Belmont City Council
November 22, 2022

CITY OF BELMONT

CITY COUNCIL AND BELMONT FIRE

PROTECTION DISTRICT BOARD OF

DIRECTORS
www.belmont.gov

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. REPORT FROM CLOSED SESSION

4. SPECIAL PRESENTATIONS

CITY COUNCIL REGULAR MEETING AGENDA
Tuesday, November 22, 2022
7:00 PM
City Council Chambers
City Hall, One Twin Pines Lane, Belmont, California

TELECONFERENCE PARTICIPANTS
Some Members may Participate Virtually
Being held under Gov. Code 54953(e)
The meeting will be broadcast live to Belmont residents on Comcast Cable Channel 27, streamed live via the City’s website at www.Belmont.gov. The public may also attend the meeting in the Chambers and address the Council from the Chambers. Social distancing must be practiced, and seating will be limited.

PUBLIC COMMENT:

To maximize time for live public comment, we encourage members of the public to provide comments by joining the Committee meeting via Zoom : For web, visit https://belmont-gov.zoom.us/ select “Join” and enter Meeting ID: 95745673035. Use the Raise Hand feature to request to speak. You may rename your profile if you wish to remain anonymous.

For dial- in comments, call *67 1-(669) 900-6833 (your phone number will appear on the live broadcast if *67 is not dialed prior to the phone number), enter Meeting ID: 95745673035, and press *9 to request to speak. All public comments are subject to a 3-minute time limit unless otherwise determined by the Committee Chair.

If you wish to submit written public comment, you may send an email to [email protected] before the council considers the item. Please indicate the agenda item topic or agenda item number you wish to comment on in your email’s subject line. Any public comment regarding agenda items that are received from the publication of the agenda through the meeting date will be made part of the meeting record but will not be read during the Council meeting.
1 A. Belmont Community Foundation

5. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

6. COUNCILMEMBER ANNOUNCEMENTS

7. CONSENT BUSINESS
A. Approval of Minutes
B. Ralston Avenue Segment 3 Cold In-place Recycled Pavement Project Design C. Americans with Disability Act Title II Fiscal Year 2021-2022 Update D. Recommended Parking Changes on 900 Block of Old County Road This portion of the meeting is reserved for persons wishing to address the Body on any City matter not on the agenda. The period for public comment at this point in the agenda is limited to 15 minutes, with a maximum of 3 minutes per speaker. Speakers who requested but did not receive an opportunity to speak during this comment period will be given an opportunity to address the Body later in the meeting. State law prohibits the Body from acting on non-agenda items.

Consent business items are considered to be routine in nature and will be enacted by one motion. There will be no separate discussion on these items unless a member or staf request specific items to be removed for separate action.

The City Attorney will read the title of ordinances to be adopted.

Recommendation: Approve 2021 Meeting Minutes of Belmont Fire Protection District, Meeting Minutes of Special and Regular Meeting September 27, 2022, Minutes of Regular Meeting of October 11, 2022 and Meeting Minutes of Adjourned Meeting November 8, 2022 as presented
Attachment(s):

BFPD 2021 Meeting Minutes
September 27, 2022 Special and Regular Meeting Minutes
October 11, 2022 Regular Meeting Minutes
November 11, 2022 Adjourned Meeting Minutes
Recommendation: Adopt a resolution (1) authorizing the City Manager to execute a Task Order with Wilsey Ham to provide design services for the Ralston Avenue Segment 3 Cold In-place Recycled Pavement Project for an amount not to exceed $129,636 Attachment(s):

Staff Report
Resolution
Attachment B - Wilsey Ham Proposal
Recommendation: Information only, no action required
Attachment(s):

Staff Report
Attachment A - List of ADA Related Improvements
Recommendation: Adopt a resolution approving conversion of the 20-Minute Parking zone in front of 940 Old County Road to a 4-Hour Parking, 7 am to 6 pm, except Sundays and Holidays
Attachment(s):

Staff Report
Resolution
2 E. Report from Measure I Advisory Committee for Fiscal Year Ended June 30, 2022 F. Annual Report on Receipt and Use of Development Impact Fees, In-Lieu Fees, and Linkage Fees for Fiscal Year 2022
G. Rebid for the San Juan Pump Station Slope Repair Project, CCN 2019-579 H. 2820 Ponce Avenue Easement Dedication & Vacation
I. 2022 Pavement Project, CCN 2022-607, Notice of Completion

8. PUBLIC HEARINGS
Recommendation: Receive Annual Measure I Advisory Committee Report for the fiscal year ended June 30, 2022
Attachment(s):

Staff Report
Measure I Fund Financial Statements
Recommendation: Adopt a Resolution to make certain findings and accept the annual report on receipt and use of development impact fees, in-lieu fees, and linkage fees for the fiscal year ended June 30, 2022
Attachment(s):

Staff Report
Resolution
Exhibit A - Development Fees Annual Report FY 2022
Exhibit B - Public Improvement Project Expenditures Five-Year Plan Recommendation: Approve plans, specifications, and authorize advertisement for sealed bids, and authorize the City Manager to execute a contract with the lowest responsible bidder for an amount not to exceed $375,000, plus a fifteen percent construction contingency for the San Juan Sewer Pump Station Slope Repair Project
Attachment(s):

Staff Report
Resolution
Recommendation: Adopt a resolution to 1) accept the dedication of an ingress and egress easement (IEE) and 2) approve the vacation of an existing IEE on the property at 2820 Ponce Avenue (APN 043-290-620)
Attachment(s):

Staff Report
Resolution
Exhibit A & B to Irrevocable Offer to Dedicate Easement - Plat & Legal (5) Attachment C - 1985 Parcel Map
Attachment D - Project Plan Sheet
Irrevocable Offer of Dedication
Recommendation: Adopt a resolution accepting work and authorizing the issuance of a Notice of Completion for the 2022 Pavement Project, City Contract Number 2022-607, for a final contract cost of $1,797,266.22
Attachment(s):

Staff Report
Resolution
3 A. Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2023

9. GENERAL BUSINESS
A. Report from Audit Committee Regarding Annual Financial Report for Fiscal Year Ending June 30, 2022
B. 2022 California Building, Residential, Mechanical, Plumbing and Electrical Codes with local Amendments, and the 2022 California Fire Code as Amended by the San Mateo Consolidated Fire Department

10. BRIEF VERBAL REPORTS FROM MEMBERS AND STAFF

11. MATTERS OF INTEREST/CLARIFICATION

12. ADJOURNMENT
Recommendation: Adopt a resolution revising the maximum rates that may be charged by Recology of San Mateo County for solid waste, recyclable materials, and organic materials collection services effective January 1, 2023
Attachment(s):

Staff Report
Resolution
Recology 2023 Rate Application
HDR Engineering Report
Prop 218 Rate Notice
General Business items are considered separately, typically in the order listed. The chair will call for public comment on each item when the body considers the item.

Recommendation: Receive the financial reports and recommendations of the City's independent auditor
Attachment(s):

Staff Report
FY 2022 ACFR
Memorandum on Internal Control
Required Communications
Financial Policy Updates Memorandum
Recommendation: Introduce an ordinance adopting the 2022 California Building Standards Codes with local amendments (First Reading), set a public hearing date for the ordinance for January 10, 2023, and adopt the findings necessary for the local amendments by resolution.

Attachment(s):

Staff Report
Adoption Ordinance introduction
A. Verbal report from Councilmembers on Intergovernmental (IGR) and Subcommittee Assignments
B. Verbal report from City Manager
Items in this category are for discussion and direction to staf only. However, Council/Board may take final action on an item if there is no need for additional staf analysis.

If you need assistance to participate in this meeting, please contact the City Clerk at (650) 595-7413. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Meeting information can also be accessed via the internet at:www.belmont.gov. All staf reports will be posted to 4 the web in advance of the meeting, and any writings or documents provided to a majority of the City Council/District Board or Commission regarding any item on this agenda will be made available for public inspection in the City Clerk's Of ice, One Twin Pines Lane, during normal business hours and at the Council Chambers at City Hall, Second Floor, during the meeting. 5 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
January 12, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, January 12, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) Due to technical difficulties with televising and live streaming the meeting the Mayor explained that some time sensitive items on the agenda will be addressed while other items will be continued to the next meeting.

CALL TO ORDER 7:08 PM

ROLL CALL
BOARDMEMBERS PRESENT: Lieberman, Hurt, McCune, Mates, Stone, (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT:

No Belmont Fire Protection District action on this agenda.

ADJOURNMENT at this time, being 8:07pm.

Jozi Plut
District Secretary
6 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
January 26, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, January 26, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER 7:07 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Stone, Hurt, Mates, Lieberman (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
none
ADJOURNMENT at this time, being 8:45 PM
Jozi Plut
District Secretary
7 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
February 9, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, February 9, 2022

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER 7:00 P.M._

ROLL CALL
BOARDMEMBERS PRESENT: Lieberman, Hurt, McCune, Mates, Stone, (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: None

ITEMS OF BUSINESS
None
ADJOURNMENT at this time, being 8:26 P.M.

Jozi Plut
District Secretary
8 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
February 23, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, February 23, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:03 P.M.

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Hurt, Lieberman, Mates Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: None

ITEMS APPROVED ON OTHER BUSIBNESS
Report on Mid-Year Financial Results at December 31, 2020 (For details regarding this discussion, see City Council Minutes of same date.) ACTION: On a motion made by Councilmember Lieberman and seconded by Councilmember Mates Resolution 2021-001 of The Board Of Directors Of The Belmont Fire Protection District Amending The Fiscal Year 2021 Budget By Approving Revisions To Revenue And Reducing Appropriations, Resolution 2021-002 of The Board Of Directors Of The Belmont Fire Protection District Amending The FY 2021 Budget To Reflect The Covid-19 Action Plan Strategies That Have Been Implemented By The District Manager And Previously Approved By The Board Of Directors, and Resolution 2021-003 of The Board Of Directors Of The Belmont Fire Protection District Authorizing The District Manager To Implement Fiscal Strategies To Respond To Money Taken By Sacramento And To Amend The Fiscal Year 2021 Budget were unanimously approved.

ADJOURNMENT at this time, being 9:35 PM
Jozi Plut
District Secretary
9 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
March 9, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, March 9, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:00 P.M.

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Hurt, Lieberman, Mates Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: None

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:50 PM
Jozi Plut
District Secretary
10 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
March 9, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, March 9, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:28 PM
(Note Successor Agency to the Former RDA Governing Board Meeting held prior to regular meeting.)

ROLL CALL
BOARDMEMBERS PRESENT: Lieberman, Hurt, McCune, Mates, Stone (all participated via ZOOM)
BOARDMEMBERS ABSENT: None

ACTION ITEMS
None
ADJOURNMENT at this time, being 10:43 PM
Jozi Plut
District Secretary
11 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
April 13, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, April 13, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:28 PM

ROLL CALL
BOARDMEMBERS PRESENT: Lieberman, Hurt, McCune, Mates, Stone (all participated via ZOOM)
BOARDMEMBERS ABSENT: None

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:40 PM
Jozi Plut
District Secretary
12 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
April 13, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, April 13, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:28 PM

ROLL CALL
BOARDMEMBERS PRESENT: Lieberman, Hurt, McCune, Mates, Stone (all participated via ZOOM)
BOARDMEMBERS ABSENT: None

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:40 PM
Jozi Plut
District Secretary
13 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
May 11, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, May 11, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:00 PM

ROLL CALL
BOARDMEMBERS PRESENT: Lieberman, Hurt, McCune, Mates, Stone (all participated via ZOOM)
BOARDMEMBERS ABSENT: None

ACTION ITEMS
None
ADJOURNMENT at this time, being 8:45 PM
Jozi Plut
District Secretary
14 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
May 25, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, May 25, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:10 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Hurt, Lieberman, Mates (all remotely via Zoom webinar) BOARDMEMBERS ABSENT: Mayor Stone

ACTION ITEMS
None
ADJOURNMENT at this time, being 8:46 PM
Jozi Plut
District Secretary
15 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
June 8, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, June 8, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:10 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Hurt, Lieberman, Mates (all remotely via Zoom webinar) BOARDMEMBERS ABSENT:

PUBLIC HEARINGS
Adoption of Budget and Related Items for Fiscal Year 2022 (For details regarding this discussion, see City Council Minutes of same date.) ACTION: On a motion made by Councilmember Mates and seconded by Councilmember McCune Resolution 2021-04 Of The Board Of Directors Of The Belmont Fire Protection District Adopting FY 2021-2022 Revenue And Appropriations Budgets, And Permanent Staffing Plan For The District, and
Resolution 2021-05 Of The Board Of Directors Of The Belmont Fire Protection District Establishing The District’s Appropriation Limit For FY 2021-2022 were unanimously approved by a roll call vote.

ADJOURNMENT at this time, being 8:10 PM
Jozi Plut
District Secretary
16 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
June 22, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, June 22, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:15 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Lieberman, Hurt, Mates, Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:30 PM
Jozi Plut
District Secretary
17 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
July 13, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, July 13, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:05 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Lieberman, Hurt, Mates, Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:05 PM
Jozi Plut
District Secretary
18 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
July 27, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, July 27, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:05 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Lieberman, Hurt, Mates, Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
None
ADJOURNMENT at this time, being 8:50 PM
Jozi Plut
District Secretary
19 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
September 14, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, September 14, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:00 PM

ROLL CALL
BOARDMEMBERS PRESENT: Stone, Mates, Hurt, Lieberman, McCune (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
None
ADJOURNMENT at this time, being 8:30 PM
Jozi Plut
District Secretary
20 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
September 28, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, September 28, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:05 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Lieberman, Hurt, Mates, Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:00 PM
Jozi Plut
District Secretary
21 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
October 12, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, October 12, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:00 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Lieberman, Hurt, Mates, Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:55 PM
Jozi Plut
District Secretary
22 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
October 26, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, October 26, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:00 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Lieberman, Hurt, Mates, Stone (all remotely via Zoom webinar)
BOARDMEMBERS ABSENT: none

ACTION ITEMS
None
ADJOURNMENT at this time, being 8:25 PM
Jozi Plut
District Secretary
23 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
November 9, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, November 9, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:05 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Mates, Stone (all remotely via Zoom webinar) BOARDMEMBERS ABSENT: Councilmember Hurt and Councilmember Lieberman (for part of the meeting)

ACTION ITEMS
None
ADJOURNMENT at this time, being 8:15 PM
Jozi Plut
District Secretary
24 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
November 23, 2021

REGULAR MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, November 23, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 7:08 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Mates, Stone (all remotely via Zoom webinar) BOARDMEMBERS ABSENT: Councilmember Hurt and Councilmember Lieberman (for part of the meeting)

ACTION ITEMS
None
ADJOURNMENT at this time, being 9:35 PM
Jozi Plut
District Secretary
25 REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT
December 14, 2021

SPECIAL and REGULAR MEETINGS OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT
Tuesday, December 14, 2021

ONE TWIN PINES LANE

BELMONT, CALIFORNIA
(Note: Regular Fire Protection District Meetings held concurrent with City Council meetings.) CALL TO ORDER: 6:00 PM

ROLL CALL
BOARDMEMBERS PRESENT: McCune, Mates, Stone (all remotely via Zoom webinar) BOARDMEMBERS ABSENT: Councilmember Hurt and Councilmember Lieberman (for part of the meeting)

ACTION ITEMS
None
ADJOURNMENT at this time, being 8:03 PM
Jozi Plut
District Secretary
26 Combined Agency Minutes
September 27, 2022
page 1
Minutes Of Regular and Special Meetings of the Belmont City Council and Belmont Fire Protection District Board of Directors, September 27, 2022

SPECIAL MEETING

ITEMS OF BUSINESS
CALL TO ORDER 6:19 PM
COUNCILMEMBERS PRESENT: Lieberman, Hurt, McCune, Mates, Stone joined at 6:20 pm ABSENT: None

CLOSED SESSION

1. Conference with Labor Negotiators Government Code Section 54957.6 Unrepresented Employees: City Manager, City Attorney
Designated Representatives: Warren Lieberman and Charles Stone

2. Public Employee Performance Evaluations Government Code Section 54957(b) Titles: City Manager, City Attorney

3. Conference with Legal Counsel - Existing Litigation Government Code Section 54956.9(d)(1)) Coleman v. City of Belmont, San Mateo Superior Court No. CIV 523248

ADJOURNMENT at this time being 6:52 PM
Jozi Plut
City Clerk
CALL TO ORDER: 7:00 PM

ROLL CALL
COUNCILMEMBERS PRESENT: Lieberman (virtual), Stone, Hurt, McCune, Mates, COUNCILMEMBERS: None

PLEDGE OF ALLEGIANCE
Led by City Historian Karl Mittelstadt.

REPORT FROM CLOSED SESSION
City Attorney Rennie stated that no reportable action was taken at an earlier held closed session.

SPECIAL PRESENTATIONS
National Hispanic Month
Mayor Mates read the proclamation and presented it to Rocsana Escobar, Belmont Planning Commissioner and Latinx Community leader and advocate.

27 Combined Agency Minutes
September 27, 2022
page 2
Presentation From Belmont Historian
City Historian Karl Mittelstadt provided a presentation on the History of Belmont Schools.

National Emergency Preparedness Month
Mayor Mates read the proclamation.

Jim Yoke, San Mateo Consolidated Emergency Services Manager thanked the Council for recognizing the importance of emergency preparedness.

National Night Out Recap
Police Chief Stenquist provided a brief recap of the August 2nd National Night Out community events throughout Belmont. Councilmembers drew names for winners of the NNO raffle.

Belmont Age Friendly Task Force Accomplishments
Cynthia Nakayama, Deputy Director Center for Age Friendly Excellence (CAFE), provided an update on the efforts and accomplishments of the Age Friendly Task and stated that the City recently received Age-Friendly designation from AARP.

Belmont Summer Camp Program Recap
Parks and Recreation Supervisor Moran provided and overview of the successful return of the Summer Camp program after the COVID Pandemic.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Lindsey Rake commented on the San Mateo Sutter Health Michelson Therapy Pool.

Marybeth Witkowski, Insurance Commission commented on insurance regulations.

Written communication received from Tim Strinden.

COUNCILMEMBER ANNOUNCEMENTS
Councilmember McCune commented on his Mother’s 100th Birthday.

Councilmember Stone commented on the successful San Mateo Consolidated chili cook-off, he noted his attendance at the unveiling of CalTrain EMU - Electric Module Unites. He reminded the community of the upcoming Water Dog Run.

Councilmember Hurt recapped the Star Vista, Mental Health Emergency Response event.

Mayor Mates announced upcoming City Halloween events. She stated that September is National Suicide Presentation Month and noted that the Belmont Police will hold a Mental Health Symposium on November 16th.

CONSENT BUSINESS 2022-091
Approval Off Minutes of Special and Regular Meeting March 8, 2022 Minutes of Special and Regular Meeting April 26, 2022 Minutes of Special And Regular Meeting May 10, 2022 Minutes of Special Meeting September 19, 2022
Motion To Receive July 2022 Monthly Financial Reports
28 Combined Agency Minutes
September 27, 2022
page 3
Resolution 2022-091 approving a permanent encroachment agreement to allow construction of a necessary fence and retaining wall within the public right-of-way fronting 3213 Longfellow drive (APN: 043-221-070)
Resolution 2022-092 (1) authorizing the city manager to execute a task order with pavement engineering, inc. To provide design services for the Davey Glen ADA upgrade project for an amount not to exceed $89,085, (2) transferring $89,085 budget funding from project #3107 to fund the design phase, and (3) appropriating $350,000 from Measure I fund to fund the construction phase of the Davey glen ADA upgrade project
Ordinance 2022-1169 amending the conceptual development plan (CPD) for 401 island parkway to allow research and development laboratory, life sciences, and related light industrial uses subject to several limitations, subject to conditions of approval Resolution 2022-093 approving the city's revised master employee pay schedule in accordance with California public employees retirement system (CalPERS) regulations Councilmember Stone requested to remove resolution approving a Permanent Encroachment Agreement to allow construction of a pergola and fencing for outdoor seating within the public right-of-way at 1301 6th Avenue (Farm House Restaurant).

City Attorney read the title of the ordinance on the consent agenda.

ACTION: On a motion made by Councilmember Stone and Seconded by Councilmember Hurt the consent business was unanimously approved as amended by a roll call vote. (5-0)

ITEMS REMOVED FROM CONSENT BUSINESS
Adopt a resolution approving a Permanent Encroachment Agreement to allow construction of a pergola and fencing for outdoor seating within the public right of way at 1301 6th Avenue (Farm House Restaurant)
Public Works Director Brown provided a background on the permanent encroachment agreement and the construction a pergola at 1301 6th Avenue. He noted that the structure encroaches on the public right-of-way and requires Council approval for construction. He explained the city is requiring a sound attenuation wall to reduce noise from patrons of the restaurant tension in the surrounding neighborhood.

Community Development Director stated that the property is zoned commercial in a mixed used zone dating back to the 1970’s and current use of the property as a restaurant is since 2017. He noted that the property is within in legal permits and operation of a restaurant.

Public Comment
The following individuals provided comments on the proposed permit, Eliza Stern, Patti Smith, Laure Meyer, Nicki Fox, MaryBeth Jones, Ruy Zhang, Fernando Vasquez, Sue Arabaki, Written Correspondence also received on this item.

