payroll Payroll
Date (A) ~) ~-A) (A/B) (~~ ((~A)/C)
~ 6/30/2004 - 4,973,780 4,973,780 0.0% 6,320,280 78.7%
6/30/2007 4,475,095 6,159,000 1,683,905 72.7% 6,697,747 25.1%
73
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74 r.
~~
ENT AgY
SUppLEM
INF~RMATI~N
75
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GJo~1~~
~»
.~
76
~l~l
GENERAL FUND
The General Fund is used to account for all financial resources except those required to be accounted for in
another fund.
77
Cify of Dublin
Schedule of Budget Versus Actual Revenues by Sources
General Fund
For the year ended June 30, 2008 /p~
/ ~ ~ ~ ~ A.
~,~~,
..
.~~,
Variance with
Final Budget -
Budgeted Amounts
Actual
Positive r
Original Final Amounts (Negative) '~°
Property Taxes:
Current year secured $ 16,500,000 $ 16,500,000 $ 16,124,834 $ (385,166)
Current year unsecured 945,000 945,000 1,026,800 81,800
Prior year secured 225,000 225,000 395,245 170,245
Prior year unsecured
5,000
5,000
17,235
12,235 er
Supplemental property tax 1,000,000 1,000,000 958,453 (41,547)
Housing Authority Pilot tax 59,200 59,200 42,304 (16,896)
In lieu property tax 3,350,000 3,350,000 3,352,904 2,904 ~
Property tax penalties 110,000 110,000 190,654 80,654
Sub-total 22,194,200 22,194,200 22,098,429 (95,771)
Taxes Other Than Property:
Sales & use tax 14,840,000 14,390,000 14,225,662 (164,338)
Real property transfer tax 540,000 540,000 493,175 (46,825) ,
Hotel transient occupancy tax 775,000 775,000 789,397 14,397 ~
Franchise taxes 2,095,635 2,095,635 2,221,930 126,295
Sub-total 18,250,635 17,800,635 17,730,164 (70,471) ~
License and Permits:
Building permits 1,990,051 1,315,051 1,505,985 190,934
Animal licenses 4,900 4,900 4,356 (544)
Encroachment permits 23,200 23,200 48,098 24,898
Construction and demolition permits 76,794 36,794 41,424 4,630
Business license 146,500 146,500 145,146 (1,354) „~
Fire permits 65,000 38,200 39,635 1,435
Sub-total 2,306,445 1,564,645 1,784,644 219,999
Fines and Forfeitures: ~"
Parking fines 71,000 71,000 89,893 18,893
Other court fines 68,000 68,000 50,331 (17,669)
Other fines & penalties 4,000 4,000 16,296 12,296 '°"
Sub-total 143,000 143,000 156,520 13,520
Revenue From Use of Money and Property:
Interest 2,621,744 2,096,744 2,620,128 523,384
Change in Fair Market Value of Investments - - 1,508,906 1,508,906
Rent & Concession:
Field rentals 78,640 78,640 103,430 24,790 .~
Building rentals 18,510 18,510 26,491 7,981
Pool 14,600 14,600 19,957 5,357
Heritage Center 3,100 3,100 4,448 1,348
Community gym 23,920 23,920 29,443 5,523
Senior Center 43,546 43,546 40,771 (2,775)
Dublin Square Property Rental 160,152 108,611 110,611 2,000 ~°'
Sub-total 2,964,212 2,387,671 4,464,185 2,076,514
(Continued)
78
~ a~ ~7~
City of Dublin
Schedule of Budget Versus Actual Revenues by Sources
General Fund, Continued
For the year ended June 30, 2008
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Intergovernmental Revenues:
Vehicle License Fee
Homeowner's property tax relief
Mandated Costs
Workforce Housing Grant
Stormwater Project Grant
Heritage Center Grant
Sub-total
Charges for Services:
Zoning & subdivision fees
Plan check & inspection fees
Sale of maps and documents
Special police services
Fire services
Cultural arts
Recreation instruction
Preschool
Special events
Playgrounds
Teens
Building use insurance
Zone 7 drainage fees
Adult sports
Aquatics
Senior Program
DUI program
Youth sports
Booking fees recovery
Solid waste fees
Cemetery
Heritage Center
Annexation
Fire plan check and inspection fees
Cable support fees
Sub-total
Other Revenues:
Sale of property
Contributions
Miscellaneous
Reimbursement -general
Reimbursement -public damage
Reimbursement - Commuty Benefit Assessment
Reimbursement -Other
Sub-total
Total revenues by sources
$ 290,000 $ 190,000 $ 197,245 $ 7,245
180,000 180,000 183,596 3,596
- 21,000 34,716 13,716
202,876 409,609 409,609 -
- 249,060 249,060 -
- - 4,862 4,862
672,876 1,049,669 1,079,088 29,419
1,572,099 1,572,099 1,871,929 299,830
2,180,000 2,180,000 1,921,670 (258,330)
11,687 11,687 14,560 2,873
81,300 81,300 76,574 (4,726)
694,200 694,200 731,569 37,369
104,000 104,000 125,801 21,801
152,620 152,620 145,185 (7,435)
115,080 115,080 146,374 31,294
144,880 144,880 166,917 22,037
239,270 263,730 268,263 4,533
66,430 66,430 71,906 5,476
4,360 4,360 5,019 659
5,148 5,148 16,052 10,904
51,880 51,880 51,482 (398)
182,010 182,010 198,601 16,591
90,850 90,850 86,052 (4,798)
2,160 2,160 - (2,160)
163,420 163,420 224,867 61,447
4,122 4,122 5,178 1,056
137,000 137,000 142,864 5,864
6,260 6,260 230 (6,030)
8,620 8,620 4,892 (3,728)
4,000 4,000 9,143 5,143
253,000 153,000 125,772 (27,228)
63,200 63,200 71,193 7,993
6,337,596 6,262,056 6,482,093 220,037
1,000 1,000 - (1,000)
121,100 125,100 124,825 (275)
60,000 65,000 66,274 1,274
1,111,753 1,415,087 420,481 (994,606)
10,000 10,000 16,597 6,597
- - 190,604 190,604
- 34,825 48,210 13,385
1,303,853 1,651,012 866,991 (784,021)
$ 54,172,817 $ 53,052,888 $ 54,662,114 $ 1,609,226
79
~~j
ty
Ci of Dublin ~ ~
Schedule of Budget Versus Actual Departmental Expenditures
General Fund
For the year ended June 30, 2008
Variance with
Final Budget -
Budgeted Amounts Aetual Positive
Original Final Amounts (Negative)
General Government:
City Council
City Manager
Central services
City Attorney
Administrative services
Building management
Insurance cost center
Election cost center
Nondepartmental
Sub-total
Public Safety:
Police
Crossing guards
Animal control
Traffic signals and street lighting
Disaster preparedness
Fire services
Sub-total
Highways and Streets:
Public works administration
Street maintenance
Street sweeping
Street tree maintenance
Street landscape maintenance
Sub-total
Health and Welfare:
Waste management
Child care
Social services
Housing programs
Sub-total
Culture and Leisure:
Library services
Heritage and Culture Arts
Park maintenance
Community cable television
Parks and community services
Parks and facilities management
Sub-total
$ 298,171 $ 304,891 $ 262,987 $ 41,904
1,128,643 1,128,643 1,052,588 76,055
549,400 573,400 495,826 77,574
615,723 733,483 733,480 3
1,840,534 1,844,459 1,600,978 243,481
785,873 796,873 699,948 96,925
538,541 538,541 386,652 151,889
2,500 2,500 1,124 1,376
111,700 37,070 19,754 17,316
5,871,085 5,959,860 5,253,337 706,523
12,554,821 12,720,344 12,720,345 (1)
90,879 98,648 97,663 985
351,192 351,192 311,992 39,200
13,300 13,300 12,023 1,277
109,888 99,888 92,050 7,838
9,558,930 9,468,930 9,430,762 38,168
22,679,010 22,752,302 22,664,835 87,467
1,094,762 1,094,762 986,199 108,563
33,147 33,147 463 32,684
138,000 138,000 134,374 3,626
106,917 106,917 78,681 28,236
866,593 866,593 817,367 49,226
2,239,419 2,239,419 2,017,084 222,335
- 8,091 7,391 700
18,500 18,500 18,500 -
15,413 25,413 25,413 -
33,913 52,004 51,304 700
836,571 836,571
513,040 526,740
2,008,692 2,016,692
75,027 127,980
3,645,370 3,691,778
330,083 330,083
7,408,783 7,529,844
80
802,695 33,876
488,211 38,529
1,943,588 73,104
117,348 10,632
3,541,474 150,304
311,975 18,108
(Continued)
.~
~..
City of Dublin
Schedule of Budget Versus Actual Departmental Expenditures
General Fund, Continued
For the year ended June 30, 2008
Budgeted Amounts
Original Final
$ 6,023,580 $ 5,601,580 $
2,308,845 2,321,911
Community Development:
Planning/building safety
Engineering
Economic development
Sub-total
Capital Outlay:
General improvements
Community improvements
Parks
Street construction and improvements
Sub-total
8,621,645 8,218,211
~5~ ~-~~
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
4,995,233 $ 606,347
2,054,483 267,428
255,830 38,890
1,396,675 1,564,118 384,620 1,179,498
311,335 329,568 218,058 111,510
5,371,134 6,120,360 4,249,294 1,871,066
993,343 1,144,444 271,117 873,327
8,072,487 9,158,490 5,123,089 4,035,401
Total expenditures $ 54,926,342 $ 55,910,130 $ 49,620,486 $ 6,289,644
- (Concluded)
81
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82
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Traffic Impact Fees Capital Projects Fund -Major Fund
For the year ended June 30, 2008
~7~ »i
REVENUES:
Interest
Developer fees
Total revenues
EXPENDITURES:
Current:
General government
Capital outlay:
Streets
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfer in
Transfer 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)
$ 595,335 $ 595,335 $ 838,574 $ 243,239
14,022,580 12,913,874 14,139,022 1,225,148
14,617,915 13,509,209 14,977,596 1,468,387
1,900 1,900
30,106,349 29,419,720
106,807 (104,907)
8,869,369 20,550,351
(15,488,434) (15,910,511) 6,108,227 22,018,738
$ (15,488,434) $ (15,910,511)
6,108,227 $ 22,018,738
18,671,356
$ 24,779,584
83
~~~~~i
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Public Facilities Fees Capital Projects Fund -Major Fund
For the year ended June 30, 2008
Budgeted Amounts
Original Final
REVENUES:
Interest
Developer fees
Total revenues
$ 520,780 $
9,541,376
10,062,156
520,780 $
2,527,095
3,047,875
EXPENDITURES:
Current:
Culture and leisure
Capital outlay:
General
Parks
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
15,305 20,240
120,000 175,310
7,845,448 8,242,583
7,980,753 8,438,133
$ 2,081,403 $ (5,390,258)
Actual
Variance with
Final Budget -
Positive
(Negative)
393,720 $ (127,060)
2,501,495 (25,600)
2,895,215 (152,660)
2,605 17,635
26,673 148,637
4,509,206 3,733,377
4,538,484 3,882,014
(1,643,269) $ 3,746,989
9,343,596
.~ , ., , ~,
84
~ ~ ~ ,7~
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Public Art Fees Capital Projects Fund -Major Fund
For the year ended June 30, 2008
Budgeted Amounts
Original Final
REVENUES:
Interest
Developer fees
Total revenues
$ 18,131 $ 18,131 $ 10,767 $ (7,364)
125,000 125,000 125,000 -
143,131 143,131 135,767 (7,364)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
EXPENDITURES:
Capital outlay:
General
Total expenditures
Net change in fund balance
FUND BALANCE:
250,000 250,000
- 250,000
- 250,000
135,767 $ 242,636
Beginning of year
End of year
$ (106,869) $
(106,869)
243,856
$ 379,623
85
~~' X71
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Fire Impact Fees Capital Projects Fund -Major Fund
For the year ended June 30, 2008
REVENUES:
Developer fees
Total revenues
Budgeted Amounts
Original Final
$ 260,825 $ 149,603 $
260,825 149,603
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
28,309 $ (121,294)
28,309 (121,294)
EXPENDITURES:
Current:
General Government
Total expenditures
Net change in £und balance
FUND BALANCE:
Beginning of year
End of year
$ 260,825 $ 149,603
73,568 (73,568)
73,568 (73,568)
(45,259) $ (194,862)
(1,791,762)
$ (1,837,021)
86
~°l~'>~~
NON-MAJOR
GOVERNMENTAL FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major
capital projects) that are legally restricted to expenditures for specific purposes.
