City of Alameda, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
CITY OF ALAMEDA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
PREPARED BY THE
FINANCE DEPARTMENT
MARGARET O’BRIEN
FINANCE DIRECTOR
City of Alameda, California
People and Places in the City
INTRODUCTORY SECTION
City of Alameda, California
People and Places in the City
City of Alameda, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
i
Introductory Section:
Table of Contents ...................................................................................................................................................... i
Transmittal Letter ..................................................................................................................................................... v
City Council .......................................................................................................................................................... xiv
Principal Officers .................................................................................................................................................... xv
Organizational Chart ............................................................................................................................................. xvi
Regional Map ....................................................................................................................................................... xvii
GFOA Certificate of Achievement for Excellence in Financial Reporting ........................................................ xviii
Financial Section:
Independent Auditor’s Report ................................................................................................................................. 1
Management’s Discussion and Analysis ................................................................................................................ 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 23
Statement of Activities .......................................................................................................................... 24
Fund Financial Statements:
Governmental Funds:
Balance Sheet .............................................................................................................. ...................... 28
Reconciliation of Governmental Funds Balanc e Sheet with the Statement of Net Position ............ 31
Statement of Revenues, Expenditur es, and Changes in Fund Balances ........................................... 32
Reconciliation of the Net Change in Fund Balances – Governmental Funds with the Change in Governmental Net Position ........................................................................... 34
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
Gene ral Fund ..................................................................................................................................... 35
Base Reuse Sp ecial Revenue Fund ................................................................................................... 36 City of Alameda, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
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Financial Section (Continued):
Grants Spec ial Revenue Fund ........................................................................................................... 37
Proprietary Funds:
Statement of Net Position .................................................................................................................. 40
Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 41
Statement of Cash Flows ................................................................................................................... 42
Fiduciary Funds:
Statement of Fi duciary Net Position ................................................................................................. 44
Statement of Changes in Fiduciary Net Position .............................................................................. 45
Notes to Basic Fina ncial Statements ............................................................................................................ 49
Required Supplementary Information:
Schedule of Changes in Net Pension Liabilit y and Related Ratios – Miscellaneous Plan ....................... 127
Schedule of Changes in Net Pension Liabi lity and Related Ratios – Safety Plan .................................... 128
Schedule of Contributions – Miscellaneous Plan ...................................................................................... 130
Schedule of Contribu tions – Safety Plan ................................................................................................... 132
The 1079 & 1082 Pension Plans – Schedule of Changes in Total Pension Liability and Relate d Ratios ..................................................................................................................................... 134
OPEB – Schedule of Changes in the Ne t OPEB Liability and Related Ratios – Miscellaneous and Pr e-1/1/2019 Safety Plan ..................................................................................... 135
OPEB – Schedule of Contributions -
Miscellaneous and Pr e-1/1/2019 Safety Plan ..................................................................................... 136
OPEB – Schedule of Changes in the Ne t OPEB Liability and Related Ratios – Post-1/1/2019 Safety Plan ................................................................................................................... 137
OPEB – Schedule of Contributions -
Post-1/1/2019 Safety Plan ................................................................................................................... 138
City of Alameda, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
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Supplemental Information - Combining and Individual Fund Financial Statements and Schedules:
Non-major Governmental Funds:
Combining Ba lance Sheets ................................................................................................................. 142
Combining Statements of Revenues, E xpenditures, and Changes in Fund Balance .......................... 148
Combining Schedules of Revenues, Expe nditures, and Changes in Fund Balances – Budget and Actual ........................................................................................................................... 154
Internal Service Funds:
Combining Statemen ts of Net Position ............................................................................................... 164
Combining Statements of Revenues, Expe nses and Changes in Fund Net Position .......................... 166
Combining Statemen ts of Cash Flows ................................................................................................ 168
Statistical Section:
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ......................................................................... 174
Changes in Net Position – Last Ten Fiscal Years ............................................................................... 176
Fund Balances of Governmental Funds – Last Ten Fiscal Years ...................................................... 180
Changes in Fund Balances of Governme ntal Funds – Last Ten Fiscal Years ................................... 182
Basic Revenue Index (BRI) ................................................................................................................ 184
Revenue Capacity:
Assessed and Estimated Actual Value of Ta xable Property – Last Ten Fiscal Years ....................... 186
Property Tax Rates - All Direct and Overla pping Governments – Last Ten Fiscal Years ................ 187
Principal Property Taxpayers – Cu rrent Year and Ten Years Ago .................................................... 188
Property Tax Levies and Collect ions – Last Ten Fiscal Years ........................................................... 189
City of Alameda, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
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Statistical Section (Continued):
Alameda Municipal Power Electric Operating Revenues by Source – Last Ten Fiscal Years .......... 190
Alameda Municipal Power Customer Accounts – Last Ten Fiscal Years ......................................... 191
Alameda Municipal Power Pricing Ch anges – Last Ten Fiscal Years ............................................... 192
Alameda Municipal Power Top Ten Cu stomers – Last Ten Fiscal Years ......................................... 193
Debt Capacity:
Ratio of Outstanding Debt by T ype – Last Ten Fiscal Years ............................................................. 194
Ratio of General Bonded Debt Outs tanding – Last Ten Fiscal Years ................................................ 195
Computation of Direct and Overlapping Debt .................................................................................... 196
Computation of Lega l Bonded Debt Margin ...................................................................................... 197
Sewer Fund Debt Coverage – Last Ten Fiscal Years ......................................................................... 198
Alameda Municipal Power Fund Debt Co verage – Last Ten Fiscal Years ........................................ 199
Demographic and Economic Information:
Demographic and Economic Statisti cs – Last Ten Fiscal Years ........................................................ 200
Principal Employers – Curren t Year and Nine Years Ago ................................................................. 201
Operating Information:
Full-Time Equivalent City Government Empl oyees by Function – Last Ten Fiscal Years .............. 202
Operating Indicators by Function/Pr ogram – Last Ten Fiscal Years ................................................. 204
Capital Asset Statistics by Function/ Program – Last Ten Fiscal Years ............................................. 208
gr Alameda
Finance Department
2263 Santa Clara Avenue, Room 220
Alameda, California 94501
(510) 747-4881
December 30, 2022
Honorable Mayor and
Members of the City Council
We are pleased to present the City of Alameda (City) Annual Comprehensive Financial Report for the year ending June 30, 2022. The information in this Annual Comprehensive Financial Report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and includes an unmodified opinion on the report by the City's independent certified public accountants. Although we rely on the standards and expertise of these external auditors, the responsibility for the accuracy and fairness of this report rests with the City.
For those readers interested in a more detailed review of the City's financial statements, a narrative section called Management's Discussion and Analysis (MD&A) has been included as part of the Financial Section. 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. The MD&A also discloses significant items affecting the financial condition of the City and is designed to be read in conjunction with this letter of transmittal.
City Profile
The City was incorporated in 1854 and is located in Alameda County, the growing East Bay region of the San Francisco Bay Area. The City has a permanent staff of 566 allocated full-time positions (including Alameda Municipal Power) and serves approximately 78,000 residents in a land area of
10.61 square miles, plus 12.3 square miles of water.
The City operates utilizing the Council-Manager form of government. The Mayor and four Council members are elected at large for staggered four-year terms to govern the City. The City Treasurer and City Auditor are also elected for four-year terms. The City Council is responsible for establishing policies, adopting a biennial budget, appointing commissioners and committee members, as well as hiring the City Manager, City Attorney and City Clerk.
The City Manager is responsible for implementing the Council's policies, and overseeing the day-to-day operations and management of the City. Current City Council priorities include: preparing Alameda for the future; encouraging economic development across the island; supporting enhanced livability and quality of life; protecting core services; and ensuring effective and efficient operations. v
Honorable Mayor and
Members of the City Council
City departments and areas of responsibility are comprised of the following:
General Government includes staff and activities associated with the City Council, City Manager, City Clerk, City Attorney, and Risk Management.
Finance Department provides strategic long-term financial planning, financial reporting, payroll services, budgeting, purchasing, accounts payable, accounts receivable, and business licenses.
Human Resources Department includes staff and activities associated with recruitment, training and development, employee and labor relations, disability management, safety administration, and policy and procedure development.
Information Technology Department provides internal support overseeing technology information and daily needs of City as well as collaborates with regional partners to advance tech related issues.
Community Services includes the City's Library Department and the Recreation and Parks Department, which also includes Senior Center operations and Corica Park Golf Course contract management.
Community Development provides oversight services and project management in the following areas:
housing, social services, asset management, economic development and base reuse at the former Naval Air Station, known as Alameda Point.
Planning, Building, and Transportation includes the permit center, current and advance planning, transportation planning, and building inspection and code enforcement.
Public Safety includes Police with its Communications, Patrol, Investigations, and Traffic divisions, as well as Fire with its Emergency Services, Prevention Services, and Ambulance Transport divisions.
Public Works includes Engineering, Transportation Operations, Parking Enforcement, Streets and Sidewalk Maintenance, Tree Maintenance, and Storm Drains and Sewer Maintenance divisions.
Alameda Municipal Power includes staff and activities associated with operation and maintenance of the local electric distribution system.
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Members of the City Council
Economic Condition and Outlook
The City of Alameda is a community situated in the San Francisco Bay with residential neighborhoods and commercial areas. There are scenic views of Oakland, San Francisco, and other areas of the Bay shoreline and surrounding hills. The City has physical links to the City of Oakland to the north and east, and offers ferry services to San Francisco from three ferry terminal locations.
Between 2021 and 2022, the population of Alameda decreased by 3.8% from 80,884 residents to 77,784 residents, according to the California Department of Finance. It is anticipated that Alameda's population will increase as new housing units are constructed and occupied at the former Naval Station and elsewhere in the City.
Overall, the outlook for the City is generally stable. The local economy continues to recover from the COVID-19 pandemic due to strong demand for housing and consumer goods. Numerous City funding sources including sales, property, and real property transfer taxes increased year-over-year. Investors continue to demonstrate their faith in the strength of the community by continuing to make capital improvements and through continued development at Alameda Point and in other commercial and residential development elsewhere in the community. Overall, the General Fund ended the year with an
8.0% increase in revenues over the prior year.
Due to five years of a strong local real estate market, the City has been able to maintain generous General Fund reserves in excess of the City Council's established level of 25% of expenditures for more than a decade. Although the unemployment rate decreased from 8.5% in fiscal year (FY) 2020-21 to 5.5% in FY 2021-22, the economic impact of the COVID-19 pandemic and subsequent aftereffects are still being evaluated, particularly the credit implications of the City and its ability to access the capital markets.
The City received the final allocation of American Rescue Plan Act (ARPA) funds in June 2022 in the amount of $14.34 million. The total $28.68 million received will address the critical needs of residents and drive Alameda's economic recovery from the COVID-19 pandemic, just as an economic slowdown may be looming. The City's ARPA spending plan is focused on addressing housing, behavioral/mental health, investing and building broadband infrastructure, providing household and local small business assistance, and supplementing revenue loss - all with an emphasis on those in our community who were and continue to be disproportionality impacted by the pandemic. Working with community leaders and the City Council, the City of Alameda has put into place plans to use ARPA funding for:
• The Midway Shelter of Alameda: ARPA funds will replace three portable units that house the kitchen/community room, staff/children's room, and a 25-bed dormitory at this shelter for women and children who are unhoused or suffering from domestic violence. • The Alameda Food Bank: ARPA funds will repair the Food Bank's disbursement facility and will keep volunteers dry, warm, and out of the elements.
• Wireless Hotspot Lending Program: ARPA funds will help bridge the digital divide for families by providing wireless hotspots lent out at the Alameda Free Library at no cost to borrowers. The lending program allows students, parents, teachers, and families working and studying remotely to access a free and reliable internet connection.
• Transitional Housing: ARPA funds, along with other grant funding, will be used to build and operate Dignity Village, a 46-unit modular housing project for individuals who are formerly unhoused.
• Emergency Supportive Housing: ARPA funds will be used to provide emergency housing for up to six months with wrap-around services to assist each person with individual challenges and locate permanent housing.
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• Feed Alameda: ARPA funds provided funding to Alameda's local restaurants that were hit the hardest during the pandemic, who in turn provided hot meals to individuals who are unhoused and others who are food insecure. The program was initially launched with community support and was able to continue using ARPA funds.
• Commercial Streets: ARPA funds supported the survival of Alameda's small businesses and the health and safety of people who live, work, and visit Alameda through the creation of an on-street parklet program, reconfiguring the main streets in our two downtown districts, and implementing parking improvements.
FY 2022-23 began in a period of economic uncertainty both in the US and abroad. The City lowered real property transfer tax projections from $21.9 million received in FY 2021-22 to a projected $13.0 million for FY 2022-23 due to Federal Reserve policies increasing interest rates. In the second quarter of FY 2021-22, the median sale price of a single-family residence was $1,500,000, or an increase of 9.69% from the same quarter in the prior year. While domestic and global conditions and risks have created headwinds for the City's economic outlook, the City deems itself in a solid position to weather the storm due to large cash reserves.
Internal Controls
The management of the City is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft or misuse, and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met.
The concept of reasonable assurance recognizes that: the cost of a control should not exceed the benefits likely to be derived; and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the stated framework. City management believes the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
Budgetary Controls
As part of the City's internal controls, it maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. Every two years, departments work with the City Manager and Finance Department to submit operating budget requests for the next two fiscal years. The City Manager then makes recommendations to the City Council regarding the budget. After public discussion and evaluation of the recommendations, the City Council adopt the budget for the next two fiscal years.
Expenditures are controlled at the fund level for all budgeted departments within the City. At this level, expenditures may not legally exceed appropriations. The City Manager or their designee is authorized to transfer funds between departments within the same fund, and to limit expenditures in response to lower than expected revenues whenever necessary. The budgets are adopted on a basis substantially consistent with GAAP. Any amendments to the total level of appropriations for a fund or transfers between funds must be approved by the City Council.
City Council Goals and Objectives
As part of the budget preparation process, the City Council articulates goals and objectives for two years and evaluates the progress made on the goals established as part of the previous budget. The following viii
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represent some of the most significant goals established for FYs 2021-22 and 2022-23 as part of biennial budget process:
1. Preparing Alameda for the future
• Take action on climate change and ensure our infrastructure needs are met, including adopting plans and policies that protect the community against sea-level rise and reduce greenhouse gas emissions and vehicle miles travelled, discussing infrastructure and storm water funding needs and possible sources, increasing the use of low-emissions vehicles within the City's fleet, and increasing electric vehicle (EV) chargers around town.
2. Encouraging economic development across the Island
• Improve the local economy and attract jobs, including promoting policies and marketing efforts that help retain existing businesses and attract new businesses that provide stable economic opportunities for the City's local workforce.
3. Supporting enhanced livability and quality of life
• Address housing and the unhoused, including implementing policies and programs that help to stabilize rents and increase the supply of housing for all income levels, updating the Land Use Element and Housing Element of the General Plan, and reviewing housing services and ensuring they are adapting to meet the changing needs of the community. • Mitigate traffic congestion and improve transportation safety, including producing a west end crossing study, opening the Seaplane Lagoon ferry terminal, adopting a rideshare policy, completing the Central Avenue bike lane improvements, and increasing transit ridership.
4. Protecting core services
• Maintain safety and quality of life, including adopting policies and programs that maintain a high-level of public safety and that maintain Alameda's high-quality City parks, libraries, streetscape, community services, and amenities.
5. Ensuring effective and efficient operations
• Plan for fiscal and organizational stability, including exploring options for reducing the City's costs and liabilities, increasing City revenue and funding, and investing in technology and other measures that improve the City's efficiency and productivity.
Major Initiatives and Projects
Alameda Point Development- In June 2015, the City Council approved a Disposition and Development Agreement, as amended (collectively, DOA) related to development of a 68-acre mixed-use project at Alameda Point known as "Site A". Site A is the first major public/private development since the former Naval Air Station closure in 1997. The 6th amendment to the ODA, executed in September 2022, substantially revised the planned development on a portion of "Phase 1" of Site A, as well as in "Phase 2" of Site A.
The proposed Site A development provides for:
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Honorable Mayor and
Members of the City Council
1. A high-quality mixed-use transit-oriented waterfront development that includes approximately 1,472 on-site permanent jobs and 2,570 construction jobs over the life of the project, retail amenities, a diversity of housing types for a wide range of income levels, and new waterfront parks;
2. Future job creation at Alameda Point through the construction of amenities, gateway improvements into Alameda Point, and new utility infrastructure, all of which will help to support long-term employment-generation;
3. Mitigation of traffic impacts by funding transit service to BART, the creation of a direct ferry service between Alameda Point and San Francisco, the extension of Cross Alameda bicycle trail, and a number of other alternative transportation programs;
4. A contribution of $18 million towards significant transportation infrastructure; and s. A commitment of over $30 million to 10 acres of publicly accessible parks and open spaces, including the regional sports complex and eight acres of waterfront parks along the Seaplane Lagoon with a community kayak launch.
Currently, 454 housing units ( 128 of which are designated affordable) have been completed at Site A with an additional 830 units contemplated in the 6th Amendment to the DOA. Construction and capital cost increases have caused major constraints on the ability of the project to meet its original objectives and schedule. In addition to the housing units mentioned, two public parks and the new Seaplane Lagoon Ferry Terminal have been opened to the public at Site A.
The Public Works Department has also made major headway in their water infrastructure replacement project with work starting in the Adaptive Reuse area in 02 of 2022 and anticipate completion of Phases 1 and 2 in 03 2024. Currently, water infrastructure work is ahead of schedule and under budget.
Fire Department - The City launched the Community Assessment Response and Engagement (CARE) team pilot program during FY 2021-22 in order to provide an alternative emergency response to nonviolent individuals facing a mental health crisis. This program is staffed by six Firefighter/ Emergency Medical Technicians (EMTs) and responds 24 hours a day, 7 days a week.
Affordable housing is still an area that needs greater emphasis in our City and was specifically addressed in October 2021, when the City Council approved The Road Home: A 5 Year Plan to Prevent and Respond to Homelessness in Alameda. The Road Home provides an achievable roadmap to addressing the unhoused in Alameda based on an evaluation of existing programs and systems, the latest available data and established best practices. Alameda's share of the Regional Housing Needs Allocation (RHNA) is 5,353 additional units from 2023-2031. The City has begun a number of efforts to facilitate development of affordable housing in Alameda. City staff has prepared a working draft of a site inventory and are considering a number of policy changes in order to ensure their RHNA goals can be satisfied.
Recreation and Parks:
• Significant park improvements completed include Godfrey Recreation Center's new restrooms, upgraded kitchen, office and storage, HVAC, ADA improvements and painting; a new space themed playground at Bayport Park; and a nature-based play area at Chochenyo Park. • With funding from a Community Development Block Grant, Woodstock Park was updated with a new picnic area and playground surfacing that has improved safety and ADA accessibility. • Alameda Point Waterfront Park (now named Seaplane Lagoon Promenade) was opened across from the Alameda Naval Air Museum and features a concrete promenade along the water's edge with views of the Naval Ships. It was the first of multiple phases planned to build out the park. x
Honorable Mayor and
Members of the City Council
• Alameda Point Neighborhood Park (now named Whale Park) was opened and features a playground, picnic areas, basketball court, fitness center, restrooms and ping pong tables. • Preparing to replace Lincoln Park, De-Pave Park and a dog park at Tilden Way.
Information Technology, Finance, and Human Resources Departments - Went live with the new Tyler Munis Enterprise Resource Planning (ERP) system for payroll and accounting, revenue collection, and human resources.
Pension and Post-Employment Benefits Liability
Pension and Other Post-Employment Benefits (OPEB) Liability - The City has worked to successfully enact pension and OPEB solutions to address these liabilities. These efforts include limiting retiree health care to former employees only (spouses and families are now excluded), significant employer financial contributions to both pension and retirement health care benefits, and raising the age of retirement as a result of the State's own pension reform efforts. In addition to these actions, the City Council has adopted a Pension Rate Stabilization and OPEB Funding Policy that directs annual contributions to a Public Agencies Retirement Services (PARS) Trust for prefunding Pension and OPEB obligations. The Council further adopted a policy such that one-half of each fiscal year's General Fund surplus over a 25% available fund balance shall be put toward reducing the CalPERS unfunded liability for either pensions or OPEB. The Council recently directed 25% of the surplus fund balance be sent to the City's 115 Trust and the remaining 75% be sent directly to CalPERS to reduce the City's unfunded pension liability. The 115 Trust also restricts funds so they can only be used to address these long-term obligations. Another notable feature of the policy is to direct any unspent funds of the City's closed legacy pension plans (1079/1082 Pension Plans) toward these PARS trust accounts, which will further help fund these obligations.
CAPITAL IMPROVEMENT PROGRAM
The City developed a Capital Improvement and Maintenance Plan (CIP) detailing specific budgeted capital projects. Each of the projects is consistent with the overall goals and principles of the City. Below are certain highlights of projects completed during the reporting period.
Cyclic 18 Sanitary Sewer Rehabilitation ($5.8 million)
The project replaced 2.92 miles of sewer main in locations prioritized based on condition assessment and possible consequence of pipe failure. It furthers the objectives of the City's Sewer System Management Plan and Sewer Master Plan. The work also meets the annual work requirements per a federal consent decree the City is party to.
Group 4 Sewer Pump Station Rehabilitation ($5.0 million) The project completed upgrades of six pump stations, namely Catalina, Cola Ballena, Grand Otis, Harbor Bay Parkway 1, Marina Village, and Park Otis) that are a vital part of the City's sanitary sewer system. It furthers the objectives of the Sewer Master Plan.
Stormwater Pump Station Rehabilitation ($0.4 million)
The project completed upgrades of 4 stormwater pump stations that are a vital part of the City's stormwater and flood control system. It furthers the objectives of the Storm Drain Master Plan and Storm Drain Pump Station Assessment of 2011.
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Repairing and Resurfacing of Certain Streets ($.2 million) The City's Pavement Management Program awarded a contract to perform preventive maintenance treatments along approximately 3.5 miles of roadway and 7,100 square yards of parking lot (Chuck Corica Golf Course). The project was completed in August of 2021. The City’s Pavement Management Index, issued by the Bay Area Metropolitan Transportation Commission is “Good”.
Sidewalk Repair and Replacement ($0.8 million)
The City’s sidewalk program removed more than 6,100 tripping hazards and replaced over 12,400 square feet of deteriorated sidewalk. As conduits fo r pedestrian movement and access, sidewalks enhance connectivity and promote walking. Safe, accessible, and well maintained sidewalks are fundamental to mobility and a healthy community.
Park Maintenance ($0.4 million)
The tennis courts lights were upgraded to LED lighting at Washington, Krusi and Leydecker Parks. The Washington tennis court complex and Lincoln Park pickleball courts were also fully resurfaced.
The FY 2021-22 adopted Capital Improvement Program Budget appropriated an additional $31.9 million and was allocated to the following types of projects:
Category Amount in Millions Percent of Total
Rehabilitation $23.58 73.91%
Transportation $7.35 23.02%
Park, Sea Level Rise, Alameda Point $0.98 3.07%
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Honorable Mayor and
Members of the City Council
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
The City received the GFOA's Distinguished Budget Presentation Award for its two-year budget document for FYs 2021-2023. In order to qualify for the Award, the City's budget document had to meet specific criteria as a policy document, a financial plan and a communications device.
This Annual Comprehensive Financial Report was prepared by the City's Finance Department staff, under the leadership of Margaret O'Brien, Finance Director. This report is representative of the staff's ongoing commitment to provide excellent service to Alameda residents.
Many thanks are also extended to the independent auditors of Maze & Associates for their review of this report, and to the City Council, City Treasurer, and City Auditor for their stewardship and commitment to assist in ensuring the long-term fiscal health of the City.
Respectfully submitted,
Erin Smith
Acting City Manager
�DocuSigned by:
L��BL {9-' f;fitM,
Margaret L. O'Brien
Finance Director
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City of Alameda
City Council
Mayor Marilyn Ezzy Ashcraft
Vice Mayor Malia Vella
Councilmember Tony Daysog
Councilmember Trish Herrera Spencer
Councilmember John Knox White
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City of Alameda
Principal Officers
ELECTED OFFICIALS
Kevin Kearney, City Auditor
Kevin Kennedy, City Treasurer
CHARTER OFFICERS
City Manager, Dirk Brazil
City Attorney, Yibin Shen
City Clerk, Lara Weisiger
EXECUTIVE MANAGEMENT TEAM
Assistant City Manager, Vacant
Finance Director, Margaret O’Brien
Chief of Police, Nishant Joshi
Community Development Director, Lisa Maxwell
Fire Chief, Nicolas Luby
General Manager, Alameda Municipal Power, Nicolas Procos Human Resources Director, Nancy Bronstein
Information Technology Director, Carolyn Hogg
Library Director, Jane Chisaki
Planning, Building and Transportation Director, Andrew Thomas Public Works Director, Erin Smith
Recreation and Park Director, Amy Wooldridge
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City of Alameda
City Profile
The City of Alameda, incorporated April 19, 1854, is a 10.6 square mile city located in San Francisco Bay. Alameda has a population of 80,884. The City of Alameda is seven miles east of San Francisco, situated within San Francisco Bay, and less than one mile west of the City of Oakland, directly west of Interstate 880. Alameda is a brief drive north of Oakland International Airport, which borders the City on the southeast. xvii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Alameda
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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FINANCIAL SECTION
.
City of Alameda, California
People and Places in the City
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Alameda, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Alameda (City), California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statemen ts referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities , each major fund, and the aggregate remaining fund information of the City as of June 30, 202 2, and the respective change s in financial position and, where applicable, cash flows thereof and the respective bu dgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our re sponsibilities under those standards ar e further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is requi red to evaluate whether ther e are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
1 Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financia l statements as a whole are free from material misstatement, whether due to fra ud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures respon sive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purp ose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, consid ered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings , and certain internal contro l-related matters that we identified during the audit.
Change in Accounting Principles
Management adopted the provisions of Government al Accounting Standards Board Statement No. 87, Leases, which became effective during the year ended June 30, 2022 and required the restatement of fund balance and net position as discussed in Note 8D to the financial statements.
The emphasis of this matter does not constitute a modification to our opinions.
2 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other Required Supple mentary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and ce rtain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards ge nerally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic fina ncial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 Other Reporting Required by
Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our repo rt dated December 29, 2022, on our consideration of the City’s intern al control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations , contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 29, 2022
4 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Management’s Discussion and Analysis (MD&A) provides an overview of the City of Alameda’s activities and financial performance for the fiscal year ended June 30, 2022. To obtain a complete understanding of the City’s financial condition, this document should be read in conjunction with the accompanying Transmittal Letter, Basic Financial Statements, and the notes to the basic financial statements.
Financial Highlights
The City implemented Governmental Acc ounting Standards Board (GASB) Statement No. 87, Leases. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-us e lease asset, and a lessor is required to recognize a lease receivable and a deferred in flow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.
The assets and deferred outflows of the governm ental activities of the City exceeded its liabilities and deferred inflows at the close of the fiscal year by $270.0 million, of which unrestricted net position was a deficit $191.2 million. Excluding the $269.9 million net pension, total pension, and net OPEB liabilitie s, which are not claims on current year financial assets, $78.7 million of unrestricted net position is available to meet the City’s ongoing obligations to citizens and creditors.
The City’s total net position increased by $56.6 million from the prior year, with $13.2 million attributable to business-type activities and $43.4 million to governmental activities.
As of June 30, 2022, the City’s government al funds reported combined fund balances of $224.5 million, an increase of $21.7 million in comparison to the prior year. Of this amount, $63.9 million of unassigned fund balance is available for spending at the City’s discretion.
At the close of the fiscal year, the General Fund reported total assets of $99.6 million and a total fund balance of $90.0 million. This represents an increase in fund balance of $17.0 million, or 23.2% from prior fiscal year. Of the total fund balance, $64.2 million, or 71.4%, was unassigned.
Overview of the Annual Comprehensive Financial Report
The Annual Comprehensive Financial Report is presented in five sections:
An introductory section that includes t he Transmittal Letter and general information Management’s Discussion and Analysis (MD&A)
The Basic Financial Statements that include all of the financial activities of the City. There are three components: Government-Wide Financial Statements, Fund Financial Statements, and Notes to the Basic Financial Statements. Required and Other Supplemental Information
Statistical Information
5 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Government-Wide Financial Statements
The Government-Wide Financial Statements provide a long-term view of the City’s activities as a whole. They also provide the overall financial condition of the City using accounting methods similar to those used by private-sector businesse s. They include the St atement of Net Position and the Statement of Activities.
The Statement of Net Position presents information on all of the government’s assets, deferred outflows of resources, liabilities, and deferred in flows of resources on a full accrual basis of accounting similar to that used by private-sector companies. Over time, increases or decreases in the City’s net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities provides information about the City’s revenues and expenses on a full accrual basis, with an emphasis on measuring net revenues or expenses for each of the City’s programs. The Statement of Activities explains, in detail, the change in net position for the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
The amount of the Statement of Net Position and the Statement of Activities are divided into two categories in order to provide a summary of each type of activity:
Governmental Activities – all of the City’s basic services are reported in this category.
Included in basic services are the City Counc il, City Manager, City Attorney, City Clerk, Human Resources, Finance, Police, Fi re, Public Works, Building, Planning, Transportation, Community Development Services, Housing, Library, and Recreation and Parks. These services are supported by the City’s general revenues such as taxes, state subventions, and by special program revenues such as fees and grants.
Business-Type Activities – all of the City’s enterprise activities are reported in this category. Unlike governmental services, thes e services are intended to recover all or a significant portion of their costs through user fees and charges. Included in the City’s enterprise activities are sewer and electric utility systems.
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most significant funds, or “major funds”, not the City
as a whole. Therefore, each major fund is
presented individually, while all non-major fund s are combined in a singl e column on each fund statement. Supplemental schedules display these non-major funds in more detail. The General Fund is always considered a major fund, but other funds may change from year-to-year as a result of changes in the pattern of City activities.
Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds to help control and manage funds for particular purposes or to show legal responsibilities for using certain taxes, grants or other monies are being met.
6 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
The Fund Financial Statement display the City’s operations in more detail than the Government- Wide Financial Statements. All funds of the City can be divided into three categories:
Governmental Funds, Proprietary Funds and Fiduciary Funds.
Governmental Funds – Most of the City’s basic services are included in governmental funds, which focus on how money flows into and out of these funds and the balances left at fiscal year- end that are available for spending. Governmental Funds Financial Statements are prepared on the modified accrual basis of accounting, wh ich means they measure only current financial resources and uses. Governmental Funds Financ ial Statements focus on near-term inflows and outflows of spendable resources as well as on the balances of spendable resources available at the end of the fiscal year. This information may be useful in evaluating a government’s ability to meet its near-term financial requirements. Because the focus of governmental funds is narrower than that of the Government-Wide Financial Statem ents, it is useful to compare the information presented for governmental funds with similar in formation 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 funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances provide a reconciliation to assist the reader with this comparison between governmental funds and governmental acti vities. Capital assets and other long-term assets, along with long-term liabilities, are presented only in the Governmental-Wide Financial Statements.
Proprietary Funds – When the City charges customers for services it provides, whether to outside customers or other units of the City, th ese monies are generally reported in proprietary funds. The City maintains two different types of proprietary funds: enterprise funds and internal service funds. These financial statements are pr epared on the full accrual basis of accounting, similar to that used by private-sector companies. The City’s enterprise funds are the same as the business-type activities reported in the Government-Wide Financial Statements, but provide more detail and additional information, such as a statement of cash flows.
Fiduciary Funds – Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. The City’s fiduciary activities are reported in separate statements including the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Fund Net Position. These activities are excluded fr om the Government-Wide Financial Statements because the resources of those funds are not av ailable to support the City’s own programs.
Fiduciary funds are prepared on the full accrual basi s, similar to the proprietary funds. The City has two types of fiduciary funds: the custodial funds and the private purpose trust funds.
Notes to the Basic Financial Statements
The Notes to the Basic Financial Statements provide additional information that is essential to acquire a full understanding of the data prov ided in the Government-Wide and Fund Financial Statements. The Notes to the Financial Statements follow the basic financial statements.
Required Supplementary Information
In addition to the Basic Financial Stat ements and accompanying notes, the Required Supplementary Information presents required suppl ementary information, including information on the City’s pension and OPEB plans. Requi red supplementary information can be found immediately following the Notes to the Basic Financial Statements.
7 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Financial Analysis of Government-Wide Financial Statements
This section focuses on the City’s net position and changes in net position of its governmental and business-type activities. The net position, for the City as a whole, increased $56.6 million or
14.3%, from $395.0 million at June 30, 2021 to $451.6 million at June 30, 2022. Of this $56.6 million increase, $22.0 million, or 38.9%, is dire ctly related to the decrease in the City’s net pension, total pension, net OPEB liabilities and related deferred outflows/inflows of resources.
While a portion of these decreases can be attributed to changes in assumptions made by the actuaries, a majority of the decrease stems from better-than-expected investment returns.
Another $5.0 million of this City-wide increase in net position stems from principal payments on long-term debt. The remaining $29.6 million relates to various items throughout the City, including additions to the purchased power balancing account in the Alameda Municipal Power enterprise fund, introduction of GASB Statement No. 87 rega rding recognition of certain lease assets and liabilities, and stronger than normal general revenues.
Details of the net position are presented in the summary are as follows:
Condensed Statement of Net Position
as of June 30, 2022 and 2021
(in thousands)
Governmental Business-type
Activities Activities Total
2022 2021** 2022 2021** 2022 2021**
Asse ts
Current and other assets 416,238 $ 301,440 $ 141,801 $ 144,344 $ 558,039 $ 445,784 $ Capital assets 342,719 337,031 139,953 131,187 482,672 468,218 Total assets 758,957 638,471 281,754 275,531 1,040,711 914,002 Deferred Outflows of Resources
Deferred losses on refunding 377 438 377 438 Related to pensions 32,559 38,415 6,101 3,777 38,660 42,192 Related to OPEB 13,818 14,780 164 202 13,982 14,982 Total Deferred Outflows of Resources 46,377 53,195 6,642 4,417 53,019 57,612 Liabilities
Long-term Liabilities 310,781 408,230 49,053 63,509 359,834 471,739 Other Liabilities 63,986 42,169 12,898 13,699 76,884 55,868 Total Liabilities 374,767 450,399 61,951 77,208 436,718 527,607 Deferred Inflows of Resources
Related to pensions 52,175 1,072 8,004 327 60,179 1,399 Related to OPEB 39,123 13,600 411 9 39,534 13,609 Related to leases 69,222 69,222
Balancing account 36,495 34,031 36,495 34,031 T
otal Deferred Inflows of Resources 160,520 14,672 44,910 34,367 205,430 49,039 Net Position:
Net Investment in Capital Assets 316,665 306,331 113,134 110,041 429,799 416,372 Restricted 144,588 137,397 18,843 20,951 163,431 158,348 Unrestricted* (191,206) (217,133) 49,558 37,381 (141,648) (179,752) Total Net Position 270,047$ 226,595$ 181,535$ 168,373$ 451,582$ 394,968$ * Unrestricted net position for June 30, 2022 affected by the balance of the City's $195.8 million net pension liabilities and the $86.8 million in net other post-employment benefits, which are not claims on current year financial assets. ** Not restated for the implementation of GASB Statement No. 87 8 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
At June 30, 2022, the City report ed positive balances in all categor ies of net position except for unrestricted net position primarily due to the inclusion of the net pension liabilities and net OPEB liabilities. The largest portion of the City’s net position, $429.8 million, is its investment in capital assets less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide services to it s residents and other stakeholders. Accordingly, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources because the capital assets themselves cannot be used to liquidate these liabilities.
Restricted net position, that portion of the City’s net position subject to restrictions on how these resources may be used, increased $5.1 million, or 3.0%, from $158.3 million at June 30, 2021 to $163.4 million at June 30, 2022. While most of the restricted funds increased or decreased slightly during the year, the majority of this difference can be attributed to the increase in lease income in the Base Reuse Special Revenue Fund. Use of money and property revenue in this fund increased from $13.6 million in the prior year to $17.9 million in the current year, an increase of $4.3 million, or 31.6%. Strong economic growth in the local economy, including new tenants and lower vacancy rates, have attributed to this increase in lease revenues.
Total liabilities decreased by $90.9 million from $527.6 million at June 30, 2021 to $436.7 million at June 30, 2022 due primarily to a decrease in the City’s net pension liability and net OPEB liability discussed earlier. City-wide, the decreases in the net pension, total pension, and net OPEB liabilities lowered total liabilities by $111.2 million. Unearned revenue, money received by the City for a service or product that has yet to be provided or delivered, increased liabilities by $15.4 million as the City received it’s second tranche of the American Rescue Plan Act of 2021 (ARPA) stimulus package. While a majority of these funds have not been spent as of June 30, 2022, monies have been assigned to various projects for the benefit of City residents. 9 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Information about changes in net position is presented in the summary schedule below:
Condensed Statement of Activities
for the years ended June 30, 2022 and 2021
(in thousands)
Governmental Business-type
Activities Activities Total
2022* 2021 2022* 2021 2022* 2021
Revenues
Program revenues
Charges for services 28,411$ 36,336$ 77,615$ 77,982$ 106,026$ 114,318$ Operating grants and contributions 7,445 1
0,772 7,445 10,772
Capital grants and contributions 6,455 2
5,424 6,455 25,424
General revenues
Property taxes 64,535 63,422 64,535 63,422 Sales taxes 22,756 19,440 22,756 19,440 Utility users tax 9,012 9
,091 9
,012 9,091
Other taxes 29,724 25,392 29,724 25,392 Gain on sale of capital assets 21 21
Use of money and properties 16,739 5,775 (
1,210) 442 1
5,529 6,217
Miscellaneous 472 6
65 2,329 422 2
,801 1,087
Total revenues 185,570 196,317 78,734 78,846 264,304 275,163 Expenses
General Government 9,320 1
6,170 9,320 16,170
Police 33,123 42,073 33,123 42,073 Fire 36,
158 46,814 36,158 46,814
Public Works 24,751 23,596 24,751 23,596 Community Development 15,031 18,116 15,031 18,116 Community Services 11,360 11,360
Housing 4,942 4,942
R
ecreation and Parks 12,083 12,083
Library 6,748 6,
748
Planning, Building and Transportation 8,179 8,
179
Interest on long-term debt 889 8
01 889 8
01 Se
wer Serv ices 4,249 5,861 4,249 5,861 Alameda Municipal Power 57,159 64,314 57,159 64,314 Total expenses 146,282 163,872 61,408 70,175 207,690 234,047 Change in Net Position Before Transfers 39,288 32,445 17,326 8,671 56,614 41,116 Transfers, Net 4,164 4
,512 (
4,164) (4,512)
Change in Net Position 43,452 36,957 13,162 4,159 56,614 41,116 Beginning Net Position 226,595 189,638 168,373 164,214 394,968 353,852 Ending Net Position 270,047$ 226,595$ 181,535$ 168,373$ 451,582$ 394,968$ *The City expanded certain departmental reporting during fiscal year 2022. Prior year amounts have not been restated. 10 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Total revenues decreased approximately $10.9 million, or 3.9%, most of which is related to governmental activities. While the General Fund and Base Reuse Sp ecial Revenue Fund saw increases in revenues from prior year due to increased property, local, transfer tax revenues, and lease revenues, other governmental funds saw large decreases in developer and license and permit fees. Alameda Point Development Impact Fees (DIF) were repealed by the City Council in September 2020. This led to a decrease of roughly $6.0 million in year-over-year revenue for the DIF Capital Projects Fund.
Expenses decreased approximately $26.4 million, or 11.3%, compared to the prior year. $8.8 million of this decrease can be attributed to the Ci ty’s Business-Type activities, most of which to the Alameda Municipal Power (AMP) enterprise fund. Operating expenses alone decreased $7.1 million, a large portion of which can be attri buted to the balancing account adjustment. This adjustment is used to help stabilize rates and combat unanticipated changes in sales levels by accumulating differences between actual costs and related revenues.
Governmental Activities – Expense and Program Revenue by Source Program revenue associated with Governmental Activities total $42.3 million, or 28.9%, of program expenses. Expenses not covered by program revenues must be funded from non- program sources such as general tax revenues. The table below illustrates the gap between program revenues and expenses by major activity. Public safety programs rely heavily on taxes to support operations. General government programs provide benefit to both business-type and governmental activities and receive some funding through internal indirect cost allocations to supplement program revenue and general tax revenue.
Net Revenue
Program (Expense)
Expenses Revenues of Activities
Governmental Activities
General Government 9,320 $ 2,820 $ (6,500) $ Police 33,123 737 (32,386)
Fire 36,158 5,169 (30,989)
Public Works 24,751 19,073 (5,678)
Community Development 15,031 3,810 (11,221)
Recreation and Parks 12,083 3,939 (8,144)
Library 6,748 58 (6,690)
Planning, Building and Transportation 8,179 6,706 (1,473) Interest on Long-Term Debt 889 (889)
146,282$ 42,312 $ (103,970) $
Expense and Program Revenue - Governmental Activities
for the year ended June 30, 2022
(in thousands)
11 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
The pie chart on the next page illustrates the distribution of total revenue of $185.6 million among its various sources. The largest revenue sour ces for governmental activities are property and related taxes of $64.5 million, or 34.8%, and ot her taxes of $29.7 million, or 16.0%, of total governmental revenues. “Other taxes” increased by 17.1% from the prior year. This increase in other taxes can be mostly attributed to a rise in transfer taxes. Transfer taxes came in roughly $6.9 million over budget. These increases have to do with a strong, local real estate market – both in purchases and leasing. Charges for serv ices approximated $28.4 million, or 15.3% in 2022. Sales taxes and use of money and property are also significant individual revenue sources for the City’s governmental activities, amounting to 12.3% and 9.0%, respectively. The remaining
12.6% of revenue for governmental activities comes from capital and operating grants and contributions, utility users taxes and miscellan eous revenues. Overall, the city saw better-than- expected tax revenue streams for the fiscal year ended June 30, 2022. Other revenue sources, including charges for services and capital grants and contributions, decreased year-over-year.
Capital grants and contributions saw the largest difference between FY 2020-21 and FY 2021-22 as the City completed large construction projects in the prior year, including the Alameda Seaplane Lagoon ferry terminal, and recognize re venues received from other governments. We anticipate a spike in capital grants and contribut ion revenue in FY 2022-23 as we approach the construction and deployment phases of the ARPA-funded capital projects. 12 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Business-Type Activities
The following table presents the same net program
information for business-type activities. In
these programs, annual surpluses or deficits are retained in the programs as an increase or decrease in the program’s net position.
Net position of the Sewer Services Fund at June 30, 2022 was $106.1 million with the largest portion, $92.2 million, invested in capital assets less any related outstanding debt that was used to acquire those assets. The remaining $13.9 million is available to fund debt service, sewer operations, and future improvements and maintenance projects. The Sewer Services Fund generated operating income of $11.8 million, very closely aligned with prior year operating income. This fund incurred $3.1 million in operating expenses and $1.4 million in non-operating expenses, for an overall increase in net position of $7.3 million. The increase year-over-year change in net position stems from a $0.5 million transfer out of the Sewer Services Fund in prior year that was not needed in the current year as well as a decrease in total operating expenses as a result of decreases in the net pension liability.