City Attorney Rennie noted that the application is to allow an encroachment within the excess right-of-way that fronts the property. He further noted that changing the time of operation is not in the application.
29 Combined Agency Minutes
September 27, 2022
page 4
Council concurred to table the item for more information on sound attenuation to a consecutive Council meeting agenda.

RECESS 8:56 PM
RCONVENE: 9:00 PM

PUBLIC HEARINGS
Appeal Of Planning Commission Approval Of Application No. 2021-0037 For a Single Family Design Review (SFDR) and Tree Removal Permit At 1513 Folger Drive (CEQA Exemption: Section 15301)
Exparte Communication, Councilmembers Hurt, Lieberman, Stone, McCune stated that they conducted site visits. Councilmembers Mates and Stone viewed the Planning Commission meeting when the item was presented.

Email correspondence received in support and opposition of the project.

Belmont Associate Planner Shek provided an overview and stated that staff made findings in the affirmative for the single-family design review and tree removal permit at 1513 Folger Drive and recommends approval.

Anna Felver and Jamie Mathern, designer and architect for the applicant provided a project summary and outlined revisions made to the application.

Yadong Yu, Appellant presented details of his appeal, he stated that the applicants design is in contrast with existing architecture in the area. He stated concern with the buildings bulk and the removal of the existing tree line.

Council discussion ensued regarding floor area ratio (FAR). Community Development Director noted that the home is a large lot home, and the application is within the limits. City Attorney Rennie clarified that, and auxiliary unit (ADU) are state exempt and may not be counted in the FAR.

Mayor Mates opened the public hearing, the following came forward; Tina Saparia, Aice, Karina L, Erica, Xiaobin, Vinay, Ryan Lewis, Lee Boman, Saul Gerdus, Sue Arabaki, Fernando Vasrez Mayor Mates closed the public hearing.

ACTION: on a motion made by Councilmember Stone and seconded by Councilmember Hurt the meeting was extended by 30 minutes to 11 pm.

Council concurred to support the Planning Commission findings. 30 Combined Agency Minutes
September 27, 2022
page 5
ACTION: On a motion made by Councilmember and seconded by Councilmember Resolution 2022-094 Approving Application No. 2021-0037 for the Single-Family Design Review and Tree Removal Permit For 1513 Folger Drive was unanimously approved by a roll call vote. (5-0)

GENERAL BUSINESS
Appointment To a Vacant Parks and Recreation Commission Non-Voting Seat City Clerk Plut explained that the Parks and Recreation Commission has an ongoing recruitment for two non-voting youth members. She noted that the Council received one application and conducted an interview on September 19th. She explained that Council may consider appointing applicant Edward Kogan for the remainder of the term ending in February 2022.

ACTION: on a motion made by Councilmember Hurt and seconded by Councilmember Lieberman Resolution 2022-095 Appointing Edward Kogan to a Vacant Parks and Recreation Commission Non-Voting Seat for an appointment period from September 2022 through February 2022 was unanimously approved by roll call vote. (5-0)
Affordable Housing Funds Loan Request For 800-803 Belmont Avenue Economic Development and Housing Manager Rose provided background on the request from ROEM Development Corporation to provide up to $2.5 million of Belmont affordable housing funds for construction of a 125-unit affordable housing project. She briefly described the 125-unit project at various affordability levels. She explained that the applicant ROEM, included a range of funding sources in their proposal including local Belmont funds, San Mateo County affordable housing funds and tax credit financing. She explained that as part of that plan ROEM is requesting a loan from Belmont. She further noted that findings for this loan include the affordable housing needs, she noted that the project can assist the City in meeting its Reginal Housing Needs Allocation (RHNA) housing needs.

In response to Councilmember Lieberman, Ms. Rose stated that interest rate on the loan is not yet negotiated. She concurred that the loan term is fifty years.

City attorney Rennie stated that the funds are not a request against City’s general fund and only affordable housing funds may be used affordable housing projects.

Public Comment
Lorring Di Martini commented in support of the project.

ACTION: On a motion made by Councilmember Hurt and seconded by Councilmember McCune Resolution 2022-095 Authorizing the City Manager To Negotiate and Enter Into a Loan Funding Agreement with ROEM Development Corporation To Provide Up To $2.5 Million Of Belmont Affordable Housing Funds For Construction Of A 125-Unit Affordable Housing Project At 800- 803 Belmont Avenue was unanimously approved by a roll call vote. (5-0) ACTION: On a motion made by Councilmember Stone and seconded by Councilmember McCune the meeting was unanimously extended by 30 minutes to 11:30 by a roll call vote. (5-0) 31 Combined Agency Minutes
September 27, 2022
page 6

BRIEF VERBAL REPORTS FROM MEMBERS AND STAFF
Verbal Report from Councilmembers on Intergovernmental (IGR) and Subcommittee Assignments
none
Verbal Report from City Manager
none

MATTERS OF INTEREST/CLARIFICATION
ADJOURNMENT at this time being 11:00 PM
Jozi Plut
City Clerk
32 Combined Agency Meeting Minutes
October 13, 2022

MINUTES OF REGULAR AND SPECIAL MEETINGS OF THE BELMONT CITY

COUNCIL AND BELMONT FIRE PROTECTION DISTRICT BOARD OF DIRECTORS, October 11, 2022
CALL TO ORDER: 7:00 PM
ROLL CALL:

COUNCILMEMBERS PRESENT: Lieberman, Stone, Hurt, McCune, Mates COUNCILMEMBERS ABSENT: None

PLEDGE OF ALLEGIANCE
Led by Mary Morrissey Parden

REPORT FROM CLOSED SESSION
City Attorney Rennie stated that a closed session was not held this evening.

SPECIAL PRESENTATIONS
Fire Prevention Week Proclamation
Mayor Mates read the proclamation.

Fire Marshal Martin, San Mateo Consolidated thanked the Council for recognizing Fire Prevention. He outlined resources available to the public for fire prevention and safety.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Mary Morrissey Parden commented on the Water Dog Run.

Max Reinhardt commented on a vacant parcel on Alhambra Drive.

COUNCILMEMBER ANNOUNCEMENTS
Councilmember Lieberman stated that with the aide of Congresswoman Spierer Belmont was awarded a five hundred thousand grant for fire prevention.

Mayor Mates added that the grant monies will be shared with San Bruno, Filoli and Peninsula Open Space. She thanked the sponsors and participants for a successful Water Dog Run Event.

She invited the community to a Placemaking Guidelines Meeting. She announced the mailing of the election ballots, she also announced the upcoming Mental Health Symposium.

Councilmember Hurt announced recycling events at the ReThink Waste.

CONSENT BUSINESS
Resolution 2022- 097 finding that the COVID-19 statewide emergency remains in effect and that state and local officials continue to recommend measures to promote social distancing and directing the Council’s Citizen Advisory Bodies to make consistent findings Approval Minutes Of Special and Regular Meeting May 24, 2022 Special and Regular Meeting June 14, 2022 Minutes of Special Meeting June 21, 2022
Resolution 2022- 098 authorizing the City Manager to execute a 3-year renewal of the rental agreement with the City of Redwood City for the use of its firearms training facility 33 Combined Agency Meeting Minutes
October 13, 2022

Resolution 2022-099 updating the City’s Conflict of Interest Code to account for the addition, deletion, and modification of positions listed as “designated employees” Received an update on the 2022 Strategic Plan Objectives and Projects ACTION: On a motion made by Councilmember McCune and seconded by Councilmember Hurt the Consent Business was approved by a roll call vote (4-1 Councilmember Stone experienced technical issues).

PUBLIC HEARINGS (none)

GENERAL BUSINESS
Ralston Avenue Adaptive Traffic Control Technology Project Update Public Works Director Brown made a presentation on the history of the project and functionality of the newly installed traffic controls. He noted that the system utilizes artificial intelligence and is based on volume demand providing precedence to real travel time. He noted that the goal of the project amongst others is to reduce congestion, improve access to school and work and reduce pollution and GHG’s by decreasing vehicle engine run time.

Public Comment
Michael Craig commented on traffic at Old County Road (OCR) and Road.

Mr. Brown stated that a construction of dedicated left turn pocket at southbound OCR and Ralston and the adaptive signal technology are planned for the area.

Council discussion ensued; the item was informational, and no action taken.

Citywide Pavement Condition Report Update
Public Works Director Brown provided the biannual Pavement Management Program (PMP) required by the Metropolitan Traffic Control (MTC) for eligibility of local grant monies. He outlined Belmont owned and maintained streets. He provided an overview of the citywide pavement condition and noted that the asset replacement value is $213.8 million. He outlined the 5-year pavement plan and funding scenarios. Mr. Brown stated that Measure I monies provide significant PCI improvements.

Public Comment
Written correspondence received from Tim Strinden on this item.

Council discussion ensued; no action taken.

Amended Services Agreement with WRA, Inc. and Additional Budget Authorization Parks and Recreation Director Shearer requested Council authorization for the City Manage to negotiate an agreement with WRA, Inc the City’s Open Space Management Consultant to advance the Parks and Recreation Open Space Plan (PROS). She explained that an initial study which details analysis of which recommendations of the PROS Plan are and are not addressed under the City’s previous CEQA analysis addressed in the 2017 General Plan update. Areas not addressed would require further environmental review and WRA would recommend which form that review, 34 Combined Agency Meeting Minutes
October 13, 2022

and final document should take. She noted that the Initial Study, is expected to take 3-6 months to complete and recommends that City Council authorize the City Manager to negotiate a proposal with WRA, Inc.

Council discussion ensued. City Attorney Rennie clarified Council questions stating that proposed initial plan will examine environmental effects and will not address policy. He stated that the initial study examines areas previously studied and determine whether the thresholds for further environmental review are met and study what additional review may be required. He further explained that in this scenario the CEQA analysis may provide information to help inform decisions on policy.

Public Comment
Written Correspondence received on this item.

ACTION: On a motion made by Councilmember Hurt and seconded by Councilmember McCune Resolution 2022-100 (1) authorizing the City Manager to negotiate a contract amendment with WRA, Inc., for services related to the Parks, Recreation and Open Space Master Plan (Plan)in the additional amount of $82,500 ($75,000 plus a 10% contingency), for a total not-to-exceed amount of $231,220 and (2) authorizing a supplemental budget appropriation of $74,250 from the Open Space Fund’s fund balance and a transfer of $8,250 from the Belmont Fire Protection District Fund to the Open Space Management Plan Project #8096 for this purpose was unanimously approved by a roll call vote (5-0).

BRIEF VERBAL REPORTS FROM MEMBERS AND STAFF
Verbal report from Councilmembers on Intergovernmental (IGR) and Subcommittee Assignments
Councilmembers reported on their IGR assignments.

Verbal report from City Manager
City Manager Oskoui thanked City Departments involved with the Water Dog Run event. He invited the public to the various upcoming Halloween events. He invited the community to an upcoming Belmont Talks presentation on Belmont schools.

MATTERS OF INTEREST/CLARIFICATION
Regulating And Banning The Sale Of Flavored Tobacco And Electronic Smoking Devices Councilmembers Hurt and Stone request Council consideration of an ordinance regulating the sale of flavored tobacco and electronic devices, reducing access to products that have public health implications especially to the youth demographic.

Public Comment
Tricia Barr commented in support of a Belmont ordinance banning the sale of flavored tobacco and electronic smoking devices.

Council discussion ensued regarding the structure of the ordinance and relation to other state and local regulations.
35 Combined Agency Meeting Minutes
October 13, 2022

Councilmember McCune suggested an exception to stop smoking aides.

Council concurred to direct the Council subcommittee of Hurt and Stone to move forward with drafting a draft ordinance.

ADJOURNMENT at this time being 8:50 pm
Jozi Plut
City Clerk
36 Combined Agency Meeting Minutes
November 9, 2022

Minutes of Adjourned November 8, 2022 Meeting of the Belmont City Council and Belmont Fire Protection District Board of Directors, November 9, 2022 City Council Chambers City Hall, One Twin Pines Lane, Belmont, California CALL TO ORDER 2:00 PM

ROLL CALL
COUNCILMEMBERS PRESENT: Lieberman, Stone, McCune, Mates, COUNCILMEMBERS: Hurt

PLEDGE OF ALLEGIANCE
Led by City Clerk Jozi Plut

REPORT FROM CLOSED SESSION
City Attorney Rennie stated that a closed session was not on the agenda.

SPECIAL PRESENTATIONS
Proclamation Recognizing Water Dog Run and Presentation Presentation made by the Water Dog Race organizers Mary Morrisey Parden, Huan Phan, Terri Cook.

Mayor Mates read and presented the proclamation,
Native American Heritage Month Proclamation
Mayor Mates read the proclamation.

San Mateo County Library Annual Report
Anna Koch, Belmont Library Manager provided an overview of the library’s annual report.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
None

COUNCILMEMBER ANNOUNCEMENTS
Mayor Mates commented on the previous days General Election. She announced upcoming events.

CONSENT BUSINESS
Resolution 2022-104 finding that the COVID-19 statewide emergency remains in effect and that state and local officials continue to recommend measures to promote social distancing and directing the Council’s Citizen Advisory Bodies to make consistent findings Approved Monthly Financial Reports - September 2022
ACTION: On a motion made by Councilmember Stone and seconded by Councilmember Lieberman the Consent Business was approved by a roll call vote. (4-1 Hurt, absent)

PUBLIC HEARINGS
None
37 Combined Agency Meeting Minutes
November 9, 2022

GENERAL BUSINESS
Restated Employment Agreement between the City of Belmont and City Attorney Scott City Manager Rennie introduced the item noting that Council formed a subcommittee of Councilmembers Lieberman and Stone as negotiators to update Mr. Rennie’s employment contract and commensurate salary provisions. He noted that the Mr. Rennie’s contract was initiated in 2011 and the committee recommended updates to current terms and practices of the City and laws regulating public employment. He explained that the restated contract establishes a base pay effective October 2021 with commensurate increases similar to what is offered to the City’s labor groups.

ACTION: On a motion made by Councilmember McCune and seconded by Councilmember Stone Resolution 2022-105 establishing compensation for the City Attorney; and authorizing the Mayor to execute a restated City Attorney employment agreement was approved by a roll call vote (4-1 Hurt absent).

First Amendment to the Employment Agreement Between the City of Belmont and City Manager Afshin Oskoui
City Manager Oskoui stated the contract negotiation is similar to the that of the City Attorney and was also vetted by the Council Subcommittee of Councilmembers Lieberman and Stone. He explained that the agreement establishes a base pay effective September 2021 and merit increases in September 2022 and 2023, all other terms remain same.

ACTION: On a motion made by Councilmember McCune and seconded by Councilmember Lieberman Resolution 2022-106 establishing compensation for the City Manager; and authorizing the Mayor to execute Amendment No. 1 to the City Manager employment agreement was approved by a roll call vote (4-1 Hurt absent).

Revised City Council Benefits Plan
City Manager Oskoui stated the Council benefit plan is adjusted to reflect changes that the City made to employee benefits including conversion from self-insurance plan to VSP vision insurance and aligning the plan with the City’s Miscellaneous group related to the cash in lieu benefits caping the limit to $389 per month when choosing cash in lieu of health benefits.

ACTION: On a motion made by Councilmember Stone and seconded by Councilmember McCune Resolution 2022-107 approving revision to the Benefits Plan for the City of Belmont Councilmembers effective January 1, 2023, was approved by a roll call vote (4-1 Hurt absent).

Revised Unrepresented Management Group Compensation and Benefits Program City Manager Oskoui stated that this program consists of the Department Heads and City Clerk, he noted that the salary control point was adjusted based on a salary survey compatible with the market median last adjusted in 2019. He noted that the plan does not adjust to the top range salary rather to a benchmark to ensure competitiveness and retention of staff. He noted that the plan includes the conversion to the VSP vision insurance and the cash in lieu cap of $389 per month. 38 Combined Agency Meeting Minutes
November 9, 2022

ACTION: On a motion made by Councilmember Stone and seconded by Councilmember McCune Resolution 2022-108 approving revisions to the Compensation and Benefits Program for the Unrepresented Management Employees was approved by a roll call vote (4-1 Hurt absent).

Revised Master Pay Schedule
City Manager Oskoui stated that the pay schedule summarizes the earlier actions and approval will update the City’s Master Pay Schedule as presented.

ACTION: On a motion made by Councilmember Stone and seconded by Councilmember McCune Resolution 2022-109 approving the City’s revised Master Employee Pay Schedule in accordance with California Public Employees Retirement System (CalPERS) regulations was approved by a roll call vote (4-1 Hurt absent).

Belmont Village Specific Plan (BVSP) Streetscape Design Guidelines Community Development Director de Melo provided an overview of the Belmont Village Specific Plan (BVSP) Streetscape Design Guidelines. He noted that the streetscape guidelines are critical to defining the pedestrian level finishing touches including sidewalks, trees, side furnishing, and street parking layout. He explained that developing a City Public Art Master Plan adopted in September 2020, adopting the BVSP Guidelines and a Signage and Wayfinding Program are key to the placemaking outcome. He outlined previous outreach efforts for the Belmont Village Specific Plan (BVSP) Streetscape Design Guidelines. He noted that Council provided feedback at an September Council meeting and is was incorporated in document, he recommend approval of the guidelines.

ACTION: on a motion made by Councilmember Stone and seconded by Councilmember McCune Resolution 2022-110 Approving The Belmont Village Specific Plan (BVSP) Streetscape Design Guidelines Were Approved By A Roll Call Vote (4-1 Hurt Absent) Update to Council Protocols
City Attorney Rennie stated that the last update to the protocols was in 2020 and with the transition to District Elections some technical changes are needed as related to the elected rather than appointed Mayor process and clean-up on appointing the Vice Mayor. He explained that staff recommends that a councilmember serve at least one year before eligible to serve as Vice Mayor.

He noted that audience decorum provisions were aligned with Brown Act statues passed this year.

He also noted the adjustment of providing the Mayor the authority to make temporary appointments to vacancies on intergovernmental assignments when both the primary and secondary seats are vacant.

Council discussion regarding teleconference and virtual option for meetings and concurred to continue providing remote meeting opportunities for public participation.

Mayor Mates noted that since the City is in newly formed districts the protocols might include language stating to the effect that the City Council intends to govern with a City-wide perspective that the City Council acts as a body not as individuals. Council concurred. 39 Combined Agency Meeting Minutes
November 9, 2022

City Attorney stated that the language will be added to the Protocols and will return for approval at a future 2022 meeting agenda for approval.

ACTION: On a motion made by Councilmember McCune and seconded by Councilmember Stone Resolution 2022-111 amending the protocols was approved as presented by roll call vote. (4-1).

BRIEF VERBAL REPORTS FROM MEMBERS AND STAFF
Verbal report from Councilmembers on Intergovernmental (IGR) and Subcommittee Assignments
Councilmembers reported on their assignments.

Verbal report from City Manager
City Manager Oskoui announced the recruitment for the Mosquito Vector Control representative and the ongoing City Commission and Board recruitment.

He noted that November is National Gratitude Month, he voiced his gratitude to the efforts of the Council.

MATTERS OF INTEREST/CLARIFICATION
None
ADJOURNMENT at this time being 3:25 PM
Jozi Plut
City Clerk
40

Ralston Segment 3 Cold In-Place Pavement Design - Staff Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Jared Barrilleaux, Public Works, (650) 595-7469, [email protected] Agenda Title: Ralston Avenue Segment 3 Cold In-place Recycled Pavement Project Design Agenda Action: Resolution
Recommendation
Adopt a resolution (1) authorizing the City Manager to execute a Task Order with Wilsey Ham to provide design services for the Ralston Avenue Segment 3 Cold In-place Recycled Pavement Project for an amount not to exceed $129,636.

Strategic Focus Area
Infrastructure and Mobility
Background
The City recently completed improvements on Ralston Avenue between South Drive and Villa Avenue as part of the Ralston Avenue Corridor Improvements project – Segment 3. The improvements installed to date include modifications to the curb, gutter, sidewalk and new pedestrian crossings. The improvement plans also included pavement section base repairs followed by slurry seal and striping improvements.

However, during construction it was realized that the condition of the pavement had deteriorated further than was initially identified during the design process and therefore the pavement digouts and slurry seal would not provide suitable pavement rehabilitation prior to the placement of the pavement markings.

After discussions with the contractor and additional research, the City determined that the Ralston Avenue pavement should be rehabilitated using Cold-In-Place Recycling (CIPR) method.

Near the end of the project in May 2022 Council authorized additional funding (Measure I) to augment existing grant funds to reconstruct the pavement, focusing the project benefits on the long-term investment to the roadway using CIPR. However, since Council approval in May, the contractor was unable to commit to the schedule for work to occur during summer of 2022 and before start of school fall schedules, and more problematically, they did not honor the originally estimated cost to complete the cold in-place recycled pavement rehabilitation. As a result, and to prevent cost overruns and disruptions to the heavily traveled corridor, the pavement work is proposed for construction in summer 2023 under a separate contract to complete pavement rehabilitation and restriping work along the Ralston Segment 3 project corridor.