Special Criminal Activity Fund - Established to account for receipt of funds derived from asset
forfeitures.
Vehicle Abatement Fund - Established to account for the use of funds received from vehicle registration of
Dublin residents for the towing of abandoned vehicles in city limits.
Supplemental Law Enforcement (SLESjCOPS) -Established to account for police expenditures funded by
a State grant.
Traffic Safety Fund - Established to account for the receipt of traffic fines and traffic safety expenditures.
State Gas Tax Fund - Established to account for receipt of state gasoline taxes and expenditures.
Community Development Block Grant (CDBG) Fund -Used to account for grants and expenditures
related to community development block grants.
TEA 21 (Transportation Equity Act for the 21st Century) -Established to account for the revenue received
~, from the Department of Transportation under the Federal surface transportation programs for highways,
highway safety, and transit.
FEMA Fund - Established to account for expenditures funded with FEMA grants.
Measure B Sales Tax Transportation Fund - Established to account for an Alameda County voter
approved increase in sales tax used for improvements on streets and roads.
State Transportation Improvement - Established to account for grant receipts from the state used for
capital improvements on local streets.
Measure D Recycling Fund -Established to account for the use of funds received which are levied by the
County pursuant to a charter amendment and are provided for recycling and related activities. This fund
also accounts for other locally derived funds for recycling related activities.
Garbage Service Fund - Established to account for the use of funds received which are levied by the
county on behalf of the City for garbage pick-up and removal and recycling services.
~ Local Recycling Fund -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.
~, Measure B Bike and Pedestrian - Established to account for an Alameda County voter approved increase
in sales tax used for bike and pedestrian related projects.
~, s~
~ ~ ~° ~~71
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.~
88
~.
1~3 X1-7)
NON-MAJOR
GOVERNMENTAL FUNDS,
Continued
EMS Fund - Established to account for excise taxes received to fund the costs of providing Emergency
Medical Services.
,„~ Traffic Congestion Relief - Established to account for traffic congestion relief expenditures funded by a
State grant.
,~ Maintenance Districts -Established to account for revenue and related expenditures of lighting and
landscape districts.
:~
89
~®~ ~~ ~
lin
City of Dub
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2008
ASSETS
Cash and investments
Accounts receivable
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
Contract retention payable
Due to other funds
Total liabilities
Fund Balances:
Reserved for:
Recycling programs
Public safety programs
Street maintenance and construction
Health and welfare programs
Capital improvement projects
Total fund balances
Total liabilities and fund balances
Special Revenue Funds
Special Supplemental
Criminal Vehicle Law
Activity Abatement Enforcement Traffic Safety State Gas Tax
$ 41,650 $ 152,140 $ 12 $ 151,923 $ 1,951,086
_ _ - 20,743 189,295
$ 41,650 $ 152,140 $ 12 $ 172,666 $ 2,140,381
$ _ $ - $ 12 $ 19,251 $
_ _ 12 19,251
54,303
54,303
41,650 152,140 - 153,415 -
_ _ _ - 2,086,078
41,650 152,140 - 153,415 2,086,078
$ 41,650 $ 152,140 $ 12 $ 172,666 $ 2,140,381
90
~fls~ l71
•~ Special Revenue Funds
Community Measure B State
Development Sale Tax Transportation Measure D Garbage
Block Grant TEA-21 Transportation Improvement Recycling Service
$ - $ - $ 539,837 $ - $ 384,389 $ -
23,287 110,284 54,565 - 47,497 18,948
$ 23,287 $ 110,284 $ 594,402 $ - $ 431,886 $ 18,948
$ 2,162 $
21,126
68,065 $ 25,619 $ - $
- 2,847 -
42,219 -
110,284 28,466 -
11,507 $ -
- 41,831
11,507 41,831
- - - - 420,379 -
- - 565,936 - _ _
- - - - - (22,883)
- - 565,936 - 420,379 (22,883)
$ 23,288 $ 110,284 $ 594,402 $ - $ 431,886 $ 18,948
(Continued)
"~ 91
~°~~ ~~~
City of Dublin
Combining Balance Sheet
Non-Major Governrnental Funds, Continued
June 30, 2008
ASSETS
Cash and investments
Accounts receivable
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
Contract retention payable
Due to other funds
Total liabilities
Fund Balances:
Reserved for:
Recycling programs
Public safety programs
Street maintenance and construction
Health and welfare programs
Capital improvement projects
Total fund balances
Total liabilities and fund balances
Special Revenue Funds
Measure B Traffic Highway
Local Bike and Congestion Safety Traffic
Recycling Pedestrian EMS Relief Reduction Bond
$ 538,166 $ 383,080 $ 155,289 $ 275,598 $ 44,942
- 18,471 41,796 - -
$ 538,166 $ 401,551 $ 197,085 $ 275,598 $ 44,942
$ - $ - $ 66,850 $ 246,815 $ 44,942
- - - 27,424 -
- - 66,850 274,239 44,942
130,235
_ _ - 1,359 -
538,166 - - - -
- 401,551 - - -
538,166 401,551 130,235 1,359 -
$ 538,166 $ 401,551 $ 197,085 $ 275,598 $ 44,942
92
~0~~ 171
Special Revenue Funds
Maintenance Districts Total
Dougherty Santa Rita Dublin Street Non-Major
Street Stagecoach Landscape & Assessment Lighting Governmental
Lighting Landscape Lighting District 97-1 Assessment Funds
$ 143,085 $ 51,897 $ 72,599 $ 209,047 $ 197,229 $ 5,291,969
3,039 754 301 1,051 1,605 531,636
$ 146,124 $ 52,651 $ 72,900 $ 210,098 $ 198,834 $ 5,823,605
$ 7,343 $ 7,068 $ 4,794 $ 48,452 $ 6,599 $ 613,782
_ _ _ _ - 30,271
_ _ _ _ - 105,176
7,343 7,068 4,794 48,452 6,599 749,229
_ _ _ _ - 420,379
_ _ _ _ _ 477,440
138,781 45,583 68,106 161,646 192,235 3,259,724
_ _ _ _ - 515,283
_ _ _ _ - 401,551
138,781 45,583 68,106 161,646 192,235 5,074,377
$ 146,124 $ 52,651 $ 72,900 $ 210,098 $ 198,834 $ 5,823,606
(Concluded)
93
City of Dublin
leg
~~~
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2008
Special Revenue Funds
Special Supplemental
Criminal Vehicle Law
Activity Abatement Enforcement Traffic Safety State Gas Tax
REVENUES:
Property taxes $ - $ _ $ _ $ _ $ _
Taxes other than property _ _ _ _ _
Intergovernmental - 31,695 100,000 - 779,583
Charges for service _ _ _ ~ _ _
Interest 1,604 6,188 354 7,186 86,881
Fines and forfeitures - - - 203,976 -
Other revenue 12,758 - _ _ _
Special assessments
Total revenues 14,362 37,883
EXPENDITURES:
Current:
Public safety 2,248 50
Highways and streets - _
Health and welfare - _
Community development - _
Capital outlay:
Health and welfare - _
Parks _ _
Streets _ _
Total expenditures 2,248 50
REVENUES OVER
(UNDER) EXPENDITURES 12,114 37,833
OTHER FINANCING SOURCES (USES):
Transfer in - _
Transfer out - (18,044)
Total other financing sources (uses) - (18,044)
NET CHANGE IN FUND BALANCES 12,114 19,789
FUND BALANCES:
Beginning of year 29,536 132,351
End of vear $ 41.650 $ 152.140
100,354 211,162 866,464
100,354 222,402 36,881
- - 271,408
- - 6,000
100,354 222,402 1,004,558
- (11,240) (138,094)
- 164,655 2,224,172
94
~ n~ ~~7/
Special Revenue Funds
Community Measure B State
Development Sales Tax Transportation Measure D Garbage
Block Grant TEA 21 Transportation Improvement Recycling Service
,~
- - 342,894 - - -
70,471 283,068 - - 223,927 -
- - - - - 1,497,237
- - 15,151 - 14,155 6,821
~, - - - - - -
- - - - 21,741 -
70,471 283,068 358,045 - 259,823 1,504,058
,,:,
-
- -
-
6,408
-
~' 52,945 - - - 88,983 1,513,685
~+ - - - - - -
- - - 61,729 -
10,926 283,068 12,701 - - -
63,871 283,068 12,701 - 157,120 1,513,685
6,600 - 345,344 - 102,703 (9,627)
-
(6,600) - -
- - -
(52,884) -
- -
-
(6,600) - - (52,884) - -
~r
- - 345,344 (52,884) 102,703 (9,627)
- - 220,592 52,884 317,676 (13,256)
$ - $ - $ 565,936 $ - $ 420,379 $ (22,883)
(Continued)
95
~~~ 1~~
Ci of Dublin
tY ~
Combining Statement of Revenues, Expenditures and Cha nges in Fun d Balances ~,:
Non-Major Governmental Funds, Continued
For the year ended June 30, 2008
Special Revenue Funds
er
Measure B Traffic Highway
Local Bike and Congestion Safety Traffic
Recycling Pedestrian EMS Relief Reduction Bond ~
REVENUES: ~•
Property taxes $ - $ - $ 130,610 $ - $ -
Taxes other than property -
115,535
-
-
- e
Intergovernmental - - 161,723 - 701,759
Charges for service - - - - -
Interest 21,878 13,275 6,157 12,765 3,972 'R'
Fines and forfeitures - - - - - «..
