BASE REUSE FUNDS
OF THE CITY OF ALAMEDA
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
EXHIBIT 8
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BASE REUSE FUNDS
OF THE CITY OF ALAMEDA
BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2025
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................. i
FINANCIAL SECTION
Independent Auditor's Report .................................................................................................... 1 Fund Financial Statements:
Entity-Wide Financial Statements:
Statement of Net Position .................................................................................................. 6 Statement of Activities ....................................................................................................... 7 Fund Financial Statements:
Balance Sheet .................................................................................................................... 8 Reconciliation of Governmental Funds Balance Sheet with – the Statement of Net Position ......................................................................................... 9 Statement of Revenues, Expenditures, and Changes in Fund Balance ........................... 10 Reconciliation of the Net Change in Fund Balances – Governmental Fund with the Statement of Activities .................................................................................. 11 Notes to Basic Financial Statements ....................................................................................... 13 i
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members, Mayor and the Council Members of the City of Alameda
Base Reuse Funds of the City of Alameda, California
Report on the Audit of Financial Statements
Opinions
W
e have audited the accompanying financial statements of the Base Reuse Special Revenue Fund, Alameda Point Tidelands Special Revenue Fund, Base Reuse Debt Service Fund and Alameda Point Capital Projects Fund (Funds) of the City of Alameda, Califor nia (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collec tively comprise the Funds’ basic 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 Funds of the City as of June 30, 2025, and the respective changes in financial position and the budgetary comparison 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 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 independent of the C ity 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 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise subs tantial doubt about the Funds’ ability to continue as a going concern for twelve months beyond the financial statement da te, 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 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 opinions. 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 proc edures responsive to those risks.
Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of 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 C
ity’s internal control. 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.
• Conclude whether, in our judgment, there are cond itions or events, considered in the aggregate, th
at raise substantial doubt about the F unds’ 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 au dit findings, and certain internal control-related matters that we identified during the audit.
Other Matters
The City has not presented require d supplementary information includ ing the Management’s Discussion and Analysis and budgetary schedules for major special revenue funds that the Governmental Accounting
Standards Board has determined is necessary to suppleme nt, although not required to be part of, the basic financial statements of the Funds. Our opinions on th e basic financial statements are not affected by this missing information.
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 City ’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulat ions, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the 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 31, 2025
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BASE REUSE FUNDS
OF THE CITY OF ALAMEDA
For the Year Ended June 30, 2025
FUND FINANCIAL STATEMENTS
BASE REUSE SPECIAL REVENUE FUND
This fund accounts for the revenues from leasing activities, revenues and grants. Expenditures are made for base reuse activities.
ALAMEDA POINT TIDELANDS SPECIAL REVENUE FUND
This fund accounts for the revenues from tidelands property leases within the boundaries of Alameda Point.
Leases are for State Tidelands properties delegated to local agencies for management and control.
ALAMEDA POINT CAPITAL PROJECTS FUND
This fund accounts for revenues and expenditures re lated to construction, improvements and capital maintenance projects within Alameda Point.