Analysis
Staff solicited proposals from three qualified civil engineering firms under its on-call agreements to provide design, and construction support services. One proposal was received in a timely manner and after reviewing the proposal, staff recommends proceeding with Wilsey Ham to provide design and 41

Ralston Segment 3 Cold In-Place Pavement Design - Staff Report construction support services for this project. Staff has negotiated a task order proposal with Wilsey Ham to develop the plans, specifications, and construction cost estimate package for the Ralston Segment 3 CIPR. The Scope of Work includes the following major items:
• Site evaluation, topographic survey, and base mapping. • Assessment and design of 3” cold in-place recycled pavement overlaid with 1.5” Hot Mix Asphalt. • Preparation of 65%, 95% and 100% Design Packages including plan set, specifications, and engineer’s estimate for review.
• Bid and Construction Support Services
Staff will bring this project back to Council for authorization to bid and award a construction contract after design is completed by early March 2023.

Alternatives

1. Take no action.

2. Refer back to staff for more information
Attachments
A. Resolution
B. Wilsey Ham Proposal
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

Ralston Segment 3 Re-Pavement Project #3116 in the Measure I Fund (Account# 102-3-730-3116-9030)
Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda 42

RESOLUTION NO. 2022 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT AUTHORIZING THE CITY MANAGER TO EXECUTE TASK ORDER #1 WITH WILSEY HAM, INC. TO PROVIDE DESIGN SERVICES FOR THE RALSTON AVENUE SEGMENT 3 COLD IN-PLACE RECYCLED PAVEMENT PROJECT WHEREAS, on May 10th, 2022, City Council authorized staff to pursue a Cold Inplace Recycled Pavement solution for Ralston Avenue between South Road and Villa Avenue in lieu of the previously approved slurry seal treatment for this segment; and, WHEREAS, Staff solicited proposals from three qualified civil engineering firms under existing on-call agreements to design the Cold In-place Recycled Pavement solution; and, WHEREAS, Wilsey Ham was selected to provide the City with pavement design services for an amount not to exceed $129,636.

WHEREAS, there is existing funding available in Project #3116 (Measure I Account 102-3-730-3116-9030) for the project design in the amount of $129,636.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. The City Manager is authorized to negotiate and execute Task Order #1 with Wilsey Ham to provide Design services for the Ralston Avenue Segment 3 Cold In-place Recycled Pavement project for an amount not to exceed $129,636. * * *
ADOPTED November 22, 2022 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:
43

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
44 October 14 2022
Jared Barrilleaux, P.E.

Assistant Public Works Director/City Engineer
City of Belmont
1 Twin Pines Lane
Suite 385
Belmont, CA 94002
Re: Proposal for Engineering Design Services for the Ralston CIPR Paving Project Dear Mr. Barrilleaux,
On behalf of Wilsey Ham, I am pleased to submit this proposal to the City of Belmont for preparation of construction documents and construction services for the Ralston CIPR Paving Project.

Background
We understand that the City of Belmont recently installed improvements on Ralston Avenue between South Drive and Villa Avenue as part of the Ralston Avenue Corridor Improvements project. The improvements installed to date include modifications to the curb, gutter, sidewalk and new RRFB’s. The improvement plans also included pavement section base repairs followed by slurry seal and striping improvements. However, during construction it was realized that the condition of the pavement had deteriorated further than was initially identified during the design process and therefore the pavement digouts and slurry seal would not provide suitable pavement rehabilitation prior to the placement of the pavement markings. After discussions with the contractor and additional research, the City determined that the Ralston Avenue pavement should be rehabilitated using Cold-In-Place Recycling (CIPR) method.

Through the City’s work to date, a pavement rehabilitation section has been determined which consists of a 3” section of existing rehabilitated A.C. using CIPR, overlaid with 1.5” of Hot Mix Asphalt. A relatively minor amount of pavement digouts for some areas with severe base failure will still be needed prior to the CIPR work. Two areas with new mid-block crosswalks will require grading modifications to conform with ADA due to the steep existing centerline crown of the street.

In addition, the bulb-out curb & gutter on Ralston at Villa Ave was installed above the pavement surface so the pavement elevation will need to be raised and conformed on the westerly side of the intersection. This will require a grading design for this crosswalk as well. The new curb and gutter pan was installed above the existing pavement surface in some other locations, so this will need to be taken into consideration for grinding and grading conforms at side-streets and on each end of the project.

The original Ralston Avenue Corridor project included the plans for pavement markings and signage, so there is no need for additional design of signing and striping. These striping & signage plans from the previous project will be included in the plan set for use on this paving project. 45 October 14, 2022
Jared Barrilleaux, PE

The City is in need of assistance in designing the grading modifications and preparing the plans, specifications, engineer’s estimate and bid package for the CIPR improvements as well as providing engineering support during construction. Those services are the subject of this proposal.

Localized topographic survey will be needed to collect existing elevations in areas where grading design is needed. This survey will be based on the project bench mark and datum identified by the City. Grading improvements will be shown on the project plan views. The project base sheets will utilize the existing project base sheets provided to us by the City in AutoCAD. The locations of curb improvements, pavement widths and other important features will be field checked by our engineers to verify that the base sheets are accurate. Elevations picked up by our surveyors will be added to the base sheets where applicable.

Wilsey Ham will perform/verify the digout marking areas in the field. We understand this is subset of the digout areas previously included on the Ralston Avenue Corridor Improvements project, so our staff will need determining the most critical areas.

Wilsey Ham will prepare the improvement plans to show the project limits for the CIPR rehabilitation, pavement rehabilitation sections and details, grading for ADA areas and conforms, and digout repair locations. The project specifications and full contract book will also be prepared.

An estimate of quantities will be calculated for the project including the emulsified recycling agent and additives for CIPR. An engineer’s estimate of probable construction costs will be developed using the most recent available bid pricing that is available, adjusted for inflation.

Construction services will be provided including assisting with the bid process, evaluation of bids, pre-construction meeting, review of submittals, response to RFIs, review of change order requests, performance of the substantial completion inspection and preparation of record drawings.

PS&E submittals will be made at the 65%, 95% and 100% complete stages of the project. The City needs to advertise the project for bid no later than February of 2023 to position themselves for the best bid prices possible. The project construction is anticipated to last approximately 5 weeks, starting in late June, 2023 and completing no later than mid-August before the new school year begins. A proposed schedule is included at the end of this proposal.

Based on the approach above, the following scope of work is proposed for this project.

Scope of Work
Task 1 – Site Evaluation, Topographic Survey and Base Mapping The following work is included in this task.
 Attend kickoff meeting with the City to go over our approach, verify submittal contents and dates, and establish project communication channels.
 Set up project base sheets using AutoCAD files from the City.  Perform site visitsto review the site, identify ADA and conform grading areas, and check base sheet accuracy. Identify utility manholes and vaults to be lowered and raised and note 46 October 14, 2022
Jared Barrilleaux, PE

on base sheets. Identify locations of traffic signal loops and note on base sheets. Prepare a survey request form.
 Tie into City of Belmont Project Bench Mark and perform Topographic Mapping of ADA and conform grading areas.
 Add elevations and topo information from site survey walk to the base sheets.  Project coordination with the City
Deliverables: Base mapping with localized elevation information based on City Bench Mark.

Task 2 – Prepare 65% Plans, Specifications and Engineer’s Estimate The following work is included in this task.
 Prepare title sheet, notes sheet and key map.
 Prepare grading design of ADA compliance areas and conforms.  Perform field marking of pavement digout areas.
 Prepare pavement rehabilitation plans showing conform limits, digout repair areas and utility vaults and manholes to be lowered/raised.
 Prepare road sections and sections & details sheet.
 Calculate preliminary bid schedule quantities.
 Prepare technical specifications using technical specification format provided by the City.  Prepare engineers estimate of probable construction costs.  Perform quality control review and revisions.
 Project coordination with the city
 Submit to City for review in pdf format.

Deliverables: 65% plans, specifications and estimate.

Task 3 – Prepare 95% & 100% Plans, Specifications, Engineer’s Estimate and Contract Book The following work is included in this task.
 Attend meeting with City to go over City comments on PS&E submittal.(1 assumed)  Address City comments on plans and develop to 95% complete.  Address City comments on specifications and develop to 95% complete.  Address City comments engineer’s estimate and develop to 95% complete.  Prepare draft contract book including invitation, City contract documents, bid schedule, measurement and payment, City Special and General Provisions.  Perform quality control review and revisions.
 Project coordination with the City
 Submit 95% PS&E to City for review.
 Attend meeting with City to go over City comments on PS&E submittal.(1 assumed)  Address City comments on plans and finalize to 100%
 Address City comments on specifications and contract book and finalize to 100%  Address City comments engineer’s estimate and finalize to 100%.  Address City comments on contract book and finalize to 100%.  Perform quality control review and revisions.
 Submit 100% PS&E bid set to City for review.

Deliverables: 95% and 100% plans, specifications, estimate & contract book. 47 October 14, 2022
Jared Barrilleaux, PE

Task 4 – Bid and Construction Services
The following work is included in this task.
 Attend pre-bid meeting with City.
 Respond to bidder questions.
 Issue one bid addendum.
 Attend pre-construction meeting.
 Review and approve submittals.(15 included)
 Review and respond to RFIs (10 included)
 Review and respond to change order requests (1 assumed)  Prepare minor plan revision to address unknown field conditions (1 assumed)  Project coordination with City
 Perform substantial completion inspection (1 site visit assumed)  Prepare record drawings from city provided redlines, QC review & submit Deliverables: 1-Bid addendum, pre-construction meeting minutes, submittal approvals, RFI responses, minor plan revision, punch list, record drawings.

Assumptions and Exclusions

1. We have included four in-person meetings at the City of Belmont in our scope of work. If additional meetings are requested, additional fees may be required.

2. The attendance of progress meetings with the contractor during construction is not included in this proposal.

3. Only the localized ADA and conform grading areas will be surveyed and mapped. This proposal does not include an overall survey of the street.

4. This proposal assumes that the City will provide the base mapping from the previous project in AutoCAD. This will be used and verified for the current project. If AutoCAD base mapping is not available from the previous project, additional fees will e required to create base mapping.

5. No potholing or utility locating is part of this proposal, if requested additional fees will be required.

6. No FDR design or cement treated base design work is included with this proposal.

7. The City will provide the title block for the plan & detail sheets in Autocad.

8. The City will provide the striping design plan sheets in Autocad.

9. The City will provide a Word version of past project specifications, front end contract documents, special provisions, etc.which we will revise for this project.

10. ADA ramp design is excluded from this proposal.

11. We assume all submittals to the City will be digital files for inclusion in their bid package.

12. Wilsey Ham’s involvement during construction is assumed to last no more than 6 weeks. If construction extends for a longer duration, additional fees may be required.

13. Excavation work for replacement/installation of the ramps is not expected to be deeper than 12” +/-, therefore only surface features of existing utilities will be shown on the topographic map.
48 October 14, 2022
Jared Barrilleaux, PE

14. Our scope of work includes only those tasks specifically described above. Any other requested work can be performed for an additional fee.

Fee and Schedule
Wilsey Ham's fee for the Scope of Services is estimated to be approximately $129,636 on a time and materials basis in accordance with the attached Charge Rate Fee Schedule. We will not exceed these amounts without your prior authorization.

Schedule
The following schedule is proposed for preparation of the ADA improvements bid package.

City Council approval of design contract 10/25/22
Notice to Proceed for design 10/31/22
Site evaluation, survey, 65% PS&E prep 10/31/22 - 12/9/22 6 weeks Submit 65% PS&E 12/9/22
City review 12/12/22 - 12/30/22 3 weeks
Prepare 95% PS&E 1/3/23 - 1/24/23 3 weeks
City Review 1/24/23 - 2/7/23 2 weeks
Prepare (100%) Final PS&E Bid Set 2/8/23 - 2/22/23 2 weeks Advertise for Bidding 2/27/23
Authorization
You may authorize Wilsey Ham to proceed in accordance with this proposal and the attached Charge Rate Fee Schedule and our On-call Agreement by executing the City’s contract with Wilsey Ham. Work will commence upon receipt of your written authorization.

We appreciate the opportunity to participate on your project.

Very truly yours,
Jeff Peterson
Jeff Peterson
President
RCE: C41385
Attachments: Fee Proposal,
2022 Charge Rate Fee Schedule
49 REIM- TOTAL TOTAL

BURSABLE WH TOTAL WH LABOR
TASK DESCRIPTION $275 HRS $247 HRS $221 HRS $197 HRS $186 HRS $183 HRS $173 HRS $284 HRS EXPENSES LABOR $ ALL $ HOURS

1. Site Eval, Topo Survey & Base Mapping
1 Attend kickoff meeting 494 2 442 2 25 936 961 4
2 Set up project base sheets using CAD files 197 1 692 4 889 889 5 3 Perf site visits, chck ex. conds, prep surv request 1,326 6 1,970 10 40 3,296 3,336 16 4 Perf field control, tie into BMs, perf topo 494 2 366 2 5,680 20 288 6,540 6,828 24 5 Add elevations, topo to base sheets 394 2 2,076 12 2,470 2,470 14 6 Project coordination with City 663 3 663 663 3
988 4 2,431 11 2,561 13 366 2 2,768 16 5,680 20 353 14,794 15,147 66

2. Prepare 65% PS&E
1 Prep title sheet & notes sheet 221 1 788 4 1,384 8 2,393 2,393 13 2 Prep grading design for ADA & conform areas 1,326 6 6,304 32 4,152 24 11,782 11,782 62 3 Perf field marking pavement digouts, check grinds 442 2 3,152 16 2,976 16 50 6,570 6,620 34 4 Prep pavement rehab plans 1,326 6 4,728 24 3,460 20 9,514 9,514 50 5 Prepare sections & details 442 2 1,182 6 1,384 8 3,008 3,008 16 6 Prep prelim bid quantities 442 2 788 4 1,116 6 2,346 2,346 127 Prep technical specs 884 4 3,940 20 4,824 4,824 248 Prep engrs estimate 442 2 1,182 6 1,624 1,624 89 Perf QC review and revs 988 4 1,326 6 1,182 6 1,038 6 4,534 4,534 22 10 Submit to City 221 1 394 2 346 2 250 961 1,211 5
11 Project coordination with City 884 4 884 884 4
988 4 7,956 36 23,640 120 4,092 22 11,764 68 300 48,440 48,740 250 City of Belmont
Ralston CIPR Pavements Rehabilitation Project
Subtotal
Fee Proposal
Subtotal

PRINCIPAL
ENGR./SRVR.

SENIOR

ENGINEER

SR DSGNR/ SENIOR

SRVR TECH SURVEY CREW
10/14/2022

SUPERVISING

ENG/SURV

ENGINEER
II

ENGINEER

I DESIGNER
2 PERSON
50 REIM- TOTAL TOTAL

BURSABLE WH TOTAL WH LABOR
TASK DESCRIPTION $275 HRS $247 HRS $221 HRS $197 HRS $186 HRS $183 HRS $173 HRS $284 HRS EXPENSES LABOR $ ALL $ HOURS City of Belmont
Ralston CIPR Pavements Rehabilitation Project
Fee Proposal

PRINCIPAL
ENGR./SRVR.

SENIOR

ENGINEER

SR DSGNR/ SENIOR

SRVR TECH SURVEY CREW
10/14/2022

SUPERVISING

ENG/SURV

ENGINEER
II

ENGINEER

I DESIGNER
2 PERSON

3. Prepare 95% & 100% (Final) PS&E
1 Mtg with City to review /City comments 442 2 394 2 25 836 861 4 2 Address City comments on plans, dev to 95% 1,326 6 3,152 16 2,768 16 7,246 7,246 38 3 Address City comments on specs, dev to 95% 884 4 1,576 8 2,460 2,460 12 4 Addr City comments on engrs estim, dev to 95% 221 1 591 3 812 812 4 5 Prep draft contract book 884 4 4,728 24 5,612 5,612 28 6 Perform QC review and revs 988 4 1,326 6 1,182 6 1,038 6 4,534 4,534 22 7 Project cootdination with City 884 4 884 884 4
8 Submit 95% PS&E to City 247 1 221 1 394 2 346 2 250 1,208 1,458 6 9 Attend mtg with City to go over City comments 442 2 394 2 25 836 861 4 10 Addr City comments on plans, finalize to 100% 1,326 6 2,364 12 2,076 12 5,766 5,766 30 11 Addr. City comments on specs, finalize to 100% 442 2 1,182 6 1,624 1,624 8 12 Addr City cmmnts on engrs estim, finalize to 100% 221 1 394 2 615 615 3 13 Addr City cmmnts on contract bk, finalize to 100% 884 4 1,576 8 2,460 2,460 12 14 Perform QC of PS&E, revs 988 4 1,326 6 1,182 6 1,038 6 4,534 4,534 22 15 Submit 100% PS&E to City for Bidding 247 1 442 2 394 2 173 1 250 1,256 1,506 6 2,470 10 11,271 51 19,503 99 7,439 43 550 40,683 41,233 2034,446 18 21,658 98 45,704 232 4,092 22 366 2 21,971 127 5,680 20 1,203 103,917 105,120 519

4. Bid & Construction Services
1 Attend pre-bid meeting 442 2 394 2 25 836 861 4
2 Respond to bidder questions 221 1 591 3 812 812 43 Issue one bid addendum 442 2 788 4 1,230 1,230 6 4 Attend pre-construction meeting 442 2 394 2 25 836 861 4 5 Review and approve submittals ( 15 included) 1,768 8 4,728 24 6,496 6,496 32 6 Review and respond to RFIs (10 assumed) 1,105 5 3,940 20 5,045 5,045 257 Review and respond to C.O. requests (1 incl.) 442 2 985 5 1,427 1,427 7 8 Prepare minor plan revision to address field cond 442 2 788 4 692 4 1,922 1,922 109 Project coord with City 1,326 6 25 1,326 1,351 6 10 Perform substant compl insp 1,105 5 1,182 6 25 2,287 2,312 1111 Prepare record drawings 221 1 394 2 1,384 8 200 1,999 2,199 11 7,956 36 14,184 72 2,076 12 300 24,216 24,516 120
4,446 18 29,614 134 59,888 304 4,092 22 366 2 24,047 139 5,680 20 1,503 128,133 129,636 639 Notes:

SubtotalSubtotal

4. All positions may not be shown. If a position is not shown the Charge Rate Fee Schedule will govern.

GRAND TOTAL

1. The amounts may vary between tasks and individuals but the Grand Total amount will not be exceeded without approval of the Client. 2. Total All$ includes subconsultants and reimbursable costs.3. Hourly rates effective through December 31, 2022 and subject to revision annually thereafter.

Subtotal of PS&E Preparation
51 Table 20188
2022 Charge Rate Fee Schedule
I. Charge Rate Fee Schedule
The compensation of Wilsey Ham for work done will be on the basis of an hourly charge rate, plus incurred expenses and will be the sum of all the items set forth below:

A. Personnel Services Hourly Range of Rates
Principal/Sr. Prgm Mgr $260 $337 Designer/Survey Tech I $143 $155 Supervising Eng/Surv/Prgm Mgr 247 292 Jr Engineer 143 155 Managing Eng/Surveyor 235 249 CAD Op/Drafter II 140
Sr. Engineer/Proj Manager 203 221 Designer/Survey Tech/Drafter 121 127 Associate Eng/Surveyor/Eng III 210 Senior Admin Staff/Contracts 182 Engineer II 197 Admin Assist/Proj Coord. 94 105
Engineer I/Project Eng 186 187 Tech Asst/Repro, File Clerk 81 83 Assistant Eng/Staff Eng 168 171 2 Person Survey Crew 284 Senior Designer/Survey Tech 173 193 Outside Survey Specialist 197 Designer/Survey Tech II 168 Construction Mgmt CM 1,2,3,4 170 246 *Effective through December 31, 2022 and subject to revision annually thereafter.

B. Reimbursable Expenses

1. Travel & Transportation Expenses:
a) Reimbursement for actual travel and subsistence expenses paid to or on behalf of employees on business connected with the project, plus a handling charge of 15%.
b) Sixty-two cents ($0.62) per mile, or the current rate allowable set by the Internal Revenue Service for use of company passenger vehicles, and eighteen dollars ($18.00) per hour for use of vehicles carrying field survey equipment and supplies or used for field inspection and supervision.

2. Miscellaneous Expenses:
a) The cost of materials, supplies, reproduction work, agency filing fees, and other services, including communication expenses, plus a handling charge of 15%.

C. Outside Services
a) Invoice cost of services and expenses charged to Wilsey Ham by outside consultants, professional, or technical firms engaged in connection with the order, plus a handling charge of 15%.
52

ADA Title II for Fiscal Year 2021-2022 Update - Staff Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Bozhena Palatnik, Public Works, (650) 595-7463, [email protected] Agenda Title: Americans with Disability Act Title II Fiscal Year 2021-2022 Update Agenda Action: For Information Only
Recommendation
Information only, no action required.

Strategic Focus Area
Infrastructure and Mobility
Background
On July 26, 1990, Congress enacted Title II of the Americans with Disabilities Act (ADA). This Federal Law requires the City to provide disabled persons access to its services, programs, and activities.

Regulations implementing the law set forth standards for what constitutes discrimination on the basis of mental or physical disability, provide a definition of disability and qualified individual with a disability, and establish a complaint mechanism for resolving allegations of discrimination (28 CFR 35).