Other revenue - - - - -
Special assessments - - - - -
Total revenues 21,878 128,810 298,490 12,765 705,731
EXPENDITURES:
Current:
Public safety - - 287,483 - -
Highways and streets - - - - -
Health and welfare - - - - -
Community development - - - - -
Capital outlay: ""
Health and welfare - - - - -
Parks - - - - -
Streets - 2,018 - 304,424 705,731 ,~
Total expenditures - 2,018 287,483 304,424 705,731 w
REVENUES OVER ~^'
(UNDER) EXPENDITURES 21,878 126,792 11,007 (291,659) -
OTHER FINANCING SOURCES (USES):
.,
Transfer in - - - - -
Transfer out - - - - -
Total other financing sources (uses) - - - - - '~
NET CHANGE IN FUND BALANCES 21,878 126,792 11,007 (291,659) -
FUND BALANCES:
Beginning of year 516,288 274,759 119,228 293,018 -
End of year $ 538,166 $ 401,551 $ 130,235 $ 1,359 $ -
..
96
ii l l7/
~~
Special Revenue Funds
Maintenance Districts Total
Dougherty Santa Rita Dublin Street Non-Major
Street Stagecoach Landscape & Assessment Lighting Governmental
Lighting Landscape Lighting District 97-1 Assessment Funds
~,
$ _ $
_
$ _ $
_
$ _
$ 130,610
_ _ _ _ - 458,429
_ _ _ - - 2,352,226
_ _ _ _ - 1,497,237
5,499 2,182 3,678 8,804 6,577 223,127
_ _ _ _ - 203,976
_ _ _ 57g - 35,077
254,169 65,474 96,146 229,716 152,015 797,520
-= 259,668 67,656 99,824 239,098 158,592 5,698,202
232,498 - - - 83,203 965,119
- 70,436 104,301 249,895 - 702,448
,~ _ _ _ _ - 1,655,613
4,132 2,758 2,680 2,752 3,711 22,033
-
_ -
_ -
_ -
_ -
- -
61,729
_ - - - - 2,009,137
236,630 73,194 106,981 252,647 86,914 5,416,079
23,038 (5,538) (7,157) (13,549) 71,678 282,123
~
,~ -
_ -
_ -
_ -
_ -
_ -
(77,528)
_ _ _ _ - (77,528)
23,038 (5,538) (7,157) (13,549) 71,678 204,595
~ 115,743 51,121 75,263 175,195 120,557 4,869,782
,
$ 138,781 $
45,583 $
68,106
$ 161,646 $
192,235
$ 5,074,377
(Concluded)
97
Il~~o 17/
This page intentionally left blank.
98
~ ~ `~ ' ~ ~/
~' City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Special Criminal Activity Special Revenue Fund
For the year ended June 30, 2008
Variance with
Final Budget -
~' Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
a
Interest $ 1,182 $ 1,182 $ 1,604 $ 422
Other revenue - - 12,758 12,758
~` Total revenues 1,182 1,182 14,362 13,180
EXPENDITURES:
Current:
Public safety 4,550 4,550 2,248 2,302
Total expenditures 4,550 4,550 2,248 2,302
Net change in fund balance $ (3,368) $ (3,368) 12,114 $ 15,482
FUND BALANCE:
Beginning of year 29,536
End of year $ 41,650
99
~ ~ `~ ~ ~l
Cify of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Vehicle Abatement Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Intergovernmental
Interest
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING (USES):
Transfers out
Total other financing
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 29,000 $
6,960
35,960
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
29,000 $ 31,695 $ 2,695
6,960 6,188 (772)
35,960 37,883 1,923
260 260 50 210
260 260 50 210
35,700 35,700 37,833 2,133
$ 35,960 $
- (18,044) (18,044)
- (18,044) (18,044)
35,960 19,789 $ (16,171)
132,351
100
Ci of Dublin ~ 1 ~ ~ (~ ~
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Supplemental Law Enforcement Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Intergovernmental
Interest
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final _
$ 100,000 $ 100,000 $
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
100,000 $ -
100,004 100,004 100,354 350
100,000 100,354 100,354 -
100,000 100,354 100,354 -
$ 4 $ (350) - $ 350
$ -
101
' of Dublin I 1 ~ ~~ ~ ~ I
C1~7
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Traffic Safety Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Interest
Fines and forfeitures
Total revenues
Budgeted Amounts
Original Final
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
7,186 $
203,976 1,424
8,976
211,162 10,400
EXPENDITURES:
Current:
Public safety
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
$ 5,762 $ 5,762 $
195,000 195,000
200,762 200,762
231,100 231,100 222,402 8,698
231,100 231,100 222,402 8,698
$ (30,338) $ (30,338) (11,240) $ 19,098
164,655
$ 153,415
102
~' City of Dublin
R Schedule of Revenues, Expenditures and Changes in Fund Balances -
~ Budget and Actual -State Gas Tax Special Revenue Fund
For the year ended June 30, 2008 11~~~~/
Variance with
Final Budget -
~` Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
,~ REVENUES:
Intergovernmental
w $ 830,628 $ 830,628 $ 779,583 $ (51,045)
Interest 95,842 95,842 86,881 (8,961)
Total revenues 926,470 926,470 866,464 (60,006)
EXPENDITURES:
Current:
Public safety 48,425 48,425 36,881 11,544
,w Highways and streets 398,986 398,986 271,408 127,578
Community development 6,000 6,000 6,000 -
Capital outlay:
<, Streets 689,600 926,714 690,269 236,445
Total expenditures 1,143,011 1,380,125 1,004,558 375,567
Net change in fund balance $ (216,541) $ (453,655) (138,094) $ 315,561
FUND BALANCE:
Beginning of year 2,224,172
End of year $ 2,086,078
103
lJ~ ~~~
Cify of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - CDBG Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Current:
Health and welfare
Capital outlay:
Streets
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 68,702 $ 70,471 $ 70,471 $ -
51,176 52,945 52,945 -
10,853 10,926 10,926 -
62,029 63,871 63,871 -
6,673 6,600 6,600 -
- - (6,600) (6,600)
- - (6,600) (6,600)
$ 6,673 $ b,600 - $ (6,600)
104
r
,.,
1 I ~ ~~ 171
City of Dublin ~
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -T.E.A. Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Capital outlay:
Streets
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 389,000 $ 389,000 $
389,000 389,000
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
283,068 $ (105,932)
283,068 (105,932)
389,000 389,000 283,068 105,932
389,000 389,000 283,068 105,932
$ - $ -
- $ -
$ -
105
~~ ~ ~~ ~
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Measure B Sales Tax Transportation Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Taxes other than property
Interest
Total revenues
EXPENDITURES:
Capital outlay:
Streets
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 348,000 $
14,153
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
348,000 $ 342,894 $ (5,106)
14,153 15,151 998
362,153 358,045 (4,108)
151,220 121,035
151,220 121,035
$ 210,933 $ 241,118
12,701 108,334
12,701 108,334
345,344 $ 104,226
220,592
$ 565,936
106
City of Dublin _ -a ~ ~ l°~~
Schedule of Revenues, Expenditures and Changes in Fund Balances -
~, Budget and Actual -State Transportation Improvement Special Revenue Fund
For the year ended June 30, 2008
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
~, REVENUES:
Intergovernmental $ - $ - $ - $ -
Total revenues - - - -
OTHER FINANCING (USES):
Transfers out - - (52,884) (52,884)
Total other financing (uses) - - (52,884) (52,884)
Net change in fund balance $ - $ - (52,884) $ (52,884)
FUND BALANCE:
Beginning of year 52,884
End of year $ -
,~
M
.~ 107
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Measure D Recycling Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Intergovernmental
Interest
Other revenue
Total revenues
EXPENDITURES:
Current:
Highways and streets
Health and welfare
Capital outlay:
Culture and leisure
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 257,300 $ 257,300 $
35,504 35,504
9,000 9,000
301,804 301,804
6,038
102,489
170,577
6,408 6,408
132,489 88,983
109,822 61,729
$ 131,227 $ 53,085
108
Ac
laa '~
~ ~ ~~' b
~.:
Variance with
Final Budget -
tual Positive '"'
punts (Negative) ~
223,927 $ (33,373)
14,155 (21,349) !~
21,741 12,741
259,823 (41,981)
.~
~,
r
~:
43,506
48,093
157,120 91,599
102,703 $ 49,618 ~,,
317,676 "
420,379 .~
.~
~.
~ a~ ~ 7/
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Garbage Service Special Revenue Fund
For the year ended June 30, 2008
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services $ 1,513,762 $ 1,513,762 $ 1,497,237 $ (16,525)
Interest - - 6,821 6,821
r Total revenues 1,513,762 1,513,762 1,504,058 (9,704)
EXPENDITURES:
i
~
~N
Current:
` Health and welfare 1,531,001 1,531,001 1,513,685 17,316
:. Total expenditures 1,531,001 1,531,001 1,513,685 17,316
Net change in fund balance $ (17,239) $ (17,239) (9,627) $ 7,612
FUND BALANCE:
Beginning of year (13,256)
_W
End of year
$
(22,883)
109
City of Dublin ~~~~ ~~~
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Local Recycling Program Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Interest
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 24,594 $ 24,594 $
$ 24,594 $
24,594
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
A
21,878 $ (2,716)
~u
21,878 $ (2,716)
516,288
110
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Measure B Bike and Pedestrian Special Revenue Fund
For the year ended June 30, 2008
fas~l~~
REVENUES:
Taxes other than property
Interest
Total revenues
EXPENDITURES:
Capital Outlay
Streets
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)
$ 112,862 $ 112,862 $ 115,535 $ 2,673
14,392 14,392 13,275 (1,117)
56,630 56,630
56,630 56,630
$ 70,624 $ 70,624
2,018 54,612
126,792 $ 56,168
274,759
111
~~~ ~~~ w
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances - „~
Budget and Actual -EMS Special Revenue Fund
For the year ended June 30, 2008
~.
~:
Variance with
Final Budget -
Budgeted Amounts Actual Positive `"'
Original Final Amounts (Negative) ~
REVENUES:
Property taxes $ 125,760 $ 125,760 $ 130,610 $ 4,850
Intergovernmental 161,723 161,723 161,723 - '"P
Interest - - 6,157 6,157
Total revenues 287,483 287,483 298,490 11,007
..~
EXPENDITURES: "'
Current: .*~
Public safety 287,483 287,483 287,483 -
Total expenditures 287,483 287,483 287,483 -
Net change in fund balance $ - $ - 11,007 $ 11,007 ,~
FUND BALANCE: "~"
Beginning of year 119,228 `~'
End of year $ 130,235
~.
.~
.,
..
112
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Traffic Congestion Relief Special Revenue Fund
For the year ended June 30, 2008
Budgeted Amounts
Original Final
REVENUES:
Interest
Total revenues
EXPENDITURES:
Capital Outlay
Streets
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
17,856
17,856
274,239
274,239
~a~~~71
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
12,765 $ (5,091)
12,765 (5,091)
$ (256,383) $ (286,568) (291,659) $
293,018
(5,091)
113
l a ~ / .~
City of Dublin ~ ('~~
Schedule of Revenues, Expenditures and Changes in Fund Balances - ,..