Revenue Expense Net
Sewer Services 11,816$ 4
,249$ 7
,567 $
Alameda Municipal Power (AMP) 65,799 57,159 8,640
77,615$ 6
1,408$ 16,207 $
Program and General Revenue and Expense - Business-Type Activities for the year ended June 30, 2022
(in thousands)
13 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Net position of AMP at June 30, 2022 was $75.4 mi llion with the largest portion, $49.6 million available to fund operations, maintenance projects and future capital improvements. Of the remaining $25.8 million, $4.9 million is restricted for debt service and $20.9 million is invested in capital assets less any related outstanding debt that was used to acquire those assets. The cost of AMP operating activities this year was $54.3 million, while the cost of non-operating activities and transfers out net another $6.1 million in expenses. The largest source of operating revenue was user charges for services of $65.8 million. The overall net increase in net position of AMP was $5.9 million. For more information about t he financial position of AMP, please visit their financial reports website at alamedamp.com/274/Financial-Reports.
Financial Analysis of Governmental Funds
As noted earlier, the City of Alameda uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Cit y
of Alameda’s financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as it represents the portion of fund balance not yet limited to us e for a particular purpose by either an external party, the City itself, or an entity that has been delegated authority by the City Council to assign resources for use at the end of the fiscal year.
As of June 30, 2022, the City’s governmental funds reported combined ending fund balances of $224.5 million. Approximately $64.2 million, or 28.6%, of the combined ending fund balance constitutes unassigned fund balance , which is available for spending at the government’s discretion. The remaining balance is either non-spendable, restricted, committed or assigned to indicate that it is:
1) not in spendable form ($3.1 million) as it has been committed to liquidate contracts and purchase orders from the prior fiscal period, pay debt service, or fund future needs; 2) restricted for particular purposes ($121.7 million); 3) committed for particular purposes ($21.5 million); or 4) assigned for particular purposes ($13.9 million).
The following are the major funds that either
qualified under the reporting criteria or were
considered to be important to financial statement users:
for the years ended June 30, 2022 and 2021
(in thousands)
2022 2021 Difference
Charges for Services 77,615 $
77,982$
(367)$
Investment Earnings/Rents (1,210)
442 (1,652)
Miscellaneous Revenues 2,329
422 1,907
78,734$
78,846$
(112)$
Revenues by Source - Business-Type Activities
14 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
General Fund
The General Fund is the chief operating fund of the City. As of June 30, 2022, unassigned fund balance of the General Fund was $64.2 million; the remaining fund balance, including non- spendable, restricted and committed resources, was $25.7 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 57.2% of total General Fund expenditures and transfers out.
General Fund revenues increased $9.2 million, or 8.0%, from the prior fiscal year to $124.3 million in FY 2021-22. Property tax revenues for the fisca l year were $51.5 million, an increase of $2.2 million or 4.4% over the prior year. This increase is primarily due to the rise in median home sale prices in the City of Alameda, new housing developments, and the receipt of residual property tax distributions as a result of redevelopment diss olution. Real property transfer tax increased $3.4 million, or 18.3%, compared to t he prior year due mainly to an increase in home sales in an appreciating home value market.
Other local taxes and Sales tax, the third and fourth largest revenue sources, respectively, for the City’s General Fund, increased by $3.1 million, or 11.7%, over the prior year for a combined total of $30.2 million. This was a result of a strong recovery after the onset and continuation of the pandemic in the two prior fiscal years.
General Fund expenditures totaled $99.1 million for FY 2021-22 compared to $86.0 million in the prior fiscal year. This amount excludes encumbrances outstanding at year end. The increase of $13.1 million, or 15.2%, was mostly attributed to an increase in costs related to Police, Fire protection and Recreation and Parks projects in t he City. While costs related to the Police and Fire Departments have increased during the fiscal year, neither department is at capacity with the amount of safety officers. As the City fills these roles, which it has been doing during Fiscal Year 2021-22, we expect to see slight increases in expenditures in these functions.
Transfers out for FY 2021-22 were $13.2 million compared to $18.0 million in the prior year. This decrease of $4.7 million was due to a one-time transfer of $9.0 million to the Pension Stabilization Internal Service Fund in the prior year to help with pension prepayments. The payment during FY 2021-22 was $7.7 million. Increased allocation costs for IT services , General Liability insurance, and OPEB funding also attributed to this increase in transfers out.
The fund balance of the City’s General Fund was $90.0 million at June 30, 2022, which is a $17.0 million, or 23.2%, increase from the prior fiscal year. Of this $90.0 million, $8.7 million has been committed to certain projects, namely $7.5 million to the Emma Hood Swim Center and $1.2 million to the Dignity Moves housing project. Revenues and transfers in of $129.3 million were $6.9 million, or 5.6% higher, than FY 2021-22. Expenditures and transfers out were $112.3 million, which is $8.4 million, or 8.0%, higher than FY 2020-21. These increases are explained above.
The Base Reuse Special Revenue Fund had an increase in fund balance from $53.4 million in prior year to $56.3 million in FY 2021-22, an increase of $2.9 million, or 5.5%. This increase stems mainly from new leases and increases in year over year lease revenue. New GASB reporting statement number 87 requires lessors to recognize a lease receivable and a deferred inflow of resources. This change in accounting practice increased reportable revenue by roughly $1.5 million if compared to the prior accounting practi ce. Transfers out to the Alameda Point Capital Project Fund increased $6.0 million as more projects are being constructed. 15 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
The Grants Special Revenue Fund accounts for revenues received from federal, state, county, and private grants. This fund qualified under the reporting criteria of a major fund this year as the balance of the ARPA monies has been kept her e. The fund balance of this account decreased from $2.1 million in prior year to $1.0 million in the current year, and the unearned revenue liability increased by $29.4 million. While the first tranc he of the ARPA funding was kept in the Capital Improvements Capital Projects Fund in the prio r year, both the first and second tranches were moved to this fund during FY 2021-22. This was done to demonstrate what ARPA funding the City has at year-end more easily.
Financial Analysis of Proprietary Funds
The City of Alameda enterprise funds provide the
same type of information found in the business-
type activities of the government-wide financial statements, but in more detail. During FY 2021- 22, there were two enterprise funds, the Sewer Services Fund and the Alameda Municipal Power Fund.
Internal Service Funds
The City of Alameda maintains nine Internal Service Funds and has closed one during the fiscal year ended June 30, 2022. The following table pres ents each funds’ net position (deficit) as of June 30, 2022:
Net Position/
(Deficit)
$ 1,459
-
11,
281
6,837
5,846
(88)
(1,277)
375
7,587
18,552
$ 50,572
Pension Stabilization
Total
Internal Service Fund Net Position
for the year ended June 30, 2022
(in thousands)
IT Cable Replacement
Central Services
Fleet Maintenance
Technology Services
Facilities Replacement and Maintenance
Workers' Compensation Insurance
General Liability Insurance
Unemployment Insurance
OPEB/Vacation
16 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
The Workers’ Compensation and General Liability Fund net position deficits reflect future claims liabilities maturing in five to ten years. The current deficit net pos ition of the Worker’s Compensation Fund decreased by $2.8 million from the prior year, when changes to the confidence level of the current claims liabilities rose by 10% to 70%. As we gain confidence over our ability to cover claim costs as they arise, t he liability of the expected claims costs increases.
This increase in liability leads to a decrease in our net position. The Pension Stabilization Fund net position increased by $1.3 million from the prior fiscal year as prepayments of $7.7 million were made to the City’s plan sponsor and trus t funds dedicated to pension reduction from FY 2020-21 General Fund surplus. More information can be found in Note 9 (Pension Plans) of this report.
General Fund Budgetary Highlights
The FY 2021-22 revenue and transfers in budget increased by $6.3 million, from an original budget of $110.9 million to a final budget of $117.2 million. The increase was primarily due to increased property, sales, and transfer tax re venues. There was an increase of $2.0 million and $3.0 million for property and transfer taxes, resp
ectively, between the original and final budgets.
Actual revenues and transfers in for the Genera l Fund finished above both original and final budgeted amounts. Revenues totaled $129.2 million compared to a budgeted final amount of $117.2 million, which is $12.0 million, or 10%, higher than the final budget. Transfer tax and sales tax came in substantially higher than budget due to rapid inflation, high gas prices, and one-time sale of high-value private properties resulting in transfer and sales tax receipts that were $6.9 million and $0.8 million over projections, respectively.
Actual expenditures and transfers out for the General Fund totaled $112.3 million. This was $14.8 million, or 11%, less than the final budget. This is a result of departments staying within allocated appropriations magnified by personnel vacancies in the Police, Finance and Public Works Departments.
Capital Assets and Debt Administration
Capital Assets - The capital assets of the City are those assets which are used in the performance of the City’s functions. As of June 30, 2022, capital assets, net of accumulated depreciation, of the Governmental Activities totaled $342.7 m illion. For FY 2021-22, additions to governmental activities capital assets included $21.1 million for Parks projects such as Cross Alameda Trail ($11.3 million) and Jean Sweeney Park ($7.5 million) and $12.6 million for Streets projects such as Pavement Management ($3.9 million) and Traffic Signals and Systems ($3.5 million). Capital assets, net of accumulated depreciation, of the Bu siness-Type Activities totaled $140.0 million.
For FY 2021-22, additions to Business-Type Activi ties capital assets included $10.6 million for Sewer projects such as Sewer Rehabilitation ( $8.2 million) and Sewer Pump Station upgrades ($2.3 million). Depreciation on capital assets is recognized in the government-wide financial statements. Additional information about the City’s capital assets can be found in Note 5 of this report.
17 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
Long-Term Debt - Long-term debt of Governmental Activiti es decreased in FY 2021-22 by $3.1 million due to the current fiscal year’s princi pal payments. Long-term debt of Business-Typ e Activities decreased $2.0 million during the y ear as a result of annual debt service payments made. In addition, per capita long-term debt outstanding decreased slight ly from $791 to $758 in
FY 2021-22. Additional information about the City’s long-term debt activity can be found in Note 6 of this report.
Governmental Business-Type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Certificates of Participation 5,214$ 6,150 $ $ 5,214 $ 6,150 $ Revenue Bonds 8,100 8,600 30,468 32,357 38,568 40,957
General Obligation Bonds 6,073 6,483 6,073 6,483
HUD Section 108 Loan 3,572 4,104 3,572 4,104
Other Long-Term Debt 5,458 6,149 100 197 5,558 6,346
28,417$ 31,486 $ 30,568 $ 32,554 $ 58,985 $ 64,040 $ Long-Term Debt
(in thousands)
Economic Outlook and Next Year’s Budget
Following the immediate business disruption and economic impacts from the onset of the COVID- 19 pandemic in the last quarter of FY 2019-20, the City’s major revenue sources outperformed projections in the fiscal year ending June 30, 2022. Although the pandemic continued to impact brick-and-mortar businesses through FY 2021-22, growth in property values coupled with an increase in sales activity resulted in a boost to property tax revenues and transfer tax, and the continuing trend of consumer activity shifting to online transactions and rising inflation resulted in higher-than-expected receipts for sales tax and transaction and use tax.
The City expects steady growth in property tax revenues to continue at least through FY 2022-23 due to the inflation-driven increase in assessments and the growth in sales prices. The rate of growth is expected to slow due to the impact of higher interest rates on consumer demand and sales prices. Although a market correction is expected, property tax has historically been a stable revenue source for the City and is expected to remain stable. 18 City of Alameda, California
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2022
The City’s diverse revenue base allowed for minimal pandemic-related service disruptions, and program revenues most heavily impacted by the pandemic, such as parking and recreation fees, recovered beyond or near pre-pandemic levels in FY 2021-22.
Staff does not anticipate that major programming changes will be needed to balance expenditures with revenues in the FY 2023-25 budget cycle. In the long term, the City will continue to evaluate opportunities for new revenue sources and monitor cost changes that exceed revenue growth, particularly for liability insurance, employee health premiums, and pension obligations, in order to ensure that the City can avoid major service level cuts.
Significant Events and Accomplishments
The City is dedicated to meeting the social, cultural, and recreational needs of its residents and businesses.
In FY 2021-22, the City launched the Community Assessment Response & Engagement (CARE) Team led by the Alameda Fire Department to provide a 24/7 alternative response to nonviolent individuals facing a mental health crisis. The City was awarded a $12 million Project Homekey grant from the California Department of Housing and Community Developm ent for developing the first transition al housing facility in Alameda.
The City opened two new parks at Alameda Point: the Seaplane Lagoon Promenade and Whale Park.
The City went live with a new Enterprise Resource Planning system including payroll, financials, and cash receipts modules.
Requests for Information
This Annual Comprehensive Financial Report is intended to provide our residents, taxpayers, customers, investors, and creditors with a general overview of the City of Alameda’s finances.
Questions concerning any of the information prov ided in this report or requests for additional financial information should be directed to the City of Alameda, Finance Department, located at 2263 Santa Clara Avenue, Room 220, Alameda, California 94501 or via email at [email protected]. This report can also be viewed online at the City of Alameda’s website:
www.alamedaca.gov/Departments/Administration/Finance.
19 City of Alameda, California
People and Places in the City
City of Alameda, California
Statement of Net Position
and Statement of Activities
The Statement of Net Position reports the difference between the City’s total assets, deferred outflows of resources, the City’s total liabilities, and deferred inflows of resources, including all the City’s capital assets and all its long- term obligations. The Statement of Net Position summari zes the financial position of all the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these columns are followed by a Total column that presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds primarily service these Funds, their activities are consolidated with Governmental Activities, after elimin ating inter-fund transactions and balances. The City’ s
Business-type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues - that is, revenues which are generated directly by these programs - are then deducted from program expenses to arrive at the net expense of each governmental and business-type progr am. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both of these Statements include the financial activities of the City, and the blended component units: the Alameda Public Financing Authority and the City of Alameda Fi nancing Authority, which are legally separate entities and are considered component units of the City because they are controlled by the City, which is financially accountable for the activities of the entities.
21 City of Alameda, California
People and Places in the City
City of Alameda
Statement of Net Position
June 30, 2022
Governmental Business-T ype
Activities Activities Total
ASSETS
Cash and investments 302,904,032 $ 81,068,476$ 383,972,508$ Restricted cash and investments 14,167,601 5,702,955 19,870,556 Accounts receivable, net 15,028,600 7,293,258 22,321,858 Interest receivable 109,181 109,181
Loans receivable 12,411,137 12,411,137
Materials, parts and supplies 4,253,239 4,253,239
Prepaids and deposits 377,045 40,000 417,045
Internal balances 328,049 (328,049)
Leases receivable 71,021,431 71,021,431
Share of certain NCPA projects and reserve 6,656,515 6,656,515 Investments designated for special purposes 37,005,400 37,005,400 Capital assets:
Non-depreciable 26,752,025 3,948,744 30,700,769
Depreciable, net of accumulated depreciation 315,967,123 136,004,511 451,971,634 Total Assets 758,957,043 281,754,230 1,040,711,273
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 376,843 376,843
Related to pensions 32,559,150 6,101,046 38,660,196
Related to OPEB 13,817,793 163,868 13,981,661
Total Deferred Outflows of Resources 46,376,943 6,641,757 53,018,700
LIABILITIES
Accounts payable 9,811,702 3,099,178 12,910,880
Accrued payroll 4,733,322 35,779 4,769,101
Interest payable 229,358 675,698 905,056
Unearned revenue 32,154,417 32,154,417
Refundable deposits 2,784,597 5,832,879 8,617,476
Due to other agencies 61,668 61,668
Claims payable:
Due within one year 7,179,858 166,721 7,346,579
Due in more than one year 15,263,021 953,356 16,216,377 Compensated absences - due within one year 4,159,193 721,808 4,881,001 Lease liability - due within one year 251,431 251,431
Long-term liabilities due in more than one year:
Net pension liability 180,440,119 15,342,343 195,782,462 Total pension liability 4,361,266 4,361,266
Net OPEB liability 85,171,610 1,647,362 86,818,972
Lease liability 2,657,081 2,657,081
Long-term debt:
Due within one year 2,872,346 2,114,680 4,987,026
Due in more than one year 25,544,853 28,453,004 53,997,857 Total Liabilities 374,767,330 61,951,320 436,718,650
DEFERRED INFLOWS OF RESOURCES
Purchased power balancing account 36,495,278 36,495,278 Related to pensions 52,175,010 8,003,534 60,178,544
Related to OPEB 39,123,155 411,335 39,534,490
Related to leases 69,221,844 69,221,844
Total Deferred Inflows of Resources 160,520,009 44,910,147 205,430,156 NET POSITION:
Net investment in capital assets 316,665,168 113,133,574 429,798,742 Restricted for:
Capital projects 28,852,820 28,852,820
Debt service 1,725,048 5,702,955 7,428,003
Housing 69,327,332 69,327,332
Public safety 1,375,267 1,375,267
Community development 4,439,321 4,439,321
Maintenance assessment districts 10,449,137 10,449,137
Transportation 15,103,804 15,103,804
Tidelands properties 2,360,111 2,360,111
Waste reduction 3,813,075 3,813,075
Community services 7,142,117 7,142,117
Sewer system replacement 13,140,197 13,140,197
Total Restricted Net Position 144,588,032 18,843,152 163,431,184 Unrestricted (191,206,553) 49,557,794 (141,648,759)
Total Net Position 270,046,647$ 181,534,520$ 451,581,167$ See accompanying notes to financial statements.
Primary Government
23 City of Alameda
Statement of Activities
For the Year Ended June 30, 2022
Program Revenues
Operating Capital
Charges for Grants and Grants an d
Functions/Programs Expenses Services Contributions Contributions Primary Government:
Governmental Activities:
General government 9,320,442$ 2,772,718$ 47,347$ -$ Police 33,123,049 583,063 153,534
Fire 36,170,224 4,134,221 1,035,015
Public works 24,738,562 8,818,755 3,953,024 6,301,382
Community development 15,030,618 2,083,815 1,726,115
Recreation and parks 12,082,777 3,558,604 278,557 101,341 Library 6,748,033 14,781 42,738
Planning, Building and Transportation 8,179,331 6,444,733 208,888 52,230 Interest on long-term debt 888,487
Total Governmental Activities 146,281,523 28,410,690 7,445,218 6,454,953 Business-type Activities:
Sewer services 4,249,245 11,815,658
Alameda munici
pal power 57,159,221 65,799,230
Total Business-type Activities 61,408,466 77,614,888
Total Primary Government 207,689,989$ 106,025,578$ 7,445,218$ 6,454,953$ General revenues:
Taxes:
Property taxes
Sales taxes
Utilit
y users tax
Transfer taxes
Franchise taxes
Transient occu
pancy taxes
Property tax in-lieu
Other taxes
Gain from sale of capital assets
Use of money and property
Miscellaneous
Transfers
Total general revenues and transfers
Change in Net Position
Beginning Net Position
Ending Net Position
See accompanying notes to financial statements.
24 Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental Business-t ype
Activities Activities Total
(6,500,377)$ -$ (6,500,377)$
(32,386,452) (32,386,452)
(31,000,988) (31,000,988)
(5,665,401) (5,665,401)
(11,220,688) (11,220,688)
(8,144,275) (8,144,275)
(6,690,514) (6,690,514)
(1,473,480) (1,473,480)
(888,487) (888,487)
(103,970,662) (103,970,662)
7,566,413 7,566,413
8,640,009 8,640,009
16,206,422 16,206,422
(103,970,662) 16,206,422 (87,764,240)
64,534,572 64,534,572
22,755,698 22,755,698
9,011,553 9,011,553
21,929,943 21,929,943
3,373,794 3,373,794
2,555,336 2,555,336
1,551,000 1,551,000
314,674 314,674
21,457 21,457
16,738,842
(1,210,245) 15,528,597
471,713 2,329,389 2,801,102
4,164,456 (4,164,456)
147,423,038 (3,045,312) 144,377,726
43,452,376 13,161,110 56,613,486
226,594,271 168,373,410 394,967,681
270,046,647$ 181,534,520 $ 451,581,167 $ 25 City of Alameda, California
People and Places in the City
City of Alameda, California
Fund Financial Statements
Major Governmental Funds
The funds described below were determined to be major fu nds of the City of Alameda in Fiscal Year 2021-22.
Individual-non-major funds may be found in the Supplemental Information section.
General Fund
The General Fund accounts for al l general revenues of the City not specifi cally levied or collected by other Cit y
funds, and related expenditures. The Ge neral Fund also accounts for all fina ncial resources of the City which are not accounted for in another fund.
Base Reuse Special Revenue Fund
This fund accounts for the revenues from leasing activities revenues and grants. Expe nditures are made for base reuse activities.
Grants Special Revenue Fund
This fund accounts for revenues received from Federal, State, County and private grants. 27 City of Alameda
Governmental Funds
Balance Sheet
June 30, 2022
Base Reuse Grants
General S
pecial Revenue S pecial Revenue
Cash and investments 84,733,597 $ 56,223,454 $ 29,998,873 $ Restricted cash and investments 6,000 100,000
Accounts receivable 11,042,783 897,229 472,397
Pre
paids and deposits 3,470
Due from other funds 328,049
Loans receivable 2,000,000
Advances to other funds 1,134,624
Leases receivable 306,871 59,343,502
Total Assets 99,555,394$ 116,564,185$ 30,471,270$ Accounts payable 2,182,887$ 313,270$ 32,485$ Accrued payroll 4,032,818 51,854 24,307
Due to other funds
Due to other agencies 16,483
Unearned revenue 1,570,198 29,403,815
Refundable deposits 1,193,801 1,077,968
Advances from other funds 234,936
Total Liabilities 9,231,123 1,443,092 29,460,607
Unavailable revenue - accounts receivable 897,229
Unavailable revenue - revolving loans receivable
Related to leases 295,994 57,874,715
Total Deferred Inflows of Resources 295,994 58,771,944
Nonspendable 3,138,094
Restricted 56,349,149 1,010,663
Committed 8,700,000
Assigned 13,929,791
Unassigned 64,260,392
Total Fund Balances 90,028,277 56,349,149 1,010,663
Total Liabilities, Deferred Inflows of Resources and Fund Balances 99,555,394$ 116,564,185$ 30,471,270$ See accompanying notes to financial statements.
ASSETS
LIABILITIES
FUND BALANCES:
DEFERRED INFLOWS OF RESOURCES
28 Other Total
Governmental Governmental
Funds Funds
81,203,529$ 252,159,453 $
1,991,817 2,097,817
3,244,064 15,656,473
3,470
328,049
10,411,137 12,411,137
1,134,624
11,371,058 71,021,431
108,221,605$ 354,812,454 $
6,262,496$ 8,791,138 $
518,419 4,627,398
45,185 61,668
1,180,404 32,154,417
501,414 2,773,183
1,134,624 1,369,560
9,642,542 49,777,364
897,229
10,411,137 10,411,137
11,051,135 69,221,844
21,462,272 80,530,210
3,138,094
64,678,280 122,038,092
12,804,312 21,504,312
13,929,791
(365,801) 63,894,591
77,116,791 224,504,880
108,221,605$ 354,812,454 $
29 City of Alameda, California
People and Places in the City
City of Alameda
Reconciliation of
Governmental Funds Balance Sheet
with the Statement of Net Position
June 30, 2022
Total fund balances re
ported on the governmental funds balance sheet 224,504,880$ Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds.
Land 5,995,319$
Construction in Progress 20,756,706
Buildings 289,362,171
Machinery and equipment 24,290,738
Infrastructure 318,008,533
Less Accumulated Depreciation (322,305,953)
336,107,514
ALLOCATION OF INTERNAL SERVICE FUND POSITION ASSETS
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance, central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position.
Net Position - All Internal Service Funds 50,570,271
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Revenues that are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 10,411,137
LONG-TERM ASSETS, LIABILITIES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Long-term debt (26,550,441)
Interest payable (188,304)
Compensated absences (4,159,193)
(30,897,938)
Net pension liability (180,440,119)
Deferred outflows of resources related to pension 26,804,150 Deferred inflows of resources related to pension (52,175,010) (205,810,979)
Total pension liability (4,361,266)
Net OPEB liability (85,171,610)
Deferred outflows of resources related to OPEB 13,817,793 Deferred inflows of resources related to OPEB (39,123,155) (110,476,972)
NET POSITION OF GOVERNMENTAL ACTIVITIES 270,046,647$
See accompanying notes to financial statements.
31 City of Alameda
Governmental Funds
Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended June 30, 2022
Base Reuse Grants
General S pecial Revenue S pecial Revenue
REVENUES
Property taxes 51,486,500$ -$ -$
Sales taxes 11,757,084
Transfer taxes 21,929,943
Utility user taxes 9,011,553
Other local taxes 18,402,540
Licenses and permits 2,387,072 7,500
Developer fees
Revenues from other agencies 917,584 697,041
Charges for current services 7,838,029 44,700
Fines and forfeitures 320,669
Use of money and property 247,977 17,948,355 (19,584)
Other revenues 20,068 129,879 6,483
Total Revenues 124,319,019 18,078,234 736,140
EXPENDITURES
Current:
General government 7,757,153
Police 37,243,422 110,149
Fire 39,276,941 1,464,957
Public works 3,308,954 2,405,903
Community development 733,855 6,791,557 130,186
Recreation and parks 10,382,106
Library
Planning, Building and Transportation
Capital outlay 120,969 89,980
Debt service:
Principal 228,151
Interest 8,427
Total Expenditures 99,059,978 9,197,460 1,795,272
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 25,259,041 8,880,774 (1,059,132)
OTHER FINANCING SOURCES (USES)
Transfers in 4,939,465 9,038 183,026
Transfers (out) (13,245,824) (5,950,349) (171,344)
Total Other Financing Sources (Uses) (8,306,359) (5,941,311) 11,682 NET CHANGE IN FUND BALANCES 16,952,682 2,939,463 (1,047,450) BEGINNING FUND BALANCES (DEFICITS) 73,075,595 53,409,686 2,058,113 ENDING FUND BALANCES (DEFICITS) 90,028,277$ 56,349,149 $ 1,010,663 $ See accompanying notes to financial statements.
32 Other Total
Governmental Governmental
Funds Funds
13,336,704$ 64,823,204$
11,757,084
21,929,943
9,011,553
1,104,065 19,506,605
4,652,905 7,047,477
2,362,622 2,362,622
14,414,933 16,029,558
6,881,776 14,764,505
616,168 936,837
1,130,720 19,307,468
390,093 546,523
44,889,986 188,023,379
68,402 7,825,555
37,353,571
40,741,898
5,684,282 11,399,139
6,065,846 13,721,444
766,276 11,148,382
4,857,264 4,857,264
7,807,306 7,807,306
22,951,186 23,162,135
2,496,511 2,724,662
867,465 875,892
51,564,538 161,617,248
(6,674,552) 26,406,131
21,266,321 26,397,850
(11,747,304) (31,114,821)
9,519,017 (4,716,971)
2,844,465 21,689,160
74,272,326 202,815,720
77,116,791$ 224,504,880 $
33 City of Alameda
Reconciliation of the
Net Change in Fund Balances - Governmental Funds
with the Change in Governmental Net Position
For the Year Ended June 30, 2022
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 21,689,160$ Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Capital outlay therefore added back to fund balance 23,162,135 Non-capitalized capital outlay expenditures were re-classified to various governmental activities (5,400,372) Retirements are deducted from fund balance (471,905)
Depreciation expense is deducted from fund balance (11,129,662) (Depreciation expense is net of internal service fund depreciation of $1,092,646 which has already been allocated to service funds)
LONG-TERM DEBT ISSUANCE AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases lon g-term liabilities in the Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 2,724,662 Amortization of bond premium is added back to fund balance 30,986
ACCRUAL OF NON-CURRENT ITEMS
Unavailable revenue (389,758)
Interest payable 12,800
Net pension liability, and related deferred outflows/ inflows of resources 9,369,645 Total pension liability 1,959,269
Net OPEB liability, and related deferred outflows/ inflows of resources 707,748 Compensated absences 36,127
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, equipment, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising from their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds 1,151,541 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 43,452,376 $ See accompanying notes to financial statements.
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
34 City of Alameda
General Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Property taxes 48,365,000$ 50,365,000$ 51,486,500$ 1,121,500$ Sales taxes 11,000,000 11,000,000 11,757,084 757,084
Transfer taxes 12,000,000 15,000,000 21,929,943 6,929,943 Utility user taxes 8,650,000 8,650,000 9,011,553 361,553 Other local taxes 13,518,500 14,718,500 18,402,540 3,684,040 Licenses and permits 2,200,850 2,200,850 2,387,072 186,222 Revenues from other agencies 1,219,100 1,303,900 917,584 (386,316) Charges for current services 6,733,100 7,229,100 7,838,029 608,929 Fines and forfeitures 560,100 80,100 320,669 240,569
Use of money and property 2,273,311 2,273,311 247,977 (2,025,334) Other revenue 12,500 12,500 20,068 7,568
Total Revenues 106,532,461 112,833,261 124,319,019 11,485,758 EXPENDITURES:
Current:
General government 9,907,240 10,229,393 7,757,153 2,472,240 Police 41,140,228 41,203,963 37,243,422 3,960,541
Fire 40,368,414 40,767,290 39,276,941 1,490,349
Public works 3,814,616 3,971,831 3,308,954 662,877
Community development 1,176,849 1,332,688 733,855 598,833 Recreation and parks 10,533,688 11,037,116 10,382,106 655,010 Capital outlay 318,480 323,780 120,969 202,811
Debt service:
Principal 228,151 228,151 228,151
Interest 8,427 (8,427)
Total Expenditures 107,487,666 109,094,212 99,059,978 10,034,234 EXCESS OF REVENUES OVER EXPENDITURES (955,205) 3,739,049 25,259,041 21,519,992
OTHER FINANCING SOURCES (USES)
Transfers in 4,355,000 4,387,000 4,939,465 552,465
Transfers (out) (6,718,000) (18,037,515) (13,245,824) 4,791,691 Total other financing sources (uses) (2,363,000) (13,650,515) (8,306,359) 5,344,156 NET CHANGE IN FUND BALANCE (3,318,205)$ (9,911,466) $ 16,952,682 26,864,148 $ Beginning fund balance 73,075,595
Ending fund balance 90,028,277$
See accompanying notes to financial statements.
35 City of Alameda
Base Reuse
Special Revenue Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Revenue from other agencies -$ -$ -$ -$
Use of money and property 13,228,000 13,228,000 17,948,355 4,720,355 Other revenues 129,879 129,879
Total Revenues 13,228,000 13,228,000 18,078,234 4,850,234 EXPENDITURES:
Current:
Public works 2,405,452 2,405,903 (451)
Community development 9,895,543 8,236,487 6,791,557 1,444,930 Total Expenditures 9,895,543 10,641,939 9,197,460 1,444,479 EXCESS OF REVENUES OVER EXPENDITURES 3,332,457 2,586,061 8,880,774 6,294,713
OTHER FINANCING SOURCES (USES)
Transfers in 9,038 9,038
Transfers (out) (2,183,000) (7,973,913) (5,950,349) 2,023,564 Total other financing sources (uses) (2,183,000) (7,973,913) (5,941,311) 2,032,602 NET CHANGE IN FUND BALANCE 1,149,457$ (5,387,852) $ 2,939,463 8,327,315 $ Beginning fund balance 53,409,686
Ending fund balance 56,349,149$
See accompanying notes to financial statements.
36 City of Alameda
Grants Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Licenses and permits 8,500$ 8,500$ 7,500$ (1,000)$ Revenues from other agencies 2,329,052 8,178,371 697,041 (7,481,330) Charges for current services 10,000 10,000 44,700 34,700 Use of money and property (19,584) (19,584)
Other revenue 6,483 6,483
Total Revenues 2,347,552 8,196,871 736,140 (7,460,731)
EXPENDITURES:
Current:
Police 33,500 171,347 110,149 61,198
Fire 2,397,947 2,397,947 1,464,957 932,990
Communit
y development 1,117,530 1,403,297 130,186 1,273,111
Capital outlay 150,000 5,956,925 89,980 5,866,945
Total Expenditures 3,698,977 9,929,516 1,795,272 8,134,244 EXCESS OF REVENUES OVER EXPENDITURES (1,351,425) (1,732,645) (1,059,132) 673,513
OTHER FINANCING SOURCES (USES)
Transfers in 1,347,000 1,354,500 183,026 (1,171,474)
Transfers (out) (60,000) (1,015,187) (171,344) 843,843
Total other financing sources (uses) 1,287,000 339,313 11,682 (327,631) NET CHANGE IN FUND BALANCE (64,425)$ (1,393,332)$ (1,047,450) 345,882 $ Beginning fund balance 2,058,113
Ending fund balance 1,010,663$
See accompanying notes to financial statements.
37 City of Alameda, California
People and Places in the City
City of Alameda, California
Proprietary Funds
Proprietary funds account for City ope rations financed and operated in a ma nner similar to a private business enterprise. The City’s intent is that the cost of providing goods and services within these funds be financed primarily through user charges.
The concept of major funds extends to Enterprise Funds. The City’s only enterprise funds are m ajor funds in Fiscal
Year 2021-22:
Sewer Services Fund
The City operates its own wastewater system. This fund accounts for all financial tr ansactions relating to this municipal activity including, but not limited to, operations, maintenance, capital financing and related debt service, billing and collection.
Alameda Municipal Power Fund
The City operates its own electric system. This fund accounts for all financial transactions related to this municipal activity including but not limited to, operations, maintenance, capital financing and related debt service, billing and collection.
39 City of Alameda
Proprietary Funds
Statement of Net Position
June 30, 2022
Business-Type Activities Governmental
Alameda Total Activities-
Sewer Municipal Enter prise Internal Service
Services Powe r Funds Funds
ASSETS
Current Assets
Cash and cash equivalents 15,126,684$ 37,546,391$ 52,673,075$ 50,744,579$ Investments 28,395,401 28,395,401
Accounts receivable, net 602,896 6,690,362 7,293,258 269,356 Interest receivable 109,181 109,181
Materials and supplies 4,253,239 4,253,239
Prepaids and deposits 40,000 40,000 373,575
Total Current Assets 15,729,580 77,034,574 92,764,154 51,387,510 Noncurrent Assets
Restricted investments 820,947 4,882,008 5,702,955 12,069,784 Share of certain NCPA projects and reserve 6,656,515 6,656,515 Investments designated for special purposes 37,005,400 37,005,400 Advances to other funds 234,936
Capital assets:
Non-depreciable 3,948,744 3,948,744
Depreciable, net of accumulated depreciation 104,173,005 31,831,506 136,004,511 6,611,634 Total Noncurrent Assets 104,993,952 84,324,173 189,318,125 18,916,354 Total Assets 120,723,532 161,358,747 282,082,279 70,303,864
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 376,843 376,843
Related to pensions 749,710 5,351,336 6,101,046 5,755,000 Related to OPEB 30,189 133,679 163,868
Total Deferred Outflows of Resources 779,899 5,861,858 6,641,757 5,755,000
LIABILITIES
Current Liabilities:
Accounts
payable 1,059,241 2,039,937 3,099,178 1,020,564
Due to other funds 328,049 328,049
Accrued payroll and other liabilities 35,779 35,779 105,924 Interest payable 147,361 528,337 675,698 41,054
Refundable deposits 6,079 5,826,800 5,832,879 11,414
Compensated absences 75,083 646,725 721,808
Claims payable 166,721 166,721 7,179,858
Lease liability - current 251,431 251,431
Long-term debt - current 514,680 1,600,000 2,114,680 322,420 Total Current Liabilities 1,838,223 11,388,000 13,226,223 8,681,234 Noncurrent Liabilities:
Claims payable 953,356 953,356 15,263,021
Net pension liability 1,095,161 14,247,182 15,342,343
Net OPEB liability 303,493 1,343,869 1,647,362
Lease liability 2,657,081 2,657,081
Long-term debt 11,493,004 16,960,000 28,453,004 1,544,338 Total Noncurrent Liabilities 12,891,658 36,161,488 49,053,146 16,807,359 Total Liabilities 14,729,881 47,549,488 62,279,369 25,488,593
DEFERRED INFLOWS OF RESOURCES
Purchased power balancing account 36,495,278 36,495,278 Related to pensions 571,305 7,432,229 8,003,534
Related to OPEB 75,780 335,555 411,335
Total Deferred Inflows of Resources 647,085 44,263,062 44,910,147 NET POSITION:
Net investment in capital assets 92,165,321 20,968,253 113,133,574 4,744,876 Restricted
Debt service 820,947 4,882,008 5,702,955
Sewer system replacement 13,140,197 13,140,197
Unrestricted 49,557,794 49,557,794 45,825,395
Total Net Position 106,126,465$ 75,408,055$ 181,534,520$ 50,570,271$ See accompanying notes to financial statements.
40 City of Alameda
Proprietary Funds
Statement of Revenues, Expenses
and Changes in Fund Net Position
For the Year Ended June 30, 2022
Business-T
ype Activities Governmental
Alameda Total Activities-
Sewer Municipal Enter prise Internal Service
Services Powe r Funds Funds
OPERATING REVENUES
Charges for services 11,815,658$ 65,799,230$ 77,614,888$ 24,878,584$ Greenhouse gas related sales
Miscellaneous 502 499,947 500,449 159,152
Total Operating Revenues 11,816,160 66,299,177 78,115,337 25,037,736
OPERATING EXPENSES
General administrative 508,525 698,303 1,206,828 1,419,326 Operations and maintenance 46,628,318 46,628,318
Wages and benefits (5,320) (5,320) 8,184,987
Insurance and claims 10,884,586
Contractual services 304,305 304,305 6,954,494
Depreciation and amortization 1,685,266 4,553,893 6,239,159 1,092,646 Utilities 99,910 99,910
Supplies and maintenance 526,289 526,289 2,074,924
Balancing account adjustment 2,464,533 2,464,533
Total Operating Expenses 3,118,975 54,345,047 57,464,022 30,610,963 Operating Income (Loss) 8,697,185 11,954,130 20,651,315 (5,573,227)
NONOPERATING REVENUES (EXPENSES)
Interest income (294,443) (916,627) (1,211,070) (2,121,735) Interest income on restricted investments 825 825
Interest (expense) (359,270) (1,209,429) (1,568,699) (56,381) Payment in-lieu of taxes (771,000) (1,561,000) (2,332,000) Miscellaneous non-operating revenue 1,828,940 1,828,940 Miscellaneous non-operating expense
Gain (loss) from sale of capital assets (43,745) (43,745) 21,457 Total Nonoperating Revenues (Expenses) (1,424,713) (1,901,036) (3,325,749) (2,156,659) Income (Loss) Before Transfers 7,272,472 10,053,094 17,325,566 (7,729,886) Transfers in 19,104,813
Transfers (out) (4,164,456) (4,164,456) (10,223,386)
Change in net position 7,272,472 5,888,638 13,161,110 1,151,541 BEGINNING NET POSITION 98,853,993 69,519,417 168,373,410 49,418,730 ENDING NET POSITION 106,126,465$ 75,408,055$ 181,534,520$ 50,570,271$ See accompanying notes to financial statements.
41 City of Alameda
Proprietary Funds
Statement of Cash Flows
For the Year Ended June 30, 2022
Business-Type Activities Governmental
Alameda Total Activities-
Sewer Municipal Enter prise Internal Service
Services Powe r Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 11,836,583$ 62,051,987$ 73,888,570$ 24,898,686$ Receipts from Special Sales (C&T and REC) 5,638,830 5,638,830 Payments to suppliers (604,593) (38,857,660) (39,462,253) (13,483,156) Payments to employees (1,868,055) (17,009,878) (18,877,933) (10,337,536) Insurance and claims paid (4,606,501)
Net Cash Provided by (Used for) Operating Activities 9,363,935 11,823,279 21,187,214 (3,528,507)
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Payment in-lieu of taxes (771,000) (1,561,000) (2,332,000) Interfund receipts (1,986,844) (1,986,844) 45,951
Transfers in 8,881,427
Transfers (out) (4,164,456) (4,164,456)
Cash Flows from Noncapital Financing Activities (771,000) (7,712,300) (8,483,300) 8,927,378
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (10,640,218) (1,266,146) (11,906,364) (1,086,320) Proceeds from the sale of capital assets 21,457
Principal payments on capital debt (500,751) (1,485,000) (1,985,751) (313,304) Principal payments on lease liability (234,402) (234,402) Interest paid (364,590) (1,036,678) (1,401,268) (63,289) Cash Flows from Capital and Related Financing Activities (11,505,559) (4,022,226) (15,527,785) (1,441,456)
CASH FLOWS FROM INVESTING ACTIVITIES
Sales (purchases) of restricted investments (711) (75,360) (76,071) (577,451) Sales (purchases) of unrestricted investments (1,987,296) (1,987,296) Sales (purchases) of investments reserved for special purposes 1,322,739 1,322,739 Investment in certain NCPA projects and reserves 6,505,834 6,505,834 Interest income (294,443) 571,475 277,032 (2,121,735)
Cash Flows from Investing Activities (295,154) 6,337,392 6,042,238 (2,699,186) Net Cash Flows (3,207,778) 6,426,145 3,218,367 1,258,229 Cash and cash equivalents at beginning of period 18,334,462 31,120,246 49,454,708 49,486,350 Cash and cash equivalents at end of period 15,126,684$ 37,546,391$ 52,673,075$ 50,744,579$ Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (loss) 8,697,185$ 11,954,130$ 20,651,315$ (5,573,227)$ Adjustments to reconcile operating income to cash flows from operating activities:
Depreciation and amortization 1,685,266 4,553,893 6,239,159 1,092,646 Pension related amounts (1,346,440) (7,812,679) (9,159,119) (755,000) OPEB related amounts (11,947) (51,649) (63,596)
Change in assets and liabilities:
(Increase) decrease in accounts receivable and refundable deposits 20,423 1,391,640 1,412,063 (131,485) (Increase) decrease in materials and supplies 705,904 705,904 (Increase) decrease in prepaids 55,412 55,412 (159,468) Increase (decrease) in accounts payable 325,911 128,272 454,183 (407,967) Increase (decrease) in balancing account 2,464,533 2,464,533 Increase (decrease) in refundable deposits (1,584,270) (1,584,270) (7,565) Increase (decrease) in claims payable (8,351) (8,351) 2,396,198 Increase (decrease) in accrued payroll and others (6,761) (6,761) 17,361 Increase (decrease) in compensated absences 298 26,444 26,742 Miscellaneous payments and receipts
Cash Flows from Operating Activities 9,363,935 $ 11,823,279 $ 21,187,214 $ (3,528,507) $ Non Cash Transactions:
Retirement of capital assets - $ (43,745)$ (43,745)$ -$ Amortization of loss on refunding -$ 61,651$ 61,651$ -$ See accompanying notes to financial statements.
42 City of Alameda, California
Fiduciary Funds
Fiduciary funds are used to account for assets held by the City as a tr ustee agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government- wide Financial Statements, but are presented in separate Fiduciary Fund Financial Statements.
Successor Agency Private-Purpose Trust Fund is used to account for the activities of the Successor Agency to the former Community Improvement Commission of the City of Alameda.
Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.
43 City of Alameda
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2022
Custodial
Successor Agency Fund
Private-Purpose Assessment
Trust Fund Districts
ASSETS
Cash and investments 7,011,030 $ 2,136,979$
Restricted cash and investments 25 9,074,268
Accounts receivable 100,490
Interest receivable 14
Loans receivable 1,121,195
Total Assets 8,132,250 11,311,751
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 2,983,819
LIABILITIES
Accounts payable 1,446 75,000
Interest payable 672,302 529,655
Due to other governments 26,567
Unearned revenue 11,219
Long term debt:
Due within one year 2,515,000
Due in more than one year 45,659,953
Total Liabilities 48,886,487 604,655
NET POSITION
Restricted for:
Assessment Districts 10,707,096
Held in trust for private purposes (37,770,418)
Total Net Position (Deficit) (37,770,418)$ 10,707,096$ See accompanying notes to financial statements.