On July 31, 2009, Caltrans revised their requirements for annual reporting of ADA information. The required submittals include designation of ADA Coordinator; certification of an updated self-evaluation and transition plans; and certification of adoption of a grievance procedure. This information must be submitted for each Federal fiscal year.

To comply with the requirements for accessibility to City programs, services and activities, the City performs an annual Self-Evaluation of its policies, procedures and practices and to identify physical barriers in its facilities, parks, parking lots and public right of way. In March 2018, access compliance surveys of the City’s facilities, parks and public right of way were completed. In November 2019, the City completed a Self-Evaluation of City policies, procedures, and practices for FY 2018-19. The City is completing such Self-Evaluation every fiscal year.

Analysis
The City of Belmont is committed to providing accessible services to the community. Pedestrian improvements, building renovations, and the delivery of services have been accomplished with consideration of the needs of people with disabilities. This report covers Program activities during the fiscal year 2021-22, as the City continued making progress in updating its annual ADA Self Evaluation and the Transition Plan. This work is presented in Attachment A.

The City is working to improve accessibility of its public rights of way, public facilities and permitted work. All projects that include pedestrian facilities undergo an ADA review to determine the need for 53

ADA Title II for Fiscal Year 2021-2022 Update - Staff Report accessibility upgrades to existing facilities and/or addition of new accessible elements. Project design documents include accessibility upgrades to pedestrian facilities within each project. Design documents receive multiple reviews for safety and accessible elements. Construction projects include in-house and consultant inspections to ensure accessible features are built correctly.

Additionally, one of the purposes of the Transition Plan Update is to identify physical barriers that may limit access to City programs and services. Many of the potential barriers identified are associated with facilities that have accessible features such as designated parking, accessible restrooms, access ramps, accessible door hardware, and other code compliant and usable features. The needs of the community of persons with disabilities inform the removal of barriers and are incorporated into the work to create more access.

The Transition Plan Update is intended to provide a framework for the continuous improvement of City facilities for people with disabilities. This is a living document, regularly updated as barriers are removed, and existing facilities are renovated.

Alternatives

1. Refer back to staff for further information.

Attachments
A. List of ADA related improvements
Fiscal Impact
☒ No Fiscal Impact
☐ Funding Source Confirmed:

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda 54 ATTACHMENT A
List of ADA Related Improvements
Project/Item Project/Item Description
2022 Pavement Project
1 curb ramp at the northwest corner of Old County
Road/Ralston Avenue intersection
2 curb ramps at northwest and northeast corners of Old
County Road/Sterling View Ave intersection
2 curb ramps at northwest and northeast corners of Old
County Road/Dale View Ave intersection
2 curb ramps at northwest and northeast corners of Old
County Road/Crest View Ave intersection
1 curb ramp at the northeast corner of Old County
Road/Mountain View Avenue intersection
2 curb ramps at northwest and northeast corners of Old
County Road/Marine View Ave intersection
3 curb ramps at northeast, northwest, and southwest
corners of Old County Rd/Masonic Way
2 curb ramps on Masonic Way at Sterling Condominium
Driveway
1`ramp on the north side of Mezes Avenue/Alameda de
las Pulgas
4 ramps at the intersection of Masonic Way/Granada
Street
Ralston Avenue Corridor Improvements
Project - Segment 3
1 curb ramp at northwest corner of Chula Vista Drive
and Ralston Avenue intersection
1 curb ramp installed at northeast corner of Ralston
Avenue and Chevy Street
1 ramp at northwest corner of Notre Dame de Namur
Entrance and Ralston Avenue
1 ramp at northeast corner of Maywood Drive and
Ralston Avenue
Belmont Twin Pines Park Installation of ADA inclusive swing set Belmont Belameda Park Installation of ADA inclusive swing set Notre Dame de Namur Tennis Courts Installation of temporary ADA restroom 2290 Ralston Avenue Installation of 1 ramp near driveway at sidewalk 530 El Camino Real
Review & issuance of Building Permit with private
accessibility improvements
1086 Alameda de las Pulgas
Review & issuance of Building Permit with private
accessibility improvements
1888 Ralston Avenue
Review & issuance of Building Permit with private
accessibility improvements
815 Old County Road
Review & issuance of Building Permit with private
accessibility improvements
55 ATTACHMENT A
1011 Alameda de las Pulgas
Review & issuance of Building Permit with private
accessibility improvements
390 El Camino Real, Suite G
Review & issuance of Building Permit with private
accessibility improvements
2710 Ralston Avenue
Review & issuance of Building Permit with private
accessibility improvements
1365 5th Avenue at Broadway
Review & issuance of Building Permit with private
accessibility improvements
1100 El Camino Real
Review & issuance of Building Permit with private
accessibility improvements
401 Island Parkway
Review & issuance of Building Permit with private
accessibility improvements
800 El Camino Real
Review & issuance of Building Permit with private
accessibility improvements
2040 Ralston Avenue, Suite B
Review & issuance of Building Permit with private
accessibility improvements
1200 6th Avenue
Review & issuance of Building Permit with private
accessibility improvements
1141 Old County Road
Review & issuance of Building Permit with private
accessibility improvements
1000 El Camino Real
Review & issuance of Building Permit with private
accessibility improvements
844 Old County Road
Review & issuance of Building Permit with private
accessibility improvements
522 El Camino Real
Review & issuance of Building Permit with private
accessibility improvements
56

PTSC Update & Recommended Improvements - Staff Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Elizabeth Wada, Public Works, (650) 595-7468, [email protected] Agenda Title: Recommended Parking Changes on 900 block of Old County Road Agenda Action: Resolution
Recommendation
Adopt a resolution approving conversion of the 20-Minute Parking zone in front of 940 Old County Road to a 4-Hour Parking, 7 am to 6 pm, except Sundays and Holidays.

Strategic Focus Area
Infrastructure and Mobility
Background
As part of development review process for the housing project at 815 Old County Road (OCR) a traffic study was performed to analyze circulation along OCR. As a result, recommendations were made to revise the striping along the OCR segment from Masonic Way to Ralston Avenue to improve traffic circulation in the area. The recommended striping included a dedicated left-turn pocket from southbound OCR onto Masonic Way and elimination of up to 4 on street parking spaces. To avoid re-striping the road segment upon completion of the 815 OCR project, the revised striping plan was completed with the 2022 Pavement Project earlier this summer.

As the restriping work was completed there was a concern raised by the business owner at 940 OCR. Due to the addition of red curb at the left turn pocket on Old County Road, the business owner requested that a 20-Minute Parking zone be converted to a 4-Hour Parking zone. The approximate location is shown in green in figure shown below. The proposed change will create “4 Hour Parking, 7 am to 6 pm except Sundays and Holidays” along that frontage. This would match the existing 4 Hour Parking similar to the adjoining area.
57

PTSC Update & Recommended Improvements - Staff Report
Analysis
The City staff worked with the effected property owner to address their concerns and held a Parking and Traffic Safety Committee (PTSC) meeting to review the requested change at its October 18, 2022, meeting.

Residents and businesses within a 300-foot radius of the requests were notified of the PTSC meeting.

There were two objections to the Old County Road red curb, one show of support for the red curb, and a few calls for support from residents who were unable to make the meeting. The PSTC concluded that the circulation and safety improvements outweighed the concerns raised by some to the removal of on-street parking. No objections were noted for the proposed time limit change in front of 940 OCR.

The Public Works Department will also monitor parking along OCR between Masonic Way and Marine View Avenue to determine if any other changes may be warranted and provide additional recommendations if needed.

Alternatives

1. Take no action

2. Refer to staff for further information
Attachments
A. Resolution
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

Expenditures have been incorporated in the Street Maintenance Fund in the current fiscal year budget for the PTSC
recommended improvements.

Source: Purpose: Public Outreach:

Staff Discretionary Action Other*
*Notices were sent out to residents and businesses within a 300’ radius of the proposed changes regarding the items being on the PTSC agenda. The public PTSC meeting was also listed on the City’s website Calendar events and City Manager’s Weekly Update.
58

RESOLUTION NO. 2022 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT TO ADOPT A RESOLUTION APPROVING CONVERSION OF THE 20-MINUTE PARKING ZONE IN FRONT OF 940 OLD COUNTY ROAD TO A 4-HOUR PARKING, 7 AM TO 6 PM,

EXCEPT SUNDAYS AND HOLIDAYS
WHEREAS, red curb, “No Parking” signs, and a left turn pocket were installed at the intersection of Old County Road and Masonic Way with the 2022 Pavement Project, per the 815 Old County Road development’s project conditions that resulted from a traffic study; and, WHEREAS, the Parking and Traffic Safety Committee (PTSC) brought the improvements to a public meeting to receive resident feedback; and, WHEREAS, residents and businesses within a 300-foot radius of the requests were notified of and invited to the PTSC meeting held on October 18, 2022; and, WHEREAS, a resident requested for the limited time zone parking to be converted from 20 minutes to 4 hours to offset the loss of parking due to the new red curb.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. Approves the conversion of the 20-minute parking zone in front of 940 Old County Road to a 4-hour parking zone, 7 am to 6 pm, except Sundays and Holidays, and the 2-hour parking zone to a 4-hour parking zone along Old County Road between Masonic Way and Marine View Ave, if deemed necessary by Public Works. * * *
ADOPTED November 22, 2022 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:
59

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
60

Measure I Advisory Committee Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Afshin Oskoui, City Manager, (650) 595-7410, [email protected] Agenda Title: Report from Measure I Advisory Committee for Fiscal Year Ended June 30, 2022 Agenda Action: Motion
Recommendation
Receive Annual Measure I Advisory Committee Report for the fiscal year ended June 30, 2022.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
Measure I, the one-half cent transaction and use tax, is a locally controlled funding source that was approved by Belmont voters in November 2016 and became effective beginning on April 1, 2017.

Measure I was passed as a general tax, and therefore the funds may be used for any valid governmental purpose. However, based on input received through community meetings and numerous surveys, the City Council has continued to direct that Measure I fund be utilized towards streets and storm drains infrastructure improvements.

Measure I provides that, by no later than December 31st of each year, the City’s independent auditor shall complete a report to verify that the taxes levied under Measure I have been properly applied, exempted, collected, and remitted in accordance with the law for the prior fiscal year.

The Belmont City Code establishes the duties of the Measure I Advisory Committee (“the Committee”), which are to monitor and report on how the tax levied by Measure I has been spent, to review the annual audit prepared by the City’s independent auditor related to the prior fiscal year’s collection and expenditure of Measure I funds, and to transmit a report annually regarding the accuracy of the auditor’s findings. To preserve the integrity and independence of the advisory process, the Committee members shall not have a role in determining the use of revenue generated by Measure I.

The Committee understands that its role is to review and evaluate Measure I annual reports and the general scope of the associated audit work, and to give reasonable assurance that the Measure I funds are being properly spent and reported on.
61

Measure I Advisory Committee Report
Analysis
For fiscal year ended June 30, 2022, the Measure I financial statements have been audited by the City's independent auditor who issued a report on the financial statements and a report on Measure I compliance.

The financial statements and the auditor's reports are attached, and hard copies have been provided to the Council under separate cover.

During the fiscal year, the City recognized revenues totaling $2,275,183 in Measure I transactions and use tax. $1,674,062 was expended for street improvements and $35,325 for storm drain improvements leaving a fund balance as of June 30, 2022 at $2,938,455 for future project expenditures.

The Committee met on November 14th and, based on the Committee’s review of information made available by City staff, including the Measure I financial statements and the audit opinions of the independent auditor, gained reasonable assurance that the Measure I funds are being properly spent and reported on. The Committee directed the Chair to transmit this report through the City Manager’s Office and, by doing so, has discharged its duties and met its responsibilities for the year ended June 30, 2022, as required by the Belmont City Code.

The Committee noted that they continue to review supplemental materials provided by the Public Works Department regarding the nature of ongoing and planned improvements to streets and the storm drainage system.

The Committee wishes to express its appreciation to the City’s management, the staff members of the Finance and Public Works Departments, for the information they have provided for the Committee to compile this report.

By:

Joseph McDonough
Measure I Advisory Committee Chair
Alternatives

1. Take No Action
Attachments
A. Measure I Fund Financial Statements
Source: Purpose: Public Outreach:

Staff Discretionary Action Posting of Agenda
62 City of Belmont, California
Measure I Fund
Financial Statements
For the Year Ended June 30, 2022
63 This Page Left Intentionally Blank
64 CITY OF BELMONT
Measure I Fund
Financial Statements
For the Fiscal Year Ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report........................................................................................................ 1 Financial Statements:

Balance Sheet  .......................................................................................................................... 4 Statement of Revenues, Expenditures and Changes in Fund Balance...................................... 5 Notes to Financial Statements.................................................................................................. 7 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Measure I Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards....... 9 Statistical Section:

Revenues and Project Expenditures ....................................................................................... 11 65 This Page Left Intentionally Blank
66 INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Members of the City Council
City of Belmont, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Measure I Fund (Fund) of the City of Belmont, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of June 30, 2022, and the change 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 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 responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.  We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical 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.

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; this includes 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 substantial doubt about the Fund’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 67
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 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 responsive to those risks.   Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.   Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Fund’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control‐related matters that we identified during the audit.

Emphasis of a Matter
The financial statements referred to above present only the Fund and are not intended to present fairly the financial positions of the City or the results of its operations in accordance with accounting principles generally accepted in the United States of America.
2 68

Other Information
Management is responsible for the other information included in the annual report.   The other information comprises the Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon.  Our opinion on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the 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 exits, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 3, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.   The purpose of that report is 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
November 3, 2022
3 69
Assets:

Cash and investments $3,159,994
Due from the State of California 377,851
Total Assets $3,537,845
Liabilities:

Accounts payable $599,390
Total Liabilities 599,390
Fund Balance:

Committed for Infrastructure 2,938,455
Total Liabilities and Fund Balance $3,537,845
See accompanying notes to financial statements

MEASURE I FUND

CITY OF BELMONT

BALANCE SHEET
JUNE 30, 2022
4 70

MEASURE I FUND

CITY OF BELMONT

EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2022
Revenues:

Measure I Sales Tax $2,275,183
Interest Earnings 7,361
Total Revenues 2,282,544
Expenditures:

Measure I Projects:

Street Improvements 1,674,062
Storm Drain Improvements 35,325
Transfer to Infrastructure Projects 1,385,864
Total Expenditures 3,095,251
Net Change in Fund Balance (812,707)
Fund Balance ‐ July 1, 2021 3,751,162
Fund Balance ‐ June 30, 2022 $2,938,455
See accompanying notes to financial statements
STATEMENT  OF REVENUES,
5 71
This Page Left Intentionally Blank
72 CITY OF BELMONT, CALIFORNIA

MEASURE I FUND

NOTES TO FINANCIAL STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – BACKGROUND
The Belmont Streets and Services Measure (Measure I) was approved by the voters in November 2016, with 55 percent of the vote. The collection of the half cent general sales tax started in the first week of April 2017.  The stated objective of the City Council for Measure I is to pay for the City’s infrastructure for the next 30 years. The City of Belmont administers the program and distributes the funds.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity – All transactions of the Measure I Program of the City of Belmont, California (City), are reported as a part of the General Fund in the basic financial statements of the City.

The Measure I Fund is used to account for the City’s share of revenues earned and expenditures incurred pursuant to the Belmont Streets and City Services Measure.   The accompanying financial statements include Measure I Funds only and are not intended to fairly present the financial position, results of operations and cash flows of the City in conformity with accounting principles generally accepted in the United States of America.

Basis of Accounting – The accompanying financial statements are prepared on the modified accrual basis of accounting.  Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.   All governmental funds are accounted for using a “current financial resources” measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets.  Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Description of Funds – The accounts are maintained on the basis of fund accounting.  A fund is a separate accounting entity with a self‐balancing set of accounts.  The City uses a subfund of the General Fund to account for the proceeds of specific revenues (other than for capital projects) that are legally restricted to be expended for specified purposes.

Use of Estimates – Management uses estimates and assumptions in preparing the financial statements.   Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could differ from those estimates. 7 73

CITY OF BELMONT, CALIFORNIA

MEASURE I FUND

NOTES TO FINANCIAL STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS
Cash and investments are maintained on a pooled basis with those of other funds of the City.

Pooled cash and investments consist of money market funds investing in such obligations and the State Treasurer’s investment pool (Local Agency Investment Fund).  All investments are stated at fair value.  Pooled investment earnings are allocated based on the average cash and investment balances of the various funds and related entities of the City.

See the City’s Annual Comprehensive Financial Report for disclosures related to cash and investments and the related custodial risk categorization.  The Annual Comprehensive Financial Report may be obtained from the City of Belmont, 1 Twin Pines Lane, Belmont, CA, 94002. 8 74
INDEPENDENT AUDITOR’S REPORT ON

INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON MEASURE I 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 Belmont, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure I Fund (Fund) of the City of Belmont, California, as of and for the year ended June 30, 2022, and have issued our report thereon dated November 3,2022.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.  Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis.   A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Fund’s financial statements will not be prevented, or detected and corrected on a timely basis.  A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.  Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.   However, material weaknesses or significant deficiencies may exist that have not been identified. 9 75
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.   Our procedures included tests of compliance with the applicable provisions of Section 23‐114, Annual Audit, of Chapter 23 of the Belmont City Code (Ordinance No, 2016‐1109).  However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.  The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.

We have also issued a separate Memorandum on Internal Control dated November 3, 2022 which is an integral part of our audit and should be read in conjunction with this report.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing based on the requirements specified in Section 23‐114, Annual Audit, of Chapter 23 of the Belmont City Code (Ordinance No, 2016‐1109), and not to provide an opinion on the effectiveness of the City’s internal control or on compliance.  This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance.  Accordingly, this communication is not suitable for any other purpose.

This report is intended solely for the information and use of management, City Council, others within the City, and federal awarding agencies and pass‐through entities and is not intended to be and should not be used by anyone other than these specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
November 3, 2022
10 76

CITY OF BELMONT

MEASURE I FUND

REVENUES AND PROJECT EXPENDITURES
Last Ten Fiscal Years*
Fiscal Year Ended June 30,
2017* 2018 2019 2020 2021 2022
Revenues:

Measure I Sales Tax $251,095 $1,681,041 $1,874,155 $1,614,275 $2,179,340 $2,275,183 Interest Earnings 89 10,194 31,712 35,707 8,318 7,361
Total Revenues $251,184 $1,691,235 $1,905,867 $1,649,982 $2,187,658 $2,282,544 Fiscal Year Ended June 30,
2017* 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual Budget Actual
Expenditures:

Projects:

Street Improvements $0 $56,440 $881,593 $1,058,939 $523,150 $3,769,200 $1,674,062 Storm Drain Improvements 0 0 0 434,613 14,638 0 35,325
Transfer to Measure A Projects 0 0 0 958,744 0 580,000 0 Transfer to Infrastructure Projects 0 0 0 0 0 800,000 1,385,864 State of California District Tax 0 00 0 000
Administrative Fee 0 6,647 0 0 0 0 0
Total Expenditures $0 $63,087 $881,593 $2,452,296 $537,788 $5,149,200 $3,095,251 Fund Balance $251,184 $1,879,332 $2,903,606 $2,101,292 $3,751,162 $2,938,455 *Measure I was effective April 1, 2017.
$251
$1,681
$1,874
$1,614
$2,179 $2,275
$0 $0 $10 $32 $36 $8 $7 $56
$882
$2,018
$523
$3,060
$0 $0 $0
$435
$0 $7 $0 $0 $15 $0 $35 $0
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2017 2018 2019 2020 2021 2022
Thousands
Fiscal Year
Revenues and Expenditures
Sales Tax Interest Earnings Street Improvements Storm Drain Improvements Administrative Fees $251
$1,879
$2,904
$2,101
$3,751
$2,938
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2017 2018 2019 2020 2021 2022
Thousands
Fiscal Year
Fund Balance
Fund Balance
11 77
This Page Left Intentionally Blank
78

Development Fees Annual Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Jennifer Rose, Finance Department, [email protected] Agenda Title: Annual Report on Receipt and Use of Development Impact Fees, In-Lieu Fees, and Linkage Fees for Fiscal Year 2022
Agenda Action: Resolution
Recommendation
Adopt a Resolution to make certain findings and accept the annual report on receipt and use of development impact fees, in-lieu fees, and linkage fees for the fiscal year ended June 30, 2022.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
Development Impact Fees
The City of Belmont assesses two development impact fees – Park Improvement Impact Fee and Transportation Impact Fee. Local governments often charge fees as a condition of approval for development projects to fund public improvements to compensate for the demands that the developments have on public resources. These fees are commonly known as development impact fees. In 1989, the State Legislature passed Assembly Bill 1600 (AB 1600), which added Sections 66000 et seq. to the California Government Code, commonly known as the Mitigation Fee Act.

Government Code Section 66006 requires that the City make available to the public the following information regarding development impact fees within 180 days after the end of each fiscal year:

1. A brief description of the type of fee.

2. The amount of the fee.

3. The fee’s beginning and ending balances for the fiscal year.

4. Total fees collected and the interest earned, if applicable.

5. Identification of each public improvement on which impact fees were expended and the amount of expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with impact fees.