Budget and Actual -Highway Safety Traffic Reduction Bond (Prop 1B)
a
For the year ended June 30, 2008
REVENUES:
Interest
Intergovernmental
Total revenues
EXPENDITURES:
Capital Outlay
Streets
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ - $ - $
399,431 701,859
- 705,731
705,731
$ 399,431 $ (3,872)
114
Variance with ~,,,,
Final Budget -
Actual Positive ~
Amounts (Negative) ~,
3,972 $ 3,972
701,759 (100) ~
705,731 3,872 ~"
..
705,731 -
705,731 - K
- $ 3,872 '"
~,
r.°
.~,
s
K:
wF
a
~„
..
.~
~{
~:
l a~ 1 ~ ~
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Street Lighting Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Interest
Other revenue
Special assessments
Total revenues
EXPENDITURES:
Current:
General government:
Public safety
Highways and streets
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)
$ 4,712 $ 4,712 $ 5,499 $ 787
5,000 5,000 - (5,000)
255,152 255,152 254,169 (983)
264,864 264,864 259,668 (5,196)
273,028 273,028
100 100
4,100 4,132
277,228 277,260
$ (12,364) $ (12,396)
232,498 40,530
- 100
4,132 -
236,630 40,630
23,038 $ 35,434
115,743
$ 138,781
115
City of Dublin ~ `3b ~ / ~~
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Stagecoach Landscape Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Interest
Special assessments
Total revenues
EXPENDITURES:
Current:
Highways and streets
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)
$ 2,006 $ 2,006 $ 2,182 $ 176
66,070 66,070 65,474 (596)
68,076 68,076 67,656 (420)
77,167 77,167 70,436 6,731
2,600 2,600 2,758 (158)
79,767- 79,767 73,194 6,573
$ (11,691) $ (11,691) (5,538) $ 6,153
51,121
116
City of Dublin
- Schedule of Revenues, Expenditures and Changes in Fund Balances -
} Budget and Actual -Dougherty Landscape and Lighting Special Revenue Fund
For the year ended June 30, 2008
~a~~ ~ ~~
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 3,631 $ 3,631 $ 3,678 $ 47
Special assessments 96,457 96,457 96,146 (311)
Total revenues 100,088 100,088 99,824 (264)
EXPENDITURES:
Current:
Highways and streets 102,564 104,331 104,301 30
Community development 2,600 2,680 2,680 -
Total expenditures 105,164 107,011 106,981 30
Net change in fund balance $ (5,076) $ (6,923) (7,157) $ (234)
FUND BALANCE:
Beginning of year 75,263
End of year $ 68,106
,~
117
~~ /~~
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -Santa Rita Assessment District 97-1 Special Revenue Fund
For the year ended June 30, 2008
REVENUES:
Interest
Other revenue
Special assessments
Total revenues
EXPENDITURES:
Current:
Highways and streets
Community development
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 8,563 $ 8,563 $
224,133 224,133
232,696 232,696
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
8,804 $ 241
578 -
229,716 5,583
239,098 5,824
279,857 279,857 249,895 29,962
2,600 2,752 2,752 -
282,457
282,609 252,647
$ (49,761) $ (49,913) (13,549) $
175,195
29,962
36,364
118
Ci of Dublin f~`3 C7~
t3'
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual -East Dublin Street Lighting Assessment Special Revenue Fund
For the year ended June 30, 2008
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
~, REVENUES:
Interest $ 7,194 $ 7,194 $ 6,577 $ (617)
Special assessments 143,755 143,755 152,015 8,260
'~ Total revenues 150,949 150,949 158,592 7,643
EXPENDITURES:
Current:
Public Safety 103,372 103,372 83,203 20,169
„„ Community development 3,600 3,711 3,711 -
Tota1 expenditures 106,972 107,083 86,914 20,169
Net change in fund balance $ 43,977 $ 43,866 71,678 $ 27,812
FUND BALANCE:
Beginning of year 120,557
End of year $ 192,235
,,~
119
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120
,~.
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City on a cost reimbursement basis. The
City has established five of these types of funds: Equipment Replacement, Fire Equipment and Station
Replacement, Building Replacement, Retiree Health Care and PERS Side Fund.
121
City of Dublin ~~ ~ ~ ~~ 7 j
Combining Statement of Net Assets
Internal Service Funds
June 30, 2008
Fire Equipment
Equipment and Station Building Retiree PERS
Replacement Replacement Replacement Health Care Side Fund Total
ASSETS
Current assets:
Cash and investments $ 3,145,079 $ 1,978,271 $ 2,058,264 $ 124,488 $
Receivables:
Accounts 11,622 - - _
Prepaid items - - _ _
Total current assets 3,156,701 1,978,271 2,058,264 124,488
Noncurrent assets:
Land - - 6,842,037 -
Construction in progress - - 6,590,999 -
Buildings and improvements - - 50,818,224 -
Machinery and equipment 2,321,498 3,027,205 448,980 -
Less: accumulated depreciation (1,874,385) (1,754,603) (15,113,018)
Total noncurrent assets 447,113 1,272,602 49,587,222
Total assets 3,603,814 3,250,873 51,645,486
LIABILITIES
Current liabilities:
Accounts payable 24,804 (1,544) -
Total current liabilities 24,804 (1,544) -
Noncurrent liabilities:
Net OPEB obligation - - _
Advances from other funds - - -
T t 1 t 1~ bil~ti
124,488
- $ 7,306,102
- 11,622
- 7,317,724
- 6,842,037
- 6,590,999
- 50,818,224
- 5,797,683
- (18,742,006)
- 51,306,937
23,260
23,260
(211,418) - (211,418)
o a noncurren is i es - - - ~ui,4ia~ J,Lb4,V/3
Total liabilities 24,804 (1,544) - (211,418) 3,264,073
NET ASSETS
3,052,655
3,075,915
Invested in capital assets 447,113 1,272,602 49,587,222 - - 51,306,937
Restricted for retiree health care 211,418 211,418
Unrestricted 3,131,897 1,979,815 2,058,264 124,488 (3,264,073) 4,030,391
Total net assets $ 3,579,010 $ 3,252,417 $ 51,645,486 $ 335,906 $ (3,264,073) $ 55,548,746
122
~ 3~ ~ ~/
~' Ci of Dublin
Combining Statement of Revenues, Expenses and Changes in Net Assets
Internal Service Funds
For the year ended June 30, 2008
Fire Equipment
Equipment and Station Building Retiree PERS
,.
Replacement
Replacement
Replacement
Health Care
Side Fund
Total
OPERATING REVENUES:
Charges for services $ 791,179 $ 227,785 $ 127,219 $ 634,207 $ 305,681 $ 2,086,071
Other revenue 171,099 37,995 - 205,752 - 414,846
,~ Total operating revenues 962,278 265,780 127,219 839,959 305,681 2,500,917
OPERATING EXPENSES:
~ Supplies and services 397,689 5,083 - - - 402,772
PERS retirement - - - - - _
OPEB expenses - - - 511,000 - 511,000
Other - - - - _ _
Depreciation 197,166 184,662 1,742,396 - - 2,124,224
Total operating expenses 594,855 189,745 1,742,396 511,000 - 3,037,996
Operating income (loss) 367,423 76,035 (1,615,177) 328,959 305,681 (537,079)
NONOPERATING REVENUES:
Interest income 122,272 76,190 81,178 6,947 - 286,587
Total NON operating revenues 122,272 76,190 81,178 6,947 - 286,587
NONOPERATING EXPENSES:
,:~ Capital assets purchases - - - - _ _
Total NON operating expenses - - - - _ _
,w Non operating income (loss) 122,272 76,190 81,178 6,947 - 286,587
Capital contribution - - 4,844,496 - - 4,844,496
Change in net assets 489,695 152,225 3,310,497 335,906 305,681 4,594,004
NET ASSETS:
Beginning of year, as restated 3,089,315 3,100,192 48,334,989 - (3,569,754) 50,954,742
~, End of year $ 3,579,010 $ 3,252,417 $ 51,645,486 $ 335,906 $ (3,264,073) $ 55,548,746
123
City of Dublin
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2008
i~~ ~ `!~
~~ ~,
Fire Equipment
Equipment and Station Building Retiree PERS
Replacement Replacement Replacement Health Care Side Fund Total
CASH FLOWS FROM OPERATING
ACTIVITIES:
Receipts from customers
Payments to suppliers and service providers
Other
Net cash provided (used) by
operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Payments on advances from other funds
Net cash provided (used) for noncapital
financing activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING
ACTIVITIES:
Capital assets
Net cash provided (used) for capital
and related financing activities
CASH FLOWS FROM
INVESTING ACTIVITIES:
Interest received
Net cash provided (used) for
investing activities
Net increase (decrease) in
cash and cash equivalents
CASH AND EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING
ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to cash flows from operating activities:
Depreciation
Net effect of changes in:
Accounts receivable
Prepaid items
Accounts payable
Net OPEB obligation
Net cash provided (used) by
operating activities
NONCASH CAPITAL AND RELATED
FINANCING TRANSACTIONS:
Loss on disposal of capital assets
Total noncash capital and
related financing transactions
$ 781,867 $ 227,785 $ 127,219 $ 516,666 $ 305,681 $ 1,959,218
(396,570) (6,627) - (834,334) - (1,237,531)
171,099 37,995 - 205,752 - 414,846
556,396 259,153 127,219 (111,916) 305,681 1,136,533
- - - - (305,681) (305,681)
- - - - (305,681) (305,681)
(259,549) (37,995) - - - (297,544)
(259,549) (37,995) - - - (297,544)
122,272 76,190 81,178 6,947 - 286,587
122,272 76,190 81,178 6,947 - 286,587
419,119 297,348 208,397 (104,969) - 819,895
2,725,960 1,680,923 1,849,867 229,457 - 6,486,207
$ 3,145,079 $ 1,978,271 $ 2,058,264 $ 124,488 $ - $ 7,306,102
$ 367,423 $ 76,035 $ (1,615,177) $ 328,959 $ 305,681 $ (537,079)
197,166 184,662 1,742,396 - - 2,124,224
m:
(9,312) - - - - (9,312)
3,967 - - - - 3,967 ~`
(2,848) (1,544) - - - (4,392)
- - - (440,875) - (440,875)
sue,
$ 556,396 $ 259,153 $ 127,219 $ (111,916) $ 305,681 $ 1,136,533
$ - $ - $ 4,844,496 $ - $ - $ 4,844,496
a
$ - $ - $ 4,844,496 $ - $ $ 4,844,496 ~„
124
/ 3q
AGENCY FUND
Agency Funds are used to account for assets held by the City in a fiduciary capacity for individuals,
governmental entities and others. These funds carry out the specifications of trust indentures, ordinance
or other regulations.
Dublin Boulevard Extension Assessment District Fund - To account for the special assessment established
to fund the improvements to Dublin Boulevard.
