CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
EXHIBIT 5
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CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
Table of Contents
Page
Independent Auditor’s Report .......................................................................................... 1 Financial Statements:
Balance Sheets ............................................................................................................... 4 Statements of Revenues, Expenditures, and Changes in Fund Balances ...................... 5 Notes to the Financial Statements ................................................................................. 7 Independent Auditor’s Report on Internal Control
Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .............................. 11 Independent Auditor’s Report on Measure BB Compliance ...................................... 13 This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Alameda, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial stat ements of the Alameda County Transportation Commission Measure BB Program (Measure BB Program) of the City of Alameda (City), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, as listed in the Table of Contents.
In our opinion, the financial statemen ts referred to above present fair ly, in all material respects, the respective financial position of the Measure BB Program as of June 30, 2025, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing sta ndards 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 Stat es. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be inde pendent 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 opinion.
Emphasis of a Matter
As discussed in Note 1, the financial statements present only the Measure BB Program and do not purport to, and do not present fairly the financial position of the City as of June 30, 2025, the changes in the financial position, or where applicable, its cash flows for the year then ended in accordance to accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fa ir presentation of these financial statements in accordance with accounting principles generally accep ted 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.
1 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise su bstantial doubt about the Measure BB Program’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance ab out whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conduc ted 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 re sulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment ma de 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 misstate ment of the financial statements, whether due to fraud or error, and design and perform audit procedures respon sive to those risks. Suc h
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of inte
rnal control relevant to the a udit in order to design audit procedures that are appropriate in the circumst ances, but not for the purpose of expressing an opinion on the effectiveness of the City’s inte rnal control as it relates to the Measure BB Program. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by ma nagement, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant au dit findings, and certain internal control-related matters that we identified during the audit.
2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued ou r report dated December 31, 2025, on our consideration of the Ci ty’s internal control over financia l reporting as it relates to the Measure BB Program and on our tests of its complian ce 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 effectiv eness of the City’s internal control over financial reporting or on compliance as it relates to the Measure BB Program. 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 as it relates to the Measure BB Program.
Pleasant Hill, California
December 31, 2025
3 CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
BALANCE SHEETS
JUNE 30, 2025
Local Streets Bicycle and
Paratransit and Roads Pedestrian Total
ASSETS
Cash and investments 627,861 $ 2,973,895 $ 632,601 $ 4,234,357 $ Direct local distribution program receivable - Measure BB 91,271 862,635 92,529 1,046,435 TOTAL ASSETS 719,132$ 3,836,530 $ 725,130 $ 5,280,792 $
FUND BALANCES
Restricted for Measure BB Programs 719,132$ 3,836,530 $ 725,130 $ 5,280,792 $ TOTAL FUND BALANCES 719,132$ 3,836,530 $ 725,130 $ 5,280,792 $ See Accompanying Notes to the Financial Statements.
4 Local Streets Bicycle and
Paratransit and Roads Pedestrian Total
REVENUES
Measure BB direct local distribution funds allocation 520,247$ 4,917,028$ 527,410$
5,964,685$
Interest income 44,309 333,661 47,142 425,112
Changes in fair value 9,434 78,866 9,680 97,980
Total Revenues 573,990 5,329,555 584,232 6,487,777
EXPENDITURES
Planning and engineering 377,951 974,490 347,491 1,699,932 Transportation and construction 346,707 7,758,722 444,433 8,549,862 Total Expenditures 724,658 8,733,212 791,924 10,249,794 NET CHANGE IN FUND BALANCES (150,668)
(3,403,657) (207,692)
(3,762,017)
FUND BALANCES
Beginning fund balances 869,800 7,240,187 932,822 9,042,809 Ending fund balances 719,132$ 3,836,530$ 725,130$ 5,280,792$ See Accompanying Notes to the Financial Statements.
CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2025
MEASURE BB FUNDS
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CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
A. Description of Reporting Entity
Under Measure BB, approved by the voters of Alam eda County in November 2014, the City of Alameda (City) receives a one-half percent sales tax to be used for local transportation-related expenditures. The duration of the tax will be 30 y ears from the initial year of collection, whic h began on April 1, 2015 and will expire on Marc h 31, 2045. The voters also extended the Measure B one-half percent sales tax to 2045. This resulted in a total of one percent sales tax in Alameda County dedicated to transportation expenditures.
B. Basis of Presentation
The Measure BB Program has been accounted for in a special revenue fund, which is a governmental fund type and is included in the City's basic financial statements as a nonmajor governmental fund. Special revenue funds are used to account for proceeds of specific revenues that are legally restricted to be expended for specified purposes.
The financial statements do not purport to, and do not, present the financial position or changes in financial position of the City. The projects represent a portion of th e activities of the City and, as such, are included in the City's basic financial statements.
C. Basis of Accounting
The accompanying financial statements are prepared on the modified accrual basis of accounting.
Revenues are recorded when meas urable and available.
The City considers all revenues reported
in the governmental funds to be available if the revenues are generally collected within sixty days after year-end. Expenditures are recorded when the related liabilities are incurred.
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds ar e accounted for using a “current financial resources” measurement focus, wherein only curre nt assets and current liabilities generally are included on the balance sheets. Operating statemen ts of governmental funds presents increases (revenues and other financing sources) and decreas es (expenditures and other financing uses) in net current assets.
D. Deferred Inflows of Resources
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 reso urces (revenue) until that time. This amount is deferred and recognized as an inflow of reso urces in the period th at the amount becomes available.
7 CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (Continued)
E. Fund Balance
Measure BB Program fund balance is restricted. A restricted fund balance represents amounts that can be spent only for specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions ma y effectively be changed or lifted only with the consent of resource providers.
When an expenditure is incurred for purposes for which both re stricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first.
F. Use of Estimates
Management uses estimates a
nd assumptions in preparing the financial statements. Thos e estimates and assumptions affect the reported am ounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources, the disclosures of contingent assets and liabilities, and the reported revenues and expenditures. Actual results could differ from those estimates.
NOTE 2 – CASH AND INVESTMENTS
Cash and investments represent the Measure BB Program’s share of the City’s Treasury pool. All of the Measure BB Program’s cash and investments ar e deposited in the City’s Treasury pool as described in the City’s Annual Comprehensive Financial Report, which can be obtained from the City’s Department of Finance. The pool is un rated. Investments in the pool are made in accordance with the City’s investment policy as approved by the City Council. Investments are stated at fair value. However, the value of the pool shares in the City’s Treasury pool that may be withdrawn is determined on an amortized cost basi s, which is different from the fair value of the Measure BB Program’s position in the pool. Inte rest earned from time deposits and investments is allocated annually to the Program’s based on the average monthly cash balance. The Measure BB Program’s proportionate share of investments in the City’s Treasury pool on June 30, 2025 of $4,234,357, which is not subject to the fair value hierarchy.
NOTE 3 – MEASURE BB DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES
The Measure BB Direct Local Distribution Program Receivables represent the Measure BB sales tax revenues for the fiscal year received from
the Alameda County Transportation Commission
after June 30, 2025.
8 CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 4 – MEASURE BB FUNDS
Under Measure BB, approved by the voters of Al ameda County in 2014, the City receives a portion of the proceeds of an ad ditional one-half cent sales tax to be used for transportation- related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures prev iously paid for by property taxes but, rather, would be used for additiona
l projects and programs.
Alameda County Transportation Commission (ACTC) distributes Measure BB funds to the City of Alameda for local street maintenance and safe ty; bicycle and pedestrian paths and safety; and for Paratransit for seniors and people with disabilities.
Local projects funded by Measure BB revenues r eceived during fiscal year 2024-25 were as follows:
Paratransit – $520,247 includes funding the costs of transportati on services for paratransit and seniors.