6. Identification of an approximate date by which the construction of a public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.
a. This information is listed in Exhibit A to the Resolution. Exhibit A shows the five-year plan for public improvement projects and their anticipated expenditures related to the Mitigation Fee Act and Quimby Act. Specific details on each of the projects listed in 79

Development Impact Fees Annual Report FY22 - Staff Report Exhibit A can be found in the five-year capital improvement program section in the City’s FY 2022 Adopted Budget.

7. Description and uses for transfers or loans of fees, if applicable.

8. Amounts of any refunds and allocations.

Further, the Mitigation Fee Act requires that findings describing the continuing need for impact fees be made every five years specifying the intended use of any unexpended impact fees, regardless of whether the fees are committed or uncommitted. If findings are not presented as scheduled, the City may be subjected to go through a refunding procedure. The City is opting to make such findings every year.

In-Lieu Fees
In-lieu fees are fees that are collected by the City instead of requiring developers to provide or construct specified improvements or amenities with their projects. The City of Belmont assesses three in-lieu fees – Park In-Lieu Fee, Inclusionary Housing In-Lieu Fee, and Public Art In-Lieu Fee.

Park In-Lieu Fees are assessed pursuant to the Quimby Act under Government Code Section 66477. The other in-lieu fees do not have statutory reporting requirements but are included in this report for informational purposes. Under the Quimby Act, local governments may require the dedication of land for parks or the payment of fees in-lieu of land dedication as a condition of subdivision map approval. While park in-lieu fees are exempt from the reporting requirements included in the Mitigation Fee Act, these fees have separate Quimby Act reporting requirements, specifically:

1. The City must develop a schedule specifying the use of land or fees to develop park or recreational facilities to serve the residents of the subdivision.

2. Any Quimby fees collected must be committed within five years after the payment of the fees or the issuance of building permits on one-half of the lots created by the subdivision, whichever occurs later.

3. If not committed, the fees shall be distributed and paid to the record owners of the subdivision in the same proportion that the size of the lot bears to the total area of lots within the subdivision (Gov. Code section 66477(a)(6)).

Linkage Fees
Linkage fees are exactions for social needs indirectly related to development projects. The City of Belmont assesses one linkage fee –Affordable Housing Commercial Linkage Fee. While these are linkage fees, they are included in this report with reporting requirements under the Mitigation Fee Act for informational purposes and to make sure that information is available in the event that a court rules in the future that linkage fees are subject to the reporting requirements of the Mitigation Fee Act.

This report complies with requirements of the Mitigation Fee Act and the Quimby Act outlined above.

Analysis
For fiscal year 2022, the City of Belmont is required to report on the following two development impact fees, pursuant to the Mitigation Fee Act.
80

Development Impact Fees Annual Report FY22 - Staff Report Park Improvement Impact Fees – The purpose of park impact fees is to ensure that the City can construct park and recreation facilities needed for the population growth created by new development. The Development Fees Annual Report (Attachment B) includes current fee information, a summary of revenues and expenditures, and opening and closing fund balance for the Park Impact Fees Fund (Fund 342).

The Council is asked to make the following findings regarding park improvement impact fees collected but not expended – these findings are detailed in the resolution provided as Attachment A:

1. Development impact fees are collected to mitigate direct and indirect impacts from development.

2. These funds are expended in a timely manner to fund continued improvements to public facilities related to the increased demand on the facilities resulting from development.

3. There is a reasonable relationship between these impact fees and their purpose.

4. These impact fees continue to be required to fund applicable improvements, and as such, these fees will continue to be collected for utilization solely for their intended purpose.

Transportation Impact Fees – The City of Belmont transportation impact fee program requires new development to contribute funding for future transportation system improvements. The Development Fees Annual Report (Attachment B) includes current fee information, a summary of revenues and expenditures, and opening and closing fund balance for the Transportation Impact Fee (Fund 237) in which the transportation impact fees are accounted for.

The Council is asked to make the following findings regarding transportation impact fees collected but not expended – these findings are detailed in the resolution provided as Attachment A:

1. Development impact fees are collected to mitigate direct and indirect impacts from development.

2. These funds are expended in a timely manner to fund continued improvements to public facilities related to the increased demand on the facilities resulting from development.

3. There is a reasonable relationship between these impact fees and their purpose.

4. These impact fees continue to be required to fund applicable improvements, and as such, these fees will continue to be collected for utilization solely for their intended purpose.

For fiscal year 2022, Belmont is providing financial reporting information for three in-lieu or linkage fees:

Housing Mitigation Fees – Housing mitigation fees include both the inclusionary housing in-lieu fee, and the affordable housing commercial linkage fee. The purpose of the housing mitigation fees is to mitigate the burdens created by new residential and non-residential development projects on the need for extremely low, very low, low, and moderate-income housing. The Development Fees Annual Report (Attachment B) includes current fee information, a summary of revenues and expenditures, and opening and closing fund balance for the Inclusionary Housing Fund (Fund 277), in which the inclusionary housing in-lieu fee and affordable housing commercial linkage fee are accounted for.

The Council is asked to make the following findings regarding housing mitigation fees collected but not expended – these findings are detailed in the resolution provided as Attachment A:
81

Development Impact Fees Annual Report FY22 - Staff Report

1. Development impact fees are collected to mitigate direct and indirect impacts from development.

2. These funds are expended in a timely manner to fund continued improvements to public facilities related to the increased demand on the facilities resulting from development.

3. There is a reasonable relationship between these impact fees and their purpose.

4. These impact fees continue to be required to fund applicable improvements, and as such, these fees will continue to be collected for utilization solely for their intended purpose.

Park In-Lieu (Quimby) Fees
The park in-lieu fee program is offered in-lieu of the City’s parkland dedication requirement for new residential subdivisions; this fee ensures that the City’s existing ratio of parkland acreage to 1,000 residents is maintained when new subdivision development occurs. The Development Fees Annual Report (Attachment B) includes current fee information, a summary of revenues and expenditures, and opening and closing fund balance for the Planned Park Fund (Fund 341) in which the park in-lieu fee are accounted for.

Public Art In-Lieu Fees – The City of Belmont adopted a public art requirement for private development so that development of cultural and artistic assets is financed by those whose development diminishes the availability of the community's resources for those opportunities and contributes to community urbanization. The City requires certain private development projects to contribute not less than one percent of the building development costs towards acquisition and installation of public art or contribute an equivalent amount to the City's public art in-lieu fund.

Alternatives

1. Request additional information on Development Fees.

Attachments
A. Resolution
B. Exhibit A - Development Fees Annual Report FY 2022
C. Exhibit B - Public Improvement Project Expenditures Five-Year Plan Fiscal Impact
☒ No Fiscal Impact
☐ Funding Source Confirmed:

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Other*
*In accordance with Government Code Section 66006, this information was made available to the public 15 days before the public meeting. A notice of availability was published in a general circulation newspaper on November 4, 2022.
82

RESOLUTION NO. 2022 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT

ACCEPTING THE ANNUAL REPORT ON RECEIPT AND USE OF DEVELOPMENT

IMPACT FEES, IN-LIEU FEES, AND LINKAGE FEES FOR THE FISCAL YEAR ENDED JUNE 20, 2022 AND MAKING FINDINGS REGARDING DEVELOPMENT

IMPACT FEES COLLECTED BUT NOT EXPENDED
WHEREAS, Government Code Sections 66000 et seq., commonly known as the Mitigation Fee Act, regulate the imposition, collections, expenditure, and reporting of development impact fees; and,
WHEREAS, Government Code Section 66001 requires that certain information be made available to the public regarding development impact fees on an annual basis; and, WHEREAS, Government Code Section 66001 requires the City Council to make findings describing the continuing need for impact fees every five years specifying the intended use of any unexpended impact fees; and,
WHEREAS, the City of Belmont assesses two development impact fees subject to Mitigation Fee Act reporting requirements – Park Impact Fee and Transportation Impact Fee; and,
WHEREAS, the City of Belmont also collects in-lieu fees and linkage fees, including Inclusionary Housing In-Lieu Fee, Public Art In-Lieu Fee, and Affordable Housing Commercial Linkage Fee; and,
WHEREAS, the City of Belmont adheres to the Mitigation Fee Act requirements for inlieu fees and linkage fees in addition to development impact fees; and, WHEREAS, the City Council of the City of Belmont has read and considered the Development Impact Fees, In-Lieu Fees, and Linkage Fees Annual Report for the Year Ended June 30, 2022, and all accompanying attachments.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. Acceptance of this report is not a project subject to CEQA review because it is an organizational or administrative activity that will not result in direct or indirect physical changes to the environment pursuant to CEQA Guidelines section 15378(b)(5).

SECTION 2. The City Council accepts the Development Impact Fees, In-Lieu Fees, and Linkage Fees Annual Report for the Year Ended June 30, 2022, included as Exhibit A to this resolution.
83

SECTION 3. Based on the Report and the schedule for expenditure of improvements attached as Exhibit B to this resolution, the City Council makes the following findings with regard to the development impact fees and linkage fees collected but not expended in Fiscal Year 2022 and listed below:

Park Improvement Impact Fee

1. This fee is used to develop parkland and parkland improvements that are necessary to serve new development.

2. There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based on the need for parkland and parkland improvements that will be generated by new development.

3. The sources and amounts of funding anticipated to complete the planned projects are shown in Exhibit A.

4. The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.

Transportation Impact Fee

1. This fee is used to develop transportation and transportation improvements that are necessary to serve new development.

2. There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based on the need for transportation and transportation improvements that will be generated by new development.

3. The sources and amounts of funding anticipated to complete the planned projects are shown in Exhibit A.

4. The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.

Affordable Housing Commercial Linkage Fee

1. This fee will be used to support affordable housing that are necessary in order to serve new development.

2. There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the anticipated need for affordable housing that will be generated by new commercial development.

3. The sources and amounts of funding expected to complete the anticipated projects are shown in Exhibit A.

4. The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
* * *
84

ADOPTED November 22, 2022 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
85 Purpose and Authority for Collection
Fee Enactment 10/28/2014
Initial Fee Collection FY 2017
Next AB-1600 Five Year Review FY 2026
Amount of Fee FY2022
Residential Development (fee per dwelling unit):

Single-Family Detached Housing $13,117
Single-Family Attached Housing $13,117
Multifamily Housing $8,745
Second Dwelling Unit Varies in proportion to size
of primary residence.

Non-Residential Development (per square foot):

Retail & Other Commerical $2.37
Office $0.71
Industrial $0.95
Lodging, per room $427.00
BEGINNING BALANCE, 7/1/2021 $1,397,020
Revenues
Fees Collected $1,553,490
Interest Earned $4,549
TOTAL REVENUES $1,558,039
Expenditures
Transfer to Planned Park 2,500,000
Capital Improvements 128,384
TOTAL EXPENDITURES 2,628,384
Other Commitments/Appropriations 0
Ending Fund Balance, 6/30/2022 $326,675
The purpose of park impact fees is to ensure that the City can construct park and recreation facilities needed for the population growth created by new development. Existing park and recreational facilities are insufficient in number, size, location, and the kinds of recreational opportunities which they present to meet the needs of both the City’s existing and projected service population. The City’s goal is to provide five acres of neighborhood and community park facilities for every one thousand new residents, consistent with the City’s General Plan and the Park’s and Open Space Master Plan. City Council Resolution 2014-148, adopted October 28, 2014, authorizes assessment of Park Impact Fees in connection with the issuance of any building permit for residential or non-residential development within the City of Belmont.

City of Belmont
Annual Report on Park Impact Fees (Fund 342)
Fiscal Year Ending June 30, 2022
Annual Report 2022 (Exhibits A and B), tab: Park Impact 342 86 Purpose and Authority for Collection
Fee Enactment 1/25/2021
Initial Fee Collection FY 2022
Next AB-1600 Five Year Review FY 2027
Amount of Fee FY2022
Residential Mtigation and In-Lieu Fees (fee per square foot):

Single-Family Detached Housing $7,035.00
Single-Family Attached Housing $7,035.00
Multifamily Housing $5,460.00
Second Dwelling Unit Varies in proportion to size
of primary residence.

Non-Residential Mitigation Fees (per square foot):

Retail/commerical $16.64
Office/Other $10.57
Industrial $4.59
Lodging, per room $9,625.00
BEGINNING BALANCE, 7/1/2021 $0
Revenues
Fees Collected $200,000
Interest earned $429
TOTAL REVENUES $200,429
Expenditures
Capital Outlay $0
TOTAL EXPENDITURES $0
Other Commitments/Appropriations $0
Ending Fund Balance, 6/30/2022 $200,429
The purpose of the transportation impact improvement fee is to mitigate the negative impacts that new development has on the citywide transportation system and to accommodate construction of new transportation infrastructure that expands and upgrades the Belmont transportation system. The transportation impact fee program requires new development to contribute funding for future transportation system improvements in Belmont that will maintain the existing proportionate levels of investment in the City's transportation infrastructure. City Council resolution No. 2020-103, adopted on November 24, 2020, authorizes assessment of Transportation Impact Fees in connection with the issuance of any building permit for residential or nonresidential development within the City of Belmont.

City of Belmont
Annual Report on Transporation Impact Fees (Fund 237)
Fiscal Year Ending June 30, 2022
Annual Report 2022 (Exhibits A and B), tab: Transporation Impact 237 87 Purpose and Authority for Collection
Fee Enactment 10/28/2014
Initial Fee Collection FY 2015
Amount of Fee FY2022
Residential Subdivision (fee per dwelling unit):

Single-Family Detached Housing $41,043
Single-Family Attached Housing $41,043
Multifamily Housing $27,362
BEGINNING BALANCE, 7/1/2021 $357,457
Revenues
Transfer from Park Impact (342) 2,500,000
In-Lieu Fees Collected $0
Contributions & Donations $0
Interest Earned ($500)
TOTAL REVENUES $2,499,500
Expenditures
Capital Outlay 115,005
Debt Service Principle 560,035
Interest and Fiscal Charges 107,965
Administrative Support 63,667
Transfer to Open Space Fund 20,900
TOTAL EXPENDITURES 867,572
Other Commitments/Appropriations 0
Ending Fund Balance, 6/30/2022 $1,989,385
The Quimby Act allows California jurisdictions to establish parkland dedication requirements for new subdivisions of land. Pursuant to Belmont City Code Chapter 17, Article IV, Parkland Dedication Requirements and In-Lieu Fees , Developers wishing to create new residential parcels may meet the Quimby Act requirements either through direct land dedication, or payment of an equivalent in-lieu fee. The equivalent in-lieu fee level is calculated based on the parkland service standard per 1,000 residents, current per-acre land values, and number of persons per household. Revenue shall be used to acquire parkland or fund park improvements.

City of Belmont
Annual Report on Park In-Lieu Fees (Fund 341)
Fiscal Year Ending June 30, 2022
Annual Report 2022 (Exhibits A and B), tab: Park In-Lieu (Quimby) 341 88 Purpose and Authority for Collection
Fee Enactment 1/10/2017
Initial Fee Collection FY 2018
Next AB-1600 Five Year Review FY 2022
Amount of Fee FY2022
Residential Mitigation and In-Lieu Fees (fee per square foot):

Single-Family Detached Housing $22.45
Single-Family Attached Housing $22.45
Multifamily Housing $22.45
Second Dwelling Unit $0.00
Non-Residential Mitigation Fees (per square foot):

Retail/commerical $5.61
Office/Industrial/Other $13.47
Hotel $4.50
BEGINNING BALANCE, 7/1/2021 $2,385,199
Revenues
Inclusionary Housing Fees $0
Commercial Linkage Fees $0
Interest Earned $67,058
TOTAL REVENUES $67,058
Expenditures
Loans or Other Project Subsidies $0
TOTAL EXPENDITURES $0
Other Commitments/Appropriations $0
Ending Fund Balance, 6/30/2022* $2,452,257
* Total Fund Balance Includes Affordable Housing Loans Receivable Totaling $2,289,147 The purpose of the housing mitigation fees is to mitigate the burdens created by new residential and nonresidential development projects on the need for extremely low, very low, low, and moderate-income housing. All housing mitigation fees collected shall be deposited into the City's Affordable Housing Fund to be used to increase and preserve the supply of housing affordable to households of extremely low, very low, low, median, and moderate incomes (including necessary administrative costs). City Council Resolution 2017-005, adopted January 10, 2017, authorizes assessment of a Housing Impact Fee in connection with the issuance of any building permit for residential or non-residential development within the City of Belmont, consistent with the affordable housing goals, objectives, policies and programs of the City's Housing Element. Belmont Ordinance 2017-1115, adopted January 24, 2017, created Section 29 of the Belmont Zoning Ordinance which establishes inclusionary housing requirements and provides for payment of housing impact fees in-lieu of housing untis for certain projects.

City of Belmont
Fiscal Year Ending June 30, 2022
Annual Report on Housing Mitigation Fees (Fund 277)
Annual Report 2022 (Exhibits A and B), tab: Housing Mitigation 277 89 Purpose and Authority for Collection
Fee Enactment 1/7/2020
Initial Fee Collection FY 2022
Amount of Fee FY 2022
Non-residential or Mixed Use Development equal to or rgeater than 10,000 s.f. 1% Residential development of 5 or more new dwelling units 1% BEGINNING BALANCE, 7/1/2021 $0
Revenues
In-Lieu Fees Collected $395,227
Contributions & Donations $0
Interest Earned $349
TOTAL REVENUES $395,576
Expenditures
Capital Outlay 0
TOTAL EXPENDITURES 0
Other Commitments/Appropriations 0
Ending Fund Balance, 6/30/2022 $395,576
City of Belmont
Annual Report on Public Art In-Lieu Fees (Fund 239)
Fiscal Year Ending June 30, 2022
The City of Belmont adopted a public art requirement for private development so that development of cultural and artistic assets are financed by those whose development diminishes the availability of the community's resources for those opportunities and contributes to community urbanization. Through the inclusion of public art or payment of an in lieu fee, developers of private land uses help to address at least a portion of the impact of their developments on aesthetics. The City requires certain private development projects to contribute not less than one percent of the building development costs towards aquisition and installation of public art, or contribute an equivalent amount to the City's public art in-lieu fund.

Annual Report 2022 (Exhibits A and B), tab: Public Art In-Lieu 239 90 Exhibit B
City of Belmont
Public Improvement Project Expenditures Related to the Mitigation Fee Act and Quimby Act Five-Year Plan Per Fiscal Year (FY) 2023 Capital Improvement Project Budget Fund Project Description (See Note) Funding Sources FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 341 8052 Park and Open Space Master Plan Park In-Lieu $ 30,000 342 8103 Cipriani Park Design and Construction Park Impact $ 250,000 $ 3,000,000 8104 Twin Pines Park Master Plan Implementation Projects Park Impact $ 125,000 $ 125,000 $ 125,000 8105 Meadow Stage Improvements Park Impact
8106 Twin Pines Oval Dog Park Park Impact
8109 PROS Plan Phase 1 Implementation Park Impact $ 125,000 $ 125,000 $ 125,000 $ 125,000 277 n/a Affordable Housing Development Contributions Housing Mitigation Fee Expenditures subject to project negotiations and City Council approval; All Housing Mitigation Fees will be spend over the next five years.

Note: Details about each of these projects can be found in the five-year capital improvement program section of the City's FY 2023 Adopted Budget.

Annual Report 2022, tab: Exhibit B 91

Rebid for the San Juan Pump Station Slope Repair Project, CCN 2019-579 - Staff Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Nima Mazhari, Public Works, (650) 730-5706, [email protected] Agenda Title: Rebid for the San Juan Pump Station Slope Repair Project, CCN 2019-579 Agenda Action: Resolution
Recommendation
Approve plans, specifications, and authorize advertisement for sealed bids, and authorize the City Manager to execute a contract with the lowest responsible bidder for an amount not to exceed $375,000, plus a fifteen percent construction contingency for the San Juan Sewer Pump Station Slope Repair Project.

Strategic Focus Area
Infrastructure and Mobility
Background
On February 2019, during a period of prolonged and intense rainfall, 1,200 square feet of the East Laurel Creek bank below the San Juan Sewer Pump Station failed. The bank became saturated and one tree that was helping to stabilize the slope was uprooted. The slope has been tarped since the incident to avoid further slippage. The creek bank adjacent to the pump station is steeply sloped along the edge of the pump station. The City initiated a geotechnical and structural assessment of the creek bank wall subsequent to the slope failure. The pump station is a critical facility as one of Belmont’s largest volume sanitary sewer lift stations.

Analysis
On February 22, 2022, the City Council approved the project plans and specification and authorized advertising and awarding the project for an amount up to the engineer’s estimate of $275,000.

On August 4, 2022, City conducted a bid opening. Only one bid ($363,252) was received for construction of this project. This bid was significantly higher than the engineer’s estimate. Due to various environmental and permitting constraints along East Laurel Creek, this repair is only allowed to take place in the dry season (April-October).

On September 13, 2022, the City Council rejected the submitted bid. Since then, staff has modified the constructions plans and specifications to provide additional details based on the project constraints and constructability evaluation. The engineer’s estimate has been updated to $375,000 to reflect current costs.

Upon City Council approval, the project will be readvertised and awarded to the lowest responsible bidder to begin construction upon lifting of the construction moratorium in April 2023. 92

Rebid for the San Juan Pump Station Slope Repair Project, CCN 2019-579 - Staff Report Alternatives

1. Take No Action

2. Refer back to staff for further information
Attachments
A. Resolution
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:
$431,250 ($375,000 + $56,250 contingency) has been budgeted in the current fiscal year in the Sewer Collections Fund, Project 7036, Account 503-3-730-7036-9030 San Juan Pump Station Slide Repair.