44 City of Alameda
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
Custodial
Successor Agency Fund
Private-Purpose Assessment
Trust Fund Districts
ADDITIONS
Property taxes 8,395,193$ 1,977,686$
Use of money and property (13,754) (18,188)
Contribution from property owners 24,640,006
Total Additions 8,381,439 26,599,504
DEDUCTIONS
Administration 103,255 463,308
Contractual services 6,316,219 16,749,394
Debt service:
Interest and fiscal char
ges 2,104,131 1,401,814
Total Deductions 8,523,605 18,614,516
CHANGE IN NET POSITION (142,166) 7,984,988
NET POSITION (DEFICIT), BEGINNING OF YEAR (37,628,252) 2,722,108 NET POSITION (DEFICIT), END OF YEAR (37,770,418)$ 10,707,096$ See accompanying notes to financial statements.
45 City of Alameda, California
People and Places in the City
City of Alameda, California
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
1. Summary of Significant Accounting Policies ..................................................................................................... 49
2. Cash, Cash Equivale nts, and Investments .......................................................................................................... 62
3. Interfund Tr ansactions ........................................................................................................................................ 75
4. Loans Receivabl e................................................................................................................................................ 77
5. Capital Assets ...................................................................................................................................................... 78
6. Long-Term Debt ................................................................................................................................................. 80
7. Special Assessment Debt Without City’s Commitment ..................................................................................... 87
8. Net Position and Fund Balances ............................................................................................. ............................ 88
9. Pension Plan s ...................................................................................................................................................... 91
10. Post-Employment Hea lth Care Benefits ........................................................................................................... 102
11. Risk Ma nagement ............................................................................................................................................. 110
12. Alameda Municipal Po wer Joint Ventures ....................................................................................................... 111
13. Leases ................................................................................................................................................................ 119
14. Commitments and Continge ncies ..................................................................................................................... 121
15. Redevelopment Agency Dissoluti on and Successor Agency Activities .......................................................... 123
16. Subsequent Events ............................................................................................................................................ 125
47 City of Alameda, California
People and Places in the City
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies
The City of Alameda, California, oc cupies the island of Alameda situat ed in the San Francisco Bay. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire); streets and related improve ments; development servic es; public improvements; planning and zoning, community services (parks, recr eation and library), sewer services, electricity, and general administration services.
A. Reporting Entity
The City of Alameda is a charter city and is gover ned by a five-member City Council elected by City residents. The City is legally separate and fiscally independent, which means it can issue debt, adopt and modify budgets and fees, and sue or be sued. These financial statemen ts present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government’s operations, thus, data from these units are combined with that of the primary government.
Primary Government
The financial statements of the prim ary government of the City of Al ameda include the activities of the City, as well as its blended component units, which are controlled by and dependent upon the City. While these blended component units are separate legal entities, their financial activities are integral to those of the City. Their financial activities have been aggregated and merged (termed “blending”) with those of the primary government of the City in the accompanying financial statements.
Blended Component Units
The Alameda Public Financing Authority (APFA) is a separate government entity whose purpose is to assist with the financing or refinancing of certain pu blic capital facilities within the City. APFA has the power to purchase bonds issued by any local agency at a public or negotiated sale and may sell such bonds to public or private purchasers at a public or negotia ted sale. APFA is controlle d by the City and has the same governing body as the City, which also perfo rms all accounting and administrative functions for APFA. The financial activities of APFA are included in the City’s financial statements. The APFA does not issue separate financial statements.
The City of Alameda Financing Authority (CAFA) is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital facilities within the City. CAFA has the power to purchase bonds issued by any local agency at a public or negotiated sale and may sell such bonds to public or private purchasers at a public or negotia ted sale. CAFA is controlle d by the City and has the same governing body as the City, which also perfo rms all accounting and administrative functions for CAFA. The financial activities of CAFA are included in the City’s financial statements. The CAFA does not issue separate financial statements.
49 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States.
These GASB Standards require that the financial statements described below be presented:
Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary gove rnment, the City and its blended component units. These statement s include the financial activities of the overall City government, except for fiduciary activities.
Eliminations have been made to minimize the double counting of internal activities. However, the interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-ty pe activities are financed, in whole or in part, by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifi cally associated with a program or function and, therefore, are clearly identifiable to a particular fu nction. Program revenues include: (a) charges paid by the recipients of goods or services offered by the programs; (b) grants and contributions that are restricted to meeting the operational needs of a particular program; and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units . Separate statements for each fund category — governmental, proprietary, and fiduciary — are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column .
All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues, such as charges for servi ces, and expenses, such as contract ual services, result from exchange transactions associated with the principal activity of the fund. Exchan ge transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as investment earnings, and expenses, such as interest expenses, result from nonexchange tr ansactions or ancillary activities.
50 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) C. Major Funds
Major funds are defined as funds that have either assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures equal to ten percent of their fund-type total and five percent of the grand total. Major governmental and enterprise funds are identified and presented separately in the fund financial statements. A
ll other funds, entitled non-major funds, are combined and reported in a single column, regardless of their fund-type. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds based on qualitative factors.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund - The General Fund accounts for all general reve nues of the City not specifically levied or collected by other City funds and their related expe nditures. The General Fu nd also accounts for all financial resources of a governmental unit which are not accounted for in another fund.
Base Reuse Special Revenue Fund - This fund accounts for the revenues from leasing activities revenues and grants. Expenditures are made for base reuse activities.
Grants Special Revenue Fund - This fund accounts for revenues received from Federal, State, County and private grants.
The City reported both of its enterprise funds as major funds in the accompanying financial statements:
Sewer Services Fund - The City operates its own wastewater system. This fund accounts for all financial transactions relating to this municipal activity including, but not limited to, operations, maintenance, capital financing and related debt service, billing and collection.
Alameda Municipal Power Fund - Alameda Municipal Power was established to provide electricity to the City of Alameda. This fund accounts for all financ ial transactions relating to this municipal activit y including, but not limited to, opera tions, maintenance, capital financing and related debt services, billing and collection.
The City also reports the following fund types:
Internal Service Funds - The funds account for central stores, central garage, information technology projects, workers’ compensation insurance and claims, general liability insurance and clai ms, unemployment insurance and post-employment benefits, all of which are provided to other departments on a cost-reimbursement basis.
51 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Fiduciary Funds - Trust Funds and Custodial Funds are used to account for assets held by the City as an agent:
Trust Funds - These funds account for asse ts held by the City as an agent for various functions.
The Successor Agency Private-Purpose Trust Fund accounts for the accumulation of resources to be used for payments due for the City’s former Community Improvement Commission at appropriate amounts and times in the future. The financial activities of this fund is excluded from the Government-wide financial statements, but is presented in separate Fiduciary Fund financial statements.
Custodial Funds - These funds account for assets held by the City as an agent for certain assessment districts in the City. The financial activities of these funds are excluded from the Government-wide financial statements, but are pr esented in separate Fiduciary Fund financial statements.
D. Basis of Accounting
The government-wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
The City considers all revenues reported in the gove rnmental funds to be available if the revenues are generally collected within sixty days after year-e nd. Expenditures are record ed when the related fund liability is incurred, except for principal and inte rest on governmental long-term debt, including lease liabilities, as well as claims and judgments, an d compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Proceeds of governmental long-term debt an d financing through leases are reported as other financing sources.
Those revenues susceptible to accr ual are taxes, special assessments, intergovernmental revenues, use of money and property revenue, charges for services, fi nes and penalties, and license and permit revenues.
Sales taxes collected and held by the State at year-end on behalf of the City are also recognized as revenue.
Non-exchange transactions, in which the City gives or
receives value without directly receiving or giving
equal value in exchange, include taxes, grants, ent itlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The City’s policy is to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. 52 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) All proprietary and fiduciary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when earned, and their expenses are r ecognized when incurred, ex cept for revenues from electricity and sewer customers, which are recognized based on cycle billings.
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows or resources. This separate financial statement element, deferred inflows of resources, represents an acquisiti on of net assets that applies to a future period(s) and so will not be recognized as an infl ow of resources (revenue) until that time.
E. Budgets and Budgetary Accounting
The City adopts a budget annually for all funds, excep t for the capital projects funds, which are budgeted on the project length basis. This budget is effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted by the City Council, and controlled at the fund level, the amounts stated therein as proposed expenditures become approp riations to the various City departments. The City Council may amend the budget during the fiscal year. The City Manager or his designee is authorized to transfer budgeted amounts between departments and be tween line items within any fund. However, any revisions which alter the total expenditures of any fund must be approved by the City Council. Transfers between funds must be approved by the City Council. All appropriations lapse at year end. Supplemental changes in appropriations that have been adopted by the City Council have been included in the budget versus actual statements.
Annual budgets are adopted on a basis consistent with generally accepted accounting principles except for capital projects funds. The capital projects funds are budgeted on a project length basis and, therefore, are not comparable on an annual basis.
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditures of monies are recorded in order to reserve that po rtion of the applicable appropriation. Encumbrance accounting is employed as an exte nsion of the formal budgetary pro cess. Encumbrances outstanding at year-end are reported as a componen t of assigned fund balance in the General Fund, and as restricted or committed fund balance in other funds, since they do not constitute expenditures or liabilities and are re- appropriated in the following year. Encumbrances outstanding at year end do not lapse and are included as part of the following year budget.
F.
Materials, Parts and Supplies
General fund supplies are recorded as expenditures at the time individual supply items are purchased.
Enterprise Fund supplies are valued at average cost and are used primarily for internal purposes. 53 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) G. Capital Assets
Capital assets, other than in
frastructure assets, are defined by the City as assets with an initial, individual cost of more than $10,000 for all funds except Alameda Municipal Power, which capitalizes all assets with an initial cost of more than $5,000 and a useful life of at least three years. All capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are valued at historical cost or estimated historical cost if actua l historical cost is not available, except for intangible right to‐ use lease assets, the measurement of which is discussed in Note 1H below. Contributed assets are valued at their acquisition value on the date contributed.
All capital assets with limited useful lives are depreciated during their estimated useful lives. The purpose of depreciation is to allocate the cost of capital assets equitably am ong all users during the life of these assets. The amount charged to depreciation expense each y ear represents that year’s pro rata share of the cost of capital assets.
Depreciation is provided using the straight-line method, which means the cost of the asset is divided by its expected useful life in years, and the result is char ged to expense each year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets:
Major outlays for capital assets and improvements are capitalized as projects are constructed.
H. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract fo r a period of time in an exchange or exchange-like transaction. Examples of nonfinanci al assets include buildings, land, vehicles and equipment. The Cit y recognizes lease receivables or liabilities for contracts with $50,000 or more in total future lease payments from July 1, 2021 (or the date the lease begins if after July 1, 2021) to the end of the lease term, and AMP recognizes lease receivables or liabilities for contracts with $10,000 or more in total future lease payments.
Short-term leases and contracts that transfer ownership will be excluded.
Lessee – The City is a lessee for a noncancellable lease of a building. The City recognizes a lease liability and an intangible right ‐ to‐use lease asset (lease asset) in the government ‐wide financial statements and i n proprietary funds.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made dur ing the lease term. Subsequently, th e lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date. The lease asset is amortized on a straight-line basis over its useful life.
Electric Plant 30 – 50 years
Building and Improvements 40 – 80 years
Machinery, Furniture and Equipment
4 – 40 years
Infrastructure 15 – 75 years
Right-to-Use Leased Buildings 10 years
54 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Key estimates and judgements related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
The City uses the interest rate charged by the less or as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancelable period of the lease. Lease payments included in the measurement of th e lease liability are composed of fixed payments and purchase options that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the
amount of the lease liability.
Lease assets are reported with other capital assets.
Lessor – The City is a lessor for a noncancelable leases of commercial space, three cell towers, a golf
complex, a preschool and four tidelands. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.
At the commencement of a lease, the City initially me asures the lease receivable as the present value of payments expected to be received during the lease te rm. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial lease amount of the lease receivable, adjust ed for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgements related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease receipts as follows:
The City uses its incremental borrowing rate as the discount rate for leases. The lease term includes the noncancelable period of the lease plus any extension periods in which the City is reasonably certain the lessee will exercise. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.
The City monitors changes in circumstances that wo uld require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 55 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) I. Compensated Absences
The liability for compensated absences includes the vested portions of vacation, sick leave and compensated time off. For all governmental funds, a liability of these amounts is reported only if they have matured, for example, as a result of employee resignations and retirements. The remaining portion is recorded as a liability in the Statement of Net Position. Proprietary funds’ liability for compensated absences is recorded in each proprietary fund. The liability for compensated absences is determined annually.
Compensated absences activity for the year ended June 30, 2022 is as follows:
Go v e rn me n t a l
Activities
B usi ness Type
Activities Total
Beginning Balance 4,195,320$ 695,066$ 4,890,386$ Additions 4,368,749 712,180 5,080,929
Payments (4,404,876) (685,438) (5,090,314)
Ending Balance 4,159,193$ 721,808$ 4,881,001$ Current Portion 4,159,193$ 721,808$ 4,881,001$ Prim ary G overnm ent
Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.
J. Property Tax
Under California law, property taxes are assessed and collected by the counties at a rate of up to 1% of assessed value, plus other increases approved by the voters. Property taxes are collected by the Auditor- Controller of the County of Alameda (County) and ar e remitted upon collecti on to the various taxing entities, including the City. Accordingly, the City accrues only those taxes that are received from the County within sixty days after year-end.
For assessment and collection purposes, property is classified as either “secured” or “unsecured” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State-assessed property and real property having a tax lien that is sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Unsecured property comprises all taxable property not attached to land, such as personal property or business property. Every tax levied by a county that becomes a lien on secured property has priority over all present and future private liens arising pursuant to the State law on the secured property, regardless of the time of the creation of the other liens. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on other property owned by the taxpayer.
56 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Valuation of secured property and esta blishment of a statutory tax lien oc cur as of January 1 prior to the tax year of the related tax levy, and the secured and unsecured tax rolls are certified on or before July 31 of the tax year by the County Assessor. The County assesses property values, levies bills, and collects taxes.
Secured property tax is due in two installments on November 1 and February 1. It becomes delinquent after December 10 and April 10, respectively. Unsecured prop erty tax is due on July 1 and become delinquent on August 31.
The City does not have the ability to control the levy rate or the amount of property taxes remitted by the County because these are governed by State law.
K. Purchased Power Balancing Account
The Purchased Power Balancing Account is used by Alameda Municipal Power to help stabilize rates.
Specifically, the balancing account accumulates differences between the actual costs of providing a utility service with the related revenues designated for recovery of such costs. Deferred amounts are refunded to or recovered from customers through authorized rate adjustments, but can be reciprocally the beneficiaries of any temporary over-collection. The effect of usin g the balancing account is that unanticipated changes in sales levels and purchased power costs do not im mediately affect Alameda Municipal Power’s rates, because they are included in operating expenses when matched by revenues.
L.
Deferred Inflows / Outflows of Resources
Deferred outflows of resources represent a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category: 1) deferred charges on refunding debt reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price; this amount is deferred and amortized over the shorter of the life of the refunded or refunding debt and 2) deferred outflows related to OPEB and pensions.
Deferred inflows of resources represent an acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. For the governmental funds, the City has one item which qualifies for reporting in this category (under the modified accrual basis of accounting). Accordingly, the item, unavailable re venues, is reported only in the governmental funds balance sheet and represents unavailable revenues from revolving notes receivable, grant reimbursements, and other miscellaneous revenues not yet received. This amount is deferred and recognized as an inflow of resources in the period that the amount becomes available. At the government-wide statements, this item is eliminated and recognized as revenue since “availabi lity” of resources is not a criteria used in the government-wide statements. In addition, the City reports deferred inflows related to pensions, OPEB, leases and deferred inflows related to the Alameda Municipal Power Fund balancing account used to help stabilize rate discussed above.
57 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued)
M. Fair Value Measurement
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuatio n techniques used to meas ure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted pric es included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
N. Reserve Policies
General Fund Balance General Fund balance that is available at the close of any given fiscal year is estimated during the final stages of the budget development process for the following fiscal year. Fund balance is used to achieve and maintain the City’s reserve goals, and to balance subsequent budgets only when recommended by the City Mana ger and approved by the City Counc il. It is the policy of the City Council to maintain available General Fund reserves of at least 20% of annual expenditures. In addition, the City should strive to reduce its reliance upon prior year’s remaining fund balance to finance subsequent year operations.
Sewer Fund Reserves In its Sewer Fund, the City shall strive to maintain a minimu m of six months of operating revenues and $2 million for future capital projects in its reserves, to account for delays in receipt of sewer charges placed on the County tax roll and to ensure sufficient available cash to pay operating and capital expenses.
O. Use of Estimates
The preparation of financial statements in confor mity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
58 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) P. Implementation of New GASB Pronouncements
The GASB issued Statement No.
87 “Leases.” The objective of this stat ement is to improve guidelines related to the recognition of lease
assets and liabilities that previous ly were classified as operating leases. The City implemented the provisions of Statement No. 87 in Fiscal Year 2022.
The GASB issued Statement No.
89 “Accounting for Interest Cost Incurred Before the end of a Construction Period.” The objective of this statement is to e nhance the relevance and comparability of information about capital assets and the cost of borrowing and to simplify accounting for interest costs incurred before the end of the construction period. Th is statement became effec tive for the City’s Fiscal Year ending June 30, 2022, but did not have a material effect on the financial statements.
The GASB issued Statement No. 92 “Omnibus 2020.” The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consis tency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions including reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan, the applicability of Statements No . 73 and No. 74, as amended, to reporting assets accumulated for postemployment benefits, the applicability of certain requirements of Statement No. 84 to postemployment benefit arrangements, and reference to nonrecurring fair value measurem ents of assets or liabilities in authoritative literature, among other requirements. Certain provisions of the Statement related to Implementation Guide 2019-3, rein surance recoveries, and terminology used to refer to derivative instruments were effective upon issuance of the Stat ement in January 2020, but did not have a material effect on the City’s financial statements and the rest of the provisions of the Statement are effective for the City’s Fiscal Year ending June 30, 2022.
The GASB issued Statement No. 93 “Replacement of Interbank Offered Rates.” Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purp ose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate.
The removal of LIBOR as an appropriate benchmark inte rest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2021. This statement became effective for the City’s Fiscal Year ending June 30, 2022, but did not have a material effect on the financial statements. 59 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued)
The GASB issued Statement No. 97 “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32.” The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typical ly would perform; (2) mitigate costs associated with the reporting of cer tain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) pl ans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the rele vance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 45 7 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Certain provisions of the Statement are effective upon issu ance in June 2020, but did not have a material effect on the City’s financial statements and application of the remaini ng provisions of Statement No. 97 are effective for periods beginning after June 15, 2021. The City implemented the provisions of Statement No. 97 in Fiscal Year 2022.
Q. Upcoming GASB Pronouncements
The City is analyzing the effects of the following pronouncements and the potential impact on the financial statements for the following GASBs by the effective dates:
The GASB issued Statement No. 91 “Conduit Debt Obligations.” The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by i ssuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards fo r accounting and financial reporting of additional commitments and voluntary commitments extended by i ssuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Application of statement No. 91 is effective for the City’s Fiscal Year ending June 30, 2023.
The GASB issued Statement No. 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements.” The primary objective of this Statem ent is to improve financial reporting by addressing issues related to public -private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the servic e utility of the underlying PPP asset at the end of the arrangement. Application of Statement No. 94 is effective for Fiscal Years beginning after June 15, 2022, and all reporting periods thereafter.
60 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) The GASB issued Statement No. 96 “Subscription-Based Information Technology Arrangements.” This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability ; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation cost s of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as ame nded. A SBITA is defined as a cont ract that conveys control of the right to use another party’s (a SBITA vendor’s) in formation technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. Application of Statement No. 96 are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.
The GASB issued Statement No. 99, “ Omnibus 2022”. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consis tency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB statements and (2) accounting and financial reporting for financial guarantees. The requirements of the statement are effective as follows: (1) the requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosu res of nonmonetary transactions, pledges of future revenues by pledging governments, cl arification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance; (2) the requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereaf ter; and (3) the requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
The GASB issued GASB Statement No. 100, “Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62” . The requirements of this Statement are effective for fiscal years ending after June 15, 2023. The City has not determined the effect of this Statement.
The GASB issued GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objectiv e is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fi scal years beginning after December 15, 2023, and all reporting periods thereafter.
61 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued)
R. New, Recategorized and Closed Funds
The Open Space Improvement Special Revenue Fund was established during the year ended June 30, 2022.
The activity in the fund was previously reported in the Capital Improvement Projects Fund.
The Vehicle and Equipment Replacement Internal Service Fund is now reported as the IT Cable Replacement Internal Service Fund , and the prior balances related to vehicles and equipment were transferred to the new Fleet Maintenance and Replacement Internal Service Fund.
The Fleet Maintenance Internal Service Fund is now reported as the Fleet Ma intenance and Replacement Internal Service Fund.
The Parking Special Revenue Fund and the Central Services Internal Service Fund were closed as of June 30, 2022.
Note 2 – Cash, Cash Equivalents, and Investments
The City’s dependence upon property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except cash with fiscal agen ts and the Alameda Municipal Power Fund so that it can be invested at the maximum yiel d, consistent with safety and li quidity. Individual funds can make expenditures at any time.
Investment income is allocated among funds on th e basis of average month end cash and investment balances in these funds. Investments are carried at fair value.
A. Policies
California Law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a fair value of 150% of the deposit, as collateral for these deposits. Under California law, this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.
The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable se curities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of form.
The City’s investments are carried at fair value, as required by genera lly accepted accounting principles.
The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
Cash and cash equivalents are considered to be li quid assets for purposes of measuring cash flows.
Restricted cash and investments are not included for cash flow purposes.
62 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued) B. Classification
Cash, cash equivalents, and investments are classified in the financial statements as shown below, based on whether or not use is restricted under the terms of C ity debt instruments or ag ency agreements. Cash and investments as of June 30, 2022, as presented on the Statement of Net Position and Statement of Fiduciary Net Position are as follows:
Statement of Net Position:
Cash and investments 383,972,508 $
Restricted cash and investments 19,870,556
Investments designated for special purposes 37,005,400
Fiduciary Funds:
Cash and investments 9,148,009
Restricted cash and investments 9,074,293
Total cash and investments 459,070,766 $
Cash and investments as of June 30, 2022 are composed of the following categories:
Cash on hand (petty cash and change funds) 8,280$
Depos
its with financial institutions 202,208,717
Investments 256,853,769
Total cash and investments 459,070,766$
63 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued) C. Investments Authorized by the California Go vernment Code and the City’s Investment Policy The City’s investment policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City, and approved percentages and maturities are not exceeded. The table also identifies certain pr ovisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive, that addresses interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are govern
ed by the provisions of debt agreem ents of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
The City’s investment policy and the California Government Code allow the City to invest in the following:
Minimum Maximum Maximum
Maximum Credit Percentage of Investment
Authorized Investment Type Maturity (A) Quality Portfolio In One Issuer Bank/Time Deposits 5 Years N/A No Limit No Limit
U.S. Treasury Bonds, Notes and Bills 5 Years N/A No Limit No Limit U.S. Agency and U.S. Government Sponsored
Enterprise Securities
5 Years N/A 75% 25%
Mutual Funds and Money Market Funds 5 Years Highest rating by 2 NRSRO's 20% 10% Bankers' Acceptances 180 Days A1/P1 or equivalent 30% 5% Commercial Paper 270 Days A1/P1 (A rated issuer) 40% (B) 5% Negotiable Certificates of Deposit (NCD) 5 Years
No rating for amount under FDIC
insurance; A1/A for amounts greater
than FDIC insurance
30% (Combined
with CDARs) 5%
California Local Agency Investment Fund (LAIF) N/A N/A $75,000,000 per account N/A
(CAMP)/CalTrust N/A N/A No Limit No Limit
Non‑Negotiable Certificates of Deposit / CDARs 3 Years N/A 30% (Combined with NCDs) 5%
Municipal Obligations 5 Years
A or equivalent
(except City's own bonds) 30% 5%
Medium-Term Corporate Notes 5 Years A or equivalent 30% 5% Supranationals 5 Years AA or equivalent 15% (US Dollar
denominated) 10%
Asset backed securities 5 Years AA or equivalent rated issue 20% 5% (A) The maximum of any investment shall not exceed five years unless expressly authorized by City Council. (B) Under a pr ovision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.
After that date, no more than 25% of the portfolio may be invested in Commercial Paper. 64 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued)
D. Investments Authorized by the California Government Code and Alameda Municipal Power’s Investment Policy
Alameda Municipal Power’s investment policy an d the California Government Code allow Alameda Municipal Power to invest in the following, provided the credit ratings of the issuers are acceptable to Alameda Municipal Power, and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the Californi a Government Code, or Alameda Municipal Power’s Investment Policy where Alameda Municipal Power’s Investment Policy is more restrictive, that addresses interest rate risk, credit risk and concentration of credit risk.
This table does not address investme nts of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of Alameda Municipal Power, rather than the general provisions of the California Government Code or Alameda Municipal Power’s investment policy. Alameda Municipal Power’s investment policy and the California Government Code allow Alameda Municipal Power to invest in the investments in the table in the next section:
Maximum Maximum
Maximum Minimum Percentage of Investment in
Authorized Investment Type Maturity Credit Quality Portfolio One Issuer Bank/Time Deposits 5 years N/A No Limit No Limit
U.S. Treasury Obligations 5 years N/A No Limit No Limit U.S. Agency Securities 5 years N/A 75%. 25%
Mutual Funds and Money Market Funds 5 years Highest rating by two NRSROs 20% 10% Bankers Acceptances 180 days A1/P1 30% 5%
Commercial Paper 270 days A1/P1 25% 5%
Non-Negotiable Certificates of Deposit/CDARS 3 years N/A 30% (combined with NCDs) 5% Negotiable Certificates of Deposit (NCD) 5 years
No rating for amount under FDIC
insurance; A-1 / A for amounts
greater than FDIC insurance 30% (combined with CDARS) 5% California Local Agency Investment $75,000,000
Fund (LAIF) N/A N/A per account N/A
California Asset Management Program (CAMP) N/A
and CalTrust Upon demand N/A No Limit N/A
Municipal Obligations 5 years
A or equivalent (except City's own
bonds) 30% 5%
Medium Term Corporate Notes 5 years A or equivalent 30% 5% Supranationals 5 years AA or equivalent 10%
Asset-Backed Securities 5 years
AA or equivalent rated issue
(with issuer rated A or higher) 20% 5%
15% (US Dollar denominated)
65 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued) E. Public Agencies Post-Employment Trust
On March 22, 2017, the City Coun
cil adopted resolution 15253 approvi ng the adoption of an amendment to the Public Agencies Post-Employment Trust admi nistered by Public Agen cy Retirement Services (PARS) to establish a pension trust. The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. Investments of funds held in Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative serv ices with PARS, rather than the general provisions of the California Government Code or the City’s investment policy. This trust will assist the City in mitigating the CalPERS contribution rate volatility. The City elected a discretionary investment approach, which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’s risk tolera
nce, under the Balanced Index PLUS investment option. This pension trust is a secondary trust to the City’s CalPERS Pension Plan; therefore, the assets are reported in the City’s Pension Stabilization Internal Service Fund. The assets in the Trust will eventually be used to fund pension plan obligations.
F. Investments Authorized by Debt Agreements
The City and the Successor Agency to the Community Improvement Commission must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be us ed if the City or the Successor Agency to the Community Improvement Commission fails to meet its obligations under these debt issues.
The California Government Code requires these funds to be invested in accordance with City ordinance, bond indentures or State statute. The table below id entifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:
66 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued) Minimum Maximum Maximum
Maximum Credit in Investment
Authorized Investment Type Maturity Quality Portfolio In One Issuer Repurchase Agreements 30 days
Top Four Rating
Categories
No Limit Per
Account No limit Per Account
U.S. Treasury Bonds, Notes and Bills No Limit N/A No Limit No Limit U.S. Agency and U.S. Government Sponsored
Enterprise Securities No Limit No Limit No Limit No Limit State Obligations No Limit
Not Lower Than Their
Bond Rating No Limit No Limit
Commercial Paper
180 - 270
Days A-1+ 20% - No Limit
10% of outstanding issues (A rated
issuer US organized and with
operations in US with a total assets
in excess of $500 mil) - No limit
Negotiable Certificates of Deposit No Limit N/A No Limit No Limit Time Certificates No Limit N/A No Limit No Limit
Corporate Notes and Bonds No Limit
Not Lower Than Their
Bond Rating No Limit No Limit
Guaranteed Investment Contracts No Limit
AA - Not Lower Than
Their Bond Rating No Limit No Limit
Shares of Beneficial Interest No Limit Top Rating Category No Limit No Limit Money Market Mutual Funds No Limit
Aam - Highest Rating
Category 20% No Limit
Bankers' Acceptances 365 da ysA -1+ 3 0% 3 0%
Municipal Bonds No Limit AAA No Limit No Limit
California Local Agency Investment Fund
(LAIF)
Upon
Demand N/A
$75,000,000
per account
$75,000,000
per account
Investment Agreements No Limit AA- No Limit No Limit
California State Warrants, Treasury Notes or
Bonds 3 Years
Top Two Highest
Short-Term or Long-
Term Rating
Categories No Limit No Limit
67 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued)
Alameda Municipal Power Fund (AMP) must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if Alameda Municipal Power fails to meet its obligations under these debt issues. The California Governme nt Code requires these funds to be invested in accordance with the City’s ordinance, bond indentures or State statute. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:
Maximum Maximum
Maximum Minimum Percentage of Investment in
Authorized Investment Type Maturity Credit Quality Portfolio One Issuer U.S. Treasury Obligations N/A N/A No Limit No Limit
State Obligations N/A N/A No Limit No Limit
U.S. Agency Securities (A) N/A N/A No Limit No Limit
Commercial Paper N/A A1/P1/A 25% 5%
Certificates of Deposit 5 years A1/A 30% 5%
Bankers Acceptances 180 days A1/P1 30% 5%
Money Market Mutual Funds N/A A 20% No Limit
California Local Agency Investment Fund (LAIF) N/A N/A No Limit LAIF Limit Investment Agreements (B) N/A AA No Limit No Limit
(A) Securities issued by agencies of the federal government such as the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC)
(B) Investment agreements, including guaranteed investment contracts, repurchase agreements, forward purchase agreements and reserve fund put agreements.
G. Interest Rate Risk
Interest rate risk is the risk that changes in economic markets that 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 the changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities, so that a portion of the portfolio is maturing or realizing maturity evenly over time as necessary in order to provide the cash flow and liquidity needed fo r operations. Information on the sensitivity of the fair values of the City’s investme nts (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity at June 30, 2022:
68 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued)
12 Months One to
Investment Type or less Five Years Total
U.S. Government-Sponsored
Enterprise Agencies
Non-callable 4,541,003$ 21,542,227 $ 26,083,230 $ Callable 1,535,143 1,535,143
Medium-Term Corporate Notes:
Non-callable 910,093 12,553,826 13,463,919
Callable 722,353 16,306,219 17,028,572
Asset Backed Securities 12,795,848 12,795,848
Supranationals 636,321 1,609,447 2,245,768
U.S. Treasury Notes 449,122 30,176,052 30,625,174
U.S. Treasury Bonds 273,378 273,378
Money Market Mutual Funds 27,010,558 27,010,558
California Local Agency Investment Fund 107,631,417 107,631,417 Negotiable Certificates of Deposit 343,186 1,405,462 1,748,648 Time Certificates of Deposit 2,676,203 4,271,010 6,947,213 Municipal Bonds 877,792 8,587,109 9,464,901
Total Investments 145,798,048$ 111,055,721$ 256,853,769 Cash deposits with banks and on hand 202,216,997
Total Cash and Investments 459,070,766 $
The City and Alameda Municipal Powe r are participants in the Local Agency Investment Fund (LAIF), which is regulated by California Government Code S ection 16429 under the oversight of the Treasurer of the State of California. The City and Alameda Municipal Power report their investments in LAIF at the fair value amounts provided by LAIF, which is the same as the value of the pool share. At June 30, 2022, the fair value approximated cost of the investments of the City and Alameda Municipal Power. The balance, available for withdrawal on demand, is based on the accounting records mainta ined by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bo nd proceeds accounts are subject to a one-time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mort gage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2022, these investments had an average maturity of 311 days.
69 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued)
H. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment when an investment matures. This is measured by the assignment of a credit rating by a nationally recognized statistical ratin g organization. Presented below is the actual rating as of June 30, 2022, for each City’s investment type as provided by Standard and Poor’s:
Investment Type AAA/AAAm AA+ to AA- A+ to A-
BBB+ to
BBB- (A) Total
U.S. Government-Sponsored
Enterprise Agencies
Non-callable - $ 25,328,260$ - $ - $ 25,328,260$ Callable 1,234,432 1,234,432
Medium Term Corporate Notes:
Non-callable 2,420,446 10,382,730 12,803,176
Callable 3,748,999 12,211,145 883,486 16,843,630
Supranationals 2,245,768 2,245,768
Asset Backed Securities 12,795,848 12,795,848
Money Market Mutual Funds 27,010,558 27,010,558
Negotiable Certificates of Deposit 343,186 343,186
Municipal Bonds 807,395 5,798,002 2,859,504 9,464,901
Totals 42,859,569$ 38,530,139$ 25,796,565$ 883,486$ 108,069,759 Not rated:
U.S. Government-Sponsored
Enterprise Agencies
Non-callable 754,970
Callable 300,711
California Local Agency Investment Fund 107,631,417
Medium Term Corporate Notes:
Non-callable 660,743
Callable 184,942
Negotiable Certificates of Deposit 1,405,462
Time Certificates of Deposit 6,947,213
Exempt:
US Treasury Notes 30,625,174
US Treasury Bonds 273,378
Total Investments 256,853,769$
I. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of th e failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. As previously described, the City’s deposits are collateralized in accordance with California Government Code. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recove r the value of its investment or co llateral securities that are in the possession of another party. The California Governme nt Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.
70 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued)
As of June 30, 2022, Alameda Municipal Power’s de posits with Hilltop Securities were insured up to $250,000 by FDIC. Hilltop Securities also had Securities Investor Protection Corporation (SIPC) coverage which provided an additional $500,000 coverage. Furthermore, Hilltop Securities had private insurance in excess of SIPC coverage with a $1.9M per‐client limit. As of June 30, 2022, Alameda Municipal Power’s investments balance with Hilltop Securities was $28, 344,874, comprised of U.S. Government-Sponsored Enterprise Agencies of $3,002,615, Medium Term Corporate Notes of $8,471,942, U.S. Treasury Notes of $979,550, U.S. Treasury Bonds of $273,378, Time Ce rtificates of Deposit of $6,676,658, Negotiable Certificates of Deposit of $1,405,462, and Municipal Bonds of $7,535,269.
J. Fair Value Measurements
The City categorizes its fair value measurements with in the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs us ed to measure the fair value of the asset. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:
Level 1 – Investments whose values are based on quoted prices (unadjusted) for identical assets in active markets that a government can access at the measurement date.
Level 2 – Investments whose values are based on inputs other than quoted prices included within Level 1 that are observable for an asset, either directly or indirectly.
Level 3 – Investments whose values are based on unobservable inputs for an asset and may require a degree of professional judgment.
The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of wh at constitutes observable requires judgment by the City’s management. City management considers observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that ar e actively involved in th e relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment.
Deposits and withdrawals in governmental investment pools, such as LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s proportionate share in these types of investments is an uncategorized input not defined as a Level 1, Level 2, or Level 3 input.
The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. There have been no changes in the methods and assumptions used at June 30, 2022. The methods described may produce a fair va lue calculation that may not be indicative of net realizable value or reflective of fu ture fair values. City management believes its valuation methods are appropriate and consistent with other market par ticipants. The use of diffe rent methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
71 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued)
When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy.
For investments classified within Level 2 of the fair value hierarchy, the City’s custodians generally use a multi-dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker- dealer quotes, issuer spreads and benchmark securities, among others.
As of June 30, 2022, the City has the following recurring fair value measurements:
Fair Value Measurements on a Recurring Basis Using
Quoted Prices in Significant Other
Active Markets for Observable
Balance at Identical Assets Inputs
June 30, 2022 (Level 1) (Level 2)
Investments by Fair Value:
U.S. Government-Sponsored
Enterprise Agencies
Non-callable 26,083,230 $ - $ 26,083,230$ Callable 1,535,143 1,535,143
Medium-Term Corporate Notes
Non-callable 13,463,919 13,463,919
Callable 17,028,572 17,028,572
Asset Backed Securities 12,795,848 12,795,848
Supranationals 2,245,768 2,245,768
U.S. Treasury Notes 30,625,174 30,625,174
U.S. Treasury Bonds 273,378 273,378
Negotiable Certificates of Deposit 1,748,648 1,748,648
Time Certificates of Deposit 6,947,213 6,947,213
Municipal Bonds 9,464,901 9,464,901
Total Investments by Fair Value Level 122,211,794 30,898,552 $ 91,313,242 $ Investments Not Measured at Fair Value or Subject to
Fair Value Hierarchy:
Local Agency Investment Fund 107,631,417
Money Market Mutual Funds 27,010,558
Total Investments Not Measured at Fair Value 134,641,975 Total Investments 256,853,769$
72 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued) K.
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City’s investments include corporate notes that have an embedded call feature. At June 30, 2022, those investments consisted of:
Issuer Maturity Date Callable Date Reported Am ount
3M Company Corporate Note 2/14/2023 1/14/2023 222,581$
Abbott Labs 09/15/2025 06/15/2025 252,705
Amazon Com Inc. 12/03/2025 09/03/2025 157,384
Amazon Com Inc. 12/05/2024 09/05/2024 202,296
Amazon Inc Corporate Note 05/12/2026 04/12/2026 719,072 American Express Corporate Note 07/30/2024 06/30/2024 48,702 American Express Corporate Note 07/30/2024 06/30/2024 170,456 American Express Corporate Note 03/04/2025 08/04/2022 38,505 Apple Inc. 09/11/2026 07/11/2026 282,822
Apple Inc. 02/09/2024 12/09/2023 249,545
Bank of America Corporate Note 05/19/2024 05/19/2023 336,862 Bank of America Corporate Note 12/06/2025 12/06/2024 325,563 Bank of America Corporate Note 03/05/2024 03/05/2023 398,831 Bank of America Corporate Note 06/19/2026 06/19/2025 454,135 Bank of Montreal 10/29/2026 07/29/2022 184,942
Bank of New York Corporate Note 04/25/2025 03/25/2025 543,783 Barclays Bank PLC 05/29/2025 11/29/2022 237,502
Berkshire Hathaway Corporate Note 03/15/2027 02/15/2027 553,364 Capital Impact Partnership Invt. 05/15/2027 05/15/2024 497,320 Cintas Coporate Note 05/01/2025 04/01/2025 100,144
Citi Group Corporate Note 05/01/2025 04/01/2025 65,560
Citi Group Corporate Note 01/25/2026 01/25/2025 42,185
Citi Group Inc Corporate Note 10/30/2024 09/30/2024 176,336 Duke Energy Florida Corporate Note 01/15/2027 10/15/2026 488,484 Federal Farm Credit Bank 11/02/2023 11/02/2021 240,975
Federal Home Loan Bank 11/18/2024 08/18/2022 95,437
Federal Home Loan Bank 08/14/2023 11/14/2008 51,238
Federal Home Loan Mortgage Corp 12/29/2025 06/29/2023 397,412 Federal Home Loan Mortgage Corp 06/30/2025 09/30/2022 449,370 Florida Power Lt Co 12/01/2025 06/01/2025 261,901
Florida Power Lt Co 06/01/2024 12/01/2023 200,250
Goldman Sachs Group Corporate Note 11/17/2023 11/17/2022 172,987 Goldman Sachs Group Corporate Note 01/24/2025 01/24/2024 168,755 Home Depot Inc Corporate Note 04/15/2025 03/15/2025 34,254 Housing and Urban Development 08/01/2023 08/01/2022 300,711 JP Morgan Chase & Co Corporate Note 09/16/2024 09/16/2023 163,373 JP Morgan Chase & Co Corporate Note 02/16/2025 02/16/2024 84,822 JP Morgan Chase & Co Corporate Note 06/01/2025 06/01/2024 130,956 JP Morgan Chase & Co Corporate Note 04/26/2026 04/26/2025 221,705 JP Morgan Chase & Co Corporate Note 06/01/2025 06/01/2024 500,373 (Continued)
73 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 2 – Cash, Cash Equivalents, and Investments (Continued)
Issuer Maturity Date Callable Date Reported Am ount
JP Morgan Chase & Co Corporate Note 06/23/2025 06/23/2024 238,449 JP Morgan Chase & Co Corporate Note 04/22/2026 04/22/2025 157,233 Midamerican Energy Co 09/15/2023 06/15/2023 250,220
Morgan Stanley Corporate Note 04/05/2024 03/05/2024 24,379 Morgan Stanley Corporate Note 02/18/2026 02/18/2025 254,356 Morgan Stanley Corporate Note 04/28/2026 03/28/2026 234,248 Nestle Holdings Inc Corporate Note 09/14/2024 09/14/2023 309,963 Nothern TR Corporate Note 05/10/2027 04/10/2027 221,639 Public Storage 09/15/2022 08/15/2022 249,775
Public Storage 02/15/2026 01/15/2026 223,705
Roche Holdings Inc Corporate Note 03/10/2025 02/10/2025 569,458 Royal Bank Canada 12/30/2025 12/30/2023 130,598
San Diego Gas Electric Co 05/15/2026 02/15/2026 236,920 Schlumberger Investment 12/01/2023 09/01/2023 501,935
Schwab Charles Corporate Note 03/18/2024 02/18/2024 139,087 Schwab Charles Corporate Note 03/18/2024 02/18/2024 278,346 Schwab Charles Corporate Note 05/13/2026 04/13/2026 424,510 Sierra Pacific Power Co 05/01/2026 02/01/2026 285,663
Societe Generale 03/30/2026 09/30/2022 263,658
Societe Generale 10/02/2026 07/20/2022 243,980
Societe Generale 03/31/2026 09/30/2022 218,925
Southern California Gas Co 06/15/2025 03/15/2025 344,508 State Street Corporate Note 02/06/2026 02/06/2025 86,449 State Street Corporate Note 03/30/2026 03/30/2025 145,141 State Street Corporate Note 03/30/2026 03/30/2025 48,380 Suntrust Bank Atl 02/02/2023 01/02/2023 249,997
Target Corporate Note 01/15/2027 12/15/2026 269,391
Tha Bank of New Corporate Note 04/24/2025 03/24/2025 103,647 Truist Corporate Note 08/05/2025 07/03/2025 358,642
United Health Corporate Note 05/15/2026 04/15/2026 571,821 US Bank Corporate Note 01/21/2025 12/20/2024 591,276
Walmart Inc Corporate Note 09/17/2026 08/17/2026 113,818
74 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 3 – Interfund Transactions
A. Current Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. The purpose of these balances is to eliminate negative cash balances at year end in various funds. At June 30, 2022, the Alameda Municipal Power Enterprise Fund owed the General Fund $328,049.