Local Streets and Roads – $4,917,028 pass-throug h allocation for the funding of the following Streets and Roads projects:
- Sidewalks - Multi-Model Project
- Pavement Management - Safe Routes to School
-
Central Avenue Safety Improvements - Lincoln Marshal Safety Improvements - Traffic Signal and System - Shoreline – Posey/ Webster Tunnel - Signs, Pavement Markings - Street Safety
- Active Transport Implementation - Clement Ave Cat – Grant to Broadway - Clement & Tilden Way Complete Streets
Bicycle and Pedestrian – $527,410 includes fu
nding for the Multi-Model Project, Cross Alameda
Trail Connectors, Clement Ave Cat – Grant to Broadway, and West End Bicycle Pedestrian Crossing.
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INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Alameda, California
We have audited, in accordance w ith the auditing standards generall y 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 th e United States, the financial statements of the Alameda County Transportation Commission Measure BB Program of the City of Alameda (City), California, as of and for the year ended June 30, 2025, and have issued our report thereon dated Decem ber 31, 2025. Our report included an emphasis of a matter paragraph stating that the financial statements of the Measure BB Program do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as it relates to the Measure BB Program as a basis for designing audit procedures that are appropriate in the circumst ances for the purpose of ex pressing our opinions on the financial statements, but not fo r the purpose of expressing an op inion on the effectiveness of the City’s internal control as it relates to the Measure BB Program. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control as it relates to the Measure BB Program.
A deficiency in internal control exists when the design or oper ation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatemen ts on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Measure BB Program’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important en ough to merit attention by those charged with governance.
Our consideration of internal control was for the lim ited purpose described in the first paragraph of this section and was not designed to identify all deficien cies in internal control that might be material weaknesses or significant deficiencies. Given these li mitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. 11 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financ ial statements of the Measure BB Program are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, c ontracts, and grant agreements, nonc ompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, an d accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testin g of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance as it relates to the Measure BB Program. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance as it relates to the Measure BB Program. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
December 31, 2025
12 INDEPENDENT AUDITOR'S REPORT
ON MEASURE BB COMPLIANCE
To the Honorable Members of the City Council
City of Alameda, California
Report on Compliance for Measure BB Program
Opinion on Compliance for Measure BB Program
We have audited the City of Alameda’s (City’s) compliance with the requirements of laws, regulations,
contracts, and grants specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission (Funding Ag reement) that could have a direct and material effect on the Alameda County Transportation Commis sion Measure BB Program for the year ended June 30, 2025.
In our opinion, the City complied, in all material respects, with th e types of compliance requirements referred to above that could have a direct and materi al effect on Measure BB Program for the year ended June 30, 2025.
Basis for Opinion on the Measure BB Program
We conducted our audit of complian ce in accordance with auditing stan dards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller Ge neral of the United States ( Government Auditing Standards), and requirements specified in the Funding Agreement. Our responsibilities under those standards are further described in the Auditor’s Resp onsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our au dit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on co mpliance for the Measure BB Program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Measure BB Program.
13 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assuran ce about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance base d on our audit. Reasonable assura nce is a high level of assurance but is not absolute assurance and therefore is not a gu arantee that an audit condu cted in accordance with GAAS, Government Auditing Standards and requirements specified in the Funding Agreement will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resultin g from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the ove rride of internal control. Noncompliance with the compliance requirements referred to ab ove is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reas onable user of the report on compliance about the City’s compliance with the requirements of the Measure BB Program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards and the Funding Agreement, we
• exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of the Ci ty’s internal control over comp liance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the requiremen ts referred to above, but not for the purpose of expressing an opinion on the effectiveness of th e City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the Measure BB Program on a timely basis. A
material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in inte rnal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Measure BB Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the Measure BB Program that is less severe
than a material weakness in internal control over co mpliance, yet important eno ugh to merit attention by those charged with governance.
14 Our consideration of internal control over complia nce was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be mate rial weaknesses or significant deficiencies in internal control over compliance. Given these limita tions, during our audit we did not identify any deficiencies in internal control over comp liance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on intern al control over compliance is sole ly to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements, specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.
Pleasant Hill, California
December 31, 2025
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