125
City of Dublin ` ~~ +~~
Statement of Changes in Net Assets
Agency Fund
For the fiscal year ended June 30, 2008
Dublin Boulevard
Extension Assessment District
Assets:
Cash and investments
Restricted cash and investments
Interest Receivable
Total assets
Liabilities:
Due to bondholders
Total liabilities
Balance Balance
July 1, 2007 Additions Deletions June 30, 2008
$ 219,887 $ 213,880 $ (236,884) $ 196,883
171,889 157,397 - 329,286
666 378 (666) 378
$ 392,442 $ 371,655 $ (237,550) $ 526,547
$ 392,442 $ 371,655 $ (237,550) $ 526,547
$ 392,442 $ 371,655 $ (237,550) $ 526,547
126
~~' ~ ~~i
STATISTICAL SECTION (Unaudited)
This part of the City of Dublin's comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the government's overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the government's
financial performance and well being have changed over time.
Revenue Capacity
~" These schedules contain information to help the reader assess the government's most significant local
revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the government's
current levels of outstanding debt and the government's ability to issue 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 government's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government provides and
the activities it performs.
127
City of Dublin
General Governmental Activities Tax Revenues by Source and
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
Fiscal
Year Property Transient
Ended Property Sales Franchise Transfer Occupancy
June 30 Tax Tax Tax Tax Tax Total
1999 4,866,093 8,859,652 849,959 282,733 389,664 $15,248,101
2000 5,991,814 11,741,563 963,070 370,946 808,688 $19,876,081
2001 7,174,290 13,204,429 1,313,087 575,282 1,010,799 $23,277,887
2002 8,885,812 13,093,676 1,385,816 434,832 810,220 $24,610,356
2003 10,142,650 13,573,607 1,394,953 379,089 717,083 $26,207,382
2004 11,422,308 14,297,705 1,505,435 571,361 664,309 $28,461,118
2005 14,167,079 14,517,465 1,559,900 831,003 663,632 $31,739,079
2006 16,891,670 14,807,059 1,789,356 690,404 727,612 $34,906,101
2007 20,266,216 14,025,869 2,111,281 596,533 800,773 $37,800,672
2008 22,229,039 14,225,661 2,221,930 493,175 789,396 $39,959,201
Source: City of Dublin Finance Department
Notes: The City experienced a dramatic decline in Transient Occupancy Taxes following the September 11, 2001 national
tragedy and the down turn that occurred in the San Francisco Bay Area economy that occurred during 2001-2005.
The City has experienced significant growth in most other types of taxes due to significant residential and commercial
growth that has occurred during the last few years.
128
City of Dublin
Net Assets by Component
Last Six Fiscal Years
(accrual basis of accounting)
~y~ ~~
2003 2004 2005 2006 2007 2008
Governmental activities:
Invested in capital assets,
net of related debt $ 61,016,642 $ 80,050,710 $ 383,667,187 $ 387,888,143 $ 399,631,407 $ 411,192,237
Restricted 34,110,132 37,455,125 45,288,468 48,480,463 45,647,928 50,789,419
Unrestricted 50,413,267 50,943,803 52,176,440 57,766,785 61,789,687 69,706,077
Total governmental
activities net assets $ 145,540,041 $ 168,449,638 $ 481,132,095 $ 494,135,391 $ 507,069,022 $ 531,687,733
Source: City of Dublin Finance Department
Notes: The City of Dublin implemented GASB34 for the fiscal year ended June 30, 2002. Information prior to the implementation of
GASB34 is not available. The significant increase in Capital Assets in Fiscal Year 2004-2005 is due to a retroactive valuation
recorded for the City's existing infrastructure in accordance with GASB 34.
129
`~~ l71
City of Dublin
Changes in Net Assets ""
Last Six Fiscal Years
(accrual basis of accounting)
~.
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 ~`
Expenses:
Governmental activities:
General government $ 4,658,653 $ 6,135,344 $ 6,288,645 $ 3,081,581 $ 4,940,586 $ 8,866,758 $ 7,790,286
Public safety 12,449,573 14,026,216 17,135,716 19,047,262 20,314,535 22,306,240 23,282,634
Highways and streets 5,277,778 15,187,872 939,260 19,810,590 13,894,865 17,182,208 20,196,496
Health and welfare 1,193,542 1,349,228 3,755,564 1,722,224 1,887,417 1,816,800 1,689,353
Culture and leisure services 3,901,126 4,730,430 1,603,494 8,954,495 10,074,239 14,080,040 12,200,759
Community development 4,557,634 5,334,646 6,113,171 7,210,558 8,553,887 11,157,417 8,276,993
Total governmental activities expenses 32,038,306 46,763,736 35,835,850 59,826,710 59,665,529 75,409,463 73,436,521
Program revenues:
Governmental activities:
Charges for services:
General government 202,732 202,330 2,603 5,198 4,011 208,247 216,334
Public safety 913,612 1,073,145 851,864 1,197,925 1,270,233 2,284,955 1,301,328
Highways and streets 28,021 25,609 2,321,473 2,451,377 2,167,740 745,727 13,794
Health and welfare 978,499 1,033,317 1,558,930 1,541,361 2,092,566 2,483,619 3,301,877
Culture and leisure services 848,701 1,009,572 1,252,866 1,617,013 1,751,965 1,508,752 1,722,627
Community development 4,803,099 5,182,361 6,135,027 6,969,366 6,629,383 9,432,854 5,599,417
Operating grants and contributions 1,503,109 1,824,388 239,094 169,906 238,053 2,813,079 2,747,497
Capital grants and contributions 23,150,710 19,424,093 15,364,732 42,585,906 18,900,426 25,973,730 37,393,930
Total governmental activities
program revenues 32,428,483 29,774,815 27,726,589 56,538,052 33,054,377 45,450,963 52,296,804
Net revenues (expenses): $ 390,177 $ (16,988,921) $ (8,109,261) $ (3,288,658) $ (26,611,152) $ (29,958,500) $ (21,139,717)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 9,447,544 10,783,414 11,422,308 14,167,079 16,891,670 20,266,216 22,229,039
Sales tax 12,813,111 13,193,407 13,940,263 14,152,987 14,363,863 14,025,869 14,225,661
Other taxes 2,630,868 2,491,125 2,865,226 3,181,939 3,343,943 3,508,587 3,504,501
Motor vehicle tax, unrestricted 1,940,341 2,072,440 1,682,152 413,075 856,766 261,276 197,245
Investment income, unrestricted 2,127,156 1,710,903 799,008 2,704,647 2,505,911 4,053,187 4,399,908
Other general revenues 511,652 398,413 309,901 199,233 280,386 1,109,734 1,202,074
Transfers - - - - "
TotalQovernmentalactivities 29,470,672 30,649,702 31,018,858 34,818,960 38,242,539 43,224,869 45,758,428
Changes in net assets $ 29,860,849 $ 13,660,781 $ 22,909,597 $ 31,530,302 $ 11,631,387 $ 13,266,369 $ 24,618,711 !"
Source: City of Dublin Finance Department
Notes: The City of Dublin implemented GASB34 for the fiscal year ended June 30, 2002. Information prior to the implementation of
GASB34 is not available.
130 °`
li ~ `-'~ ~ 1 ~ I
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131
~ ~~~ ~~~
City of Dublin
Fund Balances of Governmental Funds
Last Ten Fiscal Years ,~,
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved, designated for:
Economic Uncertainty
Capital improvements
Affordable Housing
Compensated Absences
Fire Retiree Medical
Investment Market Value Adjustment
Authorized expenditures
Unreserved, undesignated
Total general fund
All Other Governmental Funds
Reserved
Unreserved, designated, reported in:
Special revenue funds
Capital projects funds
Undesignated
Total all other governmental funds
Total All Governmental Funds
~,.
1999 2000 2001 2002 *~
$ 67,027 $ 73,144 $ 65,175 $ 75,221
1,369,133 1,369,133 1,369,133 1,369,133
- 2,449,955 10,496,927 9,710,107
- - - 626,360
15,631,867 21,019,752 22,858,588 27,545,240
$ 17,068,027 $ 24,911,984 $ 34,789,823 $ 39,326,061 ~
$ 15,638,953 $ 23,366,124 $ 30,722,073 $ 43,279,073
(6,053) (4,142) - _
$
15,632,900
$
23,361,982
$
30,722,073
$
43,279,073 ~
$ 32,700,927 $ 48,273,966 $ 65,511,896 $ 82,605,134
~:
Source: City of Dublin Finance Department
w-
Note: All Other Governmental Funds includes the City's Major and Non Major Capital Project and Special '~'
Revenue Funds, excluding General Fund.
,,
~.
132
,,.