B. Long-Term Advances
Loan from Equipment Replacement Fund
In July 2014, the City Council au thorized a long-term loan from the Equipment Replacement Internal Service Fund to the Fire Station 3/Emergency Operatio ns Center Capital Projects Fund in the amount of $809,000 for the construction of the new Fire Station. In October 2018, the amount of the loan was reduced to $408,626 and the remaining $307,305 of the loan was transferred to the General Fund. With the fund reorganization activity in fiscal year 2022, the loan receivable was transferred to the Fleet Maintenance and Replacement Internal Service Fund. The loan bears a 3% simple interest rate and will be due in full in 20 years. The advance is secured by a promissory note wh ere the City’s General Fund is pledged as security for the repayment of the loan. The outstanding loan balance at June 30, 2022 was $234,936.
Loan from General Fund and Development Impact Fee Fund
In June 2019, the City Council authorized a loan of $1,120,891 from the General Fund to the Development Impact Fee Fund. The advance bears no interest. The advance is secured by a promissory note where available funds from the Development Impact Fee Fund are pledged as security for the repayment of the loan. The loan is repayable in annual payments of $112,089 through June 30, 2029. The outstanding balance of the loan at June 30, 2022 was $784,624.
Loan From Recreation Fund
In fiscal year 2014, the Recreation Fund made a loan of $350,000 to the Golf Fund. The principal balance of the loan does not bear interest and is repayable wh en funds are available. With the fund reorganization activity in fiscal year 2022, the loan receivable wa s transferred to the General Fund and the Athletic Recreation Fund. The outstanding balance of the loan at June 30, 2022 was $350,000.
75 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 3 – Interfund Transactions (Continued)
C. Transfers Between City Funds
With Council approval, resources may be transferred from one City fund to another. Transfers between City funds during Fiscal Year 2021-22 were as follows:
Fund Receiving Transfers F und Making Transfer
Am ount
Transferred
G eneral Fund Non-Major G overnm ental Funds 775,009$ A,B, C Alameda Municipal Power Enterprise Fund 4,164,456 D
Base Reuse Special Revenue Fund Non-Major G overnm ental Funds 9,038 C Grants Special Revenue Fund General Fund 183,026 E
Non-Major G overnm ental Funds G eneral Fund 4,088,798 B,C Grants Special Revenue Fund 171,344 C
Base Reuse Special Revenue Fund 5,950,349 F,G
Internal Service Fund 92,573 C
Non-Major G overnm ental Funds 10,963,257 B,C,F,H
Internal Service Funds General Fund 8,974,000 B
Internal Service Funds 10,130,813 C
Total 45,502,663$
The reasons for these transfers are set forth below:
(A) Transfer from CIP to G eneral Fund to return unspent project funds (B) To fund recreation, deferred m aintenance, pension and OPEB costs (C) Transfer to establish new fund or m ove fund resources (D) Transfer from Alam eda Municipal Power Fund to the G eneral Fund per Charter (E) To fund grant m atching requirem ents
(F) To fund capital projects
(G) To fund debt service
(H) To fund housing projects
D. Internal Balances
Internal balances are presented in the entity-wide financial statements only. They represent the net interfund receivables and payables remaining after the eliminat ion of all such balances within governmental and business-type activities.
76 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 4 – Loans Receivable
A. Five Keys Loan Receivable
In April 2022, the City executed a promissory note with Five Keys Schools and Programs to fund both hard and soft construction costs for the purpose of buildi ng an interim supportive housing development for unhoused individuals. The promissory note is for a sum of $2.0 million and does not bear interest. The note expires 45 days after Five Keys receives Homekey Round 2 grant funds from the State of California Department of Housing and Community Development, which is expected in early Fiscal Year 2022-23.
Five Keys will repay the note in its entirety within this 45-day window.
B. Housing Rehabilitation and Affordable Housing Loans Receivable The City and former Community Improvement Commission (CIC) have engaged in programs designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, grants or loans are provi ded under favorable terms to homeow ners or developers who agree to expend these funds in accordance with the City’s and former CIC’s terms. Some of these loans may be forgiven at the completion of the loan term if all s tipulated conditions are met. Other loans and notes are expected to be repaid in full.
The City’s remaining outstanding balance of the loans receivable fro m these programs at June 30, 2022 was $10,411,137, which has been offset with unavailable revenue. Included in the outstanding balance are receivables totaling $1,737,120 from the Alameda Housing Authority. 77 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 5 – Capital Assets
A. Capital Asset Additions and Retirements
City capital asset activities for the year ended June 30, 2022, are as follows:
Balance at Balance at
June 30, 2021 Additions Retirem ents Transfers June 30, 2022 Governmental activities
Capital assets not being depreciated:
Land 5,995,318$ -$ -$ -$ 5,
995,318$
Construction in progress 62,162,233 17,525,231 (471,905) (58,458,852) 20,756,707 Total capital assets not being depreciated 68,157,551 17,525,231 (471,905) (58,458,852) 26,752,025 Capital assets being depreciated:
Buildings 267,550,122 23,454,067 291,004,189
Machinery and equipment 39,201,815 856,761 (40,097) 40,018,479 Infrastructure:
Streets 183,987,404 12,594,706 196,582,110
Street Lights 6,085,118 1,154,726 7,239,844
Landscape 21,323,234 21,323,234
Storm drains 23,500,878 174,862 23,675,740
Potable water systems 1,353,939 1,353,939
Parks 17,536,055 21,080,491 38,616,546
Marina facilities 25,011,156 25,011,156
Golf improvements 4,205,963 4,205,963
Total capital assets being depreciated 589,755,684 856,761 (40,097) 58,458,852 649,031,200 Less accumulated depreciation:
Buildings (128,986,046) (3,183,027) (132,169,073)
Machinery and equipment (28,820,213) (1,687,151) 40,097 (30,467,267) Infrastructure:
Streets (96,798,229) (4,927,133) (101,725,362)
Street Lights (3,177,995) (201,201) (3,379,196)
Landscape (18,888,609) (141,078) (19,029,687)
Storm drains (11,994,994) (448, 393) (12,443,387)
Potable water systems (1,232,142) (7,852) (1,239,994)
Parks (5,576,992) (1,457,203) (7,034,195)
Marina facilities (21,488,200) (83,136) (21,571,336)
Golf improvements (3,918,446) (86,134) (4,004,580)
Total accumulated depreciation (320,881,866) (12,222,308) 40,097 (333,064,077) Net capital assets being depreciated 268,873,818 (11,365,547) 58,458,852 315,967,123 Governmental activity capital assets, net 337,031,369$ 6,159,684$ (471,905)$ -$ 342,719,148$ 78 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 5 – Capital Assets (Continued)
Balance at
June 30, 2021 Balance at
(as restated) Additions Retirements Transfers June 30, 2022 Business-type activities
Capital assets, not being depreciated:
Land and Rights 220,143 $ - $ - $ - $ 220,143$ Construction in progress 32, 778,439 11,817,562 (40,867,400) 3,728,601 Total capital assets not being depreciated 32,998,582 11,817,562 (40,867,400) 3,948,744 Capital assets, being depreciated:
Utility Plant 90,553,162 (495,010) 375,319 90,433,471
Service Center Building 8,168,069 8,168,069
Intangible right-to-use building 3,142,914 3,142,914
Machinery and equipment 10,349,295 10,349,295
Transportation equipment 3,846,642 169,900 4,016,542
Computer equipment 4,694,928 4,694,928
Furniture and fixtures 2,701,296 88,797 2,790,093
Sewer lines 102,729,243 40,322,181 143,051,424
Total capital assets being depreciated 226,185,549 88,797 (495,010) 40,867,400 266,646,736 Less accumulated depreciation for:
Utility Plant (63,527,137) (3,617,155) 451,270 (66,693,022) Service Center Building (4,780,670) (180,960) (4,961,630) Intangible right-to-use building (319,618) (319,618)
Machinery and equipment (9,367,158) (169,019) (9,536,177) Transportation equipment (2,865,821) (159,137) (3,024,958) Computer equipment (4,232,635) (62,377) (4,295,012)
Furniture and fixtures (2,119,540) (124,229) (2,243,769) Sewer lines (37,961,375) (1,606,664) (39,568,039)
Total accumulated depreciation (124,854,336) (6,239,159) 451,270 (130,642,225) Net capital assets being depreciated 101,331,213 (6,150,362) (43,740) 40,867,400 136,004,511 Business-type activity capital assets, net 134,329,795$ 5,667,200$ (43,740)$ -$ 139,953,255$
B. Capital Asset Contributions
Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.
79 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 5 – Capital Assets (Continued)
C. Depreciation Allocation
Depreciation expense is charged to functions and pr ograms based upon usage of the related assets. The amounts allocated to each function or program are as follows:
Governmental Activities:
G eneral governm ent 170,066 $
Police 120,056
Fire 531,747
Public works 6,446,502
Recreation and parks 1,663,827
Library 472,108
Com m unity developm ent 1,696,081
Planning, building and transportation 29,275
Internal Service Funds 1,092,646
Total Governmental Activities 12,222,308$
Business-Type Activities:
Sewer Services 1,685,266$
Alameda Municipal Power 4,553,893
Total Business-Type Activities 6,239,159$
Note 6 – Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the term of the related debt . Bond discounts and issuance costs of long-term debt issues are amortized during the life of the related debt.
80 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 6 – Long-Term Debt (Continued)
A. City Long-Term Debt
The City’s long-term debt activities for the year ended June 30, 2022, are as follows:
CUSIP Balance Balan ce Current
Number June 30, 2021 Retirements June 30, 2022 Portion Governmental Activities Debt:
Loans and Leases From Direct Borrowing
Lease Financings Payable not applicable 2,180,062$ (313,304)$ 1,866,758$ 322,420$ HUD Section 108 Loan Refinance, 2019 Series A not applicable 4,104,000 (532,000) 3,572,000 562,000 i-Ba
nk Loan not applicable 2,434,646 (149,511) 2,285,135 152,930 A
lameda County EMS Liability not applicable 1,534,362 (228,151) 1,306,211 234,996 Total
Loans and Leases from Direct Borrowing 10,253,070 (1,222,966) 9,030,104 1,272,346 Certificates of Participation
2008 Refinancing Project 010762 345,000 (345,000)
2013 Financing Project 010762 5,580,000 (565,000) 5,015,000 585,000 Pl
us: Unamortized bond premium 224,712 (25,519) 199,193
To
tal Certificates of Participation 6,149,712 (935,519) 5,214,193 585,000 2003 AR
RA Demand Revenue Bonds 010808 8,600,000 (500,000) 8,100,000 600,000 2013 Ge
neral Obligation Refunding Bonds 010752 6,435,000 (405,000) 6,030,000 415,000 Pl
us: Unamortized bond premium 48,369 (5,467) 42,902
Sub
total 15,083,369 (910,467) 14,172,902 1,015,000 Total Governmental Activities Debt 31,486,151 (3,068,952) 28,417,199 2,872,346 Business-Type Activities Debt:
Loans From Direct Borrowing
State Revolving Fund Loan, 2004 not applicable 196,836 (97,156) 99,680 99,680 Total
Loans from Direct Borrowing 196,836 (97,156) 99,680 99,680 Se
wer Revenue Bonds, 2012 Series A 010782 12,235,000 (400,000) 11,835,000 415,000 Pl
us: Unamortized bond premium 76,599 (3,595) 73,004
Re
venue Bonds, Series 2010A 010808 8,700,000 8,700,000 Taxable Revenue Bonds, Series 2010B 010808 11,345,000 (1,485,000) 9,860,000 1,600,000 Subtotal 32,356,599 (1,888,595) 30,468,004 2,015,000 Total Business-Type Activities Debt 32,553,435 (1,985,751) 30,567,684 2,114,680 Total Debt 64,039,586$ (5,054,703) $ 58,984,883 $ 4,987,026 $ 81 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 6 – Long-Term Debt (Continued)
B. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt:
For the Y ear
Ending June 30, Principal Interest Principal Interest
2023 1,272,346$ 194,504$ 1,600,000$ 414,010$ 2024 1,318,273 166,733 1,640,000 377,535 2025 1,380,765 137,360 1,680,000 339,610 2026 1,454,837 105,970 1,715,000 299,741 2027 1,497,509 72,542 1,755,000 257,910 2028-2032 1,517,921 129,732 7,955,000 643,531 2033-2035 588,453 20,389 2,800,000 49,929 Subtotal 9,030,104 827,230$ 19,145,000 2,382,266$ Plus unam ortized bond prem ium 242,095
Total 9,030,104$ 19,387,095$
Governmental Activities
Certificates of Participation and
Bonds
Loans and Leases from Direct
Borrowing
For the Y ear Loans from Direct Borrowing Bonds
Ending June 30, Principal Interest Principal Interest
2023 99,680$ 2,592$ 2,015,000$ 1,353,309$ 2024 2,135,000 1,233,016
2025 2,255,000 1,109,067
2026 2,385,000 975,173
2027 2,525,000 831,271
2028-2032 11,975,000 2,243,875
2033-2037 2,930,000 891,030
2038-2042 3,420,000 404,097
2043 755,000 12,269
Subtotal 99,680 2,592$ 30,395,000 9,053,107$ Plus unam ortized bond prem ium 73,004
Total 99,680$ 30,468,004$
Business-Type Activities
82 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 6 – Long-Term Debt (Continued)
C. Description of the City’s Long-Term Debt Issues
The balance of the City’s debt is in various forms as follows:
Governmental Activities Debt
Certificates of Participation – Some of the City’s obligations are in the form of long-term leases between the City and the Alameda Public Financing Authority. Under these arrangements, the City enters into a legal agreement with the Authority to lease a specified City property to the Authority for an up-front, lump- sum lease payment. The City uses the lease pro ceeds to fund major capital improvements. The City furthermore continues to make use of the leased facility, and in return for that, agrees to pay the Authority regular lease payments. The Authority, in turn, sells sh ares of the City’s lease payments to investors. The shares are called Certificates of Participation, or COPs. The City’s lease payments are made to the certificate holders through the Trustee over the term of the agreement. The cost of the assets securing these leases and the balance of the debt evidenced by these Certificates of Participation have been included in the City’s financial statements, as these leases are in essence financing arrangements with ownership of the financed assets reverting to the City at the conclusion of the lease term. 2008 Refinancing Project Certificates of Participation – In July 2008, the City Council entered into a lease agreement with the Alameda Public Financing Authority for the Police Administration Building. The Authority issued Certificates of Participation to investors (in the amou nt of $4,575,000) to refinance and defease the 1996 Police Building and the 1996 Li brary and Golf Course Upgrade and Renovation Certificates of Participation. The 2008 Certificates ar e collateralized by the leased Police Administration Building over the term of the lease; the City may substitute alternative sites/facilities as collateral at its option over the same time period. The certificates bear interest rates from 4% to 5%, which are payable semi-annually in May and November. The City’s principal payments commenced on May 1, 2011.
The City is obligated to make the necessary annual appropriations within its budget for all lease payments owed under the lease agreement. In the event of default on the paymen ts, the City is obligated to take certain actions or consent to certain actions of a fina ncial nature as more fully described in the lease and related documents contained at the EMMA-MSRB website , but the trustee has no right to accelerate the lease payments.
2013 Financing Project Certificates of Participation – On September 17, 2013, the City of Alameda Financing Authority authorized the issuance of the Certificates of Participation (2013 Refinancing Project) in the amount of $9,610,000 to repay the City of Alameda 2002 Certificates of Participation and to finance the costs of construction of a new City Emergency Operations Center and associated expenses. The 2013 Certificates are collateralized by the leased Alameda Ci ty Hall over the term of the lease; the City may substitute alternative sites/facilities as collateral at its option over the same time period. The 2013 Certificates bear interest from 3% to 4%, which is payable semi-annually in May and November. Principal payments are due annually and commenced on May 1, 2014. 83 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 6 – Long-Term Debt (Continued)
2003 Alameda Reuse and Redevelopment Authority (ARRA) Variable Rate Demand Lease Revenue Bonds – On December 1, 2003, the Alameda Public Fi nancing Authority issued Variable Rate Revenue Bonds in the original principal amount of $13,440,000 at a variable rate of interest determined on a weekly basis. The proceeds from the bonds were used to refund the 1999 ARRA Revenue Bonds, which were issued to finance the costs of certain improvements at Alameda Point (assigned to the Base Reuse Special Revenue Fund), and to finance professional services for land use planning and other activities required for the redevelopment process at Alameda Point. Repaymen t of these bonds is from lease revenues paid to ARRA from certain land, buildings, fixtures and equipment. Interest is payable on the first business day of each month, and principal is due December 1.
The pledge of sublease revenues ends upon repayment of the $8,640,632 in remaining debt service on the Bonds, which is scheduled to occur in 2034. As disclosed in the bond indenture documents, pledged future sublease revenues are expected to provide coverage ov er debt service of 1.5 during the life of the Bonds.
For Fiscal Year 2021-22, sublease revenues amounte d to $15,291,296, which re presented coverage of 3,767% over the $405,905 in debt service.
General Obligation Bonds
2013 General Obligation Refunding Bonds – On September 17, 2013, the voters and City Council approved the repayment of General Obligation Refunding Bonds originally issued in 2003. The Refunding Bonds were issued on November 1, 2013 in the prin cipal amount of $9,010,000 to refund, on a current basis, the City of Alameda General Obligation Bonds, Series 2003, and pay for costs of issuance of the Bonds. The 2003 Bonds were issued to finance the construction and renovation of various public libraries.
The bonds bear interest between 3% and 3.4%. The repayment of the bonds is secured by all non-restricted revenue of the City. Principal payments are due annual ly on August 1. Interest payments are due semi- annually on February 1
st and August 1st through August 1, 2033.
Leases and Loans Payable
Lease Financings Payable – At June 30, 2022, the City held the following leases payable. Under the lease agreements, ownership of the capital assets reverts to the City at the end of the lease terms. Since the leases are in essence financing arrangement s, the costs of the capital assets and the amounts of the lease terms have been included in the City’s financial statements.
2011 Fire Apparatus Lease Financing Payable – On October 19, 2011, the City entered into a lease agreement in the amount of $1,750,000 with Oshkosh Capital to acquire two fire apparatus vehicles.
The City agreed to pay the lease starting on October 19, 2012, with annual payments of $147,127, which includes an interest rate of 3.05%, for fifteen years. Balance of the lease as of June 30, 2022, was $672,816.
84 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 6 – Long-Term Debt (Continued)
2012 Fire Truck Lease Financing Payable – On September 26, 2012, the City entered into a lease agreement in the amount of $1,965,726 with Oshkosh Capital to acquire two fire apparatus vehicles.
The City agreed to pay the lease starting on September 26, 2013, with annual payments of $162,546, which includes an interest rate of 2.82%, for fifteen years. Balance of the lease as of June 30, 2022, was $885,772.
2014 Fire Apparatus Lease Financing Payable – On July 1, 2014, the City entered into a lease agreement in the amount of $673,799 with Oshkosh Capital to acquire one fire apparatus vehicle.
The City agreed to pay the lease starting on August 5, 2015, with annual payments of $66,926, which includes an interest rate of 2.81% for ten years. Balance of the lease as of June 30, 2022 was $308,170.
The leased equipment had book values at June 30, 2022 as follows:
2011 2012 2014
Fire Apparatus Fire Trucks Fire Apparatus
Equipment 1,750,000$ 1,750,791$ 673,799$
Less: Accumulated Depreciation (1,254,167) (790,512) (533,424) Book Value 495,833$ 960,279$ 140,375$
HUD Section 108 Loan Refinance Series 2019-A – The City issued HUD Section Loan Refinancing Bonds of $4,906,000 on January 24, 2019 to refinan ce the outstanding portion of the City’s HUD Section 108 Loan, maturing on 08/01/2026, and 08/01/2027 and also to pay the costs of issuance of the Refinancing Loan. Principal payments are payable annually on August 1, and semi-annual interest payments are payable on February 1st and August 1st of each fiscal year. The outstanding balance as of June 30, 2022 is $3,572,000.
IBank Loan – On June 1, 2015, the City entered into an agreement to borrow $3,000,000 from the California Infrastructure and Economic Development Bank . Loan proceeds were received in Fiscal Year 2015-16 and will be used to finance construction of a new fire station. Principal and interest payments are due semi-annually on February 1
st and August 1 st through 2034. The loan bears interest of 2.287%. The outstanding balance as of June 30, 2022 is $2,285,135.
Alameda County EMS Liability – From 2005 to 2010, the County of Alameda provided Emergency Medical Services, First Responder Advanced Life Support, and Ambulance Transport Services to the City of Alameda. During this time, the City incurred an obligation of $3,621,887 to the County. On November 1, 2011, the County of Alameda and the City of Alameda entered into an agreement to repay this obligation using First Responder Advanced Life Support funding un til the debt is fully repaid. As of June 30, 2022, the outstanding balance is $1,306,211.
85 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 6 – Long-Term Debt (Continued)
D. Business-Type Activities Debt
Loan Payable
State Revolving Fund Loan 2004 – The City entered into a contract on August 12, 2004, to borrow funds from the State Water Resources Control Board. The funds are being used for a Sewer Replacement Project to correct infiltration and inflow. The maximum loan amount is $1,840,292 and bears interest at 2.6% per year for a term of twenty years. The balance as of June 30, 2022, was $99,682.
Revenue Bonds
Sewer Revenue Bonds 2012 Series A – On October 3, 2012, the City of Alameda Financing Authority issued Sewer Revenue Bonds 2012 Series A, in the original principal amount of $14,715,000, to repay the 1995 Sewer System Refinancing and Improvement Certificates of Participation and to finance improvements to the City’s municipal sewer system. The Bonds bear in terest between 2% and 4%, which are payable semi-annually in February and August. Principal payments of the Bonds commenced on August 1, 2013.
The pledge of sublease revenues ends upon repayment of the $16,065,453 in remaining debt service on the Bonds, which is scheduled to occur in 2042. As disclosed in the bond indenture documents, pledged future revenues are expected to provide coverage over debt service of 1.25 during the life of the Bonds. For Fiscal Year 2022, net revenues amounted to $10,088,008, which represented coverage of 13.22 over the $763,069 in debt service.
Revenue Bonds, Series 2010A/B (AMP Refinancing) – As described in an indenture agreement dated August 1, 2010, Revenue Bonds, Series 2010A/B were issued through Alameda Public Financing Authority on behalf of AMP to provide funds, together with certain other available monies, to 1) prepay the obligations of AMP for the Electric System Revenue Certificates of Participation Series 2000A, 2) prepay the obligations of AMP for the Taxable Electric System Revenue Certificates of Participation, Series 2000AT, 3) fund a deposit to the Common Reserve Account and 4) prepay the costs of issuance of the 2010 Bonds. Revenue Bonds, Series 2010A bear interest at 4.375 percent to 5.25 percent, payable January 1 and July 1 of each year. The Revenue Bo nds, Series 2010B bear interest at 1.829 percent to 6.517 percent, payable January 1 and July 1 of each year.
Principal on the Series 2010B Bonds is payable beginning July 1, 2011 and each succeeding July 1 until final maturity in 2027. Principal on the Series 2010A Bonds will be payable beginning July 1, 2027 and each succeeding July 1 until final maturity in 2030. The 2010 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity. The 2010 Bonds are specia l obligations payable solely from electric revenues, other amounts held in the bond funds and accounts established pursuant to the indenture, and amounts on deposit in the Commo n Reserve Account. The initial book -entry principal obligation for the Series 2010A and Series 2010B was $8,700,000 and $22,985,000, respectively.
AMP does not have any debt that is direct borrowing or direct placement, and AMP does not have unused lines of credit for the year ended June 30, 2022.
86 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 6 – Long-Term Debt (Continued)
Both revenue bonds contain a rate covenant that AMP will at all times fix, prescribe and collect rates, fees and charges for the services and facilities of AMP during each fiscal year that will be at least sufficient to yield:
Adjusted Annual Revenues for such fiscal year at least equal to the sum of the following for such fiscal year:
a. Operating and Maintenance Cost
b. Adjusted Annual Debt Service
c. All other payments required to meet any ot her obligations of AMP which are charges, liens and encumbrances upon or payable from the Electric System Revenue Fund, including all amounts owed to any issuer of a Qualified Re serve Fund Credit Instrument then in effect and deposited in the Common Reserve Account under the terms of such Qualified Reserve Fund Credit Instrument and all amounts ow ing under subordinate debt, and Adjusted Annual Net Revenues for such fiscal year equal to at least 110% of Adjusted Annual Debt Service for such fiscal year.
If any event of default shall occur, then, and in each and every such case during the continuance of such event of default, the trustee may, and shall at the written direction of the owners of not less than a majority in aggregate principal amount of the bonds at the time outstanding, upon notice in writing to Alameda Municipal Power, declare the principal of all of the bonds then outstanding, and the interest accrued thereon, to be due and payable immediately, and upon any such declaration th e same shall become and shall be immediately due and payable, anythi ng in the indenture or in the bonds contained to the contrary notwithstanding.
In October 2022, Fitch Ratings upgraded the ratings of the 2010 A /B bonds from AA- to AA.
Note 7 – Special Assessment Debt Without City’s Commitment
Special assessment districts in various parts of the City have issued debt to finance infrastructure improvements and facilities within their boundaries. The City is the collecting and paying agent for the debt issued by the districts, but has no di rect or contingent liability or moral obligation for the payment of this debt. Therefore, this debt is not included in general long-term debt of the City. The outstanding balance of each of these issues as of June 30, 2022 is as follows:
Description Maturity Date June 30, 2022
Alameda Landing Community Facilities District No. 13-1 9/1/2046 $ 15,295,000 Alameda Landing Community Facilities District No. 13-1
(2021 Special Tax Subordinate Bonds) 9/1/2051 21,920,000
87 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 8 – Net Position and Fund Balances
Net Position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined at proprietary fund and the Government-wide level and are described below.
Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements, and funds restricted for low and moderate housing purposes.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.
The City’s fund balances are classified in accordance with spending constraints imposed on the use of resources. For programs with multiple funding source s, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendables represents balances set aside to indicate item s that do not represent available, spendable resources, even though they are a co mponent of assets. Fund balances required to be maintained intact, such as permanent funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment, are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions impo sed by creditors, granto rs, contributors, laws, regulations, or enabling legislation which requires th e resources to be used only for a specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by form al action (through a resolution) of the City Council, which may be altered only by formal action of the City Council. Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources.
88 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 8 – Net Position and Fund Balances (Continued)
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Manager or its designee as authorized by an adopted City Council resolution and may be chan ged at the discretion of the City Council or its designee. This category includes encumbrances; Nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed through a council resolution. The City Council has designated the City Manager or his designee to determine the amount of assigned fund balances.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned.
This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. 89 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 8 – Net Position and Fund Balances (Continued)
Detailed classifications of the City’s Fund Balances, as of June 30, 2022, are below:
Grants Other
General Base Reuse Special Governmental
Classifications Fund Special Revenue Projects Funds Total Nonspendable:
Prepaids and deposits 3,470$ -$ -$ -$ 3,470$ Advances 1,134,624 1,134,624
Loan receivable 2,000,000 2,000,000
Total Nonspendable 3,138,094 3,138,094
Restricted for:
Commercial revitalization 2,368,304 2,368,304
Storm drainage system 3,174,846 3,174,846
Development activities 56,349,149 18,300,384 74,649,533 Streets and roads 13,592,857 13,592,857
Affordable housing 2,567,046 2,567,046
Public safety 1,010,663 14,814 1,025,477 Waste reduction 3,813,075 3,813,075
Assessment district 14,171,478 14,171,478
Tidelands 2,360,111 2,360,111
Transportation 2,590,317 2,590,317
Debt service 1,725,048 1,725,048
Total Restricted 56,349,149 1,010,663 64,678,280 122,038,092 Committed to:
Capital projects 2,071,017 2,071,017
Development activities 1,200,000 1,672,283 2,872,283 Community development 58,158 58,158
Culture and recreation 7,500,000 1,672,092 9,172,092 Library operations 5,470,025 5,470,025
Parking meter/garage 1,860,737 1,860,737
Total Committed 8,700,000 12,804,312 21,504,312
Assigned:
General government 1,201,213 1,201,213
Streets and sidewalks 1,637,465 1,637,465
Recreation and parks 1,489,786 1,489,786
Economic uncertainty 4,035,000 4,035,000
Long-term obligations 5,566,327 5,566,327
Total Assigned 13,929,791 13,929,791
Unassigned:
Reserve policy 24,041,451 24,041,451
Residual fund balance in excess
of policy or fund balance deficits 40,218,941 (365,801) 39,853,140 Total Unassigned 64,260,392 (365,801) 63,894,591
Total Fund Balances 90,028,277$ 56,349,149$ 1,010,663$ 77,116,791$ 224,504,880$
90 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 8 – Net Position and Fund Balances (Continued)
C. Fund Deficits
The Successor Agency Private Purpose Trust Fund had deficit net position in the amount of $37,770,418 at June 30, 2022. Future revenues and repayment of long-term debt are expected to offset this deficit.
The Workers’ Compensation Insurance Internal Servic e Fund had deficit net position in the amount of $88,385 at June 30, 2022. The deficit arose from a change in the confidence level of claims liabilities and future charges for services are expected to offset this deficit.
The General Liability Insurance Internal Service Fund had deficit net position in the amount of $1,277,440 at June 30, 2022. Future charges for services are expected to offset this deficit.
D. Restatement of Fund Balance and Net Position
The City implemented the provisions of the Statement No. 87 during the year ended June 30, 2022. As a result, the City determined that beginning the balances of leases receivable and deferred inflows of resources related to leases were $74,950,242 and the balances of the leases payable and intangible right-to- use assets were $3,142,914 as of July 1, 2021 and restated and increased the balances in those amounts, and the net effect on beginning net position and fund balance was zero. See the Leases disclosure in Note 13.
Note 9 – Pension Plans
A. General Information About the CalPERS Pension Plans
For purposes of measuring the net pension liability a nd deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees Retirement System (CalPERS) Plans and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contri butions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Plan Descriptions – All qualified permanent and probationary em ployees are eligible to participate in the City’s separate Safety (police and fire) and Mis cellaneous (all other) Plans, agent multiple-employer defined benefit pension plans admi nistered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalP ERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website (www.CalPERS.ca.gov).
Benefits Provided – CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan member s, who must be public employees an d beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutor ily reduced benefits. All members are eligible for non- duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 91 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
The Plans’ provisions and benefits in effect at June 30, 2022 are summarized below:
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit paym ents m onthly for life m onthly for life
Retirem ent age (range) 50 - 67+ 52 - 67+
Monthly benefits, as a % of annual salary 1.426% - 2.418% 1.000% - 2.500% Required em ployee contribution rates 8.868% 8.250%
Required em ployer contribution rates 8.412% 10.280%
Required UAL contribution $6,818,696
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit paym ents m onthly for life m onthly for life
Retirem ent age (range) 50 - 55+ 50 - 57+
Monthly benefits, as a % of annual salary 3.000% 2.000% - 2.700% Required em ployee contribution rates 15.000% 11.500%
Required em ployer contribution rates 14.780% 20.780%
Required UAL contribution $12,045,264
Safety
Miscellaneous
Beginning in Fiscal Year 2018, CalPERS collects employ er contributions for the Plans as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on an annual basis. The City’s required contributions for the unfunded liabili ty in the miscellaneous and safety plans for the year ended June 30, 2022 were $6,818,696 and $12,045,264, respective ly, which were made under the lump sum payment option.
Contributions – Section 20814(C) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1st following notice of a change in rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30th by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the co sts of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees. The employees pay a percentage of their salaries toward the C ity’s required contribution. Employees within the miscellaneous plan pay 1.868% of th e employer’s contribution and employees within the safety plan pay
6.000% of the employer’s contribution, which are reflected in the rates above. Employer contribution rates may change if plan contracts are amended. Total employer required contribution amounts during the fiscal year ended June 30, 2022 were $9,905,744 for the miscellaneous plan and $16,533,892 for the safety plan.
In addition, the City made an additional contribution of $5.755 million toward the Safety Plan’s UAL.
92 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
Employees Covered – The following employees were covered by the benefit terms for each Plan as of the most recent actuarial valuation date of June 30, 2020 and measurement date of June 30, 2021:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 596 294 Inactive employees entitled to but not yet receiving benefits 343 77 Active employees 330 177
Total 1,269 548
Net Pension Liability – The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position . The net pension liability of each Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the total pension liability is shown below.
Actuarial Assumptions – The total pension liabilities as of the Ju ne 30, 2021 measurement date were determined using the following actuarial assumptions:
Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Actuarial As s umptions:
Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Payroll G rowth 2.75% 2.75%
Projected Salary Increase (1) (1)
Investment Rate of Return 7.15% (2) 7.15% (2)
Mortality
Derived using CalPERS' Members hip data for all
funds (3)
Derived using CalPERS' Membership data for all
funds (3)
Post Retirement Benefit Increase
The lesser of contract COLA or 2.5% until
Purchasin g Power Protection Allowance Floor on
Purchasing Power applies, 2.5% thereafter
The lesser of contract COLA or 2.5% until
Purchasin g Power Protection Allowance Floor on
Purchasing Power applies, 2.5% thereafter
(1) Depending on age, service and type of em ploym ent (2) Net of pension plan investm ent ex penses, including inflation (3) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 20 17 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report fr om December 2017 that can be found on the CalPERS website.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study fo r the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. Further details of the Experience Study can be found on the CalPERS website (www.CalPERS.ca.gov).
93 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
Discount Rate- The discount rate used to measure the total pension liability for each Plan was 7.15%. The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contributions rates and that contributions from empl oyers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in PERF.
Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future r eal rates of return (expected return s, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, staff took into account both short-term and long term market return expectations as well as the expected
pension fund (Public Employees’ Retirement Fund) cash
flows. Such cash flows were deve loped assuming that both member s and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) usin g a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long- term returns.
The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects long-term expected real rates of return by asset class:
Asset Class (a)
Assumed Asset
Allocation
Real Return
Years 1 - 10 (b)
Real Return
Years 11+ (c)
Public Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets 0% 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% 0% -0.92%
Total 100%
(a) In the
CalPERS Annual Comprehensive Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities a
nd Global Debt Securities.
(b) An expec
ted inflation of 2.0% used for this period.
(c) An expec
ted inflation of 2.92% used for this period.
94 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
Changes in the Net Pension Liability – The Changes in the Net Pension Liability for each Plan measured as of June 30, 2022 is as follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pens ion Plan Fiduciary Net Net Pens ion
Liability Position Liability/(As set)
Balance at June 30, 2020 M easurement Date 311,747,182$ 226,451,119 $ 85,296,063 $ Changes in the year:
Service cost 5,631,496 5,631,496
Interest on the total pension liability 21,964,673 21,964,673 Differences between actual and ex pected ex perience 1,175,561 1,175,561 Changes of assum ptions
Net Plan to Plan Resource Movement
Contributions - em ployer 9,307,781 (9,307,781)
Contributions - em ployees 2,801,576 (2,801,576)
Net investment income 51,716,414 (51,716,414)
Benefit paym ents, including refunds of em ployee
contributions (17,080,553) (17,080,553)
Adm inistrative ex pense (226,211) 226,211
Other Miscellaneous Incom e/(Ex pense)
Net changes 11,691,177 46,519,007 (34,827,830)
Balance at June 30, 2021 Measurement Date 323,438,359$ 272,970,126 $ 50,468,233 $ Safety Plan:
Increase (Decrease)
Total Pens ion Plan Fiduciary Net Net Pens ion
Liability Position Liability/(As set)
Balance at June 30, 2020 M easurement Date 492,450,123$ 300,369,779 $ 192,080,344 $ Changes in the year:
Service cost 7,321,091 7,321,091
Interest on the total pension liability 34,630,972 34,630,972 Differences between actual and ex pected ex perience 2,591,031 2,591,031 Changes of assum ptions
Net Plan to Plan Resource Movement
Contributions - em ployer 20,116,075 (20,116,075)
Contributions - em ployees 3,533,418 (3,533,418)
Net investment income 67,959,767 (67,959,767)
Benefit paym ents, including refunds of em ployee
contributions (28,704,897) (28,704,897)
Adm inistrative ex pense (300,051) 300,051
Other Miscellaneous Income/ (Expense)
Net changes 15,838,197 62,604,312 (46,766,115)
Balance at June 30, 2021 Measurement Date 508,288,320$ 362,974,091 $ 145,314,229 $ Total of Miscellaneous and Safety Plans 831,726,679$ 635,944,217 $ 195,782,462 $
95 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of each Plan, calculated using the discount rate for each Plan, as well as what the net pension liability would be if it were calculated us ing a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability 89,287,866$ 211,235,848$ Current Discount Rate 7.15% 7.15%
Net Pension Liability 50,468,233$ 145,314,229$ 1% Increase 8.15% 8.15%
Net Pension Liability 18,029,403$ 90,987,110$
Pension Plan Fiduciary Net Position – Detailed information about each pension plans’ fiduciary net position is available in the separate issued CalPERS financial reports.
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension – For the year ended June 30, 2022, the City recognized pens ion expense of $551,132 and $12,240,830 for the Miscellaneous and Safety Plans, respectively, and when combined with the pension expense of the 1079 and 1082 Plans discussed in Note 9B below, the City reco gnized total pension expense of $13,627,388 during the year ended June 30, 2022. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date 9,905,744$ -$ Changes in assumptions
Differences between ex pected and actual ex perience 685,744 (215,831) Net differences between projected and actual earnings on plan investm ents (26,111,582)
Total 10,591,488$ (26,327,413)$ Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date 22,288,892$ -$ Changes in assumptions 5,779,816
Differences between ex pected and actual ex perience
Net differences between projected and actual earnings on (33,851,131) plan investm ents
Total 28,068,708$ (33,851,131)$ Mi s cel l aneous
Safety
96 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
Deferred Outflow s Deferred Inflow s
of Resources of Resources
Pension contributions subsequent to measurement date 32,194,636$ -$ Changes in assumptions 5,779,816
Differences between expected and actual experience 685,744 (215,831) Net differences between projected and actual earnings on (33,851,131) plan investm ents (26,111,582)
Total 38,660,196$ (60,178,544)$ Total - Both Plans
The amounts of $9,905,744 and $22,288,892 for the Miscellaneous and Safety Plans, respectively, reported as deferred outflows of resources related to contribut ions subsequent to the measurement date will be recognized as a reduction of the net pension liab ility in the year ended Ju ne 30, 2023. Other amounts reported as deferred outflows of resources and deferre d inflows of resources related to pensions will be recognized as pension expense as follows:
Annual Amortization
Ye ar Ende d
June 30 Miscellaneous Safety Total
2023 (6,393,221) $ (4,866,680) $ (11,259,901) $ 2024 (5,862,702) (6,433,032) (12,295,734)
2025 (6,240,777) (7,497,352) (13,738,129)
2026 (7,144,969) (9,274,251) (16,419,220)
Total (25,641,669) $ (28,071,315) $ (53,712,984) $
Subsequent Event - Reduction of CalPERS Discount Rate - On July 12, 2021, CalPER S reported a preliminary
21.3% net return on investments for fiscal year 2020-21. Based on the thre sholds specified in CalPERS Funding Risk Mitigation policy approved by the CalPERS Board in 2015, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to the asset allocat ion until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense, but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortal ity rates and rates of salary increases that were adopted by the CalPERS Board. These new assu mptions will be reflected in the Ca lPERS GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
97 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
B. Police and Fire Pension Plans
The City sponsors and administers two single employer defined benefit retirement plans for certain police and fire department retirees. Police and fire employees who entered service before 1953 participate in Plan 1079, a closed plan consisting of 9 participants, a ll of whom are retired employees or beneficiaries.
Employees with twenty-five or more years of service receive monthly pension benefits equal to one-half the monthly salary paid to current City employees of the rank held by the retiree one year prior to the date of retirement. Employees retired after ten, but before twenty-five years of service receive monthly pension benefits in the proportion that the number of service years bears to twenty-five. Qualified surviving spouses receive the retirees’ monthly pension benefits for li fe. Upon remarriage, the qu alified surviving spouse receives one-half of the retiree’s monthly pension benefits. Employees who became disabled from service related causes receive monthly pension benefits equal to one half the monthly salary paid to current City employees of the rank held by the disabled employee on the date of their disability, reduced by any workers’ compensation benefits received.
Police and fire employees who entered service on or before January 1, 1953 and did not transfer to CalPERS participate in Plan 1082, a closed plan which consis ts of one retired employee. At June 30, 2022, the monthly pension benefit was $2,790, adjusted annu ally by a maximum of 2% per year cost-of-living adjustment. Upon the death of a re tiree, the qualified spouse receives one-half of the retiree’s monthly pension benefit for life or until remarriage.
Total Pension Liability – The City recognizes its total pension liability, rather than a net pension liability for each Plan. In order for the City to recognize a net pension liability, assets must be accumulated in a trust that meets all of the following criteria:
Contributions from the employer and any nonemployer contributing entities, and earnings thereon, must be irrevocable.
Plan assets must be dedicated to providing pensions to Plan members in accordance with the benefit terms.
Plan assets must be legally protected from the creditors of the employer, nonemployer contributing entities, the Plan administrator, and Plan members.
No assets are accumulated in a trust that meets all of the above criteria. Accordingly, the City’s total pension liability for each Plan is not reduced by any assets accumulated in a trust that meets the criteria and the City must report its total pension liability for each Plan.
98 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
The City’s total pension liability wa s determined by an actuarial valuat ion as of June 30, 2021 rolled forward to June 30, 2022 (the meas urement date). Changes in the City’s total pension liability were as follows:
1079 Plan:
Total pension liability - June 30, 2021 5,409,372$
Changes for the year
Interest 105,696
Difference between expected and actual experience (750,456) Change of assumptions (359,776)
Benefit payments (752,461)
Net increase (decrease) in total pension liability (1,756,997) Total pension liability - June 30, 2022 3,652,375$
1082 Plan:
Total pension liability - June 30, 2021 911,163$
Changes for the year
Interest 18,786
Difference between expected and actual experience 0
Change of assumptions (187,896)
Benefit payments (33,162)
Net increase (decrease) in total pension liability (202,272) Total pension liability - June 30, 2022 708,891$
Total of 1079 & 1082 Plans 4,361,266$
Actuarial Assumptions – Actuarial assumptions used to determine the total pension liability for each Plan in the June 30, 2021 valuation applied to all periods included in the measurement, are as follows:
Actuarial cost method N/A; all participants have retired Inflation 2.75%
Discount Rate 3.75%
Cost of Livin
g Increase 2.00%
Mortality According to the pre-retirement mortality rates under the CalPERS pension plan updated to reflect the most
recent experience study with mortality improvements
using Mortality Improvement Scale MP 2014 with 15
year convergence to 2022
99 City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
Discount Rate – A discount rate of 3.75% was applied in th e measurement of the total pension liability.
This discount rate is the average, ro unded to 5 basis points, of the rang e of three 20 year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO index, Fidelity GO AA 20 Year Bond Index.
Change of Assumptions – For the measurement date of June 30, 20 22, the discount rate increased from
2.10% to 3.75% for both Plans, and for Plan 1079, the survivor benefit increased from 50% of the retiree’s benefit to 100% of the retiree’s benefit.
Sensitivity of the Total Pension Liability Calculated Using the Discount Rate – The following presents the total pension liability calculated using the discount rate of 3.75%, as well as what the total pension liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate at June 30, 2022:
Current
1% Decrease Discount Rate 1% Increase
Total pension liability:
1079 Plan 3,944,072$ 3,652,375$ 3,461,576$
1082 Plan 830,850 708,891 622,972
Total both plans 4,774,922$ 4,361,266$ 4,084,548$
Pension Expense – For the year ended June 30, 2022, the City recognized pension expense for Plan 1079 and Plan 1082 of ($1,004,536) and ($169,110), respectively.