BASE REUSE DEBT SERVICE FUND
The 2003 Variable Rate Demand Revenue Bonds were issued in December 2003 by the Alameda Public Financing Authority to refund the 1999 Base Reuse Re venue Bonds and to finance professional land use planning and other activities required in the redevel opment process at Alameda Point. The debt will be repaid solely from lease revenues related to base reuse. 5 CITY OF ALAMEDA
BASE REUSE FUNDS
STATEMENT OF NET POSITION
Governmental
Activities
ASSETS
Cash and Investments 34,161,357 $
Restricted Cash and Investments 100,000
Accounts Receivable 1,120,742
Leases Receivable 68,853,107
Total Assets 104,235,206
LIABILITIES
Accounts Pa
yable 575,956
Accrued Expense 111,794
Unearned revenue 924,996
Refundable Deposits 1,578,564
Long-Term Debt:
Due within One Year 653,000
Due in More Than One Year 5,845,000
Total Liabilities 9,689,310
DEFERRED INFLOWS
Related to Leases 69,562,051
Total Deferred Inflows 69,562,051
NET POSITION
Restricted 24,983,845
Total Net Position 24,983,845$
AS OF JUNE 30, 2025
See accompanying notes to financial statements
6 CITY OF ALAMEDA
BASE REUSE FUNDS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Net (Expense)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Expenses Services Contributions Contributions Activities Governmental Activities
Community Development $ 25,023,462 $ 13,862,890 $ - $ - $ (11,160,572) Debt Service - Interest 755,627 - - - (755,627) Total Governmental Activities 25,779,089$ 13,862,890$ -$ -$ (11,916,199) General Revenue
Interest and Other Use of Money and Property 2,236,400
Transfers out to City of Alameda (4,867,958)
Total general revenues (2,631,558)
Change in net position (14,547,757)
NET POSITION-BEGINNING
OF THE YEAR 39,531,602
NET POSITION-END OF THE YEAR 24,983,845$
See accompanying notes to financial statements
Program Revenues
7 Alameda Alameda
Base Reuse Point Point Base Reuse
Special Tidelands Ca pital Debt Total
Revenue S pecial Revenue Pro jects Service Governmental Fund Fund Fund Fund Funds
ASSETS
Cash and Investments 30,920,394 $ 242,558 $ 2,451,698 $ 546,707 $ 34,161,357 $ Restricted Cash and Investments 100,000 - -
-
100,000
Accounts Receivable
1,120,742 -
-
-
1,120,742
Leases Receivable 68,853,107 -
-
-
68,853,107
Total Assets 100,994,243$ 242,558$ 2,451,698$ 546,707$ 104,235,206$
LIABILITIES
Accounts Payable 567,031$ -$ 8,925$ -$ 575,956$ Accrued Payroll 111,794 - - - 111,794
Unearned Revenue 924,996 - - - 924,996
Refundable Deposits 1,301,383 277,181 - - 1,578,564 Total Liabilities
2,905,204 277,181 8,925 - 3,191,310 DEFERRED INFLOWS OF RESOURCES:
Related to Leases 69,562,051 - - - 69,562,051 Total Deferred Inflows of Resources 69,562,051 - - - 69,562,051
FUND BALANCE (DEFICIT)
Restricted for Base Reuse 28,526,988 (34,623) 2,442,773 546,707 31,481,845 Total Fund Balance (Deficit) 28,526,988 (34,623) 2,442,773 546,707 31,481,845 Total Liabilities, Deferred Inflows of Resources and
Fund Balances (Deficit) 100,994,243$ 242,558 $ 2,451,698 $ 546,707 $ 104,235,206 $
CITY OF ALAMEDA
BALANCE SHEET
JUNE 30, 2025
See accompanying notes to financial statements
BASE REUSE FUNDS
8 Total fund balances reported on the governmental fund balance sheet 31,481,845$ 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:
Certain liabilities are not due and payable in the current period and therefore they are not reported in the Governmental Funds Balance Sheet.