2003 2004 2005 2006 2007 2008
$ 529,811 $ 1,896,575 $ 2,275,433 $ 2,080,678 $ 5,741,942 $ 5,623,014
1,651,965 2,719,008 2,970,721 2,970,720 2,970,722 2,970,722
8,089,385 6,400,290 6,572,591 5,985,440 4,258,539 8,884,334
- 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
744,041
500,000
1,508,906
33,665,113 32,581,785 32,971,221 38,860,039 44,328,550 42,181,292
$ 43,936,274 $ 44,597,658 $ 45,789,966 $ 50,896,877 $ 58,299,753 $ 63,412,309
$ 34,665,390 $ 37,395,125 $ 44,948,468 $ 48,140,467 $ 43,485,046 $ 50,789,419
(1,075,338) (1,810,979) (2,202,289) (1,893,598) (1,791,762) (1,837,021)
$ 33,590,052 $ 35,584,146 $ 42,746,179 $ 46,246,869 $ 41,693,284 $ 48,952,398
$ 77,526,326 $ 80,181,804 $ 88,536,145 $ 97,143,746 $ 99,993,037 $ 112,364,707
133
/~~~ 1~~
City of Dublin
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
Revenues:
Property taxes
Taxes other than property
Intergovernmental
Licenses and permits
Charges for services
Investment income
Use of property
Fines and forfeitures
Developer fees
Special assessments
Other revenues
Total revenues
Expenditures
Current:
General government
Public safety
Highways and streets
Health and welfare
Culture and leisure services
Community development
Capital outlay:
General
Health and welfare
Community improvements
Parks
Streets
Debt service:
Principal
Total expenditures
Excess (deficiency of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
1999 2000
$ 4,866,093 5,991,816
10,458,693 13,962,982
2,633,035 3,056,557
2,472,217 3,897,965
4,189,973 4,041,472
1,372,152 1,375,317
90,539 85,831
126,734 197,914
2,257,955 10,337,149
253,175 318,355
276,065 767,795
28, 996, 631 44, 033,153
2001 2002
7,174,290 $ 8,885,812
16,185,183 15,650,789
4,129,090 4,702,126
3,028,655 2,327,251
4,486,440 5,330,051
2,725,077 3,743,415
114,614 85,937
242,363 267,214
8,882,375 19,685,682
384,649 431,564
2,736,852 526,716
50,089,588 61,636,557
3,754,145 2,274,914 3,085,725 3,929,919
9,145,346 9,892,983 10,960,752 12,523,197
1,240,171 1,504,050 1,445,943 1,546,347
851,699 893,254 1,139,399 1,196,457
2,248,581 2,827,621 3,332,421 4,012,730
3,664,025 4,138,916 4,572,981 4,678,311
197,770 3,171,380 1,367,829 8,900,230
439,204 297,468 1,477,404 353,534
1,967,279 6,537,813 182,710 226,440
1,762,476 3,045,354 9,099,539 6,925,150
251,004 251,004 251,004 251,004
25,521,700 34,834,757 36,915,707 44,543,319
3,474,931 9,198,396 13,173,881 17,093,238
686,293 17,869 16,202 16,785
(12,815,834) (949,510) (2,416,202) (16,785)
(12,129,541) (931,641) (2,400,000) -
$ (8,654,610) $ 8,266,755 $ 10,773,881 $ 17,093,238
1.2% 1.2% 1.0% 0.9%
Source: City of Dublin Finance Department
134
Fiscal Year
2003 2004
2005 2006 2007 2008
$ 10,142,650 $ 11,422,308 14,167,079 16,891,670 20,266,213 22,229,039
16,064,732 17,038,810 17,572,000 18,014,431 17,967,499 18,188,593
11,412,577 4,942,167 3,312,079 2,593,336 2,845,936 3,431,314
2,421,885 3,090,992 3,520,141 3,142,223 2,572,069 1,784,644
5,680,902 5,789,970 6,623,303 7,090,105 9,476,984 8,101,935
2,709,459 857,734 2,948,612 2,859,433 5,840,949 6,101,736
139,019 130,741 125,835 123,154 203,240 335,151
274,284 272,153 292,658 340,336 342,098 360,496
10,195,565 13,455,274 14,361,337 17,018,274 8,618,271 18,226,041
501,424 593,201 744,100 645,230 716,144 797,520
672,895 1,152,096 954,949 826,715 960,534 2,497,249
60,215,392 58,745,446 64,622,093 69,544,907 69,809,937 82,053,718
4,363,241 6,193,881 6,535,408 4,983,006 5,619,088 5,590,247
13,948,110 17,222,501 19,163,929 20,542,375 22,148,312 23,629,954
1,850,944 2,072,806 2,272,310 2,536,127 2,726,599 2,719,532
1,352,083 3,762,260 1,734,787 1,906,950 1,626,197 1,706,918
4,611,564 5,098,102 5,377,134 5,948,563 6,874,596 7,207,896
5,399,648 6,363,727 7,404,619 8,199,933 8,173,711 8,335,105
12,574,726 2,170,910 1,250,772 666,160 377,026 411,293
_ _ _ - 75,526 -
478,309 734,113 462,751 838,618 95,672 218,058
2,370,369 5,425,790 9,237,426 10,189,487 10,711,807 8,820,229
18,345,206 7,045,878 2,828,616 7,102,450 5,532,110 11,042,816
65,294,200 56,089,968 56,267,752 62,913,669 63,960,644 69,682,048
(5,078,808) 2,655,478 8,354,341 6,631,238 5,849,293 12,371,670
18,580 21,905 1,336,275 21,789 90,399 77,528
(18,580) (21,905) (1,336,275) (21,789) (90,399) (77,528)
$ (5,078,808) $ 2,655,478 $ 8,354,341 $ 6,631,238 $ 5,849,293 $ 12,371,670
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
135
~~ ~/7f
City of Dublin
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal City Wide
Year Taxable Avg Total
Ended Residential Commercial Industrial Unsecured / Less: Assessed Direct Tax
June 30 Property Property Property Other Property Exemptions Value Rate
1999 1,325,055,883 269,605,070 123,225,613 246,256,948 (63,706,453) 1,900,437,061 0.2477%
2000 1,497,994,724 332,044,309 161,558,266 394,432,584 (66,691,923) 2,319,337,960 0.2447%
2001 1,852,468,604 439,284,508 178,875,023 595,033,189 (60,674,335) 3,004,986,989 0.2416%
2002 2,437,438,709 653,528,807 141,438,754 556,968,264 (64,396,816) 3,724,977,718 0.2398%
2003 2,825,719,751 877,069,998 140,636,627 534,477,740 (69,498,931) 4,308,405,185 0.2398%
2004 3,233,586,490 998,908,661 147,997,335 561,725,805 (70,891,008) 4,871,327,283 0.2397%
2005 3,730,424,115 1,032,552,391 154,758,385 662,659,500 (72,612,23'7) 5,507,782,154 0.2397%
2006 4,520,222,157 1,052,701,438 162,182,398 652,279,788 (77,085,570) 6,310,300,211 0.2390%
2007 5,345,937,692 1,068,813,294 161,909,866 873,737,282 (80,274,178) 7,370,123,956 0.2387%
2008 5,870,526,565 1,112,837,055 171,673,012 1,072,734,321 (78,188,899) 8,149,582,054 0.2385%
Assessed Value of Taxable Property
$9.0
$8.0
y $7.0
o $6.0
m $5.0
c
w $4.0
..
`_° $3.0
0
~ $2.0
$1.0
$0.0
~~~~ ti~~o ti~~~ ~~~~ ~~~~ ~~~~ ti~~~ ti~~~ ti~~~ ti~~~
Fiscal Years
Source: Alameda County Office of the Auditor-Controller
Notes:
1) In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of
1 % based upon the assessed value of the property being assessed. Each year, the assessed value of property may be
increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at
the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property
sold.
2) The assessed valuation data shown above represents the only data currently available with respect to the actual market
value of taxable property.
3) 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.
136
/`~ ' X71
City of Dublin
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
a~ 1998 99 1999 00 2000 O1 2001 02 2002 03 2003 04 2004 05 2005 06 2006 07 2007 08
.a Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Bay Area Rapid Transit 0.01670 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00480 0.00500 0.00760
Castro Valley Unified School Bonds 0.04300 0.03390 0.01990 0.03550 0.04980 0.05610 0.05320 0.07180 0.08110 0.09720
,~„ Chabot -Las Positas College Bonds 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.01860 0.01580 0.01590 0.01640
County Service Area L73-1 0.00570 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
Dublin Unified Bonds lA & B 0.07270 0.07190 0.05340 0.04510 0.03760 0.04290 0.03990 0.08170 0.08850 0.08500
East Bay Regional Park 0.00920 0.00880 0.00650 0.00720 0.00650 0.00570 0.00570 0.00570 0.00850 0.00800
Flood Zone 7 State Water Bonds 0.01630 0.01130 0.01450 0.01570 0.01580 0.01450 0.01140 0.01300 0.01510 0.01500
Livermore Unified School Bond 2 & Up 0.00000 0.00000 0.00000 0.00000 0.09550 0.07430 0.07930 0.08300 0.00000 0.00000
Livermore Valley Joint Unified School Bond 0.14380 0.14380 0.08630 0.08200 0.09550 0.07930 0.07930 0.08300 0.06920 0.06260
Total Direct & Overlapping Tax Rate 1.30740 1.26970 1.18060 1.18550 1.30070 1.27780 1.28740 1.35880 1.28330 1.29180
Total Direct Rate (2) 0.24773 0.24496 0.24158 0.23978 0.23984 0.23965 0.23965 0.23895 0.23868 0.23849
City's Share of 1% Levy per Proposition 13 (3) 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177
Source: Alameda County Assessor's Office for Tax Rate 1998 f 99 - 2007f 08 Tax Rate Table
in the City. The City has a total of 38 different TRA administered by the County Tax Collector and the City share of Property Tax can vary by each TRA.
Notes:
(1) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1 % fixed amount. This 1 % is shared by all taxing agencies for which the
subject property resides within. In addition to the 1.00 % fixed amount, property owners are charged taxes as a percentage of assessed property values for the
* payment of voter approved bonds from various agencies.
(2) Total Direct Rate is the weighted average of all individual duect rates.
(3) City's Share of 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.
,.~,
137
City of Dublin
Principal Property Taxpayers
Current, And Nine Years Ago
/.~2~ ~7 ~
.~
2007/08
1997/ 98
Percent of Total Percent of Total
Taxpayer (Number of Parcels) Assessed Value Assessed Value Assessed Value Assessed Value
Shops at Waterford LLC (7) 125,653,003 1.77%
Chang S. Lin (12) 108,041,116 1.31
SR Structured Lot Options I LLC (2) 106,000,000 1.28%
Start HQ 2003 (1) 103,000,000 1.12%
Toll CA II Limited Partnership (309) 73,267,311 0.89%
Kaiser Foundation Hospitals (2) 73,002,216 0.88%
Bere Island Properties I LLC (1) 80,662,173 0.88%
Bit Holdings Sixty Three Inc (3) 68,606,578 0.75%
Tishman Speyer Archstone-Smith (1) 66,976,050 0.73%
Sorrento Dublin Ranch I Limited Partnership (160) 52,376,055 0,63%
Rafanelli and Nahas (426)
Lucky Stores Inc. (1)
Bay Apartment Communities Inc. (1)
Northwestern Mutual Life Insurance Company (248)
Warmington hansen Ranch Associates LP (91)
Phoenix Mutual Life Insurance Company (201)
Brett G. & Lisa Jensen (3)
Pacific Gulf Property Inc (2)
Amador Lakes Associates (153)
Dublin Spring Inc (1)
$857,584,502 10.24%
Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls
29,b45,307 1.61
29,792,962 1.58%
23,302,375 1.24%
20,271,732 1.16%
14,914,500 0.89%
16,110,339 0.86%
15,217,385 0.81
14,014,872 0.75%
12,790,928 0.68%
12,721,280 0.68%
$188,781,680 10.26%
w~
138
w1
wn.
!53 ~~7/
City of Dublin
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Collected within the
Year Total Tax Fiscal Year of the Levy Collected in Total Collections to Date
Ended Levy for Percentage Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy
1999 4,798,501 4,517,234 97.4% 86,600 4,603,834 95.9%
2000 5,765,531 5,499,897 94.1 % 98,390 5,598,287 97.1
2001 7,333,215 6,959,769 95.4% 127,641 7,087,410 96.6%
2002 9,187,641 8,655,872 94.9% 215,980 8,871,852 96.6%
2003 10,732,663 10,142,650 94.2% 412,595 10,555,245 98.3%
2004 11,858,495 11,826,609 94.5% 31,886 11,858,495 100.0%
2005 12,626,880 12,354,685 97.8% 245,157 12,599,842 99.8%
2006 13,909,466 13,530,450 97.3% 254,535 13,784,985 99.1%
2007 17,275,854 15,550,438 90.0% 412,481 15,962,919 92.4%
2008 19,072,467 17,141,614 89.9% N/A 17,141,614 89.9%
Property Tax Collection
i~
N
C -
O
~ _
C
y
10
O -
~~
~~
------------------------------- - - ----------------------------------'---j.
n~O n~~ n~V n~~ n~~ n0-J n~~ n~\ n~~
VO VO VO VO VO VO VO VO VO
Fiscal Year
Source: Alameda County Office of the Auditor-Controller
Notes:
1) Total Levy includes Secured, Unsecured, and Estimated Unitary Property Taxes
2) Total Collection includes Secured, Unsecured, and Estimate Unitary Property Taxes less County's
ad~7~inistrative cost and E.R.A.F.