C. Other Retirement Systems
The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s exis ting retirement system as of Januar y 1, 1992, be covered by either Social Security or an alternative plan. Effective January 1, 1995, the City contracted with the Public Agency Retirement System (PARS), to maintain a defined contribution plan. This Plan covers part-time, seasonal and temporary employees as well as all employees not covered by another retirement system. All eligible employees, covered by the Plan, are fully vested. Employer liabilities are limited to the amount of current contributions. The City is responsible for determining the provisions of the Plan, directing distributions, and establishing investment policy for the Plan assets.
Under PARS, employees contribute 6% and the City contributes 1.5% of the employee’s salary each pay period. For the fiscal year ending June 30, 2022, total contributions of $275,264 were made based on a total amount of covered compensation of $3,670,184.
One of the City’s part-time employees elected to be covered under Soci al Security, which requires this employee and the City to each contribute 6.2% of th e employee’s pay. Total contributions to Social Security during the year ended June 30, 2022, amounted to $3,684, of which the City paid 50%.
100
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 9 – Pension Plans (Continued)
D. Deferred Compensation Plans
City employees may defer a portion of their compensation under three separate, optional City sponsored Deferred Compensation Plans created in accordance with Internal Revenue Code Section 457. Under these Plans, participants are not taxed on the deferred por tion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Plans.
The Plans are part of public agency agent multip le-employer defined contribution plans that are administered by Mission Square Retirement (formerly ICMA RC), California Public Employees Retirement System and Nationwide Retirement Solutions, Inc. Be nefit provisions under the Plans are established by City resolution.
The City has no liability for any losses incurred by the Plans and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent invest or. The City has contracts with each company to manage and invest the assets of the Plans. The administrators pool the assets of each Plan with those of other participants and does not ma ke separate investments for the City. The assets in each Plan are the sole property of the participants or their beneficiaries. Since the assets held under each Plan are not the City’s property and are not subject to claims by genera l creditors of the City, they have been excluded from these financial statements. The Plans require investments to be stated at fair value and it requires all gains and losses on Plan investments to accrue directly to participant accounts.
Employer contributions to the Plans are based on an employee’s bargaining unit. The City will contribute 1% of the employee’s base salary to the employee’s deferred compensation plan account, if the employee meets the following criteria:
1. The employee is classified as part of the following Bargaining Units:
Alameda Municipal Power Unrepresented Management (AMPU) Electric Utility Professionals of Alameda (EUPA)
Executive Management Employees (EXME)
Police Officers Non-Sworn (PANS)
2. The employee has at least one year of full-time service with the City. The one year of service must be current service, any separation from service with the City will restart the one year.
3. The employee must be enrolled in one of the City's three Deferred Compensation Plans.
4. The employee must contribute at least 0.5% of their base wage to the Deferred Compensation Plan.
In addition to the employees in the groups listed above, the Council Appointees, the City Manager and City Attorney, receive contributions to their Deferred Co mpensation Plan accounts based on the contract between the City and the individual filling the Council Appointee positions.
Employer contributions to the three Plans for the year ended June 30, 2022 totaled $98,157.
101
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits
A.
General Information about the City’s Other Post-Employment Benefit (OPEB) Plans Plan Description – The City provides medical and dental benefits to retirees through CalPERS as specified below under the City of Alameda Miscellaneous and Pre-1/1/2019 Safety OPEB Plan and the City of Alameda Post-1/1/2019 Safety OPEB Plan, agent multiple-employer defined benefit health care plans. The City is responsible for establishing and amending the funding policy of the Plans. The Plans do not issue financial statements. Separately issued financial statements of the benefit Plans are available from CALPERS at P.O. Box 942709, Sacramento California 94229-2709.
Prior to July 1, 2018, the City ha d one OPEB Plan, but active Safety employees as of January 1, 2019 transferred to the new P
ost-1/1/2019 Safety OPEB Plan.
The City established an irrevocable trust for each Plan with Public Agency Retirement Services (PARS) to fund its
retiree health benefits. On March 1, 2014, the City adopted the Public Agencies Post-Employment Benefits Trust (PARS) to prefund other post-employm ent benefits (OPEB). The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. Investments of funds held in Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with PARS, rather than the general provision s of the California Government Code or the City’ s
investment policy. The City elected a discretionary investment approach, which allows the City to maintain oversight of the investment manageme nt, control on target yield and the portfolio’s risk tolerance, under the Moderate Index PLUS and Balanced Index PLUS in
vestment options. Contributions to the trusts are
made annually according to the City’s OPEB funding policy. 102
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued)
The City is the Plan administrator, while PARS administers the investment trusts. The City’s OPEB Plans do not issue separate financial statements. PARS issues a separate annual financial report and copies of the report may be obtained by writing to PARS at 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660.
Eligibility Requirements and Benefits Provided – The following is a summary of Plan eligibility requirements and benefits by employee group as of June 30, 2022:
Eligibility requires retiring from the City under CalPERS typically on or after age 50 (52 for PEPRA employees) with at least 5 years of CalPERS service or disability retirement.
The City’s contribution for medical coverage for Miscellaneous employees is the Public Employees’ Medical and Hospital Care Act (PEHMCA) minimum required contribution (MRC) - $149 per month in 2022.
The City’s contribution for Safety employees varies depending on bargaining group, date of retirement and date of hire as follows:
Employees Retiring Prior to January 1, 2011
The City pays the full premium cost for the retiree and any cove red spouse. If Alameda Police Officers Association (APOA) employee was hired prior to July 1, 1995, the employee was required to have at least 15 years of City service. If APOA, Alameda Police Management Association (APMA), International Association of Firefight ers Local 689 (IAFF), or Alameda Fire Chiefs Association (AFCA) employee was hired on or after July 1, 1995, the employee was required to have at least 20 years of City service. Employees that do not meet the service requirement at the time of retirement receive the PEMHCA MRC.
Employees Retiring On or After January 1, 2011
If the employee was hired on or prior to June 7, 2011, the City pays up to the higher of the Kaiser or Blue Shield Bay Area two-party rate. Employees with less than 5 years of City service receive the PEMHCA MRC. If the employee was hired after June 7, 2011, the City pays up to the higher of the Kaiser or Blue Shield rate for single coverage if the employee has at least 10 years of City service.
Employees with less than 10 years of City service at the time of retirement receive the PEMHCA MRC. Surviving spouses are eligible to continue coverage after the death of the retiree and receive a similar contribution.
Dental Benefits - Full dental benefits are provided to Safety employees including spouse coverage.
Employees Covered by Benefit Terms – Membership in the Plans consisted of the following at the actuarial valuation date of June 30, 2020:
103
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued) Miscellaneous and Pre-1/1/2019 Safety Plan Membership – As described in the table in Note 10A, Plan membership varies based on different employee bargaining groups. As of the June 30, 2020 valuation date, membership in the OPEB Plan consisted of the following:
Active employees 333
Inactive employees or beneficiaries currently
receiving benefit payments 376
Inactive employees entitled to but not yet
receiving benefit payments 255
Total 964
Post-1/1/2019 Safety Plan Membership – As of the June 30, 2020 valuation date, membership in the Post-2018 Safety OPEB Plan consisted of the following:
Active employees 177
Inactive employees or beneficiaries currently
receiving benefit payments 14
Inactive employees entitled to but not yet
receiving benefit payments 2
Total 193
B. Net OPEB Liability
Actuarial Methods and Assumptions – The total OPEB liability for each Plan was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2022 using standard update procedures.
The Miscellaneous and Pre-1/1/2019 Safety Plan valuation used the following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:
Actuarial Assumptions
Valuation Date June 30, 2020
Measurement Date June 30, 2022
Actuarial Cost Method Entr y Age Normal Cost, level percent of pay Actuarial Assumptions:
Discount Rate 3.09% in 2021 and 4.69% in 2022
Inflation 2.75%
Payroll Growth 2.75%, plus merit increases
Investment Rate of Return 5.89%
Mortality Rate
CalPERS 2014 experience study for the CalPERS pension plan projected fully generational Scale MP-2014 modified to converge to ultimate rates in 2022
Healthcare Trend Rates
6.50% in 2021, 6.0% in 2022 and will decline to 4.5% in 2025 and later years
Dental Trend Rate 3.00%
104
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued)
The Post-1/1/2019 Safety Plan valuation used the following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:
Actuarial Assumptions
Valuation Date June 30, 2020
Measurement Date June 30, 2022
Actuarial Cost Method Entr y Age Normal Cost, level percent of pay Actuarial Assumptions:
Discount Rate 3.25% in 2021 and 4.89% in 2022
Inflation 2.75%
Pa
yroll Growth 2.75%, plus merit increases
Investment Rate of Return 6.22%
Mortality Rate
CalPERS 2014 experience study for the CalPERS pension plan projected fully generational Scale MP-2014 modified to converge to ultimate rates in 2022
Healthcare Trend Rates
6.50% in 2021, 6.0% in 2022 and will decline to 4.5% in 2025 and later years
Dental Trend Rate 3.00%
The long-term expected rate of return on OPEB pl an investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected futu re real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Miscellaneous and Pre-1/1/2019 Safety Plan
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Moderate Plus
Equity 50.0% 7.08%
Fixed Income 45.0% 3.84%
Cash 5.0% 2.40%
Total 100.0%
Post-1/1/2019 Safety Plan
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Balanced Plus
Equity 60.0% 7.08%
Fixed Income 35.0% 3.84%
Cash 5.0% 2.40%
Total 100.0%
105
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued)
Discount Rate – The discount rate used to measure the total OPEB liability was 4.69% for the Miscellaneous and Pre-1/1/2019 Safety Plan and 4.89% for the Post-1/1/2019 Safety Plan, based on a blended rate of asset expected rates of return using the average of three 20 year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer GO 20-Bond Municipal Bond Index, and Fidelity 20 Year GO Municipal Bond Index. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be availa ble to make all projected OPEB payments for current active and inactive employees and benefici aries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in Actuarial Assumptions – The assumptions for both Plans changed from the measurement date June 30, 2021 to the measurement date June 30, 2022 as follows:
The discount rate was updated to reflect the results of the crossover test – o Miscellaneous and Pre-1/1/2019 Safety Plan increased from 3.09% to 4.69% o Post-1/1/2019 Safety Plan increased from 3.25% to 4.89% Medical trend rates were decreased from 6.50% to an initial trend rate of 6. 0% trending down to
4.5%
C. Changes in Net OPEB Liability
The changes in the net OPEB liability for the Miscellaneous and Pre-1/1/2019 Safety Plan follows:
Total OPE B Plan Fiduciary Net OPE B
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2021 84,202,764$ 5,234,250$ 78,968,514$ Changes Recognized for the Measurement Period:
Service Cost 1,301,935 1,301,935
Interest on the total OPEB liability 2,579,151 2,579,151 Changes of benefit term s
Changes of assumptions (14,950,435) (14,950,435)
Differences between ex pected and actual ex perience (3,925,906) (3,925,906) Contributions from the em ployer 4,105,294 (4,105,294) Net investm ent incom e (590,348) 590,348
Adm inistrative ex penses (20,192) 20,192
Benefit payments (4,105,294) (4,105,294)
Net changes (19,100,549) (610,540) (18,490,009)
Balance at June 30, 2022 (Measurement Date) 65,102,215$ 4,623,710$ 60,478,505$ Increase (Decrease)
106
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued) The changes in the net OPEB liability for the Post-1/1/2019 Safety Plan is as follows:
Total OPE B Plan Fiduciary Net OPE B
Liab ility Net Position Liab ility/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2021 50,997,645$ 15,450,473$ 35,547,172$ Changes Recognized for the Measurement Period:
Service Cost 3,504,390 3,504,390
Interest on the total OPEB liability 1,762,214 1,762,214 Changes of benefit term s
Changes of assumptions (12,486,596) (12,486,596)
Differences between ex pected and actual ex perience (2,549,486) (2,549,486) Contributions from the em ployer 1,403,907 (1,403,907) Net investm ent incom e (1,906,123) 1,906,123
Adm inistrative ex penses (564,625) 564,625
Benefit payments (564,625) (60,557) (504,068)
Net changes (10,334,103) (1,127,398) (9,206,705)
Balance at June 30, 2022 (Measurement Date) 40,663,542$ 14,323,075$ 26,340,467$ Total for Both Plans 105,765,757$ 18,946,785$ 86,818,972$ Increase (Decrease)
Fiscal Year 2022 contributions for each Plan were comprised of the following:
Miscellaneous
and Pre-1/1/2019 Post-1/1/2019
Safety Plan Safet y Plan
Premium Payments 3,178,548 $ 488,723 $
Prefunding Contributions 839,282
Implicit Subsidies 926,746 75,902
Total Contributions 4,105,294$ 1,403,907$
107
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued)
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
Miscellaneous and Pre-1/1/2019 Safety Plan:
Net OPEB Liability/(Asset)
Current
Discount Rate -1% Discount Rate Discount Rate +1%
(3.69%) (4.69%) (5.69%)
69,510,073$ 60,478,505 $ 53,604,854 $
Post-1/1/2019 Safety Plan:
Net OPEB Liability/(Asset)
Current
Discount Rate -1% Discount Rate Discount Rate +1%
(3.89%) (4.89%) (5.89%)
29,290,652$ 26,340,467 $ 17,705,225 $
The following presents the net OPEB liability, as well as what the net OPEB liabi lity would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
Miscellaneous and Pre-1/1/2019 Safety Plan:
Net OPEB Liability/(Asset)
1% Decrease Current Rate 1% Increase
(5.00% HMO/5.00% PPO (6.00% HMO/ 6.00% PPO (7.00% HMO/7.00% PPO decreasing to decreasing to decreasing to
3.50% HMO/3.50% PPO) 4.50% HMO/ 4.50% PPO) 5.50% HMO/5.50% PPO) 52,926,975$ 60,478,505 $ 70,308,934 $
Post-1/1/2019 Safety Plan:
Net OPEB Liability/(Asset)
1% Decrease Current Rate 1% Increase
(5.00% HMO/5.00% PPO (6.00% HMO/ 6.00% PPO (7.00% HMO/7.00% PPO decreasing to decreasing to decreasing to
3.50% HMO/3.50% PPO) 4.50% HMO/ 4.50% PPO) 5.50% HMO/5.50% PPO) 16,401,282$ 26,340,467$ 31,252,346$ 108
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued)
E. OPEB Expense and Deferred Outflows/I nflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense for the Miscellaneous and Pre-1/1/2019 Safety Plan of $1,795,497 and recognized OPEB expense for the Post-1/1/2019 Safety Plan of $2,942,361.
At June 30, 2022, the City reported deferred inflows of resources related to OPEB from the following sources:
Miscellaneous and Pre-1/1/2019 Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between ex pected and
actuarial ex periences on liability 3,150,564$ (3,140,725) $ Net differences between projected and
actual earnings on plan investm ents 437,362
Changes of assumptions 2,428,055 (11,960,348)
Total 6,015,981 $ (15,101,073)$
Post-1/1/2019 Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between ex pected and
actuarial ex periences on liability. - $ (11,608,495)$ Net differences between projected and
actual earnings on plan investm ents 1,188,347 $
Changes of assum ptions 6,777,333 (12,824,922) Total 7,965,680 $ (24,433,417)$ Total - Both Plans 13,981,661 $ (39,534,490) $
109
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 10 – Post-Employment Health Care Benefits (Continued)
Amounts reported as deferred inflows of resources rela ted to OPEB will be rec ognized as part of OPEB expense as follows:
Miscellaneous and Pre-1/1/2019 Safety Plan:
Y ear Annual
Ended June 30 Am ortization
2023 (1,794,401) $
2024 (1,839,068)
2025 (1,855,965)
2026 (3,595,658)
Total (9,085,092)$
Post-1/1/2019 Safety Plan:
Y ear Annual
Ended June 30 Am ortization
2023 (1,399,928)$
2024 (1,343,682)
2025 (1,401,125)
2026 (1,006,762)
2027 (1,584,961)
Thereafter (9,731,279)
Total (16,467,737)$
Note 11 – Risk Management
The City manages risk by participat ing in the public entity risk pools described below and by retaining certain risks.
Public entity risk pools are formally organized, and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, those entities exercise full powers and authorities within the scope of the related Joint Powers Agreements, in cluding the preparation of annual budgets, accountability for all funds, the power to make and execute cont racts and the right to sue and be sued. Each risk pool is governed by a board consisting of represen tatives from member municipalities.
Each board controls the operations of the respective risk pool, incl uding selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these risk pools are not the City’s responsibility.
110
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 11 – Risk Management (Continued)
A. Risk Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA), which covers general liability claims. The City has a self-insured retention of $500,000 per claim. Once the self-insured retention is met, CJPRMA becomes responsible for payment of all claims up to the limit. During the fiscal year ended June 30, 2022, the City contributed $1,338,698 for coverage during the current year.
The City is a member of the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX), which covers workers’ compensation claims up to statutory limits. The City has a self-insured retention of up to $500,000 per clai m. During the fiscal year ended June 30, 2022, the City contributed $722,558, for current year coverage. In addition, th e LAWCX Board of Director s approved the $250,000 Pool Deficit Curing and Assessment Plan (Plan) on June 5, 2018. The Plan wa s implemented to collect additional contributions for prior program years from 1994 through 2004, and only impacted members who participated in those years. The assessments were billed on July 1, 2019. Members had two payment options: 1) pay the allocated assessment amount in te n (10) equal annual installments beginning July 1, 2019, or 2) receive a 10% discount off the allocated amount if the entire balance was paid in full by August 15, 2019. The City of Alameda’s allocated assessment was $452,731 and the City elected option one, with the first payment made in Fiscal Year 2020. The balance due as of June 30, 2022 is $316,912.
The following types of loss risks are covered by the ab ove authorities under the terms of their respective joint powers agreements and through commercial insurance policies as follows:
Type of Coverage Coverage Limits
Liability 40,000,000 $
Government Crimes 75,000 $
Auto - Physical damage 10,000,000$
Workers’ Compensation Statutory Limits
Property Coverage - All Risk of Direct Physical Loss or Damage excluding earthquake and flood 400,000,000$
Property Coverage - Boiler & Machinery 100,000,000$
Computer Software Self-Insured
Terrorism 12,500,000$
Vessel 1,000,000$
Information Security and Privacy, with Electronic Media Liability (Cyber) 10,000,000$
Underground Storage Tank 1,000,000$
B. Insurance Internal Service Funds
Generally accepted accounting principles require munici palities to record a liabili ty for uninsured claims and to reflect the current portion of this liability as an expense in the financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the self-insured retention, or uninsured portion of these claims.
111
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 11 – Risk Management (Continued)
The City’s liability for uninsured general liability clai ms, including claims incu rred but not reported, is reported in the City’s General Liability Insurance Internal Service Fund and the Alameda Municipal Power Enterprise Fund. The liability is based on an independent actuarial study prepared semi-annually and was computed using an 80% confidence level for the years ended June 30th as follows:
June 30, 2022 June 30, 2021
Beginning balance 5,627,453$ 6,566,513$
Increase (decrease) in estimated liability for prior year claims 4,474,024 (858,078) Claims paid in current year (603,613) (80,982)
Ending balance 9,497,864$ 5,627,453$
Current portion 3,282,537$ 2,094,094$
The change in the Workers’ Compensation claims liabil ity, including claims incurr ed but not reported, is reported in the City’s Workers’ Compensation In
ternal Service Fund and Alameda Municipal Power
Enterprise Fund. The liability is based on an independent actuarial study prepared semi-annually and was computed using an 80% confidence level as follows:
June 30, 2022 June 30, 2021
Beginning balance 15,547,656 $ 16,132,924 $
Increase (decrease) in estimated liability for prior year claims 94,112 1,880,384 Claims paid in current year (1,576,676) (2,465,652)
Ending balance 14,065,092 $ 15,547,656 $
Current portion 4,064,042 $ 4,573,560 $
The Alameda Municipal Power Fund (AMP) accounts fo r $1,120,077 of the total claims liability. The remainder of the liability is accounted for in the Ge neral Liability Insurance and Workers’ Compensation Insurance Internal Service Funds.
The City’s claims settlements have not exceeded insurance coverage for the past three fiscal years. 112
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 12 – Alameda Municipal Power Joint Ventures
A. General
AMP participates in joint ventures through Joint Powers Authorities (J PAs) established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these JPAs exercise full powers and authorities within the scope of the related Joint Powers Agreement, including the preparation of annual budgets, accountability for all funds, the power to make and execute cont racts and the right to sue and be sued. Obligations and liabilities of the JPAs are not those of AMP and the other participating entities unless assumed by them.
Each JPA is governed by a board consisting of repr esentatives from each memb er agency. Each board controls the operations of its respective JPA, including selection of management and approval of operating budgets, independent of any influence by member agencies beyond their representation on the board.
AMP is a member of NCPA, a joint powers agency which operates under a joint powers agreement among 15 public agencies (AMP, BART, Biggs, Gridley, Healds burg, Lompoc, Palo Alto, Ukiah, Lodi, Port of Oakland, Redding, Roseville, Shasta Lake, Sili con Valley Power, Truckee-Donner PUD). Turlock Irrigation District withdrew from NCPA on April 1, 2011. The City of Shasta Lake was added as a new m e m b e r i n 2 0 1 6 . T h e p u r p o s e o f N C P A i s t o u s e the combined strength of its members to purchase, generate, sell and interchange electric energy and capacity through the acquisition and use of electrical generation and transmission facilities, as well as to optimize the use of those facilities and the member’s position in the industry. Each agency member has agreed to fund a pro rata share of certain assessments by NCPA and certain members have entered into take -or-pay power supply contracts with NCPA. While NCPA is governed by its members, no ne of its obligations are those of its members unless expressly assumed by them.
Amounts paid by AMP, net of refunds, to NCPA during the fiscal years ending June 30, 2022 and 2021 for purchased power were $33,920,081 and $30,296,114, respectively. Ad ditionally, purchased power was reduced by a refund of $30,370 and $538,732 for power exchange distribution and budget settlement monies returned to the NCPA General Oper ating Reserve (GOR), for the fis cal years ended June 30, 2022 and 2021, respectively.
AMP receives no income from NCPA, and does not partic ipate in all of its projects. Further, NCPA does not measure or determine AMP’s equity in NCPA as a whole. NCPA reports only AMP’s share of its General Operating Reserve, comprised of cash and investments, and AMP’s share of those projects in which AMP is a participant. These amounts are reflected in the financial statements as Investment in Joint Venture - Share of Certain NCPA Projects and Reserve.
The changes in AMP’s share in NCPA projects and reserve are set forth below:
June 30, 2022
Beginning balance 11,408,433 $
Increase (decrease) in equity in NCPA projects (4,751,918) Ending balance 6,656,515 $
113
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 12 – Alameda Municipal Power Joint Ventures (Continued)
AMP’s interest in NCPA Projects and Reserve, as computed by NCPA, is set forth below:
General Operation Reserve 4,765$
Purchased Power & Transmission
Share of Scheduling Coordination Balancing Account 2,432,730 Share of Congestion Revenue Rights (CRR) 300,758
Share of ISO EAL Deposit 175,732
Associated Member Services 113,688
Market Purchase Program (MPP) Deposit 25,536
Subtotal 3,053,209
Alameda Municipal Power's share of NCPA
Power Projects:
Geothermal Projects/Power Line 2,686,209
Calaveras Hydroelectric Project No 312,712
Combustion Turbine Project No. 1 444,799
Combustion Turbine Project No. 2 159,586
Total 6,656,515$
The General Operating Reserve represents AMP’s portion of funds which resulte d from the settlement in prior years of issues with financial consequences an d reconciliations of several prior years’ budgets for programs. These funds are available on demand and earn interest.
Members of NCPA may participate in an individual project of NCPA without obligation for any other project. Member assessments collected for one project may not be used to finance other projects of NCPA without the member’s permission.
B. Projects in which Alameda Municipal Power is a Participant
Geothermal Projects - A power purchase agreement with NCPA obligates AMP for 18.31469 percent of the debt service and the operating costs for two geothermal steam powered generating plants, Plant Number 1 and Plant Number 2, located in the Geysers area in Northern California. In conjunction with these payments, AMP is entitled to receive 16.8825 percent of the output from these facilities. NCPA continues to pursue alternatives for improving and exte nding steam field reservoi r performance, including supplemental water reinjection, plant equipment mo difications, and changes in operating methodology.
NCPA has increased steam production in the vicinity of reinjection wells and ha s evaluated a number of alternatives to increase water reinjection at strategic locations.
Calaveras Hydroelectric Project - NCPA contracted to finance, manage, construct, and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District. In exchange, NCPA has the right to the electric output of the project for 50 years starting in February 1982 and also has an option to purchase power from the project in excess of the District’s requirements for the subsequent 50 years, subject to regulatory approval. Debt service pa yments to NCPA began in February 1990 when the project was declared substantially complete and powe r was delivered to the participants. AMP is entitled to receive 10.0 percent of output from facility. The debt obligation in creased to 11.582 percent as other members have opted out and a reallocation was done for the remaining members. 114
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 12 – Alameda Municipal Power Joint Ventures (Continued)
Combustion Turbine Project No. 1 - In October 1984, NCPA financed a five‐unit, l25‐megawatt combustion turbine project. The project, built in three member cities including Alameda, began full commercial operation in June 1986 and provides reserve and peaking power. During August 2010, phase two of the first amendment to the NCPA power purchase agreement finalized th e transfer of ownership of two NCPA electricity generating units to the City of Roseville due to a misalignment of ISO control areas. The transfer reduced the generation output of the project to 74 MW, and increased the entitlement share to 21.82 percent. Although AMP’s project percentage share increases, its resulting generating capacity entitlement remains constant at
16.05 MW.
Combustion Turbine Project No. 2 (Steam Injected Gas Turbine Project) - AMP is a participant in NCPA’s 49.8 megawatt Steam Injected Gas Turbine (STIG) project which was built under turnkey contract near the City of Lodi and declared substantially complete on April 23, 1996. In 2010, the NCPA issued 2010 Refunding Series A Bonds for $55,120,000 for the purpose of prov iding funds to refund all of the Refunded 1999 Bonds, to fund a deposit to the 2010 Series debt service reserve account and to pay cost of issuance of the 2010 Series A Bonds. Under the NCPA power purchase agreement, AMP is obligated to pay 19 percent of the debt service for the STIG project.
On December 20, 2019, NCPA issued Capital Facilitie s Revenue Bonds, 2019 Refunding Series A, in the amount of $20,450,000 with an average interest rate of 5.0% to refund $25,450,000 of outstanding Capital Facilities Revenue Bonds, 2010 Refunding Series A wi th an average interest rate of 5.1249%. The net proceeds were used to purchase US government se curities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the old bonds. As a result, the old bonds are considered defeased. Th e outstanding 2010 Series A Bonds were called for redemption on February 1, 2020.
On April 2, 2019, NCPA issued Hydroelectric Project Number One Revenue Bonds, 2019 Refunding Series A, in the amount of $39,250 ,000 with an average interest rate of 4.9126% to refund $52,845,000 of outstanding Hydroelectric Project Number One Revenue Bonds, 2010 Refunding Series A with an average interest rate of 4.9003%. The net proceeds were used to purchase US government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the old bonds. As a result, the old bonds are considered defeased.
AMP’s participation in procurement of natural gas for fuel for existing and new combustion turbine units was approved in 1993. Although there is currently no additional debt financ ing, AMP and NCPA have committed to long-term payments for gas transmission pipeline capacity, and entered a purchase contract for natural gas. AMP is obligated to pay 19 percent.
NCPA’s notes from direct placement contain provisions that in an event of defa ult, outstanding amounts become immediately due if (1) NCPA is unable to pay the principal or inte rest when due, (2) files bankruptcy or becomes insolvent, or (3) S&P issues a downgrade below “BBB‐“.
NCPA outstanding revenue bonds contai n provisions that in the event of a participant default, the project entitlement percentage of each non ‐defaulting project participant will incr ease on a prorated basis up to a maximum of 25% for Hydroelectric, Geothermal and Capital Facilitie s projects and 35% for the Lodi Energy Center project. AMP does not participate in the Lodi Energy Center project but would be obligated under the other projects.
115
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 12 – Alameda Municipal Power Joint Ventures (Continued)
As of June 30, 2022, AMP’s share of long-term de bt for the Geothermal, Hydroelectric and Capital Facilities Projects are set forth below:
Total AMP
Final Balance Balance Current AMP's Obligation
Maturity June 30, 2021 Additions Retirements June 30, 2022 Portion % $ Geothermal Project
2012A 7/1/2022 2,165,000$ -$ 1,440,000$ 725,000$ 1,440,000$ 16.8825% 122,398$ 2016A 7/1/2024 13,340,000 3,250,000 10,090,000 3,250,000 16.8825% 1,703,444 Total Geothermal Project 15,505,000 4,690,000 10,815,000 4,690,000 1,825,842 Hydroelectric Project
2008A 7/1/2032 81,475,000 81,475,000 10.0000% 2012A&B 7/1/2032 83,785,000 76,665,000 7,120,000 10.0000% 712,000 2018A&B (a) 7/1/2025 49,260,000 11,310,000 37,950,000 11,310,000 11.5821% 4,395,407 2019A 7/1/2023 30,480,000 8,185,000 22,295,000 8,185,000 10.0000% 2,229,500 2022A 7/1/2032 120,300,000 120,300,000 2,180,000 10.0000% 12,030,000 2022B 7/1/2025 12,010,000 12,010,000 11.5821% 1,391,010 Unamortized premium 10,822,613 25,095,000 7,100,000 28,817,613 10.0000% Total Hydroelectric Project 255,822,613 157,405,000 184,735,000 228,492,613 21,675,000 20,757,917 Capital Facilities (STIG)
2019A 7/1/2025 17,875,000 4,080,000 13,795,000 4,080,000 19.0000% 2,621,050 Unamortized premium 1,440,661 533,723 906,938 19.0000% Total Capital Facilities 19,315,661 4,613,723 14,701,938 4,080,000 2,621,050 Total Long-Term Debt 290,643,274$ 157,405,000$ 194,038,723$ 254,009,551$ 30,445,000$ -$ 25,204,809$ (a) AMP's share is 10%, the above reflects the other member opt out allocation %.
NCPA Capital Facilities bonds pay principal August 1.
NCPA Geothermal (2009A & 2016A) and Hydroelectric bonds pay principal July 1. Geothermal 2012A bonds pay principal both January 1 and July 1.
Defeased Debt - Various bond refundings were undertaken to defease debt an d realize future debt service savings. Debt was defeased by using the proceeds of th e refunding issues and other available monies to irrevocably place in trust cash and US Gov’t securities, which together with interest earned thereon, will be sufficient to pay both the interest and the appropriate maturity or redemption value of the refunded bonds as required.
Graeagle Hydroelectric Project - AMP’s participation in this small hydroelectric project was approved in 1993. Although this project does no t involve any financing, it does involve a long-term contractual commitment to purchase the power produced by the project. AMP receives 100 percent of the power output from this small 440 kilowatt hydroelectric project.
Western Area Power Administration - AMP has an allocation of power from the Federal Central Valley Project generating resources contracted through th e U.S. Department of En ergy’s Western Area Power Administration. This allocation has been temporarily assigned to NCPA for scheduling and delivery to AMP. AMP pays 1.08075 percent of the base resource co sts and receives that same amount of the base resource, power generated in one federal fiscal year.
116
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 12 – Alameda Municipal Power Joint Ventures (Continued) Other Power Purchase Agreements - AMP has also entered into a number of other power purchase agreements which are scheduled by or through NCPA.
Highwinds Project Power Purchase
In December 2004, AMP entered into a long-term power purchase agreement with PPM Energy, Inc. for power supplied by the Highwinds Project in Solano County, California. In 2008, Iberdrola Renewables succeeded PPM Energy as the seller c ounterparty for this powe r purchase agreement.
AMP receives 6.17 percent of the output of th e 162 megawatt project (nameplate rating) – 10 megawatts – as delivered through June 30, 2028.
Landfill Gas Projects Power Purchase
Since 2004, AMP has entered into four long-term power purchase agreements for power supplied by multiple generating facilities. These facilitie s utilize combustible gaseous emissions from landfills, located in or near the San Francisco Bay area to create power. AMP began receiving nearly
3.45 megawatts of base-load power from each of the first two facilities in 2004 and early 2006. An additional 5.2 megawatts of base-load output was added to AMP’s portfolio in April 2009 when the Ox Mountain facility commenced operation. An additional 1.9 megawatts of power was added to AMP’s portfolio as the Keller Canyon facility commenced base-load operation in August 2009. The final landfill facility, Butte, commenced operation at the end of 2012.
Silicon Valley Power Renewable Power Purchase - Since 2018, AMP has entered into a long‐term power purchase agreement with Silicon Valley Power for winter only, renewable pow er. Silicon Valley Power supplies AMP with 10MW of baseload renewable ener gy production from various renewable energy generators for the months of October through February.
California Electric Industry Restructuring - In September 1996, the California State legislature signed into law Assembly Bill 1890 (AB 1890) deregulating the electric power supply market and restructuring the electric power industry in California. While the ma jority of the legislation was directed at investor- owned utilities (IOUs), AMP and othe r California publicly owned util ities were greatly affected by the restructuring of markets and the ensu ing wild fluctuations in prices that resulted from a deficiency in generating capacity and an immature and flawed mark et structure. Because AMP has its own generating resources and is not heavily dependent on the wholesale market to purchase power, it was not significantly impacted by these price swings.
In April 2008, the California Inde pendent System Operator (CAISO) launched a new wholesale market structure in the state which is referred to as the Market Redesign and Technology Upgrade (MRTU). While MRTU features a day-ahead energy market with a nodal locational margin al price calculation, both load and resources are currently priced as aggregated pr icing. The MRTU initiative has introduced new risks and uncertainties for AMP because the Federal En ergy Regulatory Commission (FERC) continues requiring CAISO to implement a disaggregated market that will negatively affect AMP because it is in a transmission constrained location. To establish the extent of the risk and identify its impact to rates, AMP continues to monitor changes that CAISO makes to its market structure and operations. 117
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 12 – Alameda Municipal Power Joint Ventures (Continued)
NCPA plays an active role in protecting members’ contractual rights in Federal Energy Regulatory Commission (FERC), California Public Utilities Commis sion (CPUC), and other legislative/regulatory proceedings. Priorities related to industry restructuring include the preservation of local control authority for publicly owned utilities, assuring open and fair access to wholesale markets and the transmission grid, and maintaining members’ preference access to power from the Central Valley Project and Western Area Power Administration.
NCPA Financial Information - NCPA’s financial statements can be obtained from NCPA, 651 Commerce Drive, Roseville, California 95678.
Transmission Agency of Northern California (TANC)
AMP is a member of a joint powers agreement with fi fteen other entities in TANC. TANC’s purpose is to provide electrical transmission or other facilities for the use of its members. While governed by its members, none of TANC’s obligations are those of its members unless expressly assumed by them. The California- Oregon Transmission Project (COTP) is one of three high voltage transmission lines connecting Oregon and California. The 500 kV line is able to transm it 1,600 MW’s of electricity. The COTP participants include the Transmission Agency of Northern Califor nia, Western, PG&E, City of Redding, Carmichael Water District, and the San Juan Water District. Cu rrently, the COTP provides a transmission path for resources that is outside of the CAISO balancing authority. According to the 1985 Project Agreement with TANC for the development of the COTP and subsequent related project agreements, AMP is obligated to pay its share of the project’s costs, in cluding debt service and is entitled to the use of a percentage of the project’s transmission or transfer capacity.
AMP’s entitlement share on COTP is 1.2274 percent and AMP is obligated to pay 1.33 percent of the project’s operating costs.
AMP is obligated to pay 1.33 percent of TANC’s debt-service related to the California - Oregon Transmission Project (COTP). AMP’s share on the 20 09 Series A bonds is 1. 4496 percent. AMP is not obligated for any portion of the 2009 Series B bonds.
These obligations provide AMP with a COTP transfer capability of 17.05 MW. AMP is also obligated to pay for a portion of the debt associated with the S outh of Tesla transmission which is provided under an agreement between TANC and Pacific Gas & Electric Company.
In May 2009, TANC issued $67.0 million of tax-exempt 2009 Series A bonds and $61.8 million of taxable 2009 Series B bonds. The proceeds of the Series A bond s were used to retire a bank loan that refinanced $30.3 million of TANC’s tax-exempt commercial paper and also to refund $34.7 million of TANC’s 2003 Series C Auction Rate Securities. The proceeds of the Series B bonds were used to retire a bank loan that refinanced $56.3 million of TANC’s taxable commer cial paper. The 2009 re funding increased future aggregate debt service payments by $19.3 million, but resulted in a total economic gain of $6.5 million, the difference between present value of the old and new debt service payments. TANC has issued Revenue Bonds for $435,790,000 and eliminated its obligations for the Tax Exempt Commercial Paper notes. As of June 30, 2022 and 2021, AMP’s share of this debt is $0 and $0, respectively.
118
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 12 – Alameda Municipal Power Joint Ventures (Continued)
As of July 1, 2014, AMP and ot her NCPA members executed a multiparty Long-Term Layoff Agreement (the Agreement) that laid off their participating percentage share of the COTP to other TANC participants namely the Sacramento Municipal Utility District, th e Turlock Irrigation District, and Modesto Irrigation District, for twenty-five (25) years with the option to extend for an additional five years upon all parties approval. During the layoff period AMP and other NCPA members will not pa y any debt service or operating costs. During the term of the Agreement, A MP would relinquish its voting rights on all short- term decisions and actions at TANC related to the COTP.
In 2016, TANC issued $173.9 milli on of tax-exempt 2016 Series A Revenue Refunding Bonds. The proceeds of the bonds were used to refund the cer tain outstanding bonds issued by TANC to finance or refinance a portion of the costs of the California – Oregon Transmission Project, fund the costs of terminating in full certain interest rate swap agreemen ts relating to the variable rate Refunded Bonds, and fund a debt service reserve account for the 2016A bonds, and pay costs of the issuance of the 2016A Bonds.
The 2016 Series A “small member” debt portion is $2,517,565. AMP is obligated to pay $52,970, or
2.104% of that debt.
TANC Financial Information - TANC’s financial statements can be obtained from TANC, P.O. Box 15129, Sacramento, California 95851 or from their website at http://www.tanc.us/financials.html.
Note 13 – Leases
A. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2022 were:
Deferred
Leases Inflows of
Leases Receivable (Lessor) Receivable Resources
Governmental Activities
Facilities Rentals 67,941,421 $ 66,252,755 $
Communication Site Leases 2,250,737 2,164,206
Tidelands 829,273 804,883
Total 71,021,431 $ 69,221,844 $
Facilities Rentals – The City leases commercial space to thir d parties. During the year ended June 30, 2022, the City had 20 leases at Alam eda Point, a golf complex and a pres chool that were subject to being recorded as a lease receivable under generally accepted accounting principles. The original lease terms were from five years to sixty years. As of June 30, 2022, the 20 leases had 0.5 to 55 years remaining. Fifteen of the leases had optional extension periods, rang ing from five to twenty years. The City included extension periods that were reasonably certain to be exercised in the calculation of the lease receivable balances. The City recognized $6,187,966 in lease revenue and $1,577, 474 in interest revenue du ring the current fiscal year related to these leases. Also, the City has deferred inflows of res ources associated with these leases that will be recognized as revenue over the lease term.
119
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 13 – Leases (Continued)
Communication Site Leases – The City leases three locations to third parties for the provisions of mobile/wireless communication services. As of June 30 , 2022, the three leases had three to four years remaining. The City recognized $174,535 in lease re venue and $52,120 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.
Tidelands – The City leases four tideland properties. Leases are for state tidelands properties delegated to local agencies for management and control. As of June 30, 2022, the four leases had 6 to 7 years remaining.
The City recognized $117,992 in le ase revenue and $60,118 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of res ources associated with these leases that will be recognized as revenue over the lease term.
B. Lease Payable
In March 2016, AMP entered into a property lease agreement with th e 1835 Alameda Property, LLC for warehousing/distributing space. The lease terms for the agreement started on May 1, 2016 and will expire on April 30, 2031. The base rent is $24,700 per month. The monthly lease payments are increased annually in the amount of 3% every May 1. AMP recorded an initial lease liability and intangible right‐to-use asset in the amount of $3,142,914, respectively, as of July 1, 2021. As of June 30, 2022, the balance of the lease liability was $2,908,512 and the net value of the right‐to‐use asset was $2,823,296, including accumulated amortization of $319,618.
A summary of lease payable transactions for the fiscal year ended June 30, 2022, are as follows:
Balance
June 30, 2021 Balance Current
(as restated) Retirements June 30, 2022 Portion
Lease Liability
1835 Alameda Property, LLC 3,142,914$ (234,402) $ 2,908,512 $ 251,431 $
The future principal and interest lease payments as of June 30, 2022, are as follows:
Fiscal Y ear Principal Interest Total
2023 251,431$ 83,838$ 335,269$
2024 269,276 76,051 345,327 2025 287,969 67,718 355,687 2026 307,545 58,812 366,357 2027 328,042 49,306 377,348 2028-2031 1,464,249 89,249 1,553,498 Total 2,908,512$ 424,974$ 3,333,486$
120
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 14 – Commitments and Contingencies
A. City of Alameda
The City participates in several Fe deral and State grant programs. Thes e programs have been audited by the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act amendments of 1996 and applicable St ate requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still s ubject to further examinatio n by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
The City is 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.
Encumbrances
Encumbrances outstanding as of June 30, 2022 are listed below:
Am ount
Major Gov ernmental Funds:
General Fund 963,915 $
Base Reuse Special Revenue Fund 241,513
Total Major G overnm ental Funds 1, 205,428
Non-Major Governmental Funds:
Special Revenue Funds
Parking Meters 19,393
Commercial Revitalization 322,280
FISC Lease Revenue 37,361
Gas Tax 924
Housing 11,569
Mai ntenance Assessm ent Di stri ct 14,378
Capital Im provem ent Projects Fund 58,737
Alameda Point 1,065,990
Total Non-Major G overnm ental Funds 1, 530,632
Total Gov ernmental Fund E ncumbrances 2,736,060$
121
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 14 – Commitments and Contingencies (Continued)
B. Alameda Municipal Power Fund
i) Take or Pay Agreements
Under the terms of its NCPA and TANC joint venture agreements, AMP is liable for a portion of the bonded indebtedness issued by these agenci
es under take-or-pay or similar agre ements, as discussed in Note 12.
AMP’s estimated share of such debt outstanding at June 30, 20 22 was $25,204,809. Under certain circumstances, AMP may also be responsible for a po rtion of the costs of operating these entities. Under certain circumstances, such as default or bankruptcy of other participants, AMP may also be liable to pay a portion of the debt of these joint ventures on beha lf of the other participants. These “step up” provisions are generally capped at a 25 percent increase.
Take-or-Pay commitments expire upon final maturity of outstanding debt for each project. Final fiscal year debt expirations are as follows:
Entitlement
Project Debt Ex piration Share % Debt service %
NCPA - Geothermal Project (NGP) July-2024 16.88250% 18.88250% NCPA - Calaveras Hydroelectric Project (NCHP) July-2032 10.00000% 10.00246% NCPA - Capital Facilities Project (NCFP) July-2026 19.00000% 17.82792% As discussed in Note 12, as of July 1, 2014, AMP and other NCPA members ex ecuted a multiparty Long- Term Layoff Agreement that laid off their participating percentage sh are of the COTP to other TANC participants.