Lease revenue bonds (6,498,000)
NET POSITION OF GOVERNMENTAL ACTIVITIES 24,983,845$
See accompanying notes to basic financial statements
CITY OF ALAMEDA
Reconciliation of the
GOVERNMENTAL FUNDS BALANCE SHEET
with the
STATEMENT OF NET POSITION
JUNE 30, 2025
BASE REUSE FUNDS
9 Alameda Alameda
Base Reuse Point Point Base Reuse
Special Tidelands Ca pital Debt Total
Revenue S pecial Revenue Pro jects Service Governmental Fund Fund Fund Fund Funds
REVENUES:
Lease Revenues 9,391,016 $ - $
-$
-$
9,391,016$
Rent Revenues 1,992,404 2,479,470 - - 4,471,874 Interest and Other Use of Money and Property 2,259,190 - (23,309) 519 2,236,400 Total Revenues 13,642,610
2,479,470 (23,309) 519 16,099,290
EXPENDITURES:
Building Rehabilitation 4,376,960 - - - 4,376,960 Landscaping/Grading 43,135 - - - 43,135
Utility Construction - - 6,544,881 - 6,544,881
Transportation Management Facilities 7,267 5,560 - - 12,827 Planning/Marketing of Redevelopment/Reuse 10,323,808 1,832,312 2,584 - 12,158,704 Operation/Maintenance of NAS Alameda 1,418,634 468,321 - - 1,886,955 Debt Service - Principal - - - 7,377,000 7,377,000 Debt Service - Interest and fiscal charges - - - 353,627 353,627 Total Expenditures 16,169,804 2,306,193 6,547,465 7,730,627 32,754,089
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,527,194) 173,277 (6,570,774) (7,730,108) (16,654,799)
OTHER FINANCING SOURCES (USES)
Transfer in - - 6,545,932 990,000 7,535,932 Transfer (out) (7,328,032) (207,900) - - (7,535,932) Transfers (to) / from City of Alameda (4,867,958) - - - (4,867,958) Proceeds from debt refinance - - - 6,975,000 6,975,000 Total Other Financing Sources (Uses) (12,195,990) (207,900) 6,545,932 7,965,000 2,107,042 NET CHANGE IN FUND BALANCE (14,723,184) (34,623) (24,842) 234,892 (14,547,757) Fund Balances, Beginning 43,250,172 - 2,467,615 311,815 46,029,602 Fund Balances (Deficit), Ending 28,526,988$ (34,623) $ 2,442,773 $ 546,707 $ 31,481,845 $ See accompanying notes to basic financial statements.
CITY OF ALAMEDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2025
BASE REUSE FUNDS
10 CITY OF ALAMEDA
BASE REUSE FUNDS
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUND
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (14,547,757)$ Amounts reported for governmental activities in the Statement of Activities are different because of the following:
Proceeds from the issuance of debt are a revenue source in the governmental funds, but it increases long-term obligations in the Statement of Net Position and does not affect the Statement of Activities. 6,975,000 Debt principal transactions reported in the governmental fund statement of revenue but not considered an operating activity in the statement of activities (but only as changes in liabilities)
Principal repayments on lease revenue bonds and loan (7,377,000) Issuance costs and loss on refinancing 402,000
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (14,547,757) $ See accompanying notes to basic financial statements
The schedule below reconciles the Net Change 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. 11 This Page Left Intentionally Blank
BASE REUSE FUND
OF THE CITY OF ALAMEDA
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – REPORTING ENTITY
The Alameda Reuse and Redevelopment Authority (ARRA) was formed in April 1994 by the City and County of Alameda. The purpose of ARRA was to ensure the effective transition of the Alameda Naval Air Station (NAS) from federal to local ownership. ARRA was responsible for the development of an Interim Reuse Strategy, taking title to base lands, and implementation of the Community Reuse Plan. ARRA is recognized by the Department of Defense as the responsible entity for submitting and completing the Community Reuse Plan for the 1997 decommission of the NAS.
On February 7, 2012, ARRA was dissolved and
became a department of the City of Alameda
(City). ARRA’s activities are now accounted for in the following four funds for the City. The Base Reuse Special Revenue Fund, Alameda Point Tide lands Special Revenue Fund, Base Reuse Debt Service Funds and Alameda Point Capital Projects Fund (Funds) of the City are integral parts of the reporting entity. These Funds are included in the basic financial statements of the City.
Governmental funds are used to account for operations.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
The Funds Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
B.
Major Funds
BASE REUSE SPECIAL REVENUE FUND
The fund accounts for the revenues from leasing activities, revenues and grants. Expenditures are made for base reuse activities.
ALAMEDA POINT TIDELANDS SPECIAL REVENUE FUND
This fund accounts for revenues from tidelands property leases within the boundaries of Alameda Point. Leases are for State tid elands properties delegated to local agencies for management and control.