139
IS4 a~ l71
City of Dublin
Direct and Overlapping Debt
June 30, 2008
Total Property Tax Assessed Value of Taxable Property $ 8,149,582,054
Percentage
Applicable to Outstanding Debt Estimated Share of
City of Dublin 6/30/08 Overlapping Debt
OVERLAPPING DEBT REPAID WITH PROPERTY TAXES
Bay Area Rapid Transit District 1.9320% $ 467,320,000 $ 9,028,622
Chabot-Las Positas Community College District 10.3770% $ 476,514,226 $ 49,447,881
Castro Valley Unified School District 0.4730% $ 90,360,000 $ 427,403
Dublin Joint Unified School District 99.7140% $ 141,128,934 $ 140,725,305
East Bay Regional Park District 2.8010% $ 149,445,000 $ 4,185,954
City of Dublin 1915 Act Bonds 100.0000% $ 910,000 $ 910,000
Califomia Statewide Communities Development Authority 1915 Act Bonds 100.0000% $ 1,136,752 $ 1,136,752
Total overlapping debt repaid with property taxes $ 205,861,918
OVERLAPPING OTHER DEBT
Alameda County General Fund Obligations 4.8890% $ 459,688,000 $ 22,474,146
Alameda County Pension Obligations 4.8890% $ 228,520,122 $ 11,172,349
Alameda County Superintendent of Schools Certificates of Participation 4.8890% $ 250,000 $ 12,223
Alameda -Contra Costa Transit District Certificates of Participation 0.0200% $ 13,500,000 $ 2,700
Chabot-Las Positas Community College District Certificates of Participation 10.3770% $ 4,990,000 $ 517,812
Castro Valley Unified School District Certlficates of Participation 0.4730% $ 815,000 $ 3,855
Total Overlapping Other Debt $ 34,183,085
COMBINED TOTAL DEBT
$
240,045,003
Source: California Municipal Statistics, Inc.
Notes:
1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value tha t is wi thin the city's
boundaries and dividing it by each unit's total taxable assessed value.
2) Overlapping governments are those that coincide, generally, within the geographic boundaries of the City.
3) This schedule estimates the portion of the outstanding debt of those overlapping governments that is bome by the residents and businesses of
the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden bome by the
residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible ~"
for repaying the debt, of each overlapping government.
4) Combined Total Debt excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, tax allocation bonds, and non-
bonded capital lease obligations.
140
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141
i~~~~~
City of Dublin
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
1999 2000 2001 2002 2003
Assessed valuation $ 1,900,437,061 $ 2,353,646,360 $ 3,004,986,989 $ 3,724,977,718 $ 4,308,405,185
Add back exempted real property 63,706,453 32,383,523 60,674,335 64,396,816 70,891,008
Total assessed valuation $ 1,964,143,514 $ 2,386,029,883 $ 3,065,661,324 $ 3,789,374,534 $ 4,379,296,193
Conversion Ratio 25% 25% 25% 25% 25%
Converted assessed valuation $ 491,035,879 $ 596,507,471 $ 766,415,331 $ 947,343,634 $ 1,094,824,048
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $ 73,655,382 $ 89,476,121 $ 114,962,300 $ 142,101,545 $ 164,223,607
Total net debt applicable to limit:
General obligation bonds - - - -
Legal debt margin $ 73,655,382 $ 89,476,121 $ 114,962,300 $ 142,101,545 $ 164,223,607
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0 i
Source: City of Dublin Finance Department
Notes:
1. The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However,
this provision was enacted when assessed valuation was based upon 1981-82 fiscal year, each parcel is now assessed at 100% of
market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion
of assessed valuation data for each fiscal year from5% of market value. Effective with 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.
2. Excludes 1915 Act Bonds since they are not General Obligation Debt of the City of Dublin.
142
~r~~ `I ~t~- ~ ~7 /
J ~~
Fiscal Year
2005 2006 2007 2008
$ 4,871,327,283 $ 5,507,782,154 $ 6,310,300,211 $ 7,370,123,956 $ 8,149,582,054
70,891,008 72,612,237 77,085,570 80,274,178 78,188,899
$ 4,942,218,291 $ 5,580,394,391 $ 6,387,385,781 $ 7,450,398,134 $ 8,227,770,953
25% 25% 25% 25% 25%
$ 1,235,554,573 $ 1,395,098,598 $ 1,596,846,445 $ 1,862,599,534 $ 2,056,942,738
15% 15% 15% 15% 15%
$ 185,333,186 $ 209,264,790 $ 239,526,967 $ 279,389,930 $ 308,541,411
$ 185,333,186 $ 209,264,790 $ 239,526,967 $ 279,389,930 $ 308,541,411
2004
0.0% 0.0% 0.0% 0.0% 0.0%
143
~~-77 ~
~g ~/l~ ~
City of Dublin
Demographic And Economic Statistics
Last Ten Years
Personal Income (in Per Capita Personal Unemployment Rate Rank in Size of '
Year City Population (1) Thousands) (2) Income (2) (3) California Cities (1)
1998 26,725 44,390,480 31,574 2.40% 224 ,
1999 28,707 48,316,845 33,856 2.00% 222
2000 32,519 55,790,773 38,458 1.70% 205
2001 32,570 56,121,667 38,417 2.60% 209
2002 33,520 55,316,772 37,755 4.00% 209
2003 35,545 56,424,129 38,712 4.00% 204
2004 38,330 59,339,211 40,915 3.40% 193
2005 39,931 62,166,468 42,974 3.00% 192 ,
2006 41,907 66,325,334 45,689 2.60% 190
2007 43,630 N/A N/A 2.80% 184
2008 46,934 N/A N/A N/A 180
Sources:
1) State of California Department of Finance, Population Estimate at January 1 Table E-1 and City Population Rankings.
2) Bureau of Economic Analysis, Personal Income and Per Capita Personal Income, Alameda County (2 years lag)
3) State of California Employment Development Department, City's Annual Average (1 year lag)
City Population (1)
50,000
~J
45,000
N 40,000
c
35,000
a
n°. 30,000
25,000
20,000 °~ e.. ....~~ ..r _ .. ~,,.n .. ~ n.
00 00 00 O~ O`ff' On' Off` Oh OHO O~ O`b
~O ,~O ~O ~O ~O ~O ~O ~O ~O ~O ~O
Fiscal Year
144
~~~~i~~
i~
City of Dublin
Property Value, Construction And Bank Deposits
Last Ten Fiscal Years
Commercial Residential
Fiscal Year Ended Total Number of Construction Value Construction Value
June 30 Permits Issued (1) (1) (1) Bank Deposits (2)
1999 1552 93,428,185 135,438,240 684,749,000
2000 2521 107,242,721 180,258,804 715,313,000
2001 1828 113,618,557 155,286,401 809,281,000
2002 1015 63,476,079 123,149,627 900,670,000
2003 1157 46,448,163 178,361,169 980,220,300
2004 1154 18,575,621 242,563,776 488,343,000
2005 1275 56,481,612 283,817,542 566,441,000
2006 1199 96,389,754 207,862,999 629,684,000
2007 1214 56,832,041 178,094,884 676,681,000
2008 588 18,256,381 59,647,886 680,695,000
Source: l) City of Dublin Building Department Status Reports
2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions
within the City annually, Jan thru Dec.
New Construction Value -
$30o Commercial vs Residential _ __,
i
i
$250 - ------- -------- ------- - -------- -------- ----------------
,~" • Commercial
N ~'
o $200 ----------- "---- - --------- ------ -f-Residential
c $150 - -- <°------- -
~..
fn -------------
O ~ --5-------- -'-- ----
`~ $100 - - ~
- T.
--- --- ---t' ~ ---
$50 ---- ~ --------- - --
• a
$0 ~-
O°~ 00 O~ Off' 00 Off` O~ O~° O~ 00
~O rL0 rL0 ~O ~O ~O ~O rL0 rL0 rLO
Fiscal Year
145
~o~ C~ ~
City of Dublin
Principal Employers ~'
Last Two Years °~
Number of Number of
2008 Employees Ranking 2007 Employees Ranking
United States Government United States Government, Camp
& Federal Correction Institute 2100 1 Parks & Federal Correction Institute 2133 1
Zeiss Meditec 700 2 Zeiss Meditec 700 2
Sybase Corporation 650 3 Sybase Corporation 664 3
Dublin Unified School District 580 4 Dublin Unified School District 583 4
County of Alameda 480 5 County of Alameda 486 5
Safeway 400 6 Safeway 450 6
City of Dublin 222 7 Micro Dental Laboratories 319 7
Micro Dental Laboratories 200 8 City of Dublin 218 8
Franklin Templeton Investments 200 9 Franklin Resources 170 9
Avaya 180 10 Target Corporation 150 10
Source: City of Dublin Finance and Economic Development Department
Note: Information regarding Principal Employers for prior fiscal years was not available
146
~~~ ~/7/
City of Dublin
Full-time Equivalent City and Contract Government Employees by Function
Last Ten Fiscal Years
Fiscal Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
General government
City Manager 3.50 3.75 4.00 5.50 5.50 5.75 6.00 7.17 6.25 6.25
Administrative Services 7.50 8.10 9.30 10.00 10.00 11.00 11.50 11.50 11.50 11.50
Central Services &
Building Management 2.08 3.04 2.85 3.71 3.60 3.65 3.40 3.43 3.75 3.51
Public Safety:
Police 40.00 42.50 47.50 52.50 55.00 54.00 54.00 57.00 59.00 59.00
Fire 29.16 30.17 30.97 30.98 40.00 39.89 40.89 40.25 40.25 40.48
Disaster Preparedness 0.50 0.50 0.50 0.50 0.50 0.50 0.33 0.33 0.33 0.50
Transportation
Public Works 4.75 5.00 6.00 6.50 6.50 6.50 6.50 6.50 7.50 7.50
Street Maintenance 4.99 5.56 5.39 5.55 7.60 9.00 9.46 10.14 10.57 10.73
Health and welfare
Housing - - - 1.00 1.00 1.00 1.75 1.75 1.75 1.75
Waste Management - - - - - - 0.33 0.33 0.33 0.33
Culture and leisure services
Parks Community Services 10.25 11.25 11.75 12.50 12.50 13.00 14.00 14.00 14.00 14.00
Parks/Facilities Maintenance 4.78 5.09 6.38 7.60 7.79 8.48 8.70 9.10 9.53 9.55
Parks/Facilities Management - 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Library Services - - - - 0.20 0.60 0.51 0.51 0.48 0.45
Heritage & Cultural Arts 0.81 0.83 1.15 1.96 1.93 1.93 2.31 2.30 2.32 2.28
Community development
Planning & Building 18.01 21.50 22.50 25.00 25.00 26.00 32.00 34.50 33.90 32.50
Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Engineering 7.00 13.00 13.00 13.00 14.00 13.00 13.35 13.35 13.35 13.35
Total 134.33 152.29 163.29 179.30 194.12 197.30 208.03 215.16 217.81 216.68
Source: City of Dublin Finance Department
Note: Include Full Time, Part Time, and Contract Employees
147
16a ~ I `ll
City of Dublin
Operating Indicators by Function
Last Ten Fiscal Years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Function
Police:
Calls for Service
Citations Issued
Arrests
Fire:
Emergency calls
Inspections
Building Plan Reviews and Consultations
Public works:
Bike Path Maintenance (hours)
Street Sign Maintenance (number of signs)
Curb Painting (linear feet)
Replace Street Asphalt (square feet)
Street Sweeping (curb miles)
Parks and recreation:
Museum Visitors
Afterschool Recreation (participants/day)
Preschool Classes Participants
Youth Basketball League Participants
Senior Center Average Daily Attendance
Community Development
Planning Applications
Building Permits
Building Inspections
Source: City of Dublin
35,981 39,976 46,970 50,613 52,708 49,379 48,388 46,197 41,306 41,652
6,672 7,308 9,624 8,364 10,501 11,081 10,911 10,595 11,676 11,768
1,506 1,344 1,272 1,418 1,376 1,614 1,631 2,020 1,668 2,021
1,427 1,634 1,645 1,797 1,872 1,724 1,742 1,771 1,780 1,978
6,051 7,873 7,129 5,182 5,021 4,951 3,249 4,122 4,048 2,213
N/A 843 989 1,270 1,381 1,249 858 1,006 1,049 922
118 100 270 141 230 428 783 726 810 775
299 326 317 211 643 308 353 435 427 135
5,492 5,128 1,637 2,749 2,993 1,607 1,404 3,991 4,006 2,468
101,600 256,895 19,545 12,320 5,500 3,000 7,500 7,950 13,800 33,000
4,069 4,304 4,336 4,529 5,116 5,371 5,686 5,730 5,927 6,075
425 420 1,012 793 300 900 800 1,350 2,140 2,225
115 128 126 134 140 128 129 138 153 180
171 171 177 176 214 268 224 285 254 399