A summary of AMP’s “Take or Pay” contracts and related projects and its contingent liability for the debt service including principal and interest payments at June 30, 2022 is as follows:
Fiscal Year NGP NCHP NCFP Total
2023 680,364$ 2,489,471$ 829,350$ 3,999,185$ 2024 567,252 3,269,063 876,850 4,713,165
2025 578,226 2,972,092 914,850 4,465,168
2026 1,332,261 1,332,261
2027 1,638,369 1,638,369
2028-2032 8,344,661 8,344,661
2033 712,000 712,000
Total 1,825,842$ 20,757,917$ 2,621,050$ 25,204,809$ 122
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 15 – Redevelopment Agency Dissolution and Successor Agency Activities
A. Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new re development activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligati ons, entering into or modifying ag reements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except action required by law or to carry out existing enforceable obligations, as defined in ABx1
26. In addition, ABx1 26 and AB1484 direct the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between the agency and any public agency occurred on or after Januar y 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the redevelopment agency.
Effective January 31, 2012 the Community Improvement Commission (CIC) was dissolved. Certain assets of the CIC Low and Moderate Income Housing Fund were distributed to a Housing Successor; and all remaining CIC assets and liabilities were distributed to a Successor Agency.
The City elected to become the Successor Agency an d on February 1, 2012 the CIC’s remaining assets were distributed to and liabilities were assumed by the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee th e activities of the Successor Agency and one was established. The activities of the Successor Agency were subject to review and approval of the Oversight Board, which was comprised of seven members, including the City Manager and one former CIC employee appointed by the Mayor. On July 1, 2018, the duties of the Alameda Oversight Board transferred to a new Alameda County-wide Consolidated Oversight Board, which will now be responsible for overseeing the wind down of affairs of all Successor Agencies in Alameda County, including the Successor Agency to the CIC.
The activities of the Successor Agen cy are reported in the Successor Agency Private-Purpose Trust Fund as the activities are under control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former CIC.
Cash and investments of the Successo r Agency as of June 30, 2022 are discussed in Note 2. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2022.
123
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 15 – Redevelopment Agency Dissolution and Successor Agency Activities (Continued)
B. Long-Term Debt
The Successor Agency assumed long-term debt fro m the Redevelopment Agency consisted of the following:
Current Year Transaction and Balances
Balance Balance Due within
June 30, 2021 Retirements June 30, 2022 one year
2014 A SA CIC Tax Exempt Bonds 23,495,000$ -$ 23,495,000$ -$ Plus: Unamortized bond premium 2,318,159 (190,227) 2,127,932 2014 B SA CIC Taxable Bonds 12,720,000 (2,145,000) 10,575,000 2,225,000 2017 SA CIC Taxable Bonds 12,380,000 (260,000) 12,120,000 290,000 Less: Unamortized bond discount (150,430) 7,451 (142,979) Total Bonds 50,762,729 $ (2,587,776) $ 48,174,953 $ 2,515,000 $
2014 Community Improvement Commission Tax Allocation Bonds
On December 23, 2014, the Successor Agency issu ed Series 2014 A Subo rdinated Tax Allocation Refunding Bonds in the principal amount of $2 3,495,000 and Series 2014 B Subordinated Taxable Allocation Refunding Bonds in the principal amount of $25,080,000, for a total original principal amount of $48,575,000, for the fo rmer agency’s merged improvement areas. Proceeds from the sale of the Bonds were used to (a) refund certain outstanding bonds issued by th e former Community Improvement Commission of the City of Alameda (Former Agency), the proceeds of which were used to finance redevelopment and low and moderate income housi ng activities within and for the benefit of the redevelopment project areas of the Former Agency, (b) purchase a municipal bond insurance policy in lieu of funding a debt service reserve account for the Bonds, and (c) provide for the costs of issuing the bonds.
The Series 2014 A and B Bonds are secured by a first lien on tax revenues. Principal and interest are payable annually on September 1 through 2034. The interest rates on the bonds vary from 0.553% to 5.0% The bonds were issued at a $3,565,319 premium. The outstanding balance as of June 30, 2022 was $36,197,932, including the premium.
2017 Community Improvement Commission Tax Allocation Refunding Bonds
On May 11, 2017, the Successor Agency issued Seri es 2017 Taxable Allocation Refunding Bonds in the principal amount of $12,850,000 fo r the former agency’s merged impr ovement areas. Proceeds from the sale of the Bonds were used to (a) refund and de fease certain outstanding b onds issued by the former Community Improvement Commission of the City of Alameda (Former Agency), the proceeds of which were used to finance redevelopment and low and mo derate income housing activities within and for the benefit of the redevelopment project areas of the Fo rmer Agency, (b) purchase a debt service reserve insurance policy in lieu of funding a debt service reserve fund for the Bonds, and (c) pay the costs of issuing the Bonds. The Series 2017 Bonds are secured by a lien on tax revenues. Principal and interest are payable semiannually on March 1 and September 1 through 2042 . The interest rates on the bonds vary from 1.5% to 4.2%. The bonds were issued at a $180,706 discou nt. The outstanding balance as of June 30, 2022 was $11,977,021, net of the discount.
124
City of Alameda
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
Note 15 – Redevelopment Agency Dissolution and Successor Agency Activities (Continued) With the dissolution of the CIC disc ussed above, tax increment is no lo nger distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. In addition, under the provisions of th e laws dissolving the CIC, the Successor Agency only receives the funds necessary to fulfill its approved obligations. Total property taxes received by the Successor Agency in the current fiscal year were $8,395,193 which represented coverage of 1.89 times the $4,487,211 of debt service.
The outstanding balance of the defeased debt as of June 30, 2022 was $10,630,000.
Debt Service Requirements
Annual debt service requirements are shown below:
For the Year Ending
June 30, Principal Interest
2023 2,515,000 $ 2,003,025 $
2024 2,630,000 1,915,187
2025 2,760,000 1,817,802
2026 2,910,000 1,710,444
2027 3,060,000 1,587,809
2028-2032 18,160,000 5,533,297
2033-2037 12,355,000 1,352,235
2038-2042 1,800,000 206,763
Subtotal 46,190,000 16,126,562 $
Plus unamortized bond premium 2,127,932
Less unamortized bond discount (142,979)
Total 48,174,953$
C. State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obliga tion Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as th e State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time.
Note 16 – Subsequent Event
In October 2022, the City Council ap proved a motion to construct a new aquatic center at Jean Sweeney Park. The project will be funded by using up to 50% of the cost from General Fund Reserves and identifying financing options to cover the balance of project cost s. Similar projects in the San Francisco Bay Area have been quoted at between $25.0 and $33.0 million.
125
City of Alameda, California
People and Places in the City
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
CALPERS AGENT-MULTIPLE EMPLOYER MISCELLANEOUS PLAN
Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Years*
Fiscal Year Ended June 30, 2022 2021 2020 2019 2018 2017 2016 2015 Measurement Period 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Total Pension Liability
Service Cost 5,631,496$ 5,012,281 $ 4,969,281$ 4,744,578$ 4,641,162$ 3,760,714$ 3,766,998$ 3,808,115$ Interest on the total pension liability 21,964,673 21,185,528 20,619,356 19,883,808 19, 356,195 18,828,640 18,158,298 17,592,705 Changes of assumptions (1,729,391) 15,192,135 (4,194,628) Difference between expected and actual experience 1,175,561 (1,654,709) 895,766 (334,914) 271,870 163,395 (1,883,727) Benefit payments, including refunds of employee contributions (17,080,553) (16,491,161) (15,582,694) (15,115,521) (14,095,607) (13,711,596) (12,934,211) (12,081,658) Net change in total pension liability 11,691,177 8,051,939 10,901,709 7,448,560 25,365,755 9,041,153 2,912,730 9,319,162 Total pension liability - beginning 311,747,182 303,695,243 292,793,534 285,344,974 259,979,219 250,938,066 248,025,336 238,706,174 Total pension liability - ending (a) 323,438,359 311,747,182 303,695,243 292,793,534 285,344,974 259,979,219 250,938,066 248,025,336 Plan fiduciary net position
Contributions - employer 9,307,781 8,386,195 6,979,527 5,710,346 5,273,062 4,525,123 3,713,053 3,088,658 Contributions - employees 2,801,576 2,721,137 2,289,733 2,435,141 2,306,147 2,159,065 2,094,771 2,206,769 Net investment income 51,716,414 11,067,395 14,100,692 17,324,360 21,234,381 1,095,194 4,478,705 30,399,751 Benefit payments, including refunds of employee contributions (17,080,553) (16,491,161) (15,582,694) (15,115,521) (14,095,607) (13,711,596) (12,934,211) (12,081,658) Plan to Plan Resource Movement (497) (2,433,966)
Administrative expense (226,211) (311,667) (152,318) (317,906) (279,892) (119,223) (222,927) Other Miscellaneous Income/(Expense) 497 (603,709)
Net change in fiduciary net position 46,519,007 5,371,899 7,635,437 9,432,214 14,438 ,091 (6,051,437) (5,304,575) 23,613,520 Plan fiduciary net position - beginning 226,451,119 221,079,220 213,443,783 204,011,569 189,573,478 195,624,915 200,929,490 177,315,970 Plan fiduciary net position - ending (b) 272,970,126 226,451,119 221,079,220 213,443,783 204,011,569 189,573,478 195,624,915 200,929,490 Net pension liability - ending (a)-(b) 50,468,233$ 85,296,063$ 82,616,023$ 79,349,751$ 81,333,405$ 70,405,741$ 55,313,151$ 47,095,846$ Plan fiduciary net position as a percentage of the total pension liability 84.40% 72.64% 72.80% 72.90% 71.50% 72.92% 77.96% 81.01% Covered payroll 33,404,342$ 32,362,652$ 29,336,402$ 28,387,102$ 27,176,983$ 26,437,131$ 25,612,255$ 24,479,720$ Net pension liability as percentage of covered payroll 151.08% 263.56% 281.62% 279.53% 299.27% 266.31% 215.96% 192.39% Measurement date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 *Fiscal Year 2015 was the first year of implementation
127
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
CALPERS AGENT-MULTIPLE EMPLOYER SAFETY PLAN
Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Years*
Fiscal Year Ended June 30, 2022 2021 2020 2019 2018 2017 2016 2015 Measurement Period 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Total Pension Liability
Service Cost 7,321,091$ 7,366,903 $ 7,580,036 $ 7,333,306 $ 7,034,547 $ 6,047,019 $ 6,121,040 $ 6,141,031 $ Interest on the total pension liability 34,630,972 33,476,100 32,199,260 30,481,692 29,313,329 28,386,449 27,178,001 25,739,517 Changes of assumptions (1,858,258) 24,387,287 (6,618,407) Difference between expected and actual experience 2,591,031 3,083,875 9,115,231 3,224,389 248,108 2,256,432 5,283,538 Benefit payments, including refunds of employee contributions (28,704,897) (25,813,263) (23,984,124) (22,079,185) (20,966,135) (20,335,284) (19,108,175) (17,814,345) Net change in total pension liability 15,838,197 18,113,615 24,910,403 17,101,944 40,017,136 16,354,616 12,855,997 14,066,203 Total pension liability - beginning 492,450,123 474,336,508 449,426,105 432,324,161 392,307,025 375,952,409 363,096,412 349,030,209 Total pension liability - ending (a) 508,288,320 492,450,123 474,336,508 449,426,105 432,324,161 392,307,025 375,952,409 363,096,412 Plan fiduciary net position
Contributions - employer 20,116,075 13,496,482 18,190,209 22,171,954 10,537,863 9,569,765 9,071,332 8,190,138 Contributions - employees 3,533,418 3,589,299 3,762,229 3,780,834 3,678,165 3,329,883 2,920,035 3,115,074 Net investment income 67,959,767 14,693,325 18,360,463 21,815,840 25,858,078 1,191,816 5,399,063 36,726,928 Benefit payments, including refunds of employee contributions (28,704,897) (25,813,263) (23,984,124) (22,079,185) (20,966,135) (20,335,284) (19,108,175) (17,814,345) Plan to Plan Resource Movement (651)
Administrative expense (300,051) (415,623) (198,878) (396,033) (347,534) (147,352) (272,101) Other Miscellaneous Income /(Expense) 651 (752,074)
Net change in plan fiduciary net position 62,604,312 5,550,220 16,130,550 24,540,685 18,760,437 (6,391,172) (1,989,846) 30,217,795 Plan fiduciary net position - beginning 300,369,779 294,819,559 278,689,009 254,148,324 235,387,887 241,779,059 243,768,905 213,551,110 Plan fiduciary net position - ending (b) 362,974,091 300,369,779 294,819,559 278,689,009 254,148,324 235,387,887 241,779,059 243,768,905 Net pension liability - ending (a)-(b) 145,314,229$ 192,080,344$ 179,516,949$ 170,737,096$ 178,175,837$ 156,919,138$ 134,173,350$ 119,327,507$ Plan fiduciary net position as a percentage of the total pension liability 71.41% 60.99% 62.15% 62.01% 58.79% 60.00% 64.31% 67.14% Covered payroll 25,441,316$ 24,808,549$ 25 ,333,206$ 25,275,362$ 24,303,190$ 25,965,660$ 25,200,216$ 23,779,986$ Net pension liability as percentage of covered payroll 571.17% 774.25% 708.62% 675.51% 733.14% 604.33% 532.43% 501.80% Measurement date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 *Fiscal Year 2015 was the first year of implementation
128
City of Alameda, California
People and Places in the City
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
CALPERS AGENT MULTIPLE EMPLOYER PLAN - MISCELLANEOUS
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
Fiscal Year Ended June 30, 2022 2021 2020
Actuarially determined contribution 9,905,744$ 9,318,477$ 8,387,122$ Contributions in relation to the actuarially
determined contributions 9,905,744 9,318,477 8,387,122 Contribution deficiency (excess) -$ -$ -$
Covered payroll 33,404,342$ 33,404,342$ 32,362,652$ Contributions as a percentage of
covered payroll 29.65% 27.90% 25.92%
Notes to Schedule
Valuation date: 6/30/2019 6/30/2018 6/30/2017
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Entry Age Entry Age
Amortization method Level percent of payroll Level percent of payroll Level percent of payroll Asset valuation method Fair Value of Assets Fair Value of Assets Fair Value of Assets Inflation 2.50% 2.50% 2.625%
Varies by Entry Age and Service Varies by Entry Age and Service Varies by Entry Age and Service Investment rate of return
7.00% net of pension plan 7.00% net of pension plan 7.25% net of pension plan investment expense, including investment expense, including investment expense, including inflation. inflation. inflation.
Retirement age 50-67 years 50-67 years 50-67 years
Mortality The probabilities of mortality are The probabilities of mortality are Retirement and post-retirement based on 2017 CalPERS based on 2017 CalPER S mortality rates include 15 years experience study for the period experience st udy for the period of projected mortality from 1997 to 2015. Pre-retirement from 1997 to 2015. Pre-retirement improvement using 90% of Scale and Post-retirement mortality and Post-retirement mortality MP-2016 published by rates include 15 years of projected rates include 15 years of projected the Society of Actuaries. mortality improvement using 90% mortality improvement using 90% of Scale MP-2016 published by of Scale MP-2016 published by the Society of Actuaries. the Society of Actuaries.
*Fiscal Year 2015 was the first year of implementation
Salary increase
130
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
2019 2018 2017 2016 2015
6,968,668$ 5,710,194$ 5,265,
991$ 4,527,506$ 3,713,053$
6,968,668 5,710,194 5,265,991 4,527,506 3,713,053 -$ -$ -$ -$ -$
29,336,402$ 28,387,102$ 27,176,983$ 26,437,131$ 25,612,255$
23.75% 20.12% 19.38% 17.13% 14.50%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Ag e Normal Cost Method Entry Age Normal Cost Method Entry Age Norma l Cost Method Level percent of payroll Level percent of payroll Level percent of payroll Level per cent of payroll Level percent of payroll Fair Value of Assets Fair Value of Assets Fair Value of Assets Actuarial value of assets Actuarial value of assets
2.75% 2.75% 2.75% 2.75% 2.75%
3.3% to 14.2% depending on Age, 3.3% to 14. 2% depending on Age, 3.3% to 14.2% depending on Age, 3.3% to 14.2% depending on Age, 3.3 % to 14.2% depending on Age, Service, and type of employment Service, and type of employment Service, and type of em ployment Service, and ty pe of employment Ser vice, and type of employment
7.375% net of administrative 7.375% net of administrative 7.5% net of administrative 7.5% net of administrative 7.5% net of administrative expenses, includes inflation expenses, includes inflation expenses, includes inflation expenses, includes inflation expenses, includes inflation 50-67 years 50-67 years 50-67 years 50-67 years 50-67 years The probabilities of retirement and The probabilities of retireme nt and The probabilities of retir ement and The probabilities of retirement and The probabilities of retirement and mortality are based on 2014 mortality are based on 2010 mortality are based on 2010 mortality are based on 2010 mortality are based on 2010 CalPERS experience study for the CalPERS experience study for the C alPERS experience study for the CalPERS experience study for th e CalPERS experience study for the period from 1997 to 2011. Pre- pe riod from 1997 to 2007. Pre- period from 1997 to 2007. Pre- period from 1997 to 2007. Pre- period from 1997 to 2007. Pre- retirement mortality rates include 20 retirement mortality rates include 5 retirement mortality rat es include 5 retirement mortali ty rates include 5 retirement mortality rates include 5 years of projected mortality years of projected mortality years of projected mortality years of projected mortality years of projected mortality improvement using Scale BB improvement using Scale AA improvement using Scale AA improvement using Scale AA improvement using Scale AA published by the Society of published by the Society of published by the Society of published by the Society of published by the Society of Actuaries Actuaries Actuaries Actuaries Actuaries
131
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
CALPERS AGENT MULTIPLE EMPLOYER PLAN - SAFETY
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
Fiscal Year Ended June 30, 2022 2021 2020
Actuarially determined contribution 16,533,892$ 15,122,079$ 13,622,920$ Contributions in relation to the actuarially
determined contributions 16,533,892 15,122,079 13,622,920 Contribution deficiency (excess) -$ -$ -$
Covered payroll 25,441,316$ 25,441,316$ 24,808,549$
Contributions as a percentage of covered payroll 64.99% 59.44% 54.91% Notes to Schedule
Valuation date: 6/30/2019 6/30/2018 6/30/2017
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Entry Age Entry Age
Amortization method Level percent of payroll Level percent of payroll Level percent of payroll Asset valuation method Fair Value of Assets Fair Value of Assets Fair Value of Assets Inflation 2.500% 2.500% 2.625%
Varies by Entry Age and Service Varies by Entry Age and Service Varies by Entry Age and Service Investment rate of return
7.00% net of pension plan 7.00% net of pension plan 7.25% net of pension plan investment expense, including investment expense, including investment expense, including inflation inflation inflation
Retirement age
The probabilities of Retirement are based
on the CalPERS Experience Study
The probabilities of Retirement are based
on the CalPERS Experience Study
The probabilities of Retirement are based
on the CalPERS Experience Study
Mortality The probabilities of mortality are The probabilities of mortality are Retirement and post-retirement based on 2017 CalPERS based on 2017 CalPERS mortality rates include 15 years experience study for the period experience study for the period of projected mortality from 1997 to 2015. Pre-retirement from 1997 to 2015. Pre-retirement improvement using 90% of Scale and Post-retirement mortality and Post-retirement mortality MP-2016 published by rates include 15 years of projected rates include 15 years of projected the Society of Actuaries mortality improvement using 90% mortality improvement using 90% of Scale MP-2016 published by of Scale MP-2016 published by the Society of Actuaries. the Society of Actuaries.
*Fiscal Year 2015 was the first year of implementation
Salary increase
132
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
2019 2018 2017 2016 2
015
18,185,938$ 11,470,898$ 10,530,166$ 9,572,502$ 9,071,332$ 18,185,938 11,470,898 10,530,166 9,572,502 9,071,332 -$ -$ -$ -$ -$
25,333,206$ 25,275,362$ 24,303,190$ 25,965,660$ 25,200,216$
71.79% 45.38% 43.33% 36.87% 36.00%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Level percent of payroll Level percent of payroll Level percent of payroll Level percent of payroll Level percent of payroll Fair Value of Assets Fair Value of Assets Fair Value of Assets Actuarial value of assets Actuarial value of assets
2.75% 2.75% 2.75% 2.75% 2.75%
3.3% to 14.2% depending on Age, 3.3% to 14.2% depending on Age, 3.3% to 14.2% depending on Age, 3.3% to 14.2% depending on Age, 3.3% to 14.2% depending on Age, Service, and type of employment Service, and type of employment Service, and type of employment Service, and type of employment Service, and type of employment
7.375% net of administrative 7.5% net of administrative 7.5% net of administrative 7.5% net of administrative 7.5% net of administrative expenses, includes inflation expenses, includes inflation expenses, includes inflation expenses, includes inflation expenses, includes inflation 50-57 years 50-57 years 50-57 years 50-57 years 50-57 years The probabilities of retirement and The probabilities of retirement and The probabilities of retirement and The probabilities of retirement and The probabilities of retirement and mortality are based on 2014 mortality are based on 2010 mortality are based on 2010 mortality are based on 2010 mortality are based on 2010 CalPERS experience study for the CalPERS experience study for the CalPERS experience study for the CalPERS experience study for the CalPERS experience study for the period from 1997 to 2011. Pre- period from 1997 to 2007. Pre- period from 1997 to 2007. Pre- period from 1997 to 2007. Pre- period from 1997 to 2007. Pre- retirement mortality rates include 20 retirement mortality rates include 5 retirement mortality rates include 5 retirement mortali ty rates include 5 retirement mortality rates include 5 years of projected mortality years of projected mortality years of projected mortality years of projected mortality years of projected mortality improvement using Scale BB improvement using Scale AA improvement using Scale AA improvement using Scale AA improvement using Scale AA published by the Society of published by the Society of published by the Society of published by the Society of published by the Society of Actuaries Actuaries Actuaries Actuaries Actuaries
133
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
The 1079 & 1082 Pension Plans
Schedule of Changes in Total Pension Liability and Related Ratios Last Ten Years*
Fiscal Year Ended June 30, 2022 2021 2020 2019 2018 2017 Total Pension Liability
Interest on the total pension liability 124,482$ 129,408 $ 180,745 $ 258,849 $ 288,416 $ 349,073 $ Difference between expected and actual experience (750,456) 695,141 (983,223) (46,556) 39,819 Changes of assumptions (547,672) 639,890 248,890 131,138 Benefit payments (785,623) (851,675) (919,573) (1,209,440) (1,448,612) (1,448,612) Net change in total pension liability (1,959,269) 612,764 (489,938) (1,802,676) (1,206,752) (1,059,720) Total pension liability - beginning 6,320,535 5,707,771 6,197,709 8, 000,385 9,207,137 10,266,857 Total pension liability - ending 4,361,266$ 6,320,535$ 5,707,771$ 6,197,709$ 8,000,385$ 9,207,137$ Measurement date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Ju ne 30, 2018 J une 30, 2017 Note to Schedule:
No assets are accumulated in a trust that meets all of the following criteria of GASB Statement No. 73, paragraph 4:
• Contributions from the employer and any nonemployer contributing entities, and earnings thereon, must be irrevocable.
• Plan assets must be dedicated to providing pensions to Plan members in accordance with the benefit terms.
• Plan assets must be legally protected from the creditors of the employer, nonemployer contributing entities, the Plan administrator, and Plan members.
The plan is a closed plan and there are no active employees participating in the Plan. *Fiscal Year 2017 was the first year of implementation
134
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Agent Multiple-Employer Miscellaneous and Pre-1/1/2019 Safety Plan Defined Benefit OPEB Plans Last 10 fiscal years*
Measurement Date 6/30/2022 6 /30/21 6/30/20 6/30/19 6/30/18 Total OPEB Liability
Service Cost 1,301,935 $ 644,219 $ 555,320 $ 4,213,531 $ 4,193,392 $ Interest 2,579,151 2,704,008 2,909,360 4,658,311 4,316,741 Differences between expected and actual experience (3, 925,906) 5,250,940 (353,154) (2,503,398) Changes of assumptions (14,950,435) 4, 046,759 4,987,068 (1,184,636) (6,336,836) Benefit payments (4,105,294) (4,132, 821) (3,917,329) (3,825,122) (3,715,083) Plan to Plan Transfer (1) (44,592,304)
Net change in total OPEB liability (19,100,549) 8,513,105 4,181 ,265 (43,233,618) (1,541,786) Total OPEB liability - beginning 84,202,764 75,689,659 71,508,394 114,742,012 116,283,798 Total OPEB liability - ending (a) 65,102,215$ 84,202,764 $ 75,689,659 $ 71,508,394 $ 114,742,012 $ Plan fiduciary net position
Contributions - employe
r 4,105,294$ 4,132,821$ 3,917,329$ 4,325,122$ 7,546,879$ Net investment income (590,348) 872,495 178,799 268,507 598,104 Administrative expense (20,192) (20,219) (18,852) (17,057) (33,220) Benefit payments (4,105,294) (4,132, 821) (3,917,329) (3,825,122) (3,715,083) Other 703
Plan to Plan Transfer (1) (8,314,828)
Net change in plan fiduciary net position (610,540) 852,276 159,947 (7,563,378) 4,397,383 Plan fiduciary net position - beginning 5,234,250 4,381,974 4,222,027 11,785,405 7,388,022 Plan fiduciary net position - ending (b) 4,623,710$ 5,234,250 $ 4,381,974 $ 4,222,027 $ 11,785,405 $ Net OPEB liability - ending (a)-(b) 60,478,505 $ 78,968,514 $ 71,307,685 $ 67,286,367 $ 102,956,607 $ Plan fiduciary net position as a percentage
of the total OPEB liability 7.10% 6.22% 5.79% 5.90% 10.27% Covered-employee payroll 34,169,745$ 33,255,226$ 36,886,764$ 32,365,183$ 61,252,086$ Net OPEB liability as a percentage
of covered-employee payroll 176.99% 237.46% 193.32% 207.90% 168.09% * Fiscal Year 2018 was the first year of implementation. 135
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
SCHEDULE OF CONTRIBUTIONS
Miscellaneous and Pre-1/1/2019 Safety Plan
Agent Multiple-Employer Defined Benefit OPEB Plan
Last 10 fiscal years*
For the Year Ended June 30 2022 2021 2020 2019 2018
Contractually required contributions 4,105,294$ 4,132,821$ 3,917,329$ 3,825,122$ 3,715,083$ Contributions in relation to the contractually
required contributions (4,105,294) (4 ,132,821) (3,917,329) (3,825,122) (3,715,083) Contribution deficiency (excess) -$ -$ -$ -$ -$
Covered-em
ployee payroll 34,169,745$ 33,255,226$ 36,886,764$ 32,365,183$ 61,252,086$ Contributions as a percentage of covered-employee payroll 12.01% 12.43% 10.62% 11.82% 6.07% * Fi
scal Year 2018 was the first year of implementation.
136
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Post-1/1/2019 Safety Plan
Agent Multiple-Employer Defined Benefit OP EB P lan
Last 10 fiscal years*
M easurement Date 6/30/22 6/30/21 6/30/20 6/30/19
Total OPEB Liability
Service Cost 3,504,390$
3,959,737$
3,090,491$ -$
In
terest 1,762,214 2,089,924 2,027,284
Changes in benefit term s 143,210
Differences between expected and actual experience (2,549,486) (9,353,708) (371,750) (1,796,845) Changes of assumptions (12,486,596) (1,654,652) 7,779,856 1,413,660 Benefit paym ents (564,625) (619,278) (231,604) (70,984) Plan to Plan Transfer (1) 44,592,304
Net change in total OPE B liab ility (10,334,103) (5,577,977) 12,294,277 44,281,345 Total OPE B liab ility - b eginning 50,997,645 56,575,622 44,281,345 Total OPE B liab ility - end ing (a) 40,663,542$
50,997,645$
56,575,622$
44,281,345$
Plan fiduciary net position
Contributions - employer 1,403,907
$
2,470,986$
1,109,102$
963,680$
Net investment income (1,906,123) 2,710,975 348,653 568,341 Administrative expense (60,557) (52,928) (41,310) (19,988) Benefit paym ents (564,625) (619,278) (231,604) (70,984) Plan to Plan Transfer (1) 8,314,828
Net change in plan fiduciary net position (1,127,398) 4,509,755 1,184,841 9,755,877 Plan fiduciary net position - beginning 15,450,473 10,940,718 9,755,877 Plan fiduciary net position - ending (b) 14,323,075$
15,450,473$
10,940,718$
9,755,877$
Net OPEB liability - ending (a)-(b) 26,340,467$
35,547,172$
45,634,904$
34,525,468$
Plan fiduciary net pos ition as a percentage of the total OPEB liability 35.22% 30.30% 19.34% 22.03% Covered-em ployee payroll 31,615,830$
30,769,664$
30,782,274$
29,946,145$
Net OPEB liability as a percentage of covered-employee payroll 83.31% 115.53% 148.25% 115.29% * Plan was established in Fiscal Y ear 2019.
137
City of Alameda
Required Supplementary Information
For the Year Ended June 30, 2022
SCHEDULE OF CONTRIBUTIONS
Post-1/1/2019 Safety Plan
Last 10 fiscal years*
For the Year Ended June 30 2022 2021 2020 2019
Contractually required contributions 1,403,907$ 2,470,986$ 1,109,102$ 952,694$ Contributions in relation to the contractually
required contributions (1,403,907) (2,470,986) (1,109,102) (952,694) Contribution deficiency (excess) -$ -$ -$ -$
Covered-employee payroll 31,615,830$ 30,769,664$ 30,782,274$ 29,946,145$ Contributions as a percentage of covered-employee payroll 4.44% 8.03% 3.60% 3.18% * Plan was established in Fiscal Year 2019.
Agent Multiple-Employer Defined Benefit OPEB Plan
138
City of Alameda
Non-Major Governmental Funds
Special Revenue Funds:
Community Development
This fund accounts for the activities an d services of the Planning, Building and Code Enforcement Divisions.
Revenues are derived from fees, licenses, and fines collected in conjunction with the planning, permitting and enforcement activities of the department in accordance with state law, requir ing fees not to exceed the cost of providing services. Expenditures are made in support of the administrati on of the divisions, the provision and enhancement of services, and the enforcement of municipal codes.
Library
This fund accounts for revenues received from a library tax, library grants and operating transfers from the General Fund for the operations of the City’s three libraries.
Gas Tax
This fund accounts for revenues and expenditures received from the State of California under Street and Highways Code Section 2105, 2106, 2107, 2107.5, 73 60 and 2103.1. The allocations must be expended for street related maintenance and construction and a limited amount for engineering.
Asset Seizure/Traffic Safety
This fund accounts for restricted Asset Seizure/Traffic Safety funds to be used for eligible Public Safety Programs.
County Measure B/BB
This fund accounts for the City’s share of the proceeds of a one-half cent sales tax increase approved by the voters in November 2000, which was renewed in November 2014. The program is administered by the Alameda County Transportation Commission. The tax pr ovides funds for the maintenance of lo cal streets, roads, bike paths and pedestrian walkways, and paratransit operations.
Tidelands
This fund accounts for revenues received from tidelands property leases. Leas es are for state tidelands properties delegated to local agencies for management and control.
Parking Meter
This fund accounts for revenues collected from parking meters and the expend iture of these revenues for parking and transportation related projects.
Commercial Revitalization
This fund accounts for funds to be used for the City’s commercial revitalization programs.
HOME Program
This fund accounts for funds received under the Home Investment Partnerships Program (HOME) designed to create affordable housing for low-income households.
Community Development Block Grant
This fund accounts for grant funds received under the Community Development Act of 1974 for activities approved and subject to federal regulations.
139
City of Alameda
Non-Major Governmental Funds
Housing
This fund accounts for funds received from developer impact fees to be used for the affordable housing programs in the City.
Garbage/Recycling Surcharge
This fund accounts for revenues and expenditures of the City’s waste management and recycling programs.
Athletic Recreation
This fund accounts for revenues and expenditures of the various City recreation fee-based programs.
Waste Reduction Surcharge
This fund accounts for revenues and ex penditures related to the operation of the City’s waste management and recycling programs.
Maintenance Assessment Districts
This fund accounts for special assessments collected and expended for various landscaping and maintenance areas throughout the City.
Vehicle Registration Fee
This fund accounts for these fees collected by the County to be used to sustain the County’s transportation network and reduce traffic congestion.
Parking
This fund accounts for restricted revenues from the Civic Center garage and City parking lots. Expenditures support parking and transportation related projects.
FISC Lease Revenue
This fund accounts for revenues from the Fleet Indust rial Supply Center (FISC) lease and related capital improvement expenditures.
Open Space Improvement
This fund accounts for revenues collected from the proceeds of the sale of land for open space expansion within city limits.
Debt Service Funds:
City Hall and Library Bonds
This fund accounts for the repayment of two bonds that were issued to fund various improvements and the construction of a new library.
Base Reuse
The 2003 Variable Rate Demand Revenue Bonds were issued in December 2003 by the Alameda Public Financing Authority to refund the 1999 Base Reus e Revenue Bonds and to finance profes sional land use planning and other activities required in the redevelopment process at Alameda Point. The de bt will be repaid solely from lease revenues related to base reuse.
140
City of Alameda
Non-Major Governmental Funds
Capital Projects Funds:
Construction Impact Fee
This fund accounts for revenues from development impact f ees required from certain new developments. Funds are used to mitigate the impacts on public facilities and infrastructure caused by these developments.
Streets/Transportation
This fund accounts for expenditures for street and transportation projects.
Development Impact Fee
This fund accounts for revenues from development impact f ees required from certain new developments. Funds are used to mitigate the impacts on availability and condition of public facilities caused by these developments.
Urban Runoff Storm Drain Fee
This fund accounts for revenues and expenditures associated with the City’s compliance under the Alameda County Urban Runoff Clean Water Program.
Maintenance Assessment Districts
This fund accounts for bond proceeds used to finance the construction and acq uisition of public improvements in the District.
Capital Improvement Projects
This fund accounts for monies for majo r capital improvement projects not provi ded for in a separate and specific capital project fund.
Alameda Point
This fund accounts for revenues and expenditures related to construction, improvemen ts and capital maintenance projects within Alameda Point.