BASE REUSE DEBT SERVICE FUND
The 2003 Variable Rate Demand Revenue Bonds were issued in December 2003 by the Alameda Public Financing Authority to refund the 1999 Base Reuse Revenue Bonds and to finance professional land use planning and other activiti es required in the redevelopment process at Alameda Point. The debt will be repaid solely from lease revenues related to base reuse. 13 BASE REUSE FUND
OF THE CITY OF ALAMEDA
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
ALAMEDA POINT CAPITAL PROJECTS FUND
This fund accounts for revenues and expenditures related to construction, improvements and capital maintenance projects within Alameda Point.
C. Basis of Accounting
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this me thod, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within forty-five days after y ear-end. Expenditures are recorded when the related fund liability is incu rred, except for principal and interest on general long-term debt, claims and judgments, and co mpensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.
Those revenues susceptible to accrual are grants and leases. Expe nditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred.
In addition to assets, the statement of net position or balance sheet will some times report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance 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 acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
D. Grant Revenues
The City obtains grants from public, private and private non-profit organizations. Under the terms of these grant agreements, funds are advanced to finance program expenditures. Revenues from grants are recognized throughout the grant period, or as allowable costs are incurred for the purposes specified in the grant.
E. 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 c ontract for a period of time in an exchange or exchange like transaction. Examples of nonfinanc ial assets include buildings, land, vehicles and equipment. The City 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. Short-term leases and contracts that transfer ownership will be excluded.
Lessor – The City is a lessor fo r noncancelable leases of commercial space. The City recognizes a lease receivable and a deferred inflow of res ources in its Base Reuse Special Revenue Fund financial statements.
14 BASE REUSE FUND
OF THE CITY OF ALAMEDA
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At the commencement of a lease, the City initially measures the lease receivable as the present value of payments expected to be received during
the lease term. 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, adjusted 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 re lated to leases include how the City determines (1) the discount rate it uses to discount the expe cted 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 would 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.
F. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market part icipants at the measurement date. The Funds categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
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.
15 BASE REUSE FUND
OF THE CITY OF ALAMEDA
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and deferred outflows/inflows of resources and disclosure of contingent assets and liabilities at the date of the financial stat ements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
NOTE 3 – CASH AND INVESTMENTS
The Fund’s cash is pooled with other funds of the City in an unrated cash and investment pool, the details of which are presented in the City’s Annual Comprehensive Financial Report. The City is primarily invested in the California Local Agency Investment Fund and investments of U.S.
Government sponsored agencies. Investments ar e stated at fair market value as required by generally accepted accounting principles.
The City considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
Interest income earned on pooled cash and investments is allocated monthly to the various funds of which the Funds is a participant, based on the month-end cash balances. Interest income from restricted cash and cash equivalents is credited directly.
The City 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 reserves to be used if the City fails to meet it s obligations under these debt issues. The California Government Code requires these funds to be inve sted in accordance with City resolutions, bond indentures or State statutes.
NOTE 4 – TRANSFERS BETWEEN THE CITY AND THE FUNDS
During the fiscal year ended June 30, 2025, the Funds made net cash transfers of $4,867,958 to
reimburse the City for capital ex penditures for painting of Big Wh ites, roof repairs, demolition work and storm water pump station maintenance, along with its prorata share of operating expenditures incurred on behalf of the Fund, as determined by the City’s approved Cost Allocation Plan.
The Special Revenue Fund transferred $782,100 to the Debt Service Fund for debt repayment and transferred $6,545,932 to the Alameda Point Ca pital Projects Fund to fund projects within Alameda Point. The Alameda Point Tidelands Fund transferred $207,900 to the Debt Service Fund to fund their portion of debt repayment.