352 360 397 445 476 536 547 580 588 570
102 92 92 97 111 110 110 149 180 185
53 54 44 56 78 71 73 59 55 55
1,552 2,521 1,828 1,429 1,617 1,639 1,837 1,855 1,910 1,333
21,514 28,232 19,073 16,492 24,682 31,571 33,534 34,244 36,071 25,602
14R
l~3 ~~~
City of Dublin
Capital Asset Statistics by Function
Last Ten Fiscal Years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Function
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Fire Stations 2 2 2 2 3 3 3 3 3 3
Public works:
Street Lights 1,904 2,173 2,383 2,504 2,872 2,958 3,469 3,752 3,972 4,193
Miles of Streets 60 63 63 65 81 81 81 81 104 93
Miles of Curbs 164 172 172 180 202 202 202 202 217 217
Traffic Signals 30 31 42 49 55 60 62 67 75 79
City Street Trees 2,927 3,174 3,174 4,585 5,148 5,401 5,955 6,084 6,084 6,084
City Landscape (acres) 21 22 22 33 38 38 43 45 45 45
Parks and recreation:
Number of Community Facilities 5 5 5 5 6 6 6 6 6 6
Number of City Parks 8 8 9 9 11 11 11 11 11 16
Acres of City Parks 60 60 77 84 109 109 109 109 121 122
Acres of Open Space 107 107 107 107 122 122 126 126 126 122
Source: City of Dublin
149
~6~~ /7~
1
City of Dublin
Top 25 Sales Tax Producers
2007-2008
BUSINESS NAME BUSINESS CATEGORY
Alameda County Auction Motor Vehicle Dealer
Alcosta Shell Service Stations
Arco AM/PM Mini Mart Service Stations
Bed Bath & Beyond Home Furnishings
Best Buy Electronics/Appliance Stores
Cal Steam East Bay Plumbing/Electrical Supplies
Carl Zeiss Ophthalmic System Specialty Stores
Crown Chevrolet/Oldsmobile/Cadillac/Isuzu Motor Vehicle Dealer
Dublin Dodge/Nissan/Volkswagen/Hyundai Motor Vehicle Dealer
Dublin Honda Motor Vehicle Dealer
Dublin Toyota Motor Vehicle Dealer
Expo Design Center Home Furnishings
Home Depot Lumber/Building Materials
Hummer of Pleasanton Motor Vehicle Dealer
Lowes Hardware Store
Mervyn's Department Stores
Micro Porcelain Dental Lab Specialty Stores
Safeway Grocery Store Liquor
Safeway Gas Sales Service Stations
Saturn of Pleasanton Motor Vehicle Dealer
Shamrock Ford Motor Vehicle Dealer
Stoneridge Chrysler Jeep Motor Vehicle Dealer
Target Discount Department Store
Toys R Us Specialty Stores
Tri Valley Buick Pontiac GMC Motor Vehicle Dealer
Source: Hinderliter, de Llamas & Associates, State Board of Equalization
Notes:
State Law does not allow disclosure of the top ten sales tax providers to the City
Top producers listed in alphabetically order
150
l~.~ ~ ~ ~
,_,
City of Dublin
Miscellaneous Statistical Data
June 30, 2008
General
Date of Incorporation February 1,1982
Form of Government Council/Manager
Population 46,934
Number of Registered Voters 18,441
`~ Employees, City and Contract (Full Time Equivalent) 216.68
Area (Square Miles) 14.01
~' Parks and Recreation
Parks 16
Acres in Parks 122
"' Acres in Open Space 122
Public Education
`~ Elementary Schools 6
Middle Schools 2
High School 1
Continuation High School 1
School Enrollment 5172
-~ Police Protection
Number of Stations 1
Police Personnel (Full Time Equivalent) 61
Fire Protection
Number of Stations 3
., Fire Personnel (Full Time Equivalent) 39
Community Facilities
;~, Dublin Civic Center 1
Dublin Senior Center 1
Shannon Community Center 1
,~., Dublin Swim Center 1
Heritage Center 1
Dublin Library 1
Source: City of Dublin
151
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152
CL
Caporicci & Larson
Certified Public Accountants
~~'~ ~~1
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
of the City of Dublin
Dublin, California
We have audited the basic financial statements of The City of Dublin (City) as of and for the year ended
June 30, 2008, and have issued out report thereon dated December 22, 2008. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained uz Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting as
a basis for designing our audit procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City's internal control over financial reporting.
A control deficiency 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 misstatements
on a timely basis.
A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects
the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with
generally accepted accounting principles such that there is more than a remote likelihood that a
misstatement of the City's financial statements that is more than inconsequential will not be prevented or
detected by the City's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be prevented
or detected by the City's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. However, we did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
Toll Free Ph: (877) 862-2200
Oakland Orange County
180 Grand Ave., Suite 1365 9 Corporate Park, Suite 100
Oakland, California 94612 Irvine, California 92606
Toll Free Fax: (866) 436-0927
Sacramento San Diego
777 Campus Commons Rd., Suite 200 4858 Mercury, Suite 106
Sacramento, California 95825 San Diego, California 92111
r
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To the Honorable Mayor and Members of the City Council
of the City of Dublin
Dublin, California
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of 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
determination of financial statement amounts. 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
result of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
This report is intended solely for the information and use of management, the City Council, others within
the entity, and federal awarding agencies and pass-through entities 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.
~y~;u.; # ~,a-~-
Oakland, California
December 22, 2008
.~
754
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C~~
Caporicci & Larson
Certified Public Accozcntnnts
December 22, 2008
To the Honorable Mayor and Members of City Council
of the City of Dublin
Dublin, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Dublin, California (City) for the year ended June 30, 2008, and
have issued our report therein dated December 22, 2008. Professional standards require that we provide
you with the following information related to our audit.
Our Responsibilities under U.S. Generall~cepted Auditing Standards and Government Auditing
Standards
Our responsibility, as described by professional standards, is to express opinions about whether the
financial statements prepared by management with the governing board oversight are fairly presented, in
all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the
financial statements does not relieve the governing board and management of the financial statements
responsibilities.
As part of our audit, we considered the internal control of the City. Such considerations were solely for the
purpose of deter~;n;ng our audit procedures and not to provide any assurance concerning such internal
control.
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we performed test of the City's compliance with certain provisions of laws, regulations,
contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance
with such provisions.
Other Information in Documents Containingthe Audited Financial Statements
Our responsibility for other information in documents containing the audited financial statements is as
follows;
Our responsibility for other information in documents containing the City's financial statements and
report does not extend beyond the financial information identified in the report.
We do not have an obligation to perform any procedures to corroborate other information contained.
in these documents.
Toll. Free Ph: (STn 862-2200 Toll Free Fa: (866) 436-0927
Oakland Orange County SaQarnento San Diego
180 GrandAve.,Suite 1365 9 Corporate Park, Suite IOD 777 Campus Commons Rd, Suite 200 4858 Mercury, Suite 106
Oakland, California 4461? - Irvine, California 92606 Sacramento, CaGfomia 95825 San Diego, California 921 I I
Attachment 2
I~o~~~/
To the Honorable Mayor and Members of City Council
of the City of Dublin
Dublin, California
Page Two
Planned Scope and Tinting of the Audit
We performed the audit according to the planned scope and timing previously communicated to you in our
engagement letter dated July 18, 2008.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Notes to the Basic Financial Statements. The City
adopted the following new accounting standards;
- Governmental Account Standards Board (GASB) Statement No. 48, Sales and Pledges of
Receivables and Facture Revenues and Infra-Entiftj Transfers of Assets and Future Revenue- This
Statement establishes accounting and financial reporting standards for transaction in which a
government receives, or is entitled to, resources and exchange for future cash flow generated by
collecting specific receivables or specific future revenues. In addition, this Statement establishes
accounting and financial reporting standards that apply to all infra-entity transfers of assets and
future revenues.
- GASB Statement No. 50, Pension Disclosure - An amendment of GASB Statement No. 25 and 27 -
This Statement more closely aligns the financial reporting requirements for pensions with those
for other postemployment benefits (OPEB) and, in doing so, enhances information disclosed in
notes to financial statements or presented as required supplementary information (RSI).
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. There are no significant transactions that have been recognized in the financial
statements in a different period than when the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. The most sensitive estimates affecting the financial statements were:
• Investments Valuation
• Accumulated Depreciation
• Other Postemployment Benefits (OPEB) Obligation
• Accrual for Workers' Compensation and General Liabilities
The disclosures in the financial statements are transparent, consistent, and clear. Certain financial
statement disclosures are particularly sensitive because of their significance to the financial statement users.
i ~„ ~ -~i
To the Honorable Mayor and Members of City Council
of the City of Dublin
Dublin, California
Page Three
The most sensitive disclosures affecting the financial statements were:
• Summary of Significant Accounting Policies
• Pension Plans
• Other Postemployment Benefit (OPEB) Plan
• Commitments and Contingencies
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditor's report. We are pleased to report that no such
disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter. A copy of the signed management representation letter is attached for your review.
Other A:cdit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the governmental unit's auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses were not
a condition to our retention.
* *,~ * ~
This information is intended solely for the use of the City and management of the City and is not intended
to be and should not be used by anyone other than these specified parties.
Very truly yours,
~;u,; ~ ~`"`"
Caporicci & Larson, CPAs
Oakland, California