141
City of Alameda
Non-Major Governmental Funds
Combining Balance Sheets
June 30, 2022
Community Asset Seizure/
Development Library Gas Tax Traffic Safety
Cash and investments 2,805,669$ 5,464,202$ 3,320,234$ 21,468$ Restricted cash and investments
Accounts receivable 29,122 165,477 419,802
Loans receivable
Leases receivable
Total Assets 2,834,791$ 5,629,679$ 3,740,036$ 21,468$ Accounts
payable 247,701$ 62,555$ 103,388$ -$ Accrued payroll 143,152 97,099 11,287
Due to other agencies 22,059
Unearned revenue
Refundable de
posits 350,862 6,654
Advances from other funds
Total Liabilities 763,774 159,654 114,675 6,654
Unavailable revenue - accounts receivable
Unavailable revenue - revolvin
g loans receivable
Related to leases
Total Deferred Inflows of Resources
FUND EQUITY
Fund balances
Nonspendable
Restricted 3,625,361 14,814
Committed 2,071,017 5,470,025
Unassigned
Total Fund Balances 2,071,017 5,470,025
3,625,361 14,814
2,834,791$ 5,629,679$ 3,740,036$ 21,468$
SPECIAL REVENUE FUNDS
ASSETS
Total Liabilities, Deferred Inflows
and Fund Balances
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
142
Community
County Parking Commercial
HOME Development
Measure B/BB Tidelands Meter Revitalization Program Block Grant Housing 8,046,554$ 2,371,311$ 1,874,972$ 2,399,840$ 43,632$ 458,568$ 3,343,689$ 1,571,152 48,728 618 12,753 144,135 310
6,962,076 1,943,069 1,505,992
829,273 521,914
9,617,706$ 3,200,584$ 1,923,700$ 2,922,372$ 7,018,461$ 2,545,772$ 4,849,991$ -$ -$ 52,474 $ $27,634 $56,241 148,848 $ 291,929$ 9,228 10,489 1,011 18,476
919,536
26,362 25,000
35,590 62,963 52,634 56,241 149,859 1,229,941
6,962,076 1,943,069 1,505,992
804,883 501,434
804,883 501,434 6,962,076 1,943,069 1,505,992
9,617,706 2,360,111 2,368,304 144 452,844 2,114,058
1,860,737
9,617,706 2,360,111 1,860,737 2,368,304 144 452,844 2,114,058 9,617,706$ 3,200,584$ 1,923,700$ 2,922,372$ 7,018,461$ 2,545,772$ 4,849,991$ (Continued)
SPECIAL REVENUE FUNDS
143
City of Alameda
Non-Major Governmental Funds
Combining Balance Sheets
June 30, 2022
SPECIAL REVENUE FUNDS
Garbage/ Waste Maintenance
Recycling Athletic Reduction Assessment
Surcharge Recreation Surcharge Districts
ASSETS
Cash and investments 1,629,864 $ 1,829,721 $ 2,354,319 $ 10,620,065 $ Restricted cash and investments
Accounts receivable 19,014 9,453 99,074 91,211
Loans receivable
Leases receivable 9,879,867
Total Assets 1,648,878$ 11,719,041$ 2,453,393$ 10,711,276$
LIABILITIES
Accounts
payable 26,121$ 56,372$ 104,153$ 243,254$ Accrued payroll 2,712 9,660 18,885
Due to other agencies 20,271
Unearned revenue 26,535 126,202
Refundable deposits 77
Advances from other funds 350,000
Total Liabilities 28,833 432,907 260,363 262,139
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable
Unavailable revenue - revolving loans receivable
Related to leases 9,614,042
Total Deferred Inflows of Resources 9,614,042
Fund balances
Nonspendable
Restricted 1,620,045 2,193,030 10,449,137
Committed 1,672,092
Unassigned
Total Fund Balances 1,620,045 1,672,092
2,193,030 10,449,137
1,648,878$ 11,719,041$ 2,453,393$ 10,711,276$ Total Liabilities, Deferred Inflows
and Fund Balances
FUND EQUITY
144
SPECIAL REVENUE FUNDS
Vehicle City Hall
Registration FISC Open Space and Library
Fee Parking Lease Revenue Improvement Bonds Base Reuse
296,008$ - $ 1,692,170$ 58,158$ -$ 331,830$ 1,363,077 4,089
53,782 30,811
349,790$ -$ 1,692,170$ 58,158$ 1,393,888$ 335,919$ -$ -$ 5,194$ -$ -$ 4,759$
14,693
19,887 4,759
349,790 1,393,888 331,160
1,672,283 58,158
349,790 1,672,283 58,158 1,393,888 331,160
349,790$ -$ 1,692,170$ 58,158$ 1,393,888$ 335,919$ (Continued)
DEBT SERVICE FUNDS
145
City of Alameda
Non-Major Governmental Funds
Combining Balance Sheets
June 30, 2022
Construction Development Urban Runoff
Impact Streets/ Impact Storm Drain
Fee Transportation Fee Fee
ASSETS
Cash and investments 6,566,231$ 2,467,567$ 9,306,238$ 3,167,758$ Restricted cash and investments 17,300
Accounts receivable 1,865 122,751 241,891
Loans receivable
Leases receivable
Total Assets 6,568,096$ 2,590,318$ 9,306,238$ 3,426,949$ Accounts payable 350$ -$ -$ 155,109 $
Accrued payroll 44,282
Due to other agencies
Unearned revenue
Refundable de
posits 1 1,500 52,712
Advances from other funds 784,624
Total Liabilities 350 1 786,124 252,103
Unavailable revenue - accounts receivable
Unavailable revenue - revolvin
g loans receivable
Related to leases
Total Deferred Inflows of Resources
FUND EQUITY
Fund balances
Nonspendable
Restricted 6,567,746 2,590,317 8,520,114 3,174,846
Committed
Unassigned
Total Fund Balances 6,567,746 2,590,317
8,520,114 3,174,846
6,568,096$ 2,590,318$ 9,306,238$ 3,426,949$ Total Liabilities, Deferred Inflows
and Fund Balances
CAPITAL PROJECTS FUNDS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
146
Total
Maintenance Capital Nonmajor
Assessment Improvement Alameda Governmental
Districts Projects Point Funds
3,722,585$ 1,076,864$ 5,934,012$ 81,203,529$ 607,351 1,991,817
182,115 3,244,064
10,411,137
140,004 11,371,058
3,722,585$ 2,006,334$ 5,934,012$ 108,221,605$ -$ $1,347,575 $3,328,839 6,262,496$
244 137,201 518,419
2,855 45,185
108,131 1,180,404
38,246 501,414
1,134,624
244 1,634,008 3,328,839 9,642,542
10,411,137
130,776 11,051,135
130,776 21,462,272
3,722,341 607,351 2,605,173 64,678,280
12,804,312
(365,801) (365,801)
3,722,341 241,550 2,605,173 77,116,791
3,722,585$ 2,006,334$ 5,934,012$ 108,221,605$
CAPITAL PROJECTS FUNDS
147
City of Alameda
Non-Major Governmental Funds
Combining Statements of Revenues, Expenditures
and Changes in Fund Balance
For the Year Ended June 30, 2022
Community Asset Seizure/
Development Librar y Gas Tax Traffic Safet y
REVENUES
Property taxes -$ 3,026,402$ -$ -$
Other taxes
Licenses and permits 4,037,942
Developer fees
Revenue from other agencies 261,118 42,738 3,633,073
Charges for current services 2,065,844 14,781
Fines and forfeitures 330,442
Use of money and property (13,847) (75,734) (56,761) (974) Other revenues 100 26,035 4,330
Total Revenues 6,681,599 3,034,222 3,580,642 (974)
EXPENDITURES
Current:
General government
Police
Fire
Public works 828,449
Communit
y Development 8
Recreation and Parks
Librar
y 4,857,264
Planning, Building and Transportation 7,607,414
Community Services
Housing
Capital outlay
Debt service:
Principal
Interest
Total Expenditures 7,607,422 4,857,264 828,449
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (925,823) (1,823,042) 2,752,193 (974)
OTHER FINANCING SOURCES (USES)
Transfers in 1,193,123 2,419,291
Transfers
(out) (37) (1,481,018)
Total Other Financing Sources (Uses) 1,193,086 2,419,291 (1,481,018) NET CHANGE IN FUND BALANCE 267,263 596,249 1,271,175 (974) BEGINNING FUND BALANCES 1,803,754 4,873,776 2,354,186 15,788 ENDING FUND BALANCES 2,071,017$ 5,470,025$ 3,625,361$ 14,814$
SPECIAL REVENUE FUNDS
148
Community
County Parking Commercial HOME Develo pment
Measure B/BB Tidelands Meter Revitalization Pro gram Block Grant Housin g -$ -$ -$ -$ -$ -$ -$
10,000 255,278
6,135,116 18,067 1,537,784 1,787,713
666,786
259,656 26,070
(149,906) 812,111 (35,344) 793,290 54,554 295,452 (29,141) 16,000 90 6,500
5,985,210 822,111 907,098 1,048,568 72,621 1,833,326 1,791,142 16,054
1,083,966
603,914 281,667 72,621 1,781,676 2,497,712
114,299
718,213 1,083,966 281,667 72,621 1,781,676 2,513,766
5,985,210 103,898 (176,868) 766,901 51,650 (722,624)
1,946,698
(4,317,170) (12,904) (250,883) (1,214,481)
(4,317,170) (12,904) (250,883) 732,217
1,668,040 90,994 (427,751) 1,499,118 51,650 (722,624)
7,949,666 2,269,117 2,288,488 869,186 144 401,194 2,836,682 9,617,706$ 2,360,111$ 1,860,737$ 2,368,304$ 144$ 452,844$ 2,114,058$ (Continued)
SPECIAL REVENUE FUNDS
149
City of Alameda
Non-Major Governmental Funds
Combining Statements of Revenues, Expenditures
and Changes in Fund Balance
For the Year Ended June 30, 2022
SPECIAL REVENUE FUNDS
Garbage/ Waste Maintenance
Recycling Athletic Reduction Assessment
Surcharge Recreation Surchar ge Districts
REVENUES
Property taxes -$ -$ -$ 3,989,585$
Other taxes 228,170 875,895
Licenses and permits
Developer fees
Revenue from other agencies 99,269 160,098
Charges for current services 79,718 597,964
Fines and forfeitures
Use of money and property (27,097) 486,525 (29,103) (161,706) Other 52,602 1,026
Total Revenues 201,073 718,114 1,605,880 3,827,879
EXPENDITURES
Current:
General government 52,348
Police
Fire
Public works 215,076 886,570 2,113,595
Communit
y Development
Recreation and Parks 145,427 620,849
Librar
y
Planning, Building and Transportation 199,892
Community Services
Housing
Capital outlay
Debt service:
Principal
Interest
Total Expenditures 215,076 197,775 886,570 2,934,336
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (14,003) 520,339 719,310 893,543
OTHER FINANCING SOURCES (USES)
Transfers in 56,373 263,090
Transfers (out) (606,000) (381,720)
Total Other Financing Sources (Uses) (549,627) (118,630) NET CHANGE IN FUND BALANCE (14,003) (29,288) 719,310 774,913 BEGINNING FUND BALANCES 1,634,048 1,701,380 1,473,720 9,674,224 ENDING FUND BALANCES 1,620,045$ 1,672,092$ 2,193,030$ 10,449,137$ 150
SPECIAL REVENUE FUNDS
Vehicle Cit y Hall
Registration FISC O pen Space and Librar y
Fee Parking Lease Revenue Im provement Bonds Base Reuse -$ -$ -$ -$ 605,426$ -$
314,674
(4,192) (37,466) 23,623 (13,610) 9
90 310,482 (37,376) 23,623 591,816 9
828,248
39,112
1,996,511 500,000
628,640 238,825
867,360 2,625,151 738,825
310,482 (904,736) 23,623 (2,033,335) (738,816)
34,535 1,944,200 783,000
(110,555) (585,282)
(110,555) (585,282) 34,535 1,944,200 783,000
199,927 (585,282) (904,736) 58,158 (89,135) 44,184
149,863 585,282 2,577,019 1,483,023 286,976
349,790$ -$ 1,672,283$ 58,158$ 1,393,888$ 331,160$ (Continued)
DEBT SERVICE FUNDS
151
City of Alameda
Non-Major Governmental Funds
Combining Statements of Revenues, Expenditures
and Changes in Fund Balance
For the Year Ended June 30, 2022
Construction Development Urban Runoff
Impact Streets/ Impact Storm Drain
Fee Trans portation Fee Fee
REVENUES
Property taxes 2,429,340$ 829,216$ -$ 2,241,613$ Other taxes
Licenses and permits 50,855
Developer fees 32,699 2,329,923
Revenue from other agencies
Charges for current services 129,858
Fines and forfeitures
Use of mone
y and property (88,617) (33,874) (143,521) (42,967)
Other revenues 16,999
Total Revenues 2,391,578 925,200 (110,822) 4,545,568
EXPENDITURES
Current:
General government
Police
Fire
Public works 500,277
Communit
y Development
Recreation and Parks
Librar
y
Planning, Building and Transportation
Community Services
Housing
Capital outlay 3,511,834
Debt service:
Principal
Interest
Total Expenditures 500,277 3,511,834
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,391,578 424,923 (110,822) 1,033,734
OTHER FINANCING SOURCES (USES)
Transfers in 37
Transfers
(out) (1,338,044) (164,497) (425,360) (703,530)
Total Other Financing Sources (Uses) (1,338,044) (164,460) (425,360) (703,530) NET CHANGE IN FUND BALANCE 1,053,534 260,463 (536,182) 330,204 BEGINNING FUND BALANCES 5,514,212 2,329,854 9,056,296 2,844,642 ENDING FUND BALANCES 6,567,746$ 2,590,317$ 8,520,114$ 3,174,846$
CAPITAL PROJECTS FUNDS
152
Total
Maintenance Ca pital Nonmajor
Assessment Im provement Alameda Governmental
District Pro jects Point Funds
215,122$ -$ -$ 13,336,704$
1,104,065
298,830 4,652,905
2,362,622
425,283 14,414,933
3,326,825 6,881,776
616,168
(56,387) (267,535) (67,062) 1,130,720
170,000 96,321 390,093
328,735 3,879,724 (67,062) 44,889,986
68,402
56,349 5,684,282
6,065,846
766,276
4,857,264
7,807,306
6,765 14,227,450 5,051,726 22,951,186
2,496,511
867,465
63,114 14,227,450 5,051,726 51,564,538
265,621 (10,347,726) (5,118,788) (6,674,552)
7,574,248 5,051,726 21,266,321
(26,370) (129,453) (11,747,304)
(26,370) 7,444,795 5,051,726 9,519,017
239,251 (2,902,931) (67,062) 2,844,465
3,483,090 3,144,481 2,672,235 74,272,326
3,722,341$ 241,550$ 2,605,173$ 77,116,791$
CAPITAL PROJECTS FUNDS
153
City of Alameda
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual
For the Year Ended June 30, 2022
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
REVENUES
Property taxes -$ - $ -$ 2,900,000$ 3,026,402$ 126,402$ Other taxes
Licenses and permits 5,125,000 4,037,942 (1,087,058)
Revenue from other agencies 261,118 261,118 87,000 42,738 (44,262) Charges for current services 1,744,000 2,065,844 321,844 2,500 14,781 12,281 Fines and forfeitures 200,000 330,442 130,442
Use of money and property 40,000 (13,847) (53,847) 500 (75,734) (76,234) Other 100 100 26,035 26,035
Total Revenues 7,109,000 6,681, 599 (427,401) 2,990,000 3,034,222 44,222
EXPENDITURES
Current:
General government
Police
Fire
Public works
Community Development 8 (8)
Recreation and Parks
Library 5,492,962 4,857,264 635,698
Planning, Building and Transportation 9,031,655 7,607,414 1,424,241 Community Services
Housing
Capital outlay
Debt service:
Principal
Interest
Total Expenditures 9,031,655 7, 607,422 1,424,233 5,492,962 4,857,264 635,698
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,922,655) (925,823) 996,832 (2,502,962) (1,823,042) 679,920
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in 1,551,500 1,193,123 (358,377) 2,400,000 2,419,291 19,291 Transfers (out) (37) (37)
Total Other Financing Sources (Uses) 1 ,551,500 1,193,086 (358,414) 2,400,000 2,419,291 19,291 NET CHANGE IN FUND BALANCE (371,155)$ 267,263 638,418$ (102,962)$ 596,249 699,211$ BEGINNING FUND BALANCES (DEFICITS) 1,803,754 4,873,776
ENDING FUND BALANCES (DEFICITS) 2,071,017$ 5,470,025$
COMMUNITY DEVELOPMENT
SPECIAL REVENUE FUNDS
LIBRARY
154
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) -$ - $ -$ -$ - $ - $ -$ -$ -$
3,558,500 3,633,073 74,573 500 (500) 4,982,000 6,135,116 1,153,116 (56,761) (56,761) 1,000 (974) (1,974) (149,906) (149,906) 4,330 4,330
3,558,500 3,580,642 22,142 1,500 (974) (2,474) 4,982,000 5,985,210 1,003,210 10,550 10,550
1,129,365 828,449 300,916
1,129,365 828,449 300,916 10,550 10,550
2,429,135 2,752,193 323,058 (9,050) (974) 8,076 4,982,000 5,985,210 1,003,210 (3,086,595) (1,481,018) 1,605,577 (6,545,711) (4,317,170) 2,228,541 (3,086,595) (1,481,018) 1,605,577 (6,545,711) (4,317,170) 2,228,541 (657,460)$ 1,271,175 1,928,635$ (9,050) $ (974) 8,076$ (1,563,711)$ 1,668,040 3,231,751$ 2,354,186 15,788 7,949,666
3,625,361$ 14,814$ 9,617,706$
(Continued)
ASSET SEIZURE/TRAFFIC SAFETYGAS TAX
SPECIAL REVENUE FUNDS
COUNTY MEASURE B/BB
155
City of Alameda
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual
For the Year Ended June 30, 2022
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
REVENUES
Property taxes -$ -$ - $ -$ - $ -$
Other taxes
Licenses and permits 10,000 10,000
Revenue from other agencies
Charges for current services 1,250,000 666,786 (583,214) Fines and forfeitures 700,000 259,656 (440,344)
Use of money and property 809,000 812,111 3,111 (35,344) (35,344) Other 16,000 16,000
Total Revenues 809,000 822,111 13,111 1,950,000 907,098 (1,042,902)
EXPENDITURES
Current:
General government
Police
Fire
Public works 1,668,048 1,083,966 584,082
Community Development 843,328 603,914 239,414
Recreation and Parks
Library
Planning, Building and Transportation
Community Services
Housing
Capital outlay 75,000 114,299 (39,299)
Debt service:
Principal
Interest
Total Expenditures 918,328 718, 213 200,115 1,668,048 1,083,966 584,082
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (109,328) 103,898 213,226 281,952 (176,868) (458,820)
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out) (51,000) (12,904) 38,096 (250,000) (250,883) (883) Total Other Financing Sources (Uses) (51,000) (12,904) 38,096 (250,000) (250,883) (883) NET CHANGE IN FUND BALANCE (160,328)$ 90,994 251,322 $ 31,952 $ (427,751) (459,703) $ BEGINNING FUND BALANCES (DEFICITS) 2,269,117 2,288,488
ENDING FUND BALANCES (DEFICITS) 2,360,111$ 1,860,737 $
PARKING METERTIDELANDS
SPECIAL REVENUE FUNDS
156
SPECIAL REVENUE FUNDS
COMMERCIAL HOME COMMUNITY DEVELOPMENT
REVITALIZATION PROGRAM BLOCK GRANT
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) -$ - $ -$ -$ - $ -$ -$ - $ -$
151,000 255,278 104,278
554,074 18,067 (536,007) 3,166,135 1,537,784 (1,628,351) 450,300 793,290 342,990 50,000 54,554 4,554 80,400 295,452 215,052 90 90
601,300 1,048,568 447,268 604,074 72,621 ( 531,453) 3,246,535 1,833,326 (1,413,209) 1,102,242 281,667 820,575 604,070 72,621 531,449 3,508,718 1,781,676 1,727,042 1,102,242 281,667 820,575 604,070 72,621 531,449 3,508,718 1,781,676 1,727,042 (500,942) 766,901 1,267,843 4 (4) (262,183) 51,650 313,833 20,000 1,946,698 1,926,698 169,600 (169,600)
(329,000) (1,214,481) (885,481) (250,000) 250,000
(309,000) 732,217 1,041,217 (80,400) 80,400
(809,942)$ 1,499,118 2,309,060$ 4$ (4)$ (342,583)$ 51,650 394,233$ 869,186 144 401,194
2,368,304$ 144$ 452,844$
(Continued)
157
City of Alameda
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual
For the Year Ended June 30, 2022
SPECIAL REVENUE FUNDS
HOUSING
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
REVENUES
Property taxes - $ - $ -$ - $ - $ -$ Other taxes 228,170 228,170
Licenses and permits
Revenue from other agencies
Charges for current services 2,198,803 1,787,713 (411,090) Fines and forfeitures 26,070 26,070
Use of money and property 102,000 (29,141) (131,141) (27,097) (27,097) Other 1,382,500 6,500 (1,376,000)
Total Revenues 3,683,303 1,791, 142 (1,892,161) 228,170 201,073 (27,097)
EXPENDITURES
Current:
General government 16,054 (16,054)
Police
Fire
Public works 241,186 215,076 26,110
Community Development 3,333,332 2,497,712 835,620
Recreation and Parks
Library
Planning, Building and Transportation
Community Services
Housing
Capital outlay
Debt service:
Principal
Interest
Total Expenditures 3,333,332 2,513,766 819,566 241,186 215,076 26,110
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 349,971 (722,624) (1,072,595) (13,016) (14,003) (987)
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out) (500,000) 500,000
Total Other Financing Sources (Uses) (500,000) 500,000
NET CHANGE IN FUND BALANCE 349,971 $ (722,624) (1,072,595) $ (513,016) $ (14,003) 499,013 $ BEGINNING FUND BALANCES (DEFICITS) 2,836,682 1,634,048
ENDING FUND BALANCES (DEFICITS) 2,114,058 $ 1,620,045$
GARBAGE/RECYCLING SURCHARGE
158
SPECIAL REVENUE FUNDS
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) -$ - $ -$ - $ - $ -$ 3,862,443 $ 3,989,585 $ 127,142$ 875,895 875,895
10,000 99,269 89,269 251,000 160,098 (90,902)
40,000 79,718 39,718 456,432 597,964 141,532
304,225 486,525 182,300 (29,103) (29,103) (161,706) (161,706) 50,000 52,602 2,602 1,026 1,026
404,225 718,114 313,889 1,583,327 1,605,880 22,553 3,862,443 3,827,879 (34,564) 52,348 (52,348)
1,339,636 886,570 453,066 3,146,401 2,113,595 1,032,806 211,041 145,427 65,614 1,129,847 620,849 508,998
278,000 199,892 78,108
211,041 197,775 13,266 1,339,636 886,570 453,066 4,554,248 2,934,336 1,619,912 193,184 520,339 327,155 243,691 719,310 475,619 (691,805) 893,543 1,585,348 56,373 56,373 263,090 263,090
(256,000) (606,000) (350,000) (318,000) 318,000 (367,720) (381,720) (14,000) (256,000) (549,627) (293,627) (318,000) 318,000 (104,630) (118,630) (14,000) (62,816)$ (29,288) 33,528$ (74,309)$ 719,310 793,619 $ (796,435)$ 774,913 1,571,348$ 1,701,380 1,473,720 9,674,224
1,672,092$ 2,193,030$ 10,449,137$
(Continued)
MAINTENANCE
ATHLETIC RECREATION WASTE REDUCTION SURCHARGE ASSESSMENT DISTRICTS 159
City of Alameda
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual
For the Year Ended June 30, 2022
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
REVENUES
Property taxes -$ -$ -$ -$ -$ -$
Other taxes
Licenses and permits
Revenue from other agencies 300,000 314,674 14,674
Charges for current services
Fines and forfeitures
Use of money and property 5,000 (4,192) (9,192)
Othe
r
Total Revenues 305,000 310,482 5,482
EXPENDITURES
Current:
General government
Police
Fire
Public works
Community Development
Recreation and Parks
Library
Planning, Building and Transportation
Community Services
Housing
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 305,000 310,482 5,482
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out) (320,000) (110,555) 209,445 (585,282) (585,282) Total Other Financing Sources (Uses) (320,000) (110,555) 209,445 (585,282) (585,282) NET CHANGE IN FUND BALANCE (15,000)$ 199,927 214,927$ -$ (585,282) (585,282) $ BEGINNING FUND BALANCES (DEFICITS) 149,863 585,282
ENDING FUND BALANCES (DEFICITS) 349,790$ -$
PARKING
SPECIAL REVENUE FUNDS
VEHICLE REGISTRATION FEE
160
SPECIAL REVENUE FUNDS DEBT SERVICE FUND
OPEN SPACE IMPROVEMENT
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) -$ - $ - $ -$ - $ -$ 611,500 $ 605,426 $ (6,074)$ 10,000 (37,466) (47,466) 23,623 23,623 15,000 (13,610) (28,610) 175,000 90 (174,910)
185,000 (37,376) (222,376) 23,623 23,623 626,500 591,816 (34,684) 1,304,720 828,248 476,472
85,000 39,112 45,888
1,997,000 1,996,511 489
630,225 628,640 1,585
1,389,720 867,360 522,360 2,627,225 2,625,151 2,074
(1,204,720) (904,736) 299,984 23,623 23, 623 (2,000,725) (2,033,335) (32,610) 34,535 34,535 2,001,200 1,944,200 (57,000)
(50,000) 50,000
(50,000) 34,535 84,535 2,001,200 1,944,200 (57,000)
(1,204,720)$ (904,736) 299,984$ (50,000)$ 58,158 108,158$ 475$ (89,135) (89,610) $ 2,577,019 1,483,023
1,672,283$ 58,158$ 1,393,888$
(Continued)
FISC LEASE REVENUE CITY HALL AND LIBRARY BONDS
161
City of Alameda
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual
For the Year Ended June 30, 2022
DEBT SERVICE FUND
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES
Property taxes - $ - $ -$
Other taxes
Licenses and permits
Revenue from other agencies
Charges for current services
Fines and forfeitures
Use of money and property 9 9
Othe
r
Total Revenues 9 9
EXPENDITURES
Current:
General government
Police
Fire
Public works
Community Development
Recreation and Parks
Library
Planning, Building and Transportation
Community Services
Housing
Capital outlay
Debt service:
Principal 500,000 500,000
Interest 343,000 238,825 104,175
Total Expenditures 843,000 738,825 104,175
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (843,000) (738,816) 104,184
OTHER FINANCING SOURCES (USES)
Transfers in 783,000 783,000
Transfers (out)
Total Other Financing Sources (Uses) 783,000 783,000
NET CHANGE IN FUND BALANCE (60,000)$ 44,184 104,184$ BEGINNING FUND BALANCES (DEFICITS) 286,976
ENDING FUND BALANCES (DEFICITS) 331,160$
BASE REUSE DEBT SERVICE
162
City of Alameda, California
Internal Service Funds
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
The concept of major funds does not extend to internal service funds because they do not do business with outside parties. Generally accepted accounting principles require that for the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position. However, internal service funds are still pres ented separately in the Fund financial statements, including the funds below:
IT Cable Equipment
This fund accounts for revenues and expenditures related to the City's cable equipment, which broadcasts City meetings from City Hall and provides a public/educational cable broadcast st udio in conjunction with the School District. The primary revenue source is additional charge to cable providers, which can only be used for Public, Educational, and Government (PEG) equipment expenditures.
Central Services
This fund accounts for the City’s central services oper ations, reimbursed through charges assessed to other City departments.
Fleet Maintenance and Replacement
This fund accounts for equipment replacement and maintenance for the City’s Fleet Maintenance and Replacement programs for equipment with value greater than $25,000 and/or a minimum useful life of 10 years.
Technology Services
This fund accounts for information technology. Reimbursements occur through administrative charges assessed to
other departments based upon their proportional share of program costs.
Facilities Replacement and Maintenance
This fund accumulates funds for the costs associated with the replacement and maintenance of the City’s facilities.
Workers’ Compensation Insurance
This fund accounts for the expenditures for administration of the City’s workers’ compensation program, payment of workers’ compensation claim payments, and related insurance premiums.
General Liability Insurance
This fund accounts for the administration of the City’s risk management program, payment of general liability claims and insurance premiums for general liability and property coverage.
Unemployment Insurance
This fund accounts for the administration of the C ity’s unemployment insurance program and payment of unemployment claim payments.
Other Post-Employment Benefits (OPEB)/Vacation
This fund accounts for expenditures for other post-employment benefits (OPEB) and accumulates funds for future payoffs of accrued leave balances.
Pension Stabilization Fund
This fund accounts for expenditures for the City’s pension obligation in future periods when unforeseen changes or adjustments to required contributions requires additional funding beyond anticipated expenditures. 163
City of Alameda
Internal Service Funds
Combining Statements of Net Position
June 30, 2022
Fleet
Maintenance
IT Cable Central an
d Technology
Replacement Services Re placement Services
ASSETS:
Current Assets:
Cash and cash equivalents 1,419,263$ -$ 8,226,341$ 6,770,575$ Accounts receivable 39,448 147,676
Prepaids and deposits 73,575
Total Current Assets 1,458,711 8,374,017 6,844,150
Noncurrent Assets:
Restricted investments
Advances to other funds 234,936
Ca
pital assets:
Non-depreciable
Depreciable, net of accumulated depreciation 4,879,142 90,474 Total Non-current Assets 5,114,078 90,474
Total Assets 1,458,711 13,488,095 6,934,624
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
Current Liabilities:
Accounts payable 274,539 60,023
Interest payable 41,054
Accrued payroll 24,863 37,341
Refundable deposits
Claims payable:
Due within one year
Equipment lease payable:
Due within one year 322,420
Total Current Liabilities 662,876 97,364
Long-Term Liabilities:
Claims payable:
Due in more than one year
Equipment purchase agreement
Due in more than one year 1,544,338
Total Long-Term Liabilities 1,544,338
Total Liabilities 2,207,214 97,364
NET POSITION
Net investment in capital assets 3,012,384 90,474
Unrestricted 1,458,711 8,268,497 6,746,786
Total Net Position (Deficits) 1,458,711$ -$ 11,280,881$ 6,837,260$ 164
Facilities
Replacement Workers' General Pension
and Com pensation Liabilit y Unemployment Stabilization Maintenance Insurance Insurance Insurance OPEB/Vacation Fund Total 4,591,439$ 13,783,701 $ 7,241,547 $ 378,890 $ 7,555,600 $ 777,223 $ 50,744,579 $ 900 45,867 4,148 237 31,080 269,356
300,000 373,575
4,592,339 14,129,568 7,245,695 379,127 7,586,680 777,223 51,387,510 50,000 12,019,784 12,069,784
234,936
1,642,018 6,611,634
1,642,018 50,000 12,019,784 18,916,354
6,234,357 14,129,568 7,295,695 379,127 7,586,680 12,797,007 70,303,864 5,755,000 5,755,000
375,132 274,265 32,189 4,416 1,020,564
41,054
13,379 10,316 20,025 105,924
11,414 11,414
3,932,321 3,247,537 7,179,858
322,420
388,511 4,216,902 3,311,165 4,416 8,681,234
10,001,051 5,261,970 15,263,021
1,544,338
10,001,051 5,261,970 16,807,359
388,511 14,217,953 8,573,135 4,416 25,488,593
1,642,018 4,744,876
4,203,828 (88,385) (1,277,440) 374,711 7,586,680 18,552,007 45,825,395 5,845,846$ (88,385) $ (1,277,440)$ 374,711 $ 7,586,680 $ 18,552,007 $ 50,570,271 $ 165
City of Alameda
Internal Service Funds
Combining Statements of Revenues, Expenses and
Changes in Fund Net Position
For the Year Ended June 30, 2022
Fleet
Maintenance
IT Cable Central an d Technology
Replacement Services Re placement Services
OPERATING REVENUES
Charges for services -$ -$ 4,771,753$ 2,993,603$ Miscellaneous 157,943
Total Operating Revenues 157,943 4,771,753 2,993,603
OPERATING EXPENSES
General administrative 391,540 155,598
Wages and benefits 723,077 1,154,006
Insurance and claims
Contractual services 9,734 350,284 2,302,227
Su
pplies and maintenance 22,509 1,299,031 323,459
Depreciation 1,029,458 63,188
Total Operating Expenses 32,243 3,793,390 3,998,478
Operating Income (Loss) 125,700 978,363 (1,004,875)
NONOPERATING REVENUES (EXPENSES)
Interest income (21,937) (117,383) (122,381)
Interest expense (56,381)
Gain (loss) from sale of capital assets 21,457
Total Nonoperating Revenues (Expenses) (21,937) (152,307) (122,381) Income (Loss) Before Transfers 103,763 826,056 (1,127,256) Transfers in 10,130,813
Transfers out (10,130,813) (92,573)
Net Transfers (10,130,813) (92,573) 10,130,813
Change in Net Position (10,027,050) (92,573) 10,956,869 (1,127,256) BEGINNING NET POSITION 11,485,761 92,573 324,012 7,964,516 ENDING NET POSITION 1,458,711$ - $ 11,280,881$ 6,837,260$ 166
Facilities
Replacement Workers' General Pension
and Com pensation Liabilit y Unemployment Stabilization Maintenance Insurance Insurance Insurance OPEB/Vacation Fund Total 4,208,315$ 4,183,242$ 4,697,684$ 2,844$ 4,021,143$ -$ 24,878,584$ 1,209 159,152
4,209,524 4,183,242 4,697,684 2,844 4,021,143 25,037,736 542,941 12,816 66,431 250,000 1,419,326
452,718 190,890 632,582 31,714 5,000,000 8,184,987
796,812 6,205,887 3,881,887 10,884,586
3,392,460 213,758 641,343 810 43,878 6,954,494
408,166 1,702 20,057 2,074,924
1,092,646
4,796,285 1,215,978 7,566,300 32,524 4,131,887 5,043,878 30,610,963 (586,761) 2,967,264 (2,868,616) (29,680) (110,744) (5,043,878) (5,573,227) (72,524) (208,165) (84,237) (7,125) (127,382) (1,360,601) (2,121,735) (56,381)
21,457
(72,524) (208,165) (84,237) (7,125) (127,382) (1,360,601) (2,156,659) (659,285) 2,759,099 (2,952,853) (36,805) (238,126) (6,404,479) (7,729,886) 800,000 500,000 7,674,000 19,104,813
(10,223,386)
800,000 500,000 7,674,000 8,881,427
140,715 2,759,099 (2,452,853) (36,805) (238,126) 1,269,521 1,151,541 5,705,131 (2,847,484) 1,175,413 411,516 7,824,806 17,282,486 49,418,730 5,845,846$ (88,385) $ (1,277,440)$ 374,711 $ 7,586,680 $ 18,552,007 $ 50,570,271 $ 167
City of Alameda
Internal Service Funds
Combining Statements of Cash Flows
For the Year Ended June 30, 2022
Fleet
Maintenance
IT Cable Central an d Technology
Replacement Services Re placement Services
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 158,716$ -$ 4,697,644$ 2,993,603$ Payments to suppliers (32,258) (1,545,095) (2,587,113)
Payments to employees (1,113,591) (1,301,887)
Insurance and claims paid
Cash Flows from Operating Activities 126,458 2,038,958 (895,397)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 45,951
Transfers In (out) (7,190,151) (92,573) 7,190,151
Cash Flows from Noncapital Financing Activities (7,190,151) (92,573) 7,236,102
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets, net (1,020,801)
Proceeds from the sale of assets 21,457
Principal payments on capital debt (313,304)
Interest payments on capital debt (63,289)
Cash Flows from Capital and Related
Financing Activities (1,375,937)
CASH FLOWS FROM INVESTING ACTIVITIES
Sales (purchases) of restricted investments
Interest (21,937) (117,383) (122,381)
Cash Flows from Investing Activities (21,937) (117,383) (122,381) Net Cash Flows (7,085,630) (92,573) 7,781,740 (1,017,778) Cash and investments at beginning of period 8,504,893 92,573 444,601 7,788,353 Cash and investments at end of period 1,419,263$ - $ 8,226,341$ 6,770,575$ Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss) 125,700$ - $ 978,363$ (1,004,875)$ Adjustments to reconcile operating income to cash flows from operating activities:
Depreciation 1,029,458 63,188
Pension related amounts
Change in assets and liabilities:
(Increase) decrease in accounts receivable 773 (74,109) (Increase) decrease in prepaids and deposits 140,532
Increase (decrease) accounts payable (15) 104,220 (101,959) Increase (decrease) accrued payroll 1,026 7,717
Increase (decrease) refundable deposits
Claims payable
Cash Flows from Operating Activities 126,458$ -$ 2,038,958$ (895,397)$ 168
Facilities
Replacement Workers' General Pension
and Com pensation Liabilit y Unemployment Stabilization Maintenance Insurance Insurance Insurance OPEB/Vacation Fund Total 4,208,624$ 4,159,703$ 4,686,046$ 2,607$ 3,991,743$ -$ 24,898,686$ (3,770,277) (756,273) (847,939) (810) (3,899,513) (43,878) (13,483,156) (992,769) (199,882) (697,109) (27,298) (250,000) (5,755,000) (10,337,536) (2,158,049) (2,448,452) (4,606,501)
(554,422) 1,045,499 692,546 (25,501) (157,770) (5,798,878) (3,528,507) 45,951
800,000 500,000 7,674,000 8,881,427
800,000 500,000 7,674,000 8,927,378
(65,519) (1,086,320)
21,457
(313,304)
(63,289)
(65,519) (1,441,456)
(50,000) (527,451) (577,451)
(72,524) (208,165) (84,237) (7,125) (127,382) (1,360,601) (2,121,735) (72,524) (208,165) (134,237) (7,125) (127,382) (1,888,052) (2,699,186) 107,535 837,334 1,058,309 (32,626) (285,152) (12,930) 1,258,229 4,483,904 12,946,367 6,183,238 411,516 7,840,752 790,153 49,486,350 4,591,439$ 13,783,701 $ 7,241,547 $ 378,890 $ 7,555,600 $ 777,223 $ 50,744,579 $ (586,761)$ 2,967,264$ (2,868,616)$ (29,680)$ (110,744)$ (5,043,878)$ (5,573,227)$ 1,092,646
(755,000) (755,000)
(900) (23,539) (4,073) (237) (29,400) (131,485)
(300,000) (159,468)
30,349 (240,813) (186,539) 4,416 (17,626) (407,967)
2,890 3,824 1,904 17,361
(7,565) (7,565)
(1,361,237) 3,757,435 2,396,198
(554,422)$ 1,045,499$ 692,546$ (25,501)$ (157,770)$ (5,798,878)$ (3,528,507)$ 169
City of Alameda, California
People and Places in the City
STATISTICAL SECTION
City of Alameda, California
People and Places in the City
City of Alameda, California
Statistical Section
This section of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information presents with respect to the City’s overall financial health. In contrast to the Fi nancial Section, the Statistical Section information is not subje ct to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balances of Governmental Funds
5. Basic Revenue Index (BRI)
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, property taxes:
1. Assessed and Estimated Actual Value of Taxable Property
2. Property Tax Rates - All Direct and Overlapping Governments
3. Principal Property Taxpayers
4. Property Tax Levies and Collections
5. Alameda Municipal Power Electric Operating Revenues by Source
6. Alameda Municipal Power Customer Accounts
7. Alameda Municipal Power Pricing Changes
8. Alameda Municipal Power Top Ten Customers
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:
1. Ratio of Outstanding Debt by Type
2. Ratio of General Bonded Debt Outstanding
3. Computation of Direct and Overlapping Debt
4. Computation of Legal Bonded Debt Margin
5. Sewer Services Fund Debt Coverage
6. Alameda Municipal Power Fund Debt Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:
1. Demographic and Economic Statistics
2. Principal
Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:
1. Full-Time Equivalent City Government Employees by Function
2. Operating Indicators by Function/Program
3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports fo r the relevant year.
173
City of Alameda
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
June 30,
2013 2014 2015 2016
Governmental activities
Invested in capital assets,
net of related debt 234,318,345 $ 248,976,617 $ 259,298,585$ 257,003,558$ Restricted 65,063,180 64, 148,556 47,340,040 49,089,375 Unrestricted 27,586,926 22, 934,963 (132,097,358) (128,732,691) Total governmental activities net position 326,968,451$ 336,060,136$ 174,541,267$ 177,360,242$ Business-type activities
Invested in capital assets,
net of related debt 32,309,753$ 36,408,147$ 72,843,612$ 77,527,656$ Restricted 29,374,748 29, 591,239 31,979,615 32,369,845 Unrestricted 17,235,250 23,848,220
Total business-type activities net position 61,684,501$ 65,999,386$ 122,058,477$ 133,745,721$ Primary government
Invested in capital assets,
net of related debt 266,628,098$ 285,384,764$ 332,142,197$ 334,531,214$ Restricted 94,437,928 93, 739,795 79,319,655 81,459,220 Unrestricted 27,586,926 22, 934,963 (114,862,108) (104,884,471) Total primary government net position 388,652,952$ 402,059,522$ 296,599,744$ 311,105,963$ Source: City Finance Department
(a) The City implemented the provisions of GASB Statement No. 75 in Fiscal Year 2018.
Prior year amounts have not been restated.
174
2017 2018 (a) 2019 2020 2021 2022
258,670,492$ 261,696,061$ 269,397,500$ 297,299,908$ 306,331,058$ 316,665,168$ 53,494,064 91,334,323 110,162,983 123,984,088 137,396,539 144,588,032 (138,357,430) (218,481,489) (214,617,059) (231,645,513) (217,133,326) (191,206,553) 173,807,126$ 134,548,895$ 164,943,424$ 189,638,483$ 226,594,271$ 270,046,647$ 87,340,526$ 93,673,669$ 98,017,520$ 102,850,134$ 110,041,879$ 113,133,574$ 29,829,844 26,462,741 26,055,896 25,632,407 20,951,023 18,843,152 31,259,576 28,810,985 33,134,340 35,731,238 37,380,508 49,557,794 148,429,946$ 148,947,395$ 157,207,756$ 164,213,779$ 168,373,410$ 181,534,520$ 346,011,018$ 355,369,730$ 367,415,020$ 400,150,042$ 416,372,937$ 429,798,742$ 83,323,908 117,797,064 136,218,879 149,616,495 158,347,562 163,431,184 (107,097,854) (189,670,504) (181,482,719) (195,914,275) (179,752,818) (141,648,759) 322,237,072$ 283,496,290$ 322,151,180$ 353,852,262$ 394,967,681$ 451,581,167$ 175
City of Alameda
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
For the Fiscal Year Ended June 30,
2013 2014 2015 2016
Expenses
Governmental Activities:
General Government 13,569,619 $ 15,040,701 $ 15,566,704 $ 17,312,864 $ Police 30,431,546 30,848,485 30,310,509 31,230,359
Fire 27,374,670 27,866,089 30,247,841 33,701,192
Public Works 12,664,895 14,344,311 20,576,356 21,611,732 Communit
y Development 20,805,104 15,947,090 21,707,219 19,926,259 Community Services 8,296,495 6,995,080 6,808,162 8,192,325 Housing 1,222,077 2,004,958 1,883,617 2,298,345
Recreation and parks
Librar
y
Planning, Building and Transportation
Interest on Long-Term Debt 1,409,201 2,307,691 984,165 1,104,604 Total Governmental Activities Expenses 115,773,607 115,354,405 128,084,573 135,377,680 Business-Type Activities:
Sewer Service 5,125,508 5,339,491 6,069,959 5,189,080
Alameda Municipal Power (B) 47,958,639 54,131,601
Total Business-Type Activities Expenses 5,125,508 5,339,491 54,028,598 59,320,681 Total Primary Government Expenses 120,899,115$ 120,693,896$ 182,113,171$ 194,698,361$ Component Unit:
Alameda Municipal Power 53,896,090$ 50,466,129 $ Total Component Unit 53,896,090$ 50,466,129$ -$ -$ Program Revenues
Governmental Activities:
Charges for Services:
General Government 7,507,538 $ 9,820,809$ 9,928,486$ 9,914,050$ Police 1,125,359 1,772,066 1,557,542 1,461,077
Fire 2,625,040 2,242,200 2,902,627 3,161,928
Public Works 7,329,147 6,915,488 8,048,038 8,869,421
Community Development 9,717,218 10,267,249 10,900,322 11,261,739 Community Services 3,477,649 3,238,812 3,273,681 3,550,181 Housing 45 2,500
Recreation and parks
Librar
y
Planning, Building and Transportation
Operating Grants and Contributions 7,434,721 6,416,506 5,806,249 5,209,502 Capital Grants and Contributions 3,504,228 3,188,964 6,156,043 6,270,247 Total Government Activities Program Revenues 42,720,945 43,862,094 48,575,488 49,698,145 Business-Type Activities:
Charges for Services:
Sewer Service 8,966,628 9,734,164 9,906,045 9,404,120
Alameda Municipal Power (B) 58,759,497 62,012,528
Operating Grants and Contributions
Capital Grants and Contributions 546,768
Total Business-Type Activities Program Revenue 8,966,628 9,734,164 68,665,542 71,963,416 Total Primary Government Program Revenues 51,687,573$ 53,596,258$ 117,241,030$ 121,661,561$ Component Unit:
Charges for Services:
Alameda Municipal Power 56,157,469$ 59,774,933 $ Total Component Unit Program Revenues 56,157,469$ 59,774,933$ -$ -$ Net (Expense)/Revenue
Governmental Activities (73,052,662)$ (71,492,311)$ (79,509,085)$ (85,679,535)$ Business-Type Activities 3,841,120 4,394,673 14,636,944 12,642,735 Component Unit Activities 2,261,379 9,308,804 0 0
Total Primary Government Net Expense (66,950,163)$ (57,788,834)$ (64,872,141)$ (73,036,800)$ (A) Reclassified as Enterprise Fund
(B) The City expanded certain departmental reporting during fiscal year 2022. Prior year amounts have not been restated.
Source: City Finance Department
176
2017 2018 2019 2020 2021 2022
22,613,362$ 27,567,933$ 19,673,640$ 16,958,175$ 24,018,435$ 9,320,442$ 34,249,563 38,203,293 45,109,592 45,157,133 40,102,074 33,123,049 34,380,486 39,616,964 47,372,705 47,027,551 44,780,248 36,170,224 22,493,921 21,305,228 16,185,664 25,410,099 22,362,750 24,738,562 20,854,357 19,124,858 16,626,697 17,247,041 17,476,605 15,030,618 7,825,636 10,785,609 4,172,503 11,591,599 9,388,765 (A) 1,955,239 3,343,039 2,868,235 3,987,655 4,941,615 (A)
12,082,777 (A)
6,748,033 (A)
8,179,331 (A)
983,685 1,298,608 1,276,122 1,035,955 801,228 888,487
145,356,250 161,245,532 153,285,158 168,415,208 163,871,720 146,281,523 5,062,826 4,915,297 5,565,859 6,018,295 5,861,001 4,249,245 53,311,749 59,886,250 63,101,513 63,831,890 64,313,277 57,159,221 58,374,575 64,801,547 68,667,372 69,850,185 70,174,278 61,408,466 203,730,825$ 226,047,079$ 221,952,530$ 238,265,393$ 234,045,998$ 207,689,989$ -$ -$ -$ -$ -$ -$
11,400,449$ 9,068,963$ 3,289,980$ 3,562,474$ 3,692,675$ 2,772,718$ 1,378,632 1,228,935 1,121,616 973,227 816,240 583,063
3,134,509 3,306,867 3,494,527 3,961,473 4,457,369 4,134,221 9,955,286 9,280,689 10,023,569 10,727,879 11,023,739 8,818,755 13,523,363 13,044,105 13,541,107 13,119,155 12,037,359 2,083,815 3,671,588 4,423,440 4,564,276 4,224,548 4,308,651 (A)
3,558,604 (A)
14,781 (A)
6,444,733 (A)
6,045,401 9,032,803 5,700,076 8,402,139 10,771,830 7,445,218 7,058,283 12,386,648 10,877,405 22,446,476 25,423,585 6,454,953 56,167,511 61,772,450 52,612,556 67,417,371 72,531,448 42,310,861 9,690,132 10,498,070 11,216,139 11,243,295 11,721,286 11,815,658 63,449,233 63,455,688 66,567,838 66,703,706 66,260,963 65,799,230 0 489,751 0
73,629,116 73,953,758 77,783,977 77,947,001 77,982,249 77,614,888 129,796,627$ 135,726,208$ 130,396,533$ 145,364,372$ 150,513,697$ 119,925,749$ -$ -$ -$ -$ -$ -$
(89,188,739)$ (99,473,082)$ (100,672,602)$ (100,997,837)$ (91,340,272)$ (103,970,662)$ 15,254,541 9,152,211 9,116,605 8,096,816 7,807,971 16,206,422 000000
(73,934,198)$ (90,320,871) $ (91,555,997) $ (92,901,021) $ (83,532,301) $ (87,764,240) $ (Continued)
177
City of Alameda
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
For the Fiscal Year Ended June 30,
2013 2014 2015 2016
General Revenues and Other Changes
in Net Position
Governmental Activities:
Taxes:
Property Taxes 26,937,823$ 38,088,577$ 39,057,776$ 43,665,977$ Urban runoff special assessments 1,842,568
Sales Taxes 5,932,043 6,260,057 9,340,828 10,187,902
Utility Users Tax 9,095,600 8,500,351 8,330,638 8,368,125 Transfer Tax 5,582,337 6,730,655 8,258,516 9,451,755
Franchise Tax 4,439,185 3,919,351 1,496,491 2,396,918
Transient Occupancy Tax 1,396,432 1,612,283 1,928,731 2,174,973 Property Tax In-Lieu 1,112,896 1,382,336 1,002,871 1,157,160 Other Taxes 2,788,444 4,175,348 4,460,633 1,831,805
Motor Vehicle In-Lieu, Unrestricted 5,897,923
Use of Money and properties 4,039,370 5,068,924 4,465,916 5,136,494 Gain/Loss from disposal of capital assets
Miscellaneous 1,531,218 4,428,117 2,787,194 1,160,517
Transfers 269,538 417,997 3,027,004 2,831,684
Extraordinary item 1,007,196
Total Government Activities 70,865,377 80,583,996 85,163,794 88,363,310 Business-T
ype Activities:
Use of Money and properties 33,149 337,908 279,817 685,463 Miscellaneous 5,495 301 90,277 1,190,730
Transfers (269,538) (417,997) (3,027,004) (2,831,684)
Total Business-Type Activities (230,894) (79,788) (2,656,910) (955,491) Total Primary Government 70,634,483$ 80,504,208$ 82,506,884$ 87,407,819$ Component Unit Activities:
Use of Money and properties 98,920$ 86,293$ -$ -$
Miscellaneous 176,225 1,548,129
Increase in value of certain NPCA
projects and reserves 1,447,092 (789,918)
Total Component Unit Activities 1,722,237$ 844,504$ -$ -$ Change in Net Position
Governmental Activities (2,187,285)$ 9,091,684$ 5,654,709$ 2,683,775$ Business-Type Activities 3,610,226 4,314,885 11,980,034 11,687,244 Total Primary Government $1,422,941 $13,406,569 $17,634,743 $14,371,019 Changes in Net Position
Component Unit Activities 3,983,616$ 10,153,308$ -$ -$ Source: City Finance Department
(A) Reclassified as Enterprise Fund
(B) The City expanded certain departmental reporting during fiscal year 2022. Prior year amounts have not been restated. 178
2017 2018 2019 2020 2021 2022
45,651,646$ 48,745,491$ 52,886,048$ 56,814,066$ 63,421,779$ 64,534,572$ 10,740,580 10,967,955 14,072,162 17,601,220 19,439,879 22,755,698 9,061,296 9,336,326 9,080,200 8,809,356 9,091,389 9,011,553 10,333,813 15,679,218 17,134,704 15,195,899 18,536,929 21,929,943 2,473,634 2,473,040 2,481,408 2,346,930 2,706,949 3,373,794 2,126,612 2,146,038 2,292,350 1,952,077 1,996,230 2,555,336 1,167,072 1,203,862 1,227,585 1,210,667 1,362,667 1,551,000 1,500,155 1,339,471 1,239,629 1,173,089 789,190 314,674 6,957,802 5,300,785 9,009,003 12,672,608 5,774,634 16,738,842 12,971,153 16,751,109 21,457
2,312,459 1,478,855 1,060,459 3,359,972 664,514 471,713 2,891,411 8,463,788 3,832,474 4,557,012 4,511,900 4,164,456 95,216,480 120,105,982 131,067,131 125,692,896 128,296,060 147,423,038 507,799 1,014,577 2,181,706 2,952,331 441,610 (1,210,245) 1,813,296 1,235,399 794,524 513,888 421,950 2,329,389
(2,891,411) (8,463,788) (3,832,474) (4,557,012) (4,511,900) (4,164,456) (570,316) (6,213,812) (856,244) (1,090,793) (3,648,340) (3,045,312) 94,646,164$ 113,892,170 $ 130,210,887 $ 124,602,103 $ 124,647,720 $ 144,377,726 $ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$
6,027,741$ 20,632,900$ 30,394,529$ 24,695,059$ 36,955,788$ 43,452,376$ 14,684,225 2,938,399 8,260,361 7,006,023 4,159,631 13,161,110 $20,711,966 $23,571,299 $38,654,890 $31,701,082 $41,115,419 $56,613,486 -$ -$ -$ -$ -$ -$
179
City of Alameda
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
June 30,
2013 2014 2015 2016
General Fund
Nonspendable 2,200,000$ 2,261,871$ 2,591,009$ 872,617$ Restricted
Committed 6,043,000
Assigned 3,000,000 6,281,684
Unassigned 21,293,014 29,071,830 30,165,670 27,284,395
Total General Fund 23,493,014$ 31,333,701$ 35,756,679$ 40,481,696$ All Other Governmental Funds
Nonspendable 9,395$ -$ -$
Restricted $21,293,253 23,349,158 $50,922,259 $48,736,806 Committed 36,907,806 40,790,003 17,909,767 21,233,524
Assigned
Unassigned (657,163) (14,081)
Total all other governmental funds 57,543,896$ 64,148,556$ 68,817,945$ 69,970,330$ Source: City of Alameda Finance Department
(a) The change in total fund balance for the General Fund and other government funds is explained in Management's Discussion and Analysis.