Source: Purpose: Public Outreach:

Staff Discretionary Action Posting of Agenda
93

RESOLUTION NO. 2022 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT APPROVING PLANS AND SPECIFICATIONS, AUTHORIZING READVERTISEMENT FOR SEALED BIDS, AUTHORIZING THE CITY

MANAGER TO EXECUTE A CONTRACT WITH THE LOWEST
RESPONSIBLE BIDDER FOR AN AMOUNT NOT TO EXCEED $375,000, PLUS 15% CONSTRUCTION CONTINGENCY FOR THE SAN JUAN PUMP STATION SLOPE REPAIR PROJECT, CCN 2019-579.

WHEREAS, the department of Public Works has prepared plans and specifications for the San Juan Sewer Pump Station Slope Repair Project, City Contract Number 2019-579, to repair and restore the East Laurel Creek bank below the San Juan Pump that failed during storms of 2019; and,
WHEREAS, it is recommended to install a retaining wall, stabilize the bank, and plant native, riparian vegetation in the repair area; and,
WHEREAS, the total estimate for the construction is $375,000 plus a fifteen percent construction contingency, and will be funded from Account 503-3-730-7036-9030 San Juan Pump Station Slide Repair.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. Approves plans, specifications, authorizes advertisement for sealed bids, authorizes the City Manager to execute a contract with the lowest responsible bidder for an amount not to exceed $375,000, plus a fifteen percent construction contingency for the San Juan Sewer Pump Station Slope Repair Project.
* * *
ADOPTED November 22, 2022 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:
94

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
95

2820 Ponce Ave Easement Dedication & Vacation - Staff Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Selena Lau, Public Works, (650) 226-6901, [email protected] Agenda Title: 2820 Ponce Avenue Easement Dedication & Vacation Agenda Action: Resolution
Recommendation
Adopt a resolution to 1) accept the dedication of an ingress and egress easement (IEE) and 2) approve the vacation of an existing IEE on the property at 2820 Ponce Avenue (APN 043-290-620).

Strategic Focus Area
Economic Development and Housing
Background
The Planning Commission approved the construction of a new building, an addition to the existing structure, and various site improvements at Serendipity School (2820 Ponce Avenue) on December 18, 2018. The building permit is conditionally approved as of August 12, 2019. The applicant is applying for the dedication of an IEE to allow access to Cipriani Park, located at 2525 Buena Vista Avenue. The property has an existing IEE running through the property which is to be vacated after the new IEE is dedicated.

The original IEE over the property at 2820 Ponce Avenue was created in 1985 by a Parcel Map recorded on July 25, 1985, in Volume 56 of Parcel Maps, Page14, in the office of the County Recorder of San Mateo County and consists of the 20-foot IEE.

Analysis
The property owner of 2820 Ponce Avenue filed an application with the City to 1) accept a 20-foot right of way dedication for ingress and egress and 2) vacate the existing IEE. The dedication of the proposed IEE allows access to 2525 Buena Vista Avenue. The existing IEE must be vacated due to the new building that encroaches into the existing easement.

Council may summarily vacate a public service easement in accordance with the provisions of “Section 8333 Easements,” subparagraph (a) of Chapter 4 of Part 3 of Division 9 of the Streets and Highways Code of the State of California, if the following findings are made:

1. The easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation.

2. The date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since the date.

3. The easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement. 96

2820 Ponce Ave Easement Dedication & Vacation - Staff Report In this case, the IEE is being superseded by relocation.

Additionally, the property owner has submitted an “Irrevocable Offer to Dedicate Easement for Public Purposes” (Attachment B), offering to dedicate a new ingress and egress easement as described in Exhibit A and shown on Exhibit B attached to the Irrevocable Offer. Staff recommends that the Council accept the offer of dedication contained in Attachment B to the staff report, “Irrevocable Offer to Dedicate Easement for Public Purposes.”
Alternatives

1. Take no actions.

2. Refer to staff for additional information.

Attachments
A. Resolution
B. Irrevocable Offer to Dedication Easement for Public Purposes C. 1985 Parcel Map
D. Project Plan Sheet
Fiscal Impact
☒ No Fiscal Impact
☐ Funding Source Confirmed:

Source: Purpose: Public Outreach:

Staff Discretionary Action Posting of Agenda
97

RESOLUTION NO. 2022 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT

ACCEPTING THE DEDICATION OF A RELOCATED INGRESS AND EGRESS

EASEMENT AND VACATING THE EXISTING INGRESS AND EGRESS EASEMENT ON THE PROPERTY AT 2820 PONCE AVENUE (APN 043-290-620)
WHEREAS, on December 18, 2018, the Planning Commission approved the construction of a new building, an addition to the existing structure, and various site improvements at Serendipity School (2820 Ponce Avenue); and, WHEREAS, on August 12, 2019 the Building Permit was conditionally approved; and, WHEREAS, the property has an existing ingress and egress easement (IEE) running through the property which is to be vacated after a new IEE is dedicated; and, WHEREAS, the original IEE over the property was created in 1985 by a Parcel Map recorded on July 25, 1985, in Volume 56 of Maps, Page 14 in the office of the County Recorder of San Mateo County, attached hereto as Attachment “B”, and consists of the 20-foot IEE; and,
WHEREAS, the original IEE must be vacated due to the new building that encroaches into the existing IEE; and,
WHEREAS, the property owner filed an application to relocate the IEE by dedicating a new IEE and vacating the original IEE; and,
WHEREAS, the property owner has submitted an “Irrevocable Offer to Dedicate Easement For Public Purposes”, made Attachment A hereto, offering to dedicate a new ingress and egress easement as described in Exhibit A and shown on Exhibit B attached to the Irrevocable Offer; and,
WHEREAS, the Council may summarily vacate a public service easement under California Streets and Highways Code Section 8333, subdivision (c) when the easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. The Council accepts the offer to dedicate the easement contained in Attachment A, “Irrevocable Offer to Dedicate Easement For Public Purposes” as shown on Exhibits A and B thereto.

SECTION 2. The 20-foot ingress and egress easement shown on Attachment “B” running across a portion of Parcel 1 of that certain Parcel Map, filed for record on July 25, 1985, in Volume 56 of Parcel Maps at page 14, of Official Records of San Mateo County, has been superseded by relocation, and that there are no public utility facilities that are in use and that would be affected by vacation of the easement.
98

SECTION 3. The Council hereby vacates the easement described in Section 2 and shown on Attachment “B” under Streets and Highways Code Division 9, Part 3, Chapter 4, and from and after the date this resolution is recorded the easement vacated no longer constitutes a public service easement.
* * *
ADOPTED November 22, 2022 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
99 100
101
102
103
104
105
106
107
108
109
110
111
112
113

2022 Pavement Project Notice of Completion - Staff Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Matt Hoang, Public Works, (650) 637-2998, [email protected] Agenda Title: 2022 Pavement Project, CCN 2022-607, Notice of Completion Agenda Action: Resolution
Recommendation
Adopt a resolution accepting work and authorizing the issuance of a Notice of Completion for the 2022 Pavement Project, City Contract Number 2022-607, for a final contract cost of $1,797,266.22.

Strategic Focus Area
Infrastructure and Mobility
Background
On December 14, 2021, the City Council approved the project plans and specification and authorized advertising and awarding the 2022 Street Reconstruction Project for an amount up to the engineer’s estimate of $2,175,000. The work included road reconstruction (which brings PCI up to 100), minor drainage improvements, curb ramp installation, adjustment to grade of manholes and utility boxes, and striping on the following street segments:

STREET FROM: TO: 2022 PCI
Hillman Avenue Terrace Drive Notre Dame Avenue 27
Holly Road South Road South Road 18
Masonic Way Old County Road Granada Street 20
Mezes Avenue Alameda de las Pulgas North End 40
Old County Road Ralston Avenue North City Limit 58
On February 10, 2022, staff conducted a successful bid opening where City received six bids for the construction of the project, with low bid received at $1,798,285.13.

Analysis
The construction started on April 11, 2022 and was completed ahead of schedule in September 2022 and

17.4% below the approved budget of $2,175,000. During construction there were numerous unforeseen conditions that were hindering the construction but were resolved by the project team. The project is now complete to the satisfaction of the City in accordance with the construction plans and specifications. The total cost of construction is $1,797,266.22, which is within the approved budget.

The City is retaining 5% from the contractor to ensure that all subcontractors and suppliers are paid. If there are no claims filed within 35 days of recording the Notice of Completion, final payment will be released to the contractor.
114

2022 Pavement Project Notice of Completion - Staff Report Alternatives

1. Take No Action

2. Refer back to staff for further information
Attachments
A. Resolution
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:

The following expenditures took place during project
construction:
• $470,000 from RMRA Account 232-3-730-3113-9030
• $577,266.22 from Infrastructure Account 310-3-760-3220- 9030
• $750,000 from Measure I Account 102-3-730-3107-9030
Unspent balance from these budgeted accounts will be returned to its respective fund balance and available for future infrastructure investments.

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda 115

RESOLUTION NO. 2022 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT

ACCEPTING WORK AND AUTHORIZING THE ISSUANCE OF A NOTICE OF COMPLETION FOR THE 2022 PAVEMENT PROJECT, CITY CONTRACT NUMBER 2022-607, FOR A FINAL CONTRACT COST OF $1,797,266.22
WHEREAS, on December 14, 2021, the City Council approved the project plans and specifications and authorized advertising and awarding the 2022 Pavement Project for an amount up to the engineer’s estimate of $2,175,000; and, WHEREAS, on February 10, 2022, staff conducted a successful bid opening where City received six bids for the construction of the project, with low bid received at $1,798,285.13; and,
WHEREAS, the construction started on April 11, 2022, and was completed on September 16, 2022, ahead of schedule and below budget; and, WHEREAS, the final project construction cost is $1,797,266.22.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. Accepts the work as complete.

SECTION 2. Authorizes the City Clerk to issue the Notice of Completion to G. Bortolotto & Co., Inc.

SECTION 3. Authorizes the City Clerk to file Notice of Completion with the San Mateo County Clerk-Record’s office for the 2022 Pavement Project, CCN 2022-607. * * *
ADOPTED November 22, 2022 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:
116

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM:

City Attorney
117

STAFF REPORT

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2023 Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Peter Brown, Public Works Dept., (650) 595-7459, [email protected] Alberto Espinoza, Public Works Dept., (650) 595-7465, [email protected] Agenda Title: Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2023 Agenda Action: Resolution
Recommendation
Adopt a resolution revising the maximum rates that may be charged by Recology of San Mateo County for solid waste, recyclable materials, and organic materials collection services effective January 1, 2023.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
Recology of San Mateo County (Recology) provides solid waste, recyclable materials, and organic materials collection services in the City of Belmont under a 15-year franchise agreement between Recology and the City ending in 2035. Recology sets its own rates for collection services under the franchise agreement, but Recology may not charge Belmont residential and commercial customers more than the maximum rates approved by the City Council. This rate setting process is particular to Belmont.

Belmont is a member of the South Bayside Waste Management Authority. The Authority assists member agencies with various matters related to the collection and disposal of wastes and recyclables, including the selection of a collection services provider (Recology) serving all members and the development of a model franchise agreement. Unlike the compensation provisions in the other members’ franchise agreements with Recology, Belmont’s agreement is based on a maximum rate formula that limits what Recology may charge and is not subject to a revenue reconciliation process at the end of each rate year.

Public Participation
In order to promote public participation in setting the maximum rates, Section 11.09 of the franchise agreement contemplates that the City will follow the notice and protest hearing procedures of Proposition 218 as set forth in California Constitution Article XIIID, Section 6(a), and Government Code Section 53755. Those procedures require mailing a notice of a public hearing on the setting of maximum rates to solid waste customers (Attachment D) at least forty-five days before the hearing.

Belmont customers and property owners may submit written protests against the proposed rates and may do so by mail or in person to the City Clerk no later than the conclusion of the public hearing. If written protests against the rate changes are presented by owners of a majority of the affected parcels, the City Council will not impose the new maximum rates. 118

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2023 On September 13, 2022, the City Council adopted Resolution No. 2022-090 stating its intent to revise the maximum rates for 2023 and set the public hearing for November 22, 2022. Notices of the hearing were mailed to solid waste customers as provided for in the resolution.

Analysis
The maximum rates that Recology may charge for scheduled and additional services are determined by a formula described in Article 11 of the franchise agreement. In simple terms, the formula takes the existing maximum rates and multiplies each rate by an ‘adjustment multiplier’. The adjustment multiplier is essentially a cost index with three principal adjustment components: changes in the consumer price index or “CPI” for certain cost elements that make up the Base Contractor Compensation, changes in passthrough disposal costs and agency payments, and performance incentive/disincentive adjustments. The sum of all the adjustments is the Total Target Revenue for that year. Each year, Recology submits information and calculations for the adjustments and proposes changes to the maximum rates based on the information and calculations. City staff and the City’s solid waste consultant, HDR Engineering Inc. (HDR), then analyze Recology’s submissions for accuracy and consistency with the franchise agreement.

Recology’s information and calculations indicate a Total Target Revenue of $8,773,496 for 2023. The percentage change between the 2023 Total Target Revenue of $8,773,496 and the 2022 Target Revenue of $8,464,059 results in the adjustment multiplier rate of 3.66%, which staff and HDR have determined is consistent with methodology of the agreement. The adjustment multiplier rate of 3.66% is the proposed 2023 rate increase to the residential and commercial carts and bins and accounts for CPI cost increases to fuel and service levels from April 2021 to April 2022. The proposed 3.66% increase is considerably lower than the 7.29% change last year, and is a significant achievement given current and recent inflation rates.

HDR has prepared the attached report (Attachment C), which provides the bases of City’s review of the rate adjustment application and the accompanying maximum rate schedules submitted by Recology conforming to the requirements of the franchise agreement.

Residential Rates
Recology charges a flat monthly rate per cart size. Residential service is comprised of four different cart sizes which range from 20 gallons to 96 gallons. Table 1 is a summary of the present and calculated residential solid waste rates for the for the different cart sizes. The price per cart size is expected to increase by 3.66% for all cart sizes.

Table 1
Summary of the Present and Calculated Maximum Residential Solid Waste Rates (Regularly Scheduled - $/Month)

RESIDENTIAL CARTS
Present Calculated
Monthly Maximum $/Month
Schedule Schedule Description 2022 Rate 2023 Rate Change R20G Residential Waste - 20 Gallons $34.94 $36.22 $1.28 119

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2023

COMMERCIAL CARTS
R32G Residential Waste - 32 Gallons $41.68 $43.21 $1.53 R64G Residential Waste - 64 Gallons $82.06 $85.06 $3.00 R96G Residential Waste - 96 Gallons $123.08 $127.59 $4.51 Commercial Rates
Commercial customers have similar service to residential customers, but they have the option to adjust the number of pickups per week. In 2023, commercial rate schedules are expected to increase by

3.66%. To see a complete listing of all commercial rates please see the attached Resolution. Table 2 below is a summary of the calculated maximum commercial solid waste rates for 2023 by cart size.

Some minor rounding of the rates may occur for purposes of ease of administration.

Table 2
Summary of Calculated Maximum Commercial Solid Waste Rates (By Gallon Cart Size; Regularly Scheduled - $/Month)
Cart Size (in Gallons)
20 32 64 96
1 $46.21 $51.31 $99.22 $143.41
2 95.06 105.63 200.21 293.76
3 141.53 157.23 303.77 445.79
4 194.31 215.89 408.45 603.02
5 245.84 273.13 519.19 762.38
6 307.60 341.77 632.69 959.67
7 374.71 416.33 740.66 1,119.60
The monthly rate above includesthe following:

One (1) Garbage Cart
Recycling Cart
Cart Size (in Gallons)
1 2
3 4
5 6
7 COMMERCIAL CARTS ORGANICS
# of Pickups Per Week
# of Pickups Per Week
32 64 96
$35.94 $69.47 $100.39

73.94 140.15 205.62
110.06 212.63 312.05
151.14 285.93 422.10
191.20 363.44 533.66
239.26 442.85 671.76
291.45 518.46 783.72
120

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2023

COMMERCIAL BINS

COMMERCIAL BINS ORGANICS
Note: Organics containers are charged at seventy percent (70%) of the similar Garbage commercial cart rate
above container size and service levels for Garbage,
representing a thirty percent (30%) discount
Some commercial customers have larger bins which range in size from 1 yard to 6 yards. Commercial waste customers also have the option of different levels of service and can select the number of pickups per week. Table 3 is a summary of the calculated maximum commercial solid waste rates for 2023 for the larger bin sizes. It is estimated that the rates (Schedule L) will increase by 3.66% for all bin sizes.

Table 3
Summary of Calculated Maximum Commercial Solid Waste
Rates (By Bin Size in Yards; Regularly Scheduled - $/Month) Bin Size (in Cubic Yards)
1 2 3 4 6
1 $240.64 $484.06 $730.04 $996.57 $1,532.65
2 489.93 976.06 1,468.88 2,010.36 3,108.45
3 743.49 1,472.71 2,212.06 3,024.18 4,672.53
4 1,000.01 1,972.97 2,957.46 4,049.52 6,223.29
5 1,258.59 2,480.30 3,705.43 5,079.19 7,796.16
6 1,570.78 2,928.14 4,498.23 6,151.58 9,424.87
7 1,853.33 3,467.88 5,296.56 7,246.41 11,038.73
The monthly rate above includesthe following:

One (1) Garbage Bin
Recycling container at customer's requested size
Bin Size (in Cubic Yards)
1 2 3 4 6
1 $168.46 $338.85 $511.02 $697.60 $1,072.86
2 342.94 683.23 1,028.25 1,407.25 2,175.92
3 520.43 1,030.90 1,548.45 2,116.92 3,270.75
4 700.01 1,381.07 2,070.22 2,834.67 4,356.31
5 881.02 1,736.18 2,593.79 3,555.42 5,457.32
6 1,099.56 2,049.69 3,148.77 4,306.14 6,597.40
7 1,297.34 2,427.52 3,707.59 5,072.49 7,727.11
# of Pickups Per Week # of Pickups Per Week
121

Revise Maximum Rates for Solid Waste Collection Services for Calendar Year 2023 Note: Organics containers are charged at seventy percent (70%) of the similar garbage container size above and service level for garbage, representing a thirty percent (30%)
discount

GARBAGE COMPACTORS
Commercial Waste 3 Yard Compactor $1,753.01
Solid Waste Compactor Rate Per Yard $134.87
The monthly fee above includes the following:

Recycling container at customer's requested size
Additional Services
Recology also provides several “additional services” that are not considered regularly scheduled services. Those miscellaneous charges are itemized in Exhibit A, Attachment Q of the attached Resolution. In summary, an overall CPI rate increase of 5% is indicated. However, this rate increase does not apply to the vast majority of Belmont residents.

Alternatives

1. Take no action.

2. Direct staff to adjust rates differently while meeting the revenue requirements in accordance with the franchise agreement.

Attachments
A. Resolution
B. Recology 2023 Rate Application
C. HDR Final Report
D. Proposition 218 Public Notice
Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed: If approved, the maximum rate schedules listed under Exhibit A of the Resolution will become effective January 1, 2023.

Source: Purpose: Public Outreach:

Staff Statutory/Contractual Requirement Posting of Agenda Other*
* 45-day notice mailed to customers as required under Proposition 218 122

RESOLUTION NO. 2022 –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT REVISING

THE MAXIMUM RATES FOR SOLID WASTE, RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION SERVICES EFFECTIVE JANUARY 1, 2023 WHEREAS, Recology San Mateo County (Recology) provides solid waste, recyclable materials, and organic materials collection services in the City of Belmont under a franchise agreement with the City; and,
WHEREAS, the franchise agreement provides for an annual review of the maximum rates that Recology may charge Belmont residential and commercial customers; and, WHEREAS, Recology provided the City a letter and detailed worksheet outlining their calculation of the maximum rates for 2023; and,
WHEREAS, on September 13, 2022, the City Council adopted a resolution stating the City’s intention to adjust the maximum rates that may be charged for solid waste, recyclable materials, and organic materials collection services effective January 1, 2023, and setting the date of a public hearing for November 22, 2022.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. The City Council approves the maximum rates as set forth in Exhibit A to this resolution.

SECTION 2. The City Council finds that:
(a) The City has followed the procedures in California Constitution Article XIIID, Section 6 in approving the maximum rates.
(b) The rates approved by this Resolution do not exceed the amounts permissible under Article XIIID if that article applied, and the solid waste charge is not a tax. (c) A majority protest, as defined Article XIIID, Section 6(b) does not exist with respect to the revision of the schedule of solid waste maximum rates. (d) Although the City Council, in the interest of public participation, has chosen as a matter of policy to follow the procedures set forth in Article XIIID, nothing in this Resolution is be interpreted as an admission by the City that the provisions of Article XIIID apply to the actions taken herein.
(e) The City Council would take the action set forth in Section 1 of this Resolution regardless of whether Article XIIID applies to the action. 123

* * *
ADOPTED November 22, 2022 by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk

Mayor
APPROVED AS TO FORM:

City Attorney
124

EXHIBIT A
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
20 32 64 96
1 Pickup Per Week $36.22 $43.21 $85.06 $127.59
Residential customers are billed based on their Garbage Cart size.