16 BASE REUSE FUND
OF THE CITY OF ALAMEDA
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 – LEASES
The Base Reuse Special Revenue Fund reports the following as of June 30, 2025 related to its leases as a lessor:
Leases Receivable Leases Receivable
Deferred Inflows
of Resources
Facilites Rentals 68,853,107$ 69,562,051$
The Funds lease commercial space to third parties. During the year ended June 30, 2025, the Funds had 21 leases at Alameda Point. These were all subject to being recorded as a lease receivable under generally accepted accounting principles. The original lease terms range between five years to sixty years. As of June 30, 2025, the 21 leases had 3.5 to 11.5 years remaining. All of the leases had optional extension periods ranging from 3 to 41 years. The City included extension periods that were reasonably certain to be exercised in the calculation of the lease receivable balances. The Base Reuse Special Revenue Fund recognized $9,391,016 in lease revenue and $2,259,190 in interest revenue during the current fiscal year related to these leas es. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.
NOTE 6 - LONG-TERM DEBT
2024 Refinancing Loan (Previously 2003 Alameda Reuse and Redevelopment Authority (ARRA) Variable Rate Demand Lease Revenue Bonds) – On October 8, 2024, the Alameda Public Financing Authority entered into a fixed-rate loan agreement in amount of $6,900,000 with JPMorgan Chase Bank to refund the previously issu ed 2003 Alameda Reuse and Redevelopment Authority (ARRA) Variable Rate Demand Lease Revenue Bonds. The proceeds from the previously issued 2003 ARRA Variable Rate Demand Lease Revenue Bonds in original principal amount of $13,440,000 at a variable rate of interest determined on a weekly basis were used to refund the 1999 ARRA Revenue Bonds, whic h were issued to finance the costs of certain improvements at Alameda Point (assigned to th e Base Reuse Special Revenue Fund), and to finance professional services for land use planning and othe r activities required for the redevelopment process at Alameda Point. Repayment of the loan is from lease revenues paid to ARRA from certain land, buildings, fixtures and eq uipment. Principal and interest payments are due semi-annually on June 1st and December 1st.
The pledge of sublease revenues ends upon re payment of the $6,498,000 in the remaining principal on the loan, which is scheduled to occu r in 2033. As disclosed in the bond indenture documents, pledged future sublease revenues are ex pected to provide coverage over debt service of 1.5 during the life of the Bonds. For Fis cal Year 2024-25, sublea se revenues amounted to $8,865,492, which represented coverage of 1,340% over the $661,589 in principal and interest debt service.
17 BASE REUSE FUND
OF THE CITY OF ALAMEDA
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
The current year principal retirement is $477,000. Repayment requirements for the Revenue Bonds were as follows at June 30, 2025:
For the Year
Ending June 30, Principal Interest Total
2026 653,000 $ 263,825 $ 916,825 $
2027 679,000 236,437 915,437
2028 707,000 207,932 914,932
2029 737,000 178,218 915,218
2030 769,000 147,237 916,237
2031-2034 2,953,000 251,458 3,204,458
6,498,000$ 1,285,107$ 7,783,107$
NOTE 7 – NET POSITION
The government-wide financial statements utiliz e a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.
Net Investment in Capital Assets – This category presents all capital assets, including infrastructure, into one component of net pos ition. Accumulated depreciation reduces the balance in this category.
Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments, or restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position – This category presents net position of the Funds not restricted for any project or other purpose.
NOTE 8 – FUND BALANCE
Governmental fund balances represent the net curr ent assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities. Porti ons of a fund’s balance may be reserved or designated for future expenditure.
The City’s fund balances are classified in acco rdance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify it s fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
18 BASE REUSE FUND
OF THE CITY OF ALAMEDA
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 – FUND BALANCE (Continued)
Nonspendables represent balances set aside to indicate items that do not represent available, spendable resources, even though they are a compone nt 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 la nd held for redevelopment, are included. However, if proceeds realized from the sale or collection of nonspendabl e assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal 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 commi tments are included along with spendable resources.
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 changed 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 balance.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
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