180
2017 2018 2019 2020 2021 2022
1,575,550$ 782,440$ 1,591,812$ 1,011,157$ 937,545$ 3,138,094$ 11,568,004 8,700,000
8,525,868 15,354,029 16,173,757 18,220,882 15,544,000 13,929,791 28,726,377 25,072,934 23,445,239 35,413,925 56,594,050 64,260,392 50,395,799$ 41,209,403$ 41,210,808$ 54,645,964$ 73,075,595$ 90,028,277$ (a) -$ 1,115$ 2,784,114$ 2,878,114$ 1,200,533$ -$ $52,352,209 64,846,207 84,169,854 98,743,112 113,087,912 122,038,092 21,938,791 23,357,819 25,959,758 15,258,412 14,105,669 12,804,312 1,346,011
(2,519,632) (831,560) (510,884) (1,780,179) (365,801)
71,771,368$ 87,373,581 $ 112,402,842 $ 115,099,459 $ 129,740,125 $ 134,476,603 $ (a) 181
City of Alameda
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
For the Fiscal Year Ended June 30,
2013 2014 2015 2016
Revenues
Property taxes 30,299,428 $ 40,030,928 $ 41,511,670 $ 43,665,978 $ Other local taxes 29,441,266 31,532,635 34,307,623 36,600,031 Licenses and permits 3,220,082 3,649,220 4,834,523 4,599,669 Developer fees
Revenue from other agencies 15,017,173 8,383,901 10,472,056 11,799,727 Charges for current services 16,992,163 16,881,772 16,601,934 18,801,604 Fines and forfeitures 1,712,558 1,940,326 1,579,608 1,505,913 Use of money and property 16,284,321 17,130,340 17,472,748 18,278,665 Othe
r 1,366,611 4,638,439 2,898,060 1,088,097
Total Revenues 114,333,602 124,187,561 129,678,222 136,339,684 Expenditures
Current:
General government 13,996,654 14,807,500 17,213,207 22,246,735 Police 28,538,108 28,767,165 28,682,826 28,816,779
Fire 23,262,699 24,269,387 27,961,054 28,529,688
Public Works 4,320,452 4,432,334 4,558,311 4,742,674
Community Development 17,828,779 14,920,522 16,145,736 17,686,827 Recreation and Parks
Library
Planning, Building and Transportation
Community Services 6,704,716 5,755,718 5,797,562 6,453,987 Culture and Recreation 1,178,313
Housing 2,051,269 2,282,435 1,883,479 2,298,345
Capital outlay 13,306,766 12,836,513 16,402,343 17,408,895 Debt service:
Principal repayment 1,710,214 17,866,047 1,906,000 2,149,564 Interest and fiscal charges 1,431,642 2,398,072 791,566 1,128,676 Total Expenditures 114,329,612 128,335,693 121,342,084 131,462,170 Excess (deficiency) of revenues ove
r
(under) expenditures 3,990 (4,148,132) 8,336,138 4,877,514 Other Financing Sources (Uses)
Contribution from (to) other entities
Transfers in 13,236,792 19,087,597 18,842,178 20,777,712 Transfers (out) (14,172,654) (19,626,956) (19,093,145) (22,913,024) Sale of capital assets
Payment to escrow agent
Bond issuance premium (discount) on debt 512,838
Issuance of long-term debt 18,620,000 3,000,000
Total other financing sources (uses) (935,862) 18,593,479 (250,967) 864,688 Extraordinary item 1,007,196
Net Change in fund balances (931,872)$ 14,445,347$ 9,092,367 $ 5,742,202$ Debt service as a percentage of
noncapital expenditures 2.9% (a) 17.6% (a) 2.5% (a) 2.6% (a) NOTE:
(a) Calculation of percentage only includes non-capitalized expenditures that is not being reflected on the capital outlay line.
(b) The City implemented a new ERP system in fiscal year 2022 and revised the presentation of certain departmental activity.
Source: City Finance Department
182
2017 2018 2019 2020 2021 2022
45,651,646$ 48,681,491$ 52,452,829$ 56,775,439$ 63,421,779$ 64,823,204$ 38,995,559 43,717,400 48,515,927 48,919,948 54,861,864 62,205,185 5,353,671 5,435,030 5,824,270 6,790,077 7,036,885 7,047,477 750,446 4,452,877 8,377,385 2,362,622
13,461,497 20,936,253 17,541,700 26,662,943 28,373,176 16,029,558 19,328,754 18,586,442 12,671,775 13,859,317 13,047,885 14,764,505 1,141,664 1,235,816 1,180,423 1,121,348 882,204 936,837 18,876,427 19,512,445 21,843,012 24,354,283 16,928,549 19,307,468 4,920,412 2,362,537 1,314,287 3,987,166 2,052,715 546,523 147,729,630 160,467,414 162,094,669 186,923,398 194,982,442 188,023,379 21,770,743 26,765,743 23,865,017 16,398,248 16,265,961 7,825,555 30,853,005 38,367,994 33,970,893 34,337,435 34,404,813 37,353,571 30,652,703 37,809,548 35,153,085 36,280,599 38,153,099 40,741,898 4,918,684 5,452,709 5,384,542 5,782,721 6,960,509 11,399,139 18,077,608 17,180,357 16,544,318 15,803,663 16,994,640 13,721,444 11,148,382 (b)
4,857,264 (b)
7,807,306 (b)
6,382,003 7,584,297 8,522,259 9,521,485 9,053,756 (b) (b) 1,955,239 4,056,097 2,828,691 3,941,148 5,392,053 (b)
22,147,962 28,835,746 25,675,554 47,389,700 25,874,682 23,162,135 1,957,436 2,153,966 7,131,495 2,311,954 2,490,674 2,724,662 1,163,030 1,229,634 1,335,732 998,964 784,811 875,892
139,878,413 169,436,091 160,411,586 172,765,917 156,374,998 161,617,248 7,851,217 (8,968,677) 1,683,083 14,157,481 38,607,444 26,406,131 24,650,200 29,546,528 33,127,183 55,347,106 57,442,538 26,397,850 (22,300,789) (27,133,187) (31,436,709) (53,372,814) (62,979,685) (31,114,821) 1,514,513 12,971,153 16,751,109
4,906,000
3,863,924 15,384,494 23,347,583 1,974,292 (5,537,147) (4,716,971) 11,715,141$ 6,415,817$ 25,030,666$ 16,131,773$ 33,070,297$ 21,689,160$
2.3% (a) 2.2% (a) 5.9% (a) 2.4% (a) 2.3% (a) 2.5% (a)
183
City of Alameda
Basic Revenue Index (BRI)
Calendar Year 2022 Wage Increase (a)
Object Series Revenue Type FY19-20 FY20-21 Value Change % Change 31100 General Fund Property Tax 45,733,246$ 49,310,947 $ 3,577,701 $ 7.82% 31310 Bradley Burns Sales Tax 10,119,901 10,695,541 575,640 5.69% 31600 Property Transfer Tax 15,195,899 18,536,929 3,341,030 21.99% 31400 Utility Users Tax 8,809,355 8,748,859 (60,496) -0.69% 31700 Transient Occupancy Tax 1,952,077 1,996,230 44,153 2.26% TOTALS 81,810,477$ 89,288,506$ 7,478,029$ 9.14% 50% Of Total Increase applicable to Wage Increases 4.57% Minimum/Maximum per MOUs 2.0% to 5.0%
BRI WAGE INCREASE EFFECTIVE JANUARY 4.57%
(a) City's safety groups memoranda of understanding provide for a minimum of 2% and a maximum of 5% wage increase in January 2022.
184
Calendar Year 2023 Wage Increase
FY21-22 Value Change % Change
51,486,500$ 2,175,553 $ 4.41%
11,757,084 1,061,543 9.93%
21,929,943 3,393,014 18.30%
9,011,553 262,694 3.00%
2,555,336 559,106 28.01%
96,740,417$ 7,451,911$ 8.35%
4.17%
1.0% to 2.0%
4.17%
185
City of Alameda
Assessed and Estimated Actual
Value of Taxable Property
Last Ten Fiscal Years
Fiscal Secured Percent Unsecured Percent Total
Year Property Change Property Change Assessed
2013 8,927,046,504$ 0.85% 496,000,269$ -5.45% 9,423,046,773$ 2014 9,472,636,207 6.11% 476,558,073 -3.92% 9,949,194,280 2015 10,074,322,282 6.35% 457,262,328 -4.05% 10,531,584,610 2016 10,688,573,728 6.10% 466,708,505 2.07% 11,155,282,233 2017 11,404,111,189 6.69% 454,198,686 -2.68% 11,858,309,875 2018 12,033,671,681 5.52% 511,300,374 12.57% 12,544,972,055 2019 12,983,045,316 7.89% 560,482,846 9.62% 13,543,528,162 2020 13,948,085,350 7.43% 632,158,585 12.79% 14,580,243,935 2021 14,872,870,275 6.63% 629,020,320 -0.50% 15,501,890,595 2022 15,543,159,035 4.51% 616,058,289 -2.06% 16,159,217,324 NOTE: California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.
Estimated full market information is not available. See the following page for the total direct rate applied to the assessed valuation base for each year.
Source: Alameda County Auditor Controller Office Certificate of Assessed Valuations $0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Billions
Unsecured Property Secured Property
186
City of Alameda
Property Tax Rates
All Direct and Overlapping Governments
Last Ten Fiscal Years
Basic Alameda Oakland
County Unified East Bay EBMUD Unified
Fiscal Wide School Regional Special School Dist. Peralta County Year Levy (a) City Bonds Park District 1 Bonds BART College Go Bond Total 2013 1.0000$ 0.0260$ 0.0553$ 0.0051 $ 0.0068$ 0.0000 0.0043$ 0.0434$ 0.0000 1.1409$ 2014 1.0000 0.0260 0.0534 0.0078 0.0066 0.0000 0.0075 0.0419 0.0000 1.1432 2015 1.0000 0.0250 0.0503 0.0085 0.0047 0.0000 0.0045 0.0412 0.0000 1.1342 2016 1.0000 0.0240 0.1043 0.0067 0.0034 0.0000 0.0026 0.0337 0.0000 1.1747 2017 1.0000 0.0230 0.0967 0.0032 0.0028 0.0000 0.0080 0.0256 0.0000 1.1593 2018 1.0000 0.0225 0.0653 0.0021 0.0011 0.0000 0.0084 0.0310 0.0000 1.1304 2019 1.0000 0.0220 0.0974 0.0057 0.0000 0.0000 0.0070 0.0269 0.0112 1.1702 2020 1.0000 0.0215 0.1036 0.0060 0.0000 0.0000 0.0120 0.0257 0.0108 1.1796 2021 1.0000 0.0215 0.0737 0.0014 0.0000 0.0000 0.0139 0.0452 0.0036 1.1593 2022 1.0000 0.0210 0.0888 0.0020 0.0000 0.1202 0.0060 0.0407 0.0041 1.2888 Source: Alameda County Assessors Office
(a) The City of Alameda is .3331, Alameda County is .3293, Alameda USD is .1956 and other government agencies represent .142 of the basic county wide levy
187
City of Alameda
Principal Property Taxpayers
Current Year and Ten Years Ago
2021-22 2012-13
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
G and I IX Marina Village Office Park LP 379,718,691$ 1 2.35% -$ BRE Alameda I MF Property Owner LLC 242,234,114 2 1.50% MGP XII South Shore Center LLC 227,150,811 3 1.41%
Alameda Multifamily Owner LLC 199,665,618 4 1.24%
SCG Harbor Bay Parkway Phase I LLC 150,105,365 5 0.93%
Catellus Alameda Retail LLC 110,825,917 6 0.69%
Abbott Laboratories Inc 73,963,355 7 0.46% 32,570,000 9 0.35% Alameda Block 9 LP 67,291,168 8 0.42%
VUE Alameda Owner LP 65,872,628 9 0.41%
CP VI Admirals Cove LLC 62,087,769 10 0.38%
Legacy Partners I Alameda LLC 210,468,676 1 2.23%
KW Alameda LLC 93,704,525 2 0.99%
Jamestown Harsch Alameda Towne Centre 79,150,291 3 0.84% Amstar - 105, LLC 63,350,395 4 0.67%
Wind River Systems Inc 62,357,304 5 0.66%
SKS Harbor Bay Associates LLC 42,091,031 6 0.45%
Peet's Operating Company 39,788,459 7 0.42%
SRM Marina Investors LLC 33,287,601 8 0.35%
CREA Bridgeside LLC 31,749,208 10 0.34%
Subtotal 1,578,915,436$ 9.77% 688,517,490$ 7.31% Total Net Assessed Valuation:
Fiscal Year 2020-21 16,159,217,324$
Fiscal Year 2011-12 9,423,046,773$
Source: Alameda County Assessor Fiscal Year Combined Tax Rolls.
2.35%
1.50%
1.41%
1.24%
0.93%
0.69%
0.46%
0.42%
0.41%
0.38%
90%
Current Year Taxpayers
G and I IX Marina Village Office Park LP
BRE Alameda I MF Property Owner LLC
MGP XII South Shore Center LLC
Alameda Multifamily Owner LLC
SCG Harbor Bay Parkway Phase I LLC
Catellus Alameda Retail LLC
Abbott Laboratories Inc
Alameda Block 9 LP
VUE Alameda Owner LP
CP VI Admirals Cove LLC
Others
188
City of Alameda
Property Tax Levies and Collections
Last Ten Fiscal Years
#
#
#
Percent
of Total
Current Percent Delinquent Total Tax
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Levy (a) Collections Collected Collections (a) Collections to Tax Levy 2013 30,299,428$ 30,299,428 $ 100% - $ 30,299,428$ 100% 2014 31,960,530 31,960,530 100% - 31,960,530 100%
2015 34,093,132 34,093,132 100% - 34,093,132 100%
2016 36,292,959 36,292,959 100% - 36,292,959 100%
2017 36,090,128 36,090,128 100% - 36,090,128 100%
2018 38,726,740 38,726,740 100% - 38,726,740 100%
2019 42,037,930 42,037,930 100% - 42,037,930 100%
2020 45,733,246 45,733,246 100% - 45,733,246 100%
2021 49,310,946 49,310,946 100% - 49,310,946 100%
2022 51,486,500 51,486,500 100% - 51,486,500 100%
Source: City of Alameda Records
NOTE: Current tax collections beginning in 1993 have been reduced by a mandatory tax reallocation imposed by the State of California
(a) During fiscal year 1995, the County began providing the City 100% of its tax levy under an agreement (Teeter Plan) which allows the County to keep all interest and delinquency charges collected.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
$5.5
$6.0
2013 2014 2015
Millions
Total Tax Levy (a) Tax Collections
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Tax Collections
189
City of Alameda
Alameda Municipal Power
Electric Operating Revenues by Source
Last Ten Fiscal Years
Sales of Electricity
Fiscal Commercial Commercial Street Lighting/ Miscellaneous Plant Lease & GHG/C&T/LCFS Year Residential Small Medium Municipal Othe r Services Jobbing Sales Related Sales Total 2013 18,781,411$ 24,967,214 $ 4,552,958 $ 1,779,313 $ 623,308 $ 666,112 $ 390,500$ 4,283,423$ 56,044,239$ 2014 18,974,096 25,554,219 4,088,510 1,859,914 660,902 773,677 843,737 6,938,783 59,693,838 2015 18,849,656 25,660,869 3,435,518 2,047,549 797,198 742,071 402,567 6,824,069 58,759,497 2016 19,869,104 27,071,358 4,278,240 1,973,689 1,028,631 947,765 479,791 6,363,950 62,012,528 2017 21,510,126 27,177,335 4,366,885 1,958,154 913,248 1,275,191 1,177,119 5,071,175 63,449,233 2018 23,902,788 28,500,186 4,338,898 1,965,664 793,870 1,146,507 519,200 3,435,082 64,602,195 2019 24,414,010 28,354,299 4,580,711 2,225,142 1,453,471 510,524 1,380,846 4,159,358 67,078,362 2020 25,933,443 29,341,107 5,069,275 2,238,296 149,514 362,644 1,062,614 2,909,457 67,066,350 2021 27,946,417 26,015,342 5,845,303 2,058,753 320,052 284,931 1,778,194 2,296,903 66,545,895 2022 26,375,111 26,584,210 5,230,140 2,455,536 15,350 499,947 2,973,677 2,165,206 66,299,177 Kilowatt- Hour Sales
Fiscal Commercial Commercial Street Lighting/ Total Peak Year Residential Small Medium Municipal Othe r KWH Demand (KW) 2013 135,924,914 176,259,228 35,487,830 12,585,314 3,186,846 363,444,132 68,100 2014 131,209,422 175,075,476 31,951,900 12,537,513 3,138,994 353,913,305 69,308 2015 125,431,220 174,257,771 26,587,830 12,809,590 3,116,374 342,202,785 63,372 2016 125,831,929 176,575,883 31,490,040 12,375,517 2,546,494 348,819,863 64,283 2017 126,850,402 172,520,353 30,127,960 11,428,198 2,838,825 343,765,738 63,738 2018 124,589,523 168,873,305 28,321,180 10,723,565 2,518,330 335,025,903 59,624 2019 125,510,907 164,807,447 28,712,440 11,064,274 2,034,011 332,129,079 54,362 2020 129,591,566 166,745,235 31,301,090 11,539,236 2,605,615 341,782,742 61,990 2021 138,607,950 146,664,721 35,641,270 10,470,953 2,548,136 333,933,030 62,664 2022 130,100,333 150,731,047 31,576,810 12,536,267 1,763,268 326,707,725 60,551 2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Fiscal Year
ELECTRIC OPERATIONS
Residential Commercial Small Commercial Medium Municipal & Street Lighting Miscellaneous & Other GHG/C&T/LCFS Related Sales 190
City of Alameda
Alameda Municipal Power
Customer Accounts
Last Ten Fiscal Years
Number of Electric Customer Accounts: Street Total
Fiscal Commercial Commercial Commercial Lighting Customer Year Residential Small Medium Large Municipal & Other Accounts 2013 30,260 3,538 243 9 343 12 34,405
2014 30,281 3,521 271 8 350 12 34,443
2015 30,307 3,558 276 8 365 11 34,525
2016 30,470 3,425 280 8 354 11 34,548
2017 30,495 3,437 327 12 365 18 34,654
2018 30,798 3,577 321 12 373 13 35,094
2019 30,650 3,479 303 7 356 14 34,809
2020 30,872 3,481 294 10 361 18 35,036
2021 31,349 3,627 283 9 378 15 35,661
2022 32,058 3,542 312 11 348 14 36,285
NOTE: Telecommunication operation was sold in November 2008 - 10 year historical data is zero for 2009 onwards Telecommunications* Alameda Point
Fiscal Customer Telephone
Year Cable TV Internet Data Accounts Customer Accounts 2013 - - - 130
2014 - - - 102
2015 - - - 100
2016 - - - 88
2017 - - - 79
2018 - - - 66
2019 - - - 59
2020 - - - 58
2021 - - - 61
2022 - - - 57
*Telecommunication operation was sold in November 2008
33,000
33,500
34,000
34,500
35,000
35,500
36,000
36,500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022F
ISCAL YEAR
Customer Accounts as of June 30,
Electric Customers Alameda Point Phone Customers Telecom Customers 191
City of Alameda
Alameda Municipal Power
Pricing Changes
Last Ten Fiscal Years
Electric Rate Changes
Percent
Date Change
July 1, 2013 3.25%
July 1, 2014 2.00%
July 1, 2015 4.60%
July 1, 2016 5.00%
July 1, 2017 5.00%
July 1, 2018 1.00%
July 1, 2019 2.50%
July 1, 2020 0.00%
July 1, 2021 0.00%
July 1, 2022 5.00% (Fiscal Year 2023)
192
City of Alameda
Alameda Municipal Power
Top 10 Customers
For the Fiscal Year Ended June 30, 2022
2022 Percent of Percent of
System System
No. Customer Type of Business KWHS Total Revenues Total 1 U.S. Coast Guard Regulation, Admin. of Transportation 17,527,415 5.36% 2,700,461 $ 4.45% 2 City Of Alameda Local Government 4,808,664 1.47% 958,777 1.58% 3 Safeway Inc. Grocery Retailer 6,118,568 1.87% 943,833 1.56% 4 Penumbra, Inc. Medical Devices Developer/Manufacturer 5,250,288 1.61% 839,468 1.38% 5 Maritime Administration Regulation, Admin. of Transportation 5,311,805 1.63% 823,434 1.36% 6 Alameda Unified School District Public School District 4,614,761 1.41% 784,900 1.29% 7 Alameda Commercial Properties Real Estate Management 4,122,000 1.26% 763,553 1.26% 8 Peets Coffee & Tea Coffee Roaster and Retailer 4,205,320 1.29% 698,449 1.15% 9 Wind River Systems Inc. Computer Programming Services 3,906,901 1.20% 637,059 1.05% 10 College of Alameda Community college of City of Alameda 3,296,880 1.01% 525,498 0.87% Top 10 Customers KWHS 59,162,602 18.11% 9,675,432 $ 15.95% Total Kilowatt Hour Sales System Totals 326,707,725 100% 60,660,347 $ 100% 193
City of Alameda
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Certificates General
Fiscal of Obligation Revenue Loans &
Year Participation Bond Bonds Lease Purchases Total
2013 10,700,000$ 8,925,000$ 11,700,000$ 11,440,764$ 42,765,764$ 2014 11,855,000 9,010,000 11,400,000 10,963,100 43,228,100 2015 10,930,000 8,610,000 11,000,000 10,995,218 41,535,218 2016 9,960,000 8,270,000 10,600,000 15,807,781 44,637,781 2017 9,210,000 7,925,000 10,200,000 14,812,439 42,147,439 2018 8,736,269 7,634,770 9,800,000 13,642,297 39,813,336 2019 7,905,750 7,264,303 9,400,000 12,427,012 36,997,065 2020 7,045,231 6,878,836 9,000,000 11,388,194 34,312,261 2021 6,149,712 6,483,369 8,600,000 10,253,070 31,486,151 2022 5,214,193 6,072,902 8,100,000 9,030,104 28,417,199 Business-Type Activities
COPS & Total Percentage
Fiscal Revenue Loans & Primary of Personal Per
Year Bonds Lease Purchases Total Government Income (a) Capita (a) 2013 14,715,000$ 2,956,277$ 17,671,277$ 60,437,041$ 2.14% 804.48$ 2014 14,465,000 2,542,379 17,007,379 60,235,479 1.77% 788.29 2015 14,190,000 2,033,841 16,223,841 57,759,059 1.87% 760.38 2016 13,905,000 1,616,170 15,521,170 60,158,951 1.88% 758.84 2017 13,615,000 1,187,296 14,802,296 56,949,735 1.66% 712.51 2018 37,472,390 (b) 746,920 38,219,310 78,032,646 2.21% 989.47 2019 35,878,793 (b) 448,878 36,327,671 73,324,736 1.98% 924.46 2020 34,160,196 (b) 291,527 34,451,723 68,763,984 1.80% 845.68 2021 32,356,599 (b) 196,836 32,553,435 64,039,586 1.55% 791.75 2022 30,468,002 (b) 99,682 30,567,684 58,984,883 1.34% 758.32 NOTE: Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources: City of Alameda
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) See the Demographic Statistics for personal income and population data. (b) Includes Alameda Municipal Power debt balances beginning in fiscal year 2018.
Prior year amounts have not been restated
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(in Thousands)
Total Governmental Total Business
194
City of Alameda
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Less Cash and Percentage o f
General Plus Investments Net Actual Taxable
Fiscal Certificates o f Obligation Unamortized Restricted fo r Bonds Value of Per Year Participation Bond Bond Premium Repayment of Debt Outstanding Property Capita 2013 10,700,000$ 8,925,000 $ - $ -$ 19,625,000$ 0.21% 261.23 2014 11,855,000 9,010,000 490,790 - 21,355,790 0.21% 279.48 2015 10,930,000 8,610,000 459,812 - 19,999,812 0.19% 263.29 2016 9,960,000 8,270,000 428,011 - 18,658,011 0.17% 235.35 2017 9,210,000 7,925,000 397,025 - 17,532,025 0.15% 219.35 2018 8,435,000 7,570,000 366,039 (930,503) 15,440,536 0.12% 195.79 2019 7,630,000 7,205,000 335,053 (978,478) 14,191,575 0.10% 178.92 2020 6,795,000 6,825,000 304,067 (978,860) 12,945,207 0.09% 159.20 2021 5,925,000 6,435,000 273,081 (1,032,965) 11,600,116 0.07% 143.42 2022 5,015,000 6,030,000 242,095 (1,019,139) 10,267,956 0.06% 132.01 Source: City of Alameda Finance Department
$0
$50
$100
$150
$200
$250
$300
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Ended June 30
General Bonded Debt Outstanding
Per Capita
195
City of Alameda
Computation of Direct and Overlapping Debt
June 30, 2022
2020-21 Assessed Valuation: $16,159,217,324
Total Debt City's Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/21 % Applicable (a) Debt 6/30/21 Alameda County $183,745,000 4.662% 8,566,192$
Bay Area Rapid Transit District 2,521,570,000 1.816% 45,791,711 Peralta Community College District 399,220,000 12.663% 50,553,229 Alameda Unified School District 192,268,516 100.00% 192,268,516 East Bay Regional Park District 184,590,000 2.900% 5,353,110 City of Alameda 6,030,000 100.00% 6,030,000
City of Alameda Facilities District No. 13-1 37,215,000 100.00% 37,215,000 TOTAL NET DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 345,777,758$ (b) DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Alameda County and Coliseum Authority General Fund Obligations $742,688,000 4.662% 34,624,115 $ Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 5.520% 643,356 Peralta Community College District Pension Obligations 128,004,633 12.663% 16,209,227 Alameda Unified School District General Fund Obligations 5,062,000 100% 5,062,000 City of Alameda General Fund Obligations 10,473,103 100% 10,473,103 (b) TOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT 67,011,800$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $46,190,000 100% 46,190,000$ Total Direct Debt 16,503,103$
Total Overlapping Debt 442,476,456$
COMBINED TOTAL DEBT 458,979,559$ (b)
(a) Percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value.
(b) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.
Ratios to 2021-22 Assessed Valuation:
Direct Debt ($6,030,000) 0.04%
Total Direct and Overlapping Tax and Assessment Debt 2.74% Total Direct Debt ($16,503,103) 0.10%
Combined Total Debt 2.84%
Ratios to Redevelopment Successor Agency Incremental Valuation ($3,210,798,924):
Total Overlapping Tax Increment Debt 1.44%
NOTE: The overlap is calculated based upon information by the City and the County of Alameda. 196
City of Alameda
Computation of Legal Bonded Debt Margin
June 30, 2022
ASSESSED VALUATION:
Secured property assessed value, net of
exempt real property 15,537,748,566 $
BONDED DEBT LIMIT (15% OF ASSESSED VALUE) (a) 2,330,662,285 $ AMOUNT OF DEBT SUBJECT TO LIMIT:
Total Bonded Debt 49,855,097 $
Less:
Revenue Bonds 38,568,002
Certificates of Participation 5,214,193
Amount of debt subject to limit 6,072,902
LEGAL BONDED DEBT MARGIN 2,324,589,383$
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2013 1,413,457,016$ 8,925,000$ 1,404,532,016$ 0.64% 2014 1,478,724,777 9,090,000 1,469,634,777 0.62%
2015 1,510,066,600 8,610,000 1,501,456,600 0.57%
2016 1,602,204,317 8,270,000 1,593,934,317 0.52%
2017 1,709,534,936 7,925,000 1,701,609,936 0.47%
2018 1,804,066,088 7,570,000 1,796,496,088 0.42%
2019 1,946,576,941 7,205,000 1,939,371,941 0.37%
2020 2,091,332,946 6,878,836 2,084,454,110 0.33%
2021 2,230,050,685 6,483,369 2,223,567,316 0.29%
2022 2,330,662,285 6,072,902 2,324,589,383 0.26%
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in being assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
Source: City Finance Department
197
City of Alameda
Sewer Fund Debt Coverage
Last Ten Fiscal Years
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (a) Expenses (b) Debt Service Principal Interest Total Coverage 2013 8,972,123$ 3,748,512 $ 5,223,611 $ 2,571,399 $ 346,976 $ 2,918,375 $ 1.79 2014 10,072,496 3,702,154 5,757,611 250,000 456,319 706,319 8.15 2015 10,011,701 4,475,317 5,536,384 275,000 447,069 722,069 7.67 2016 10,278,327 5,305,530 4,972,797 285,000 438,719 723,719 6.87 2017 10,197,953 4,043,407 6,154,546 290,000 430,069 720,069 8.55 2018 10,671,202 2,973,134 7,698,068 300,000 418,269 718,269 10.72 2019 11,495,009 4,720,299 6,774,710 315,000 405,969 720,969 9.40 2020 12,347,227 3,388,912 8,958,315 375,000 392,169 767,169 11.68 2021 11,694,525 3,897,775 7,796,750 390,000 376,869 766,869 10.17 2022 11,521,715 1,449,047 10,072,668 400,000 363,069 763,069 13.20 NOTE: (a) Includes all Sewer Operating Revenues, Non-operating Interest Revenue, Connection Fees, other Non-operating Revenue (b) Includes all Sewer Operating Expenses, less Depreciation Source: City of Alameda Annual Financial Statements
0.00 1.00
2.00 3.00
4.00 5.00
6.00 7.00
8.00 9.00
10.00 11.00
12.00 13.00
14.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Coverage
198
City of Alameda
Alameda Municipal Power Fund Debt Coverage
Last Ten Fiscal Years
Revenues Not Debt Service Requirements
Available Net Revenue
Fiscal Gross for Operating Available for
Year Revenue (a) Debt Service (b) Expenses (c) Debt Service Principal Interest Total Coverage 2013 57,875,814$ 4,283,423 $ 44,964,882 $ 8,627,509 $ 1,101,205 $ 1,651,892$ 2,753,097$ 3.13 2014 59,861,226 6,938,783 40,809,073 12,113,370 1,129,824 1,617,655 2,747,479 4.41 2015 59,022,915 6,824,069 41,755,514 10,443,332 1,158,581 1,554,056 2,712,637 3.85 2016 63,509,684 6,363,950 47,864,750 9,280,984 1,130,000 1,510,325 2,640,325 3.52 2017 65,735,599 5,071,175 46,926,046 13,738,378 1,170,000 1,461,044 2,631,044 5.22 2018 65,532,532 3,435,082 51,123,219 10,974,231 1,220,000 1,406,364 2,626,364 4.18 2019 69,044,773 4,159,358 55,616,579 9,268,836 1,275,000 1,342,703 2,617,703 3.54 2020 69,124,622 2,909,457 56,426,290 9,788,875 1,340,000 1,273,787 2,613,787 3.75 2021 64,305,751 2,296,903 57,265,781 4,743,067 1,410,000 1,199,156 2,609,156 1.82 2022 66,299,177 2,165,206 49,791,154 14,342,817 1,485,000 1,118,327 2,603,327 5.51 NOTE: (a) Includes all Municipal Power operating revenues, non-operating interest revenue, other non-operating revenue (b) GHG / C&T related sales
(c) Includes all Municipal Power operating expenses, less depreciation and interest Source: City of Alameda Annual Financial Statements
0.00 1.00
2.00 3.00
4.00 5.00
6.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Coverage
199
City of Alameda
Demographic and Economic Statistics
Last Ten Fiscal Years
Total Per Capita Alameda City
Fiscal City Personal Personal Unemployment County Population Year Population Income Income Rate (%) Population % of County 2013 75,126 2,824,096,775$ 37,591$ 6.2% 1,548,681 4.85% 2014 76,413 3,406,033,062 44,574 7.6% 1,578,891 4.83%
2015 75,961 3,092,904,037 40,717 5.1% 1,574,497 4.82%
2016 79,277 3,207,096,000 40,454 4.1% 1,627,865 4.87%
2017 79,928 3,423,524,000 42,832 3.6% 1,645,359 4.86%
2018 78,863 3,529,109,000 44,153 3.3% 1,660,202 4.75%
2019 79,316 3,695,508,000 46,592 2.8% 1,669,301 4.75%
2020 81,312 3,828,228,000 47,080 2.6% 1,670,834 4.87%
2021 80,884 4,118,360,000 50,916 8.5% 1,656,591 4.88%
2022 77,784 4,401,297,000 56,583 5.5% 1,651,979 4.71%
Source: California State Department of Finance
0.00%
2.50%
5.00%
7.50%
10.00%
2013 2014 2015
Unemployment Rate (%)
3.00%
3.20%
3.40%
3.60%
3.80%
4.00%
2013 2014 2015
City Population as a % of County Population
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
2013 2014 2015
Millions
Total Personal Income
$0
$10
$20
$30
$40
$50
$60
$70
2013 2014 2015
Per Capita Personal Income
0.00%
2.50%
5.00%
7.50%
10.00%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Unemployment Rate (%)
4%
5%
6%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Population % of County
1,480
1,500
1,520
1,540
1,560
1,580
1,600
1,620
1,640
1,660
1,680
Thousands
Alameda County Population
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Per Capita Personal Income
200
City of Alameda
Principal Employers
Current Year and Nine Years Ago
2021-22
2012-13
Principal Employers by Alphabetical Order Principal Employers by Alphabetical Order Celera Alameda Hospital
Exelixis Alameda Unified School District
Glycosan Biosystems Associated Third Party Administration Health Diagnostics Bay Ship & Yacht Co
PA Acquisition Corp Celera Corp
Penumbra, Inc. City of Alameda
Telecare Corp Marriott
UTStarcom Inc. The North Face
Voxify USCG Base Alameda
Wind River Systems VF Outdoor
Sources: City of Alameda Finance Department
201
City of Alameda
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
General Government 48.55 43.00 39.35 40.62 50.47 51.97 44.70 47.75 48.75 54.00 Public Safety 224.00 227.00 226.00 229.00 229.00 233.00 233.00 239.00 239.00 241.00 Public Works 57.95 60.00 68.90 70.65 62.90 62.40 73.75 74.75 74.75 82.00 Community Development (a) 36.50 36.00 35.75 41.00 41.38 43.38 40.30 40.25 41.25 43.00 Community Services (b) 40.00 40.00 41.00 39.98 41.00 43.00 43.00 46.00 48.00 52.00 Alameda Municipal Power 90.00 93.50 93.50 96.75 96.25 97.25 98.25 95.25 95.25 94.25 Total 497.00 499.50 504.50 518.00 521.00 531.00 533.00 543.00 547.00 566.25 NOTE:
(a) Community Development includes Planning, Building and Transportation (b) Community Services includes Library and Recreation
Source: City of Alameda
0 0.2
0.4 0.6
0.8 1
1 FTE's
General Government Public Safety
Public Works Community Development (a)
Community Services (b) Alameda Municipal Power
#REF! #REF!
0 100
200
300
400
500
600
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
FTE's
General Government Public Safety Public Works
Community Development (a) Community Services (b) Alameda Municipal Power 202
City of Alameda, California
People and Places in the City
City of Alameda
Operating Indicators by Function/Program
Last Ten Fiscal Years
2013 2014 2015 2016
General Information
Area in square miles 22.7 22.7 22.7 22.7
Number of registered voters 44,444 44,271 44,006 46,055 Number of Hospitals 11 11
Education:
Student enrollment 10,836 8,975 9,552 9,455
Elementary schools 11 10 10 10
Junior high schools 32 22
High schools 44 33
Continuation schools 11 11
Independent study 11 11
Teachers (full & part time) 381 613 549 626
Function/Program
Fire:
Fire calls for service 6,523 6,314 6,439 6,860
Primary fire inspections conducted 1,414 1,311 1,444 1,617 Police:
Police calls for Service 70,360 75,920 69,347 74,517
Law violations:
Part I and Part II crimes 4,582 4,957 4,383 4,494
Physical arrests (adult and juvenile) 2,396 2,583 2,332 2,127 Traffic violations 28,793 10,754 8,507 8,334
Sewer
Storm drain inlets 2,300 2,951 2,951 2,951
Sewer service connections 20,590 19,432 19,454 19,454
Solid Waste
Refuse Landfill (tons per year) 31,181.00 26,298.98 26,139.00 28,742.07 Recyclables Processed (tons per year) 18,240.00 10,682.52 22,859.00 17,016.32 Fiscal Years
204
2017 2018 2019 2020 2021 2022
22.7 22.7 22.7 22.7 22.7 22.7
48,074 47,367 49,036 52,339 50,162 50,108
1 111 11
9,481 9,502 9,380 9,504 9,952 8,981
10 999 99
2 444 44
4 444 44
1 111 11
1 111 11
713 610 686 548 531 502
7,410 7,378 7,027 7,274 6,990 7,963
1,058 1,814 1,685 1,071 903 1,873
67,832 68,074 74,369 67,141 51,259 60,615
4,638 5,133 4,816 4,814 4,487 5,135
2,024 1,674 1,370 1,249 776 1,002
9,058 7,807 6,248 4,486 569 3,655
2,951 2,951 4,914 4,914 4,994 4,969
19,454 19,454 19,926 19,965 21,164 21,235
28,420.00 27,170.35 27,240.21 25,858.95 25,648.18 26,580.71 24,303.00 24,736.97 25,309.57 24,754.42 25,886.59 24,947.21 Fiscal Years
205
City of Alameda
Operating Indicators by Function/Program
Last Ten Fiscal Years
(Continued)
2013 2014 2015 2016
Planning & Building:
Number of Building Permits issued 4,314 4,286 4,038 4,018 Recreation and Parks (b):
Youth & Teens:
Number of youth programs (c) 239 251 278 277
Number of youth attendees 146,191 34,121 32,259 29,920
Seniors:
Number of senior programs 125 144 164 177
Number of senior attendees 145,795 144,607 148,520 137,143 Number of meals served 7,053 6,860 6,620 3,021
Library:
Volumes in Collection (thousands) 211 211 214 215
Total Volumes Borrowed (thousands) 550 510 476 456
Finance:
Number of Business Licenses issued 8,700 5,563 5,553 5,169 Alameda Municipal Power:
Number of electric customers 34,405 34,482 34,525 34,494 Number of kilowatt hours sold 363,444,132 353,913,305 342,202,785 348,819,863 Reliability rate 99.99 - (a) - (a) - (a)
Source: City of Alameda
NOTES: (a) AMP no longer compiled this data as of FY 2013 (b) Programs and participants lower due to pandemic. Senior Center was closed and adult/youth drop-in programs cancelled.
(c) Starting in 2021, the department is more accurately accounting for programs. For example, summer camp is not one program, rather each program site and each summer camp week is counted as distinct.
Fiscal Years
206
2017 2018 2019 2020 2021 2022
3,677 3,832 3,722 3,401 3,734 4,255
268 299 625 625 868 770
22,603 23,750 41,108 41,108 14,168 13,285
216 233 272 272 114 125
136,092 131,213 113,838 113,838 21,156 51,988
5,340 5,963 5,472 5,472 7,575 9,809
219 219 139 221 219 222
392 424 403 362 234 493
6,068 6,948 7,168 8,846 6,279 8,357
34,648 34,790 35,396 36,067 36,201 35,728
343,765,738 335,025,903
332,129,079 341,782,742 333,933,030 326,402,131
- (a) - (a) - (a) - (a) - (a) - (a)
Fiscal Years
207
City of Alameda
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Years
2013 2014 2015 2016
Function/Program
Fire:
F i r e s t a t i o n s 4444
Police:
P o l i c e s t a t i o n s 1111
Public works:
Miles of streets 145 140 140 138
Miles of bike lanes 15 13 15 15
Miles of on-street bikeways
Miles of shared-use or separated bike/ped trails
Street and parking lot fixtures
Traffic Signals 82 87 87 87
Wastewater
Miles of sanitary sewers 165 150 150 143
Miles of storm sewers 41 70 70 70
Recreation and Parks:
City parks 33 33 32 32
City parks acreage 155 155 152 152
Playgrounds 7 7 12 12
City trails/Bike paths (a) 13 13 13 13
Community centers 13 13 13 13
S e n i o r c e n t e r s 1111
Swimming pools (b) 5522
Tennis/pickleball courts (c) 19 19 16 16
Baseball/softball grass fields 18 18 18 18
M u l t i p u r p o s e g r a s s f i e l d s ( d ) 3333 Synthetic Turf Multi-Purpose Field
Synthetic Turf Challenger Baseball Field
Golf Course (e)
Library:
C i t y L i b r a r i e s 3333
Alameda Municipal Power:
Miles of lines 267 269 263 263
Street lights 5,315 5,372 5,441 5,470
Source: City of Alameda
NOTE: (a) Every park has asphalt trails throughout. There are few distinct and separated trails/paths in parks. (b) Owned by the City but operated and maintained by Alameda Swimming Pool Association. (c) Includes 4 pickleball courts that were not new, but were not included prior to 2021. (d) 7 multipurpose (soccer, football, lacrosse, etc.) fields in City Parks, plus 5 owned by the City at Alameda Point, but operated and maintained by Alameda Soccer Club. (e)
45-hole golf complex owned by City but operated and maintained by Greenway Golf.
Includes separate concession agreement for onsite restaurant with Jim's on the Course Not a new facility, but included starting in 2021 to more accurately account for park facilities. (f) Street lights were transferred to Public Works per voter approval on November 2016 ballot. 208
2017 2018 2019 2020 2021 2022
4444 4 4
1111 1 1
120 125 125 125 125 147
26 28 49 31 50 19
35 18
6,342 6,609 6,609 6,800 6,850
86 87 86 86 89 90
143 142 142 142 142 142
126 126 126 126 126 126
32 32 35 35 35 36
152 152 192 192 204 206
12 12 13 13 15 16
13 13 14 14 N/A N/A
13 13 13 13 15 15
1111 1 1
2222 2 2
16 16 16 16 20 20
18 18 18 18 18 18
3333 1 11 1
11 1 1
11 1 1
11 3333 3 3
264 273 273 280 282 286
5,470 (f) (f) (f) (f) (f)
209
City of Alameda, California
People and Places in the City
City of Alameda, California
People and Places in the City
City of Alameda, California
People and Places in the City
City of Alameda, California
People and Places in the City