The monthly rate above includes the following:

One (1) Garbage Cart provided to customer
Curbside Household Hazardous Waste Collection
One (1) 64‐Gallon Recycling Cart and (1) 96‐Gallon Yard Waste Cart Cart Size (in Gallons)

RESIDENTIAL CARTS
125
20 32 64 96
1 $46.21 $51.31 $99.22 $143.41
2 95.06 105.63 200.21 293.76
3 141.53 157.23 303.77 445.79
4 194.31 215.89 408.45 603.02
5 245.84 273.13 519.19 762.38
6 307.60 341.77 632.69 959.67
7 374.71 416.33 740.66 1,119.60
The monthly rate above includes the following:

One (1) Garbage Cart
Recycling Cart
32 64 96
1 $35.94 $69.47 $100.39
2 73.94 140.15 205.62
3 110.06 212.63 312.05
4 151.14 285.93 422.10
5 191.20 363.44 533.66
6 239.26 442.85 671.76
7 291.45 518.46 783.72
Note: Organics containers are charged at seventy percent (70%) of the similar Garbage commercial cart rate above container size and service levels for Garbage, representing a thirty percent (30%) discount
Cart Size (in Gallons)
# of Pickups Per Week

COMMERCIAL CARTS
Cart Size (in Gallons)
# of Pickups Per Week

COMMERCIAL CARTS ORGANICS
Attachment L (continued)
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
126
12346
1 $240.64 $484.06 $730.04 $996.57 $1,532.65
2 489.93 976.06 1,468.88 2,010.36 3,108.45
3 743.49 1,472.71 2,212.06 3,024.18 4,672.53
4 1,000.01 1,972.97 2,957.46 4,049.52 6,223.29
5 1,258.59 2,480.30 3,705.43 5,079.19 7,796.16
6 1,570.78 2,928.14 4,498.23 6,151.58 9,424.87
7 1,853.33 3,467.88 5,296.56 7,246.41 11,038.73
The monthly rate above includes the following:

One (1) Garbage Bin
Recycling container at customer's requested size
12346
1 $168.46 $338.85 $511.02 $697.60 $1,072.86
2 342.94 683.23 1,028.25 1,407.25 2,175.92
3 520.43 1,030.90 1,548.45 2,116.92 3,270.75
4 700.01 1,381.07 2,070.22 2,834.67 4,356.31
5 881.02 1,736.18 2,593.79 3,555.42 5,457.32
6 1,099.56 2,049.69 3,148.77 4,306.14 6,597.40
7 1,297.34 2,427.52 3,707.59 5,072.49 7,727.11
Note: Organics containers are charged at seventy percent (70%) of the similar garbage containersize above and service level for garbage, representing a thirty percent (30%) discount

COMMERCIAL BINS
Bin Size (in Cubic Yards)
# of Pickups Per Week

COMMERCIAL BINS ORGANICS
Bin Size (in Cubic Yards)
# of Pickups Per Week
Attachment L (continued)
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
127
Commercial Waste 3 Yard Compactor $1,753.01
Solid Waste Compactor Rate Per Yard $134.87
The monthly fee above includes the following:

Recycling container at customer's requested size

GARBAGE COMPACTORS
Attachment L (continued)
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate

128
No. Additional Service Category Reference Agency‐Approved Maximum Rate Description
1 Single‐Family Dwelling
Backyard Collection Service
Section 5.02.A
See  Maximum Rate
in the table at the
end of this
Attachment
See  Maximum Rate in the
table at the end of this
Attachment
2 Long Distance Service for
MFD, Mixed Use, and
Commercial Accounts (Note:
only applicable to Containers
with wheels)
Section 5.02.B,

5.02.C; 8.02 B
A ‐ No more than
10% of base
monthly Maximum
Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
B ‐ 25% of base
monthly Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
A ‐ Distance greater than 50
feet and less than or equal
to 100 feet
B ‐ Distance greater than 100
feet
Distance shall be measured
from the face of the curb, or
from the edge of the
roadway nearest the closest
edge of the Container, if
there is no curb.

No. Additional Service Category Reference Agency‐Approved Maximum Rate Description
3 Container Relocation Service
Section 5.02.B and

8.02.B
A ‐ 12% of base
monthly Rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
B ‐ 27% of base
monthly Rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
A ‐ Distance greater than 50
feet and less than or equal
to 100 feet
B ‐ Distance greater than 100
feet
Distance shall be measured
from the face of the curb, or
from the edge of the
roadway nearest the closest
edge of the Container, if
there is no curb.
4 On‐Call, Pick‐up for SFD, MFD,
Mixed Use, and Commercial
Customers
Section 5.02.A,

5.02.B, and 5.02.C
25% of the base
monthly Rate for
the size of
Container Collected
once per week.

Per Collection event per
Container for Collection
requested by Customer
Schedule Q
Additional Services
The following table specifies Maximum Allowable Rates for Additional Services.  These Maximum Rates shall be adjusted annually in accordance with Article 11. 129
No. Additional Service Category Reference Agency‐Approved Maximum Rate Description
5 Return Trip (SFD, MFD, Mixed
Use, or Commercial)
Sections

5.02.A, B, C;

5.03.A, B, C;

5.04.A, B, C
$19.35 for SFD
$19.35 for
Commercial, Mixed
Use, and MFD
Per Collection event (i.e.
request to return and
provide Collection service
after the Customer failed to
properly set out their
Container(s) for regularly
scheduled Collection)
6 Additional Targeted
Recyclable Materials or
Organic Materials Cart Service
for SFD
Sections

5.03.A and

5.04.A
$1.27 per Recycling
Cart
$3.85 per Organic
Materials Cart
Per Cart month (any Cart
size). Six month minimum
charge required.  Includes
one‐time Cart delivery upon
start of service and removal
of Cart when service is
discontinued by Customer.
7 Additional On‐Call Bulky Item
Collection
Sections

5.05,

5.06 $105.20
Per Bulky Item Collection
event (in addition to the
events provided at no
charge to Customer
pursuant to Section 5.12)
8 Collect Contaminated
Targeted Recyclable Materials
or Organic Materials
Container
Section 6.03.A and

8.02.F
25% of base
monthly Solid
Waste Rate for the
size of Container
Collected once per
week
plus
Return Trip Fee if
applicable
Per Collection event for
Container with
Contamination Level greater
than the maximum level
pursuant to Table 1 in
Section 6.02.B
9 Lock Service (Key Service) Section 8.02.B
A ‐ $10.96 per usage
B ‐ $12.25 per usage
Monthly cost:

A‐Residential Customers
B‐Commercial Customers
10 Lock Purchase Section 8.02.B $21.93 per lock Per lock Schedule Q
Additional Services (Continued)
130
No. Additional Service Category Reference Agency‐Approved Maximum Rate Description
11 Overage Service Section 8.02.G
100% of the base
monthly Solid
Waste Collection
Rate
Per Collection event (after
the first two events)
12 Overage Bags Cost Section 8.02.G
50% of the base
monthly Solid
Waste Collection
Rate or $10.31
minimum
Per bag
13 Container Cleaning Service Section 8.05.D
A ‐ $64.50
B ‐ $109.64
A ‐ per Cart
B ‐ per Bin or Drop‐Box
Charge only applies to
cleaning or Container
exchange in addition to the
service to be provided at no
charge to the Customer
pursuant to Section 8.05.D.
14 Dirty Cart Replacement
(Exchange) Service
Section 8.05.D
A ‐ $83.85
B ‐ $96.74
C ‐ $109.64
A ‐ per 32 gallon Cart
B ‐ per 64 gallon Cart
C ‐ per 96 gallon Cart
Charge only applies to
cleaning or Container
exchange in addition to the
service to be provided at no
charge to the Customer
pursuant to Section 8.05.D.
15 Additional Confidential
Document Destruction Service
Event
Section 5.07 $1,547.84 Per event
Schedule Q
Additional Services (Continued)
131
Schedule Q
Additional Services (Continued)
No. Additional Service Category Reference Agency-Approved Maximum Rate Description
16 Additional Compost Material
Delivery Section 5.11
A - $161.22 per
delivery
B - $322.47 per
delivery
A - "one-way" only delivery
by Contractor where
Contractor delivers to and
unloads compost at an
Agency-approved location
B- "Round-trip" delivery by
Contractor where Contractor
delivers compost in a Drop
Box to an Agency-approved
location and returns at a
later time or date to pick up
the Drop Box and any
remaining compost (charge
includes the delivery of and
later pick-up of the Drop
Box)
17 Community Drop-Off Events Section 5.13 $26,313.47 per event or day
Per event or day targeting
5,000 households. Does not
include disposal or public
education expenses.

No. Additional Service Category Reference Agency-Approved Maximum Rate Description
18 Collection for AgencySponsored and Non-Agency
sponsored Community Events
Section 5.08
A - $3,869.62
B - $6,449.37
C - $9,674.07
A - One day event with a
projected 2,500 or fewer
attendees
B - One (1) or two (2) day
events with a projected
2,501 to 7,500 attendees per
day C - One (1) or two
(2) day events with a
projected 7,501 to 10,000
attendees per day.
132
Distance from Curb** One (1) Solid
Waste Cart
Two (2) Solid
Waste Carts
Three (3) Solid
Waste Carts
Four(4) Solid
Waste Carts
Distance <= 50 feet $23.20 $37.03 $74.10 $111.13
50 < Distance <= 100 feet 27.09 40.92 77.96 115.02
100 < Distance <= 150 feet 30.94 44.78 81.81 118.88
150 < Distance <= 200 feet 34.83 48.66 85.69 122.76
200 < Distance <= 250 feet 38.69 52.52 89.58 126.63
250 < Distance <= 300 feet 42.57 56.39 93.44 130.48
300 < Distance <= 350 feet 46.44 60.25 97.32 134.35
Each additional 50 foot
increment over 350 feet
** Distance shall be measured from the face of the curb, or from the edge of the roadway nearest the closest edge of the Cart, if there is no curb.

Backyard Collection Service Charge for Single Family Dwellings (Section 5.02.A)
Amount equal the difference between the Charge for 250 to 300 feet and 300 to 350 feet
* Backyard Collection Service Charges are charges added to the base monthly Rate for Single‐Family Collection service, and cover the provision of Backyard Collection Service for all Customer's Solid Waste, Recyclable Materials, and Organic Materials Carts.

Schedule Q
Additional Services (Continued)
133
134
135
SBWMA- Adjusted
Adjusted April 2020 April 2022 2023
2021 CPI CPI Rate Year
Cost Description Basis for Adjustment Values Index Index Compensation Direct Labor Related
Wages for CBA's CPI-W: CWURS49BSA0 1,310,584 290.304 322.021 1,453,771 Benefits for CBA's CPI-W-Medical: CUURS49BSAM 608,287 548.136 573.254 636,161 Payroll Taxes Effective Rate: 8.1% 109,005 na na 117,755 Workers Compensation CPI-W: CWURS49BSA0 93,961 290.304 322.021 104,227 Direct Fuel Costs CPI-U-Motor Fuel: CUURS49BSETB 169,992 209.994 414.030 335,161 General Expenses Direct CPI-U: CUURS49BSA0 191,163 298.074 324.878 208,353 General Expenses Indirect CPI-U: CUURS49BSA0 1,020,220 298.074 324.878 1,111,962 General Expenses Depreciation Fixed 281,317 na na 281,317 Profit Calculation Operating Ratio of 90.5% 397,271 na na 445,997 Interest Fixed 73,679 na na 73,679
Performance Incentives Based on Annual Report - na na - Performance Disincentives Based on Annual Report - na na (5,459) Base Contractor's Compensation 4,255,478 4,762,925
Disposal Cost Component (i) Projected Next Rate Year 1,732,663 1,745,620 Disposal Cost Component (ii) Actual Prior Year 1,772,859 Disposal Cost Component (iii) Less Projected Prior Year (1,789,017) Agency Payments 2,051,120 2,281,109
Total Contractor Compensation 8,039,261 8,773,496
2023
Total Contractor Compensation 8,773,496
Cap Carry Forward 11.11 -
Total Target Revenue 8,773,496
2022 Target Revenue 8,464,059
Adjustment Multiplier 3.66%
5% Cap Calculation 11.11
Adjusted Contractor's Compensation 2023 4,768,384
Adjusted Contractor's Compensation 2022 4,452,208
difference 316,176
5 % of Adjusted Contractor's Compensation 2022 222,610
Potential Cap Carry Forward 93,565
Recology San Mateo County
City of Belmont
Refuse Rate Index Calculation
136
Recology San Mateo County
City of Belmont
Actual Disposal Calculation (Apr 2021 - Mar 2022)
Rate Year 2023

BELMONT CITY VEHICLES
Solid Bulky Solid
Water
Heater
Waste Green/Org Food Items Waste Green/Org Dirt C&D Concrete Appliances APR 633.87 391.50 33.11 1.11 28.34 5.94 0.00 0.00 2.80 0.00 MAY 599.32 368.33 36.95 1.36 47.08 0.00 10.40 0.00 36.50 0.00 JUN 624.24 404.65 39.25 2.49 47.71 6.75 28.13 2.80 42.28 0.00 JUL 628.11 360.34 36.59 1.85 56.03 11.02 0.00 0.00 30.47 0.00 AUG 602.61 362.00 38.69 3.15 48.42 3.43 0.00 0.00 7.93 0.00 SEP 617.50 351.65 40.09 1.53 32.50 1.84 0.00 0.44 17.50 0.00 OCT 602.23 361.29 40.45 1.91 5.95 8.71 35.45 0.00 20.47 0.00 NOV 639.97 428.87 44.39 2.46 45.34 2.19 47.96 0.00 0.00 0.00 DEC 684.33 413.94 46.68 4.98 40.83 7.94 117.87 0.78 10.85 0.00 subtotal Apr - Dec 2021 5632.18 3442.57 356.20 20.84 352.20 47.82 239.81 4.02 168.80 0.00 JAN 600.65 380.43 37.54 0.00 47.46 1.85 1.52 0.00 18.12 0.00 FEB 537.70 326.16 36.66 4.63 34.00 6.61 41.25 0.25 1.81 0.00 MAR 622.25 350.44 40.47 2.94 55.90 2.04 3.03 0.00 30.77 0.00 subtotal Jan - Mar 2022 1760.60 1057.03 114.67 7.57 137.36 10.50 45.80 0.25 50.70 0.00 SBWMA Total 7392.78 4499.60 470.87 28.41 489.56 58.32 285.61 4.27 219.50 0.00 Rate Apr 2021 - Dec 2021 $127.00 $139.00 $141.00 $127.00 $127.00 $139.00 $113.00 $127.00 $113.00 $15.00 Rate Jan 2022 - Mar 2022 $130.00 $143.00 $144.00 $130.00 $130.00 $143.00 $115.00 $130.00 $115.00 $15.00 Per Item Cost $944,164.86 $629,672.52 $66,736.68 $3,630.78 $62,586.20 $8,148.48 $32,365.53 $543.04 $24,904.90 $0.00 Total Disposal $1,772,858.99
137
Recology San Mateo County
City of Belmont
Projected Disposal Calculation (Apr 2022 - Mar 2023)
Rate Year 2023

BELMONT CITY VEHICLES
Solid Bulky Solid Wood Each
Waste Green/Org Food Items Waste Green/Org Dirt C&D Concrete Refrigerator APR (Actual) 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 MAY (Actual) 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 JUN (Actual) 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 JUL 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 AUG 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 SEP 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 OCT 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 NOV 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 DEC 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 subtotal Apr - Dec 5428.98 3334.92 408.33 21.81 323.91 42.84 15.30 0.00 26.67 0.00 JAN 581.16 383.67 43.48 1.39 33.82 4.15 0.00 0.00 0.00 0.00 FEB 602.14 350.61 46.82 3.18 49.58 3.56 5.10 0.00 8.89 0.00 MAR 626.36 377.36 45.81 2.70 24.57 6.57 0.00 0.00 0.00 0.00 subtotal Jan - Mar 1809.66 1111.64 136.11 7.27 107.97 14.28 5.10 0.00 8.89 0.00 SBWMA Total 7238.64 4446.56 544.44 29.08 431.88 57.12 20.40 0.00 35.56 0.00 Rates Apr 2022 - Dec 2022 $130.00 $143.00 $144.00 $130.00 $130.00 $143.00 $115.00 $130.00 $115.00 $53.00 Rates Jan 2023 - Mar 2023 $137.00 $145.00 $145.00 $130.00 $137.00 $145.00 $115.00 $120.00 $115.00 $53.00 Per Item Cost $ 953,690.82 $ 638,080.92 $ 78,535.92 $ 3,780.40 $ 56,900.19 $ 8,196.72 $ 2,346.00 $ - $ 4,089.40 $ - Total Disposal $ 1,745,620.36
138
Recology San Mateo County
Incentives and Disincentives
Year 2021
Member Agency
SFD and
Commercial
Missed P/U
Events
Average
Speed of
Answer
90 Second
Max Hold
Time
Diversion
Maximum
Incentives and
Disincentives1
Belmont $750 $3,328 $1,941 $6,513 $5,459
Burlingame $1,650 $7,431 $4,335 $14,544 $12,166
East Palo Alto $450 $5,398 $3,149 $10,565 $8,089
Foster City $550 $4,357 $2,542 $8,528 $6,716
Hillsborough $450 $1,243 $725 $2,433 $2,209
Menlo Park $700 $6,616 $3,860 $12,949 $10,063
North Fair Oaks $700 $2,534 $1,479 $4,961 $4,287
Redwood City $2,750 $14,806 $8,638 $28,980 $23,704
San Carlos $1,600 $5,388 $3,144 $10,547 $9,226
San Mateo $4,600 $17,062 $9,954 $33,395 $28,746
County Franchised Area $450 $1,753 $1,023 $3,432 $2,931 WBSD $700 $745 $435 $1,458 $1,754
Total $15,350 $70,660 $41,224 $138,305 $115,350
Negative number in parenthesis denotes Incentive payment due to Recology. 1 In accordance with Attachment I, the maximum annual incentive or disincentive, except for SingleFamily and Commercial Missed Pick-up Events is $100,000 or ($100,000).

Performance Incentive/Disincentive Payments 2021
Performance Incentives and Disincentives
139
Adjustment Multiplier 3.66%

RESIDENTIAL RATES
R20G RES WASTE 20G 36.22
R32G RES WASTE 32 GAL 43.21
R64G RES WASTE 64 GAL 85.06
R96G RES WASTE 96 GAL 127.58
COMMERCIAL/MULTI FAMILY RATES Times Per Week
1 2 3 4 5 6 7
C1YG COMML WASTE 1 YD 240.64 489.93 743.49 1,000.01 1,258.59 1,570.78 1,853.33 C1YO COMML ORGANICS 1 YD 168.46 342.94 520.43 700.01 881.02 1,099.56 1,297.34 C15CG COMML WASTE 1.5 YD COMPACTOR 876.67 1,753.36 2,630.03 3,506.67 4,383.35 5,260.01 6,136.68 C15CO COMML ORGANICS 1.5 YD COMPACTOR 613.67 1,227.33 1,841.00 2,454.67 3,068.34 3,682.00 4,295.67 C20G COMML WASTE 20 GALLON 46.21 95.06 141.53 194.31 245.84 307.60 374.71 C2YG1 COMML WASTE 2 YD 484.06 976.06 1,472.71 1,972.97 2,480.30 2,928.14 3,467.88 C2YO COMML ORGANICS 2 YD 338.85 683.23 1,030.90 1,381.07 1,736.18 2,049.69 2,427.52 C32G COMML WASTE 32 GALLON 51.31 105.63 157.23 215.89 273.13 341.77 416.33 C32O COMML ORGANICS 32 GAL 35.94 73.94 110.06 151.14 191.20 239.26 291.45 C3CG COMML WASTE 3 YD COMPACTOR 1,753.01 0.00 0.00 0.00 0.00 0.00 0.00 C3YG COMML WASTE 3 YD 730.04 1,468.88 2,212.06 2,957.46 3,705.43 4,498.23 5,296.56 C3YO COMML ORGANICS 3 YD 511.02 1,028.25 1,548.45 2,070.22 2,593.79 3,148.77 3,707.59 C4YG1 COMML WASTE 4 YD 996.57 2,010.36 3,024.18 4,049.52 5,079.19 6,151.58 7,246.41 C4YO COMML ORGANICS 4 YD 697.60 1,407.25 2,116.92 2,834.67 3,555.42 4,306.14 5,072.49 C64G COMML WASTE 64 GALLON 99.22 200.21 303.77 408.45 519.19 632.69 740.66 C64O COMML ORGANICS 64 GAL 69.47 140.15 212.63 285.93 363.44 442.85 518.46 C6YG1 COMML WASTE 6 YD 1,532.65 3,108.45 4,672.53 6,223.29 7,796.16 9,424.87 11,038.73 C6YO COMML ORGANICS 6 YD 1,072.86 2,175.92 3,270.75 4,356.31 5,457.32 6,597.40 7,727.11 C96G COMML WASTE 96 GALLON 143.41 293.76 445.79 603.02 762.38 959.67 1,119.60 C96O COMML ORGANICS 96 GAL 100.39 205.62 312.05 422.10 533.66 671.76 783.72 SOLID WASTE COMPACTOR RATE PER YARD 134.87
Rate Year 2023
Recology San Mateo County
City of Belmont
Attachment L
140
Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 234.648 236.626 236.890 238.445 240.864 236.454 237.097 235.572 238.622 2013 240.262 241.764 243.052 242.903 243.711 242.602 242.125 241.141 243.109 2014 245.148 247.932 250.085 249.877 250.508 247.680 248.326 247.097 249.555 2015 249.809 252.875 254.736 256.060 256.107 255.492 253.910 252.041 255.780 2016 257.141 259.386 261.017 262.326 264.026 263.222 260.830 258.715 262.946 2017 265.569 268.896 269.508 269.827 271.272 271.342 268.990 267.426 270.555 2018 275.699 278.039 280.219 281.536 283.183 283.278 279.572 277.035 282.110 2019 284.758 288.266 288.581 288.514 291.707 289.456 288.192 286.615 289.770 2020 292.010 290.304 292.420 293.062 294.442 295.687 292.601 291.297 293.906 2021 297.170 302.294 304.971 307.423 309.656 312.019 304.602 300.275 308.928 2022 316.463 322.021 328.137 320.408
Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 403.519 404.765 404.597 409.331 409.023 408.341 406.387 404.188 408.585 2013 416.539 412.620 425.278 425.098 426.542 431.700 421.983 416.722 427.243 2014 440.573 448.951
2016 486.042 486.894 488.508 486.068
2017 485.741 491.228 493.123 489.826 493.957 493.055 490.720 489.198 492.241 2018 500.434 504.092 511.465 508.677 510.198 539.595 508.623 502.138 515.108 2019 519.339 537.178 538.854 551.902 554.645 541.173 532.698 549.647 2020 545.970 548.136 549.438 548.733 549.432 545.016 548.802 549.120 548.484 2021 555.065 555.675 551.518 550.215 556.119 561.352 553.445 552.681 554.209 2022 567.774 573.254 583.038 571.613
1982-84=100
2012 to 2022
Medical care
San Francisco-Oakland-Hayward, CA
All items
1982-84=100
2012 to 2022
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49BSAM
Not Seasonally Adjusted
Medical care in San Francisco-Oakland-Hayward, CA, all
urban consumers, not seasonally adjusted
San Francisco-Oakland-Hayward, CA
All items in San Francisco-Oakland-Hayward, CA, urban wage earners and clerical workers, not seasonally adjusted
CPI for Urban Wage Earners and Clerical Workers (CPI-W) Original Data Value
CWURS49BSA0
Not Seasonally Adjusted
141
Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 280.517 302.724 327.962 317.962 325.378 301.192 285.891 310.778 316.030 336.090 288.389 268.569 305.124 309.289 300.958 2013 274.605 306.602 309.846 300.682 306.012 303.270 301.401 291.569 299.931 284.084 273.022 270.990 293.501 300.170 286.833 2014 273.919 279.844 297.341 313.061 315.401 312.578 308.499 297.489 287.115 268.189 242.194 216.165 284.316 298.691 269.942 2015 193.209 209.050 250.324 240.323 269.479 253.019 257.434 247.551 223.945 208.973 202.552 196.642 229.375 235.901 222.850 2016 195.010 178.296 191.074 202.420 208.843 213.139 209.663 197.818 204.532 207.138 200.994 200.151 200.757 198.130 203.383 2017 208.379 212.552 223.591 224.219 229.642 227.099 218.805 221.035 233.253 227.464 236.297 232.445 224.565 220.914 228.217 2018 239.938 248.958 254.538 264.816 276.100 277.231 275.852 273.651 274.578 284.833 278.051 264.929 267.790 260.264 275.316 2019 255.355 251.375 259.552 290.028 297.662 280.364 272.104 263.865 268.181 300.258 286.954 261.728 273.952 272.389 275.515 2020 254.945 251.171 235.263 209.994 208.040 220.382 229.239 236.785 239.082 236.633 236.201 237.489 232.935 229.966 235.905 2021 246.145 253.600 277.844 289.079 301.702 310.278 315.657 322.785 321.903 330.112 343.726 342.260 304.591 279.775 329.407 2022 340.187 343.538 408.338 414.030 435.497 464.377 400.995 Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 236.880 238.985 239.806 241.170 242.834 239.533 239.650 238.099 241.201 2013 242.677 244.675 245.935 246.072 246.617 245.711 245.023 243.894 246.152 2014 248.615 251.495 253.317 253.354 254.503 252.273 251.985 250.507 253.463 2015 254.910 257.622 259.117 259.917 261.019 260.289 258.572 256.723 260.421 2016 262.600 264.565 266.041 267.853 270.306 269.483 266.344 263.911 268.777 2017 271.626 274.589 275.304 275.893 277.570 277.414 274.924 273.306 276.542 2018 281.308 283.422 286.062 287.664 289.673 289.896 285.550 282.666 288.435 2019 291.227 294.801 295.259 295.490 298.443 297.007 295.004 293.150 296.859 2020 299.690 298.074 300.032 300.182 301.736 302.948 300.084 299.109 301.059 2021 304.387 309.419 309.497 311.167 313.265 315.805 309.721 306.724 312.718 2022 320.195 324.878 330.539 323.408
San Francisco-Oakland-Hayward, CA
All items
1982-84=100
2012 to 2022
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49BSA0
Not Seasonally Adjusted
All items in San Francisco-Oakland-Hayward, CA, all urban consumers, not seasonally adjusted
2012 to 2022
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49BSETB
Not Seasonally Adjusted
Motor fuel in San Francisco-Oakland-Hayward, CA, all urban consumers, not seasonally adjusted
San Francisco-Oakland-Hayward, CA
Motor fuel
1982-84=100
142

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

For Rate Years Eleven (2021) through the remaining Rate Years in the Term, the Maximum Rate for additional services specified in Attachment Q shall be adjusted annually in accordance with Section 11.05.

The Maximum Rate for additional services for Rate Year Ten (2020) shall be the Maximum Rates for Rate Year Ten (2020) as determined under the 2009 Franchise Agreement. These amounts will be adjusted as provided in Section 11.05 of this Agreement to determine the Maximum Rates for Rate Year Eleven (2021).

Two additional services are included in this Attachment Q there were not in Attachment Q of the 2009 Franchise Agreement. The two new services are Container Relocation Service and AgencySpecific Reporting for Abandoned Waste Collections. Maximum Rates for these services are presented in the table below.

Charges for Additional Services may not exceed the Maximum Rates approved by the City for the respective Rate Year.

Service Reference
AgencyApproved
Maximum Rate
Description
Additional Services for Customers
1 Single-Family Dwelling
Backyard Collection
Service
Section

5.02.A
See Maximum
Rate in the table at
the end of this
Attachment
See Maximum Rate in the table
at the end of this Attachment
2 Long Distance Service for
MFD, Mixed Use, and
Commercial Accounts
(Note: only applicable to
Containers with wheels)
Sections

5.02.B,

5.02.C; and

8.02.B
A – No more than
10% of base
monthly Maximum
Rate of the
Collection Rate for
each Container
requiring Long
Distance Service
B – 25% of base
monthly Rate of
the Collection Rate
for each Container
requiring Long
Distance Service
A – Distance greater than 50 feet
and less than or equal to 100
feet
B – Distance greater than 100
feet
Distance shall be measured from
the face of the curb, or from the
edge of the roadway nearest the
closest edge of the Container, if
there is no curb.
143

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Service Reference
AgencyApproved
Maximum Rate
Description
3 Container Relocation
Service
Sections

5.02B and

8.02B
A – 12% of base
monthly rate of the
Collection Rate for
each Container
requiring Container
Relocation Service
B – 27% of base
monthly Rate of
the Collection Rate
for each Container
requiring Container
Relocation Service
A – Distance greater than 50 feet
and less than or equal to 100
feet
B – Distance greater than 100
feet
Distance shall be measured from
the face of the curb, or from the
edge of the roadway nearest the
closest edge of the Container, if
there is no curb.
4 On-Call Pick-up for SFD,
MFD, Mixed Use, and
Commercial Customers
Sections

5.02.A,

5.02.B, and

5.02.C
25% of the base
monthly Rate for
the size of
Container
Collected once per
week
Per Collection event per
Container for Collection
requested by Customer
5 Return Trip (SFD, MFD,
Mixed Use, or
Commercial)
Sections

5.02.A, B, C;

5.03.A, B, C;

5.04.A, B, C
$19.35 for SFD
$19.35 for
Commercial, Mixed
Use, and MFD
Per Collection event (i.e.,
request to return and provide
Collection service after the
Customer failed to properly set
out their Container(s) for
regularly scheduled Collection)
6 Additional Targeted
Recyclable Materials or
Organic Materials Cart
Service for SFD
Sections

5.03.A and

5.04.A
$1.27 per
Recycling Cart
$3.85 per Organic
Materials Cart
Per Cart per month (any Cart
size). Six month minimum
charge required. Includes onetime Cart delivery upon start of service and removal of Cart
when service is discontinued by
Customer.
7 Additional On-Call Bulky
Item Collection
Sections

5.05, 5.06
$105.20 Per Bulky Item Collection event
(in addition to the events
provided at no charge to
Customer pursuant to Section

5.12)
144

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Service Reference
AgencyApproved
Maximum Rate
Description
8 Collect Contaminated
Targeted Recyclable
Materials or Organic
Materials Container
Section

6.03.A and

8.02.F
25% of the base
monthly Solid
Waste Rate for the
size of Container
Collected once per
week
plus
Return Trip Fee if
applicable
Per Collection event for
Container with Contamination
Level greater than the maximum
level pursuant to Table 1 in
Section 6.02.B
9 Lock Service (Key
Service)
Section

8.02.B
A – $10.96 per
usage
B – $12.25 per
usage
Monthly cost:

A – Residential Customers
B – Commercial Customers
10 Lock Purchase Section

8.02.B
$21.93 per lock Per lock
11 Overage Service Section

8.02.G
100% of the base
monthly Solid
Waste Collection
Rate
Per Collection event (after the
first two events)
12 Overage Bags Cost Section

8.02.G
50% of the base
monthly Solid
Waste Collection
Rate or $10.31
minimum
Per bag
13 Container Cleaning
Service
Section

8.05.D
A – $64.50
B – $109.64
A – per Cart
B – per Bin or Drop-Box
Charge only applies to cleaning
or Container exchange in
addition to the service to be
provided at no charge to the
Customer pursuant to Section

8.05.D
145

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Service Reference
AgencyApproved
Maximum Rate
Description
14 Dirty Cart Replacement
(Exchange) Service
Section

8.05.D
A – $83.85
B – $96.74
C – $109.64
A – per 32 gallon Cart
B – per 64 gallon Cart
C – per 96 gallon Cart
Charge only applies to cleaning
or Container exchange in
addition to the service to be
provided at no charge to the
Customer pursuant to Section

8.05.D
Additional Services for Agency
15 Additional Confidential
Document Destruction
Service Event
Section 5.07 $1,547.84 Per event
16 Additional Compost
Material Delivery
Section 5.11 A – $161.22 per
delivery
B – $322.47 per
delivery
A – “one-way” only delivery by
Contractor where Contractor
delivers to and unloads compost
at an Agency-approved location
B – “Round-trip” delivery by
Contractor where Contractor
delivers compost in a Drop Box
to an Agency-approved location
and returns at a later time or
date to pick up the Drop Box and
any remaining compost (charge
includes the delivery of and later
pick-up of the Drop Box)
17 Community Drop-Off
Events
Section 5.13 $26,313.47 per
event or day
Per event or day targeting 5,000
households. Does not include
disposal or public education
expenses.
18 Collection for AgencySponsored and NonAgency sponsored Community Events
Section 5.08 A – $3,869.62
B – $6,449.37
C – $9,674.07
A – One day event with a
projected 2,500 or fewer
attendees
B – One (1) or two (2) day
events with a projected 2,501 to
7,500 attendees per day
C – One (1) or two (2) day
events with a projected 7,501 to
10,000 attendees per day
146

ATTACHMENT Q
SCHEDULE OF CONTRACTOR’S MAXIMUM RATES

FOR ADDITIONAL SERVICES
Collection Services Franchise Agreement with Recology San Mateo County Attachment Q City of Belmont Additional Services

Backyard Collection Service Charge
for Single-Family Dwellings*
(Section 5.02.A)
Distance from Curb**
Backyard
Charge for
Customers
with One (1)
Solid Waste
Cart
Backyard
Charge for
Customers with
Two (2) Solid
Waste Carts
Backyard
Charge for
Customers with
Three (3) Solid
Waste Carts
Backyard
Charge for
Customers with
Four (4) Solid
Waste Carts
Distance <= 50 feet $23.20 $37.03 $74.10 $111.13
50 < Distance <= 100 feet $27.09 $40.92 $77.96 $115.02
100 < Distance <= 150 feet $30.94 $44.78 $81.81 $118.88 150 < Distance <= 200 feet $34.83 $48.66 $85.69 $122.76 200 < Distance <= 250 feet $38.69 $52.52 $89.58 $126.63 250 < Distance <= 300 feet $42.57 $56.39 $93.44 $130.48 300 < Distance <= 350 feet $46.44 $60.25 $97.32 $134.35 Each additional 50 foot
increment over 350 feet
Amount equals the difference
between the Charge for 250 to 300 feet and 300 to 350 feet * Backyard Collection Service Charges are charges added to the base monthly Rate for Single-Family Collection service, and cover the provision of Backyard Collection Service for all of Customer’s Solid Waste, Recyclable Materials, and Organic Materials Carts.
** Distance shall be measured from the face of the curb, or from the edge of the roadway nearest the closest edge of the Cart, if there is no curb. 147
Draft Report
Review of the 2023 Solid Waste Rates
City of Belmont
August 2022
148
929 108th Ave NE, Suite 1300
Bellevue, WA 98004
August 29, 2022
Mr. Peter Brown
Public Works Director
City of Belmont
One Twin Pines Lane Suite 385
Belmont, California 94002
Subject: Review of the 2023 Solid Waste Rates Draft Report Dear Mr. Brown:

HDR Engineering, Inc. (HDR) was retained by the City of Belmont (City) to provide professional and technical rate services as they relate to the City’s solid waste utility.  The City is a member of the South Bayside Waste Management Authority (SBWMA) and has a franchise agreement with Recology of San Mateo County (Recology) for solid waste collection services, including the collection of recycling and organic materials.   Through the franchise agreement, the annual compensation for Recology’s services is contractually determined.  Recology has provided to the City their calculation of the maximum rates for both regularly scheduled services, and additional services, for Rate Year 2023, based on their July 31st rate year 2023 application letter.   The franchise agreement calls for the City to establish solid waste retail rates, but not at a level which exceeds the Contractor’s “Maximum Rates for Regularly Scheduled Services”.

HDR and the City have reviewed Recology’s calculations and this report summarizes our findings, conclusions, and recommendations.   This report and HDR’s technical review were developed utilizing the City’s and Recology’s accounting, operating, and management records.  HDR has relied upon this information to conduct our limited review, which provides the basis for our findings, conclusions, and recommendations contained in this report.

We appreciate the assistance provided by City staff, management, and City Council.   More importantly, we appreciate the opportunity to work with City on this project.

Sincerely yours,
HDR Engineering, Inc.

Shawn Koorn
Associate Vice President
149
Table of Contents i
City of Belmont – Review of 2023 Solid Waste Rates
Executive Summary
Introduction .....................................................................................................................1 Limitations of HDR’s Review.............................................................................................1 Overview of the Agreement.............................................................................................2 Regularly Scheduled Service (Attachment L) – Review of Recology’s  Calculated Maximum.........................................................................................................................3 Additional Services (Attachment Q) – Review of Recology’s Calculated Maximum .........4 Summary Conclusions and Recommendations.................................................................5 City Council Review ..........................................................................................................5 Summary of the Review of Solid Waste Rates..................................................................5 1 Introduction and Overview of the Report

1.1 Introduction...........................................................................................................6

1.2 Limitations of HDR’s Review ..................................................................................6

1.3 Organization of the Report ....................................................................................7 2 Overview of the Agreement

2.1 Introduction...........................................................................................................8

2.2 Overview of the Agreement...................................................................................8

2.3 Regularly Scheduled Services (Attachment L) ........................................................9

2.4 Additional Services (Attachment Q).....................................................................10

2.5 Summary..............................................................................................................11 3 Review of Recology’s Calculated Maximum Rates for Regularly Scheduled Services”

3.1 Introduction.........................................................................................................12

3.2 Overview of Recology’s 2023 Rate Application....................................................12

3.3 Overview of General Approach Used to Review the Costs...................................13

3.4 Summary Conclusions of HDR’s Review of Maximum Rate Calculations..............14

3.5 HDR’s Detailed Review of the Total Target Revenue Calculations .......................14

3.5.1 CPI Value Adjustment.............................................................................14

3.6 Conclusions Regarding the Calculation of the Maximum Rate.............................17

Table of Contents
150
Table of Contents ii
City of Belmont – Review of 2023 Solid Waste Rates
4 Review of the Proposed 2023 Solid Waste Rates

4.1 Introduction.........................................................................................................18

4.2 Residential Regularly Scheduled Service (Attachment L) .....................................18

4.3 Commercial Carts Regularly Scheduled Service (Attachment L)...........................18

4.4 Commercial Waste Bins Regularly Scheduled Service  .........................................19

4.5 Commercial Organics Bins Regularly Scheduled Service  .....................................20

4.6 Commercial Organics Carts Regularly Scheduled Service  ....................................21

4.7 Other Miscellaneous Solid Waste Rates...............................................................22

4.8 Rate for Additional Services (Attachment Q) .......................................................23

4.9 Summary..............................................................................................................23 5 Summary of the Solid Waste Rate Findings, Conclusions and Recommendations

5.1 Introduction.........................................................................................................24

5.2 Summary Findings, Conclusions and Recommendations.....................................24

5.3 Looking Ahead – Future Rate Adjustment to 2024 ..............................................24

5.4 Summary..............................................................................................................24 Technical Appendix A – Attachment L Rates – Regularly Scheduled Rates Technical Appendix B – Attachment Q Rates – Additional Services 151
Executive Summary 1
City of Belmont – Review of 2023 Solid Waste Rates
Introduction
The City of Belmont (City) is a member of the South Bayside Waste Management Authority (SBWMA) and on August 28, 2018, finalized an Amended and Restated Franchise Agreement (Agreement) with Recology of San Mateo County (Recology) for solid waste collection services, including the collection of recycling and organic materials.  The Agreement is for the 15‐year period of 2021 to 2035.   Through the Agreement (i.e., 7.01.A.5, 11.01.A, 11.06), the annual compensation for Recology’s collection and recycling servicesis contractually determined.  At the same time, the Agreement calls for the City to adopt solid waste rates, but not at a level which exceeds the Contractor’s “Maximum Rates for Regularly Scheduled and Additional Services”.

Ultimately, Recology billsthe City’s customersfor the solid waste services at the rates established and formally adopted by the Belmont City Council.

As a part of the overall rate setting process, Recology’s data and information is reviewed by an outside party prior to its use within the calculation of the City’s maximum rates.  Once that data and information is confirmed, Recology calculates the “maximum rates for regularly scheduled and additional services” and provides a copy of those calculations to the City for their review and acceptance.  This review and rate setting process is similar to the reviews that HDR has provided to the City annually since 2013.  The City has requested that HDR conduct a formal review of Recology’s solid waste rate calculations for rate year 2023.   This will be the third rate year reviewed under the terms and conditions of the current Agreement.

The Agreement contains specific language and exhibits related to the development of the maximum rates for a given year for both regularly scheduled services (Schedule L) and additional services(Schedule Q).  Rate year 2021, the first year of the current Agreement,serves asthe base year for adjusting rates in future years.   HDR has reviewed the applicable portions of the Agreement as they pertain to the 2023 rate year1.   From our understanding of the current Agreement and the rate setting requirements, HDR reviewed Recology’s submittal for the 2023 rate year.  This study discusses the review undertaken by HDR for the 2023 rate year.

Limitations of HDR’s Review
HDR has provided a limited review of Recology’s maximum rate calculations for the 2023 rate year.   As noted above, the data and information used by Recology to calculate the City’s maximum rates were independently reviewed by another outside firm.  Given the outside review of Recology’s data and information, HDR and the City have assumed that the data and information input into Recology’s rate calculations are reasonable and appropriate.  As part of the review, HDR did cross‐check and verify the inputs into Recology’s model from the database of previously reviewed basic input data and information.

Within HDR’s review, four key items have been reviewed and verified.  These included:
1 HDR assisted the City in negotiating a current franchise agreement with Recology and is very familiar with the requirements of the current agreement as it relates to rate setting (Article 11).

Executive Summary
152
Executive Summary 2
City of Belmont – Review of 2023 Solid Waste Rates
 A review of Recology’s methodology for compliance with our understanding of the required methodology specific for the 2023 rate year based on the current Agreement.  A review of the data inputs and information used within the methodology to confirm that the costs and any other adjustments comply with the methodology for regularly scheduled services (Schedule L) for rate year 2023 as required in the current Agreement.  A review of the data inputs and methodology used to adjust additional services (Schedule Q) for the 2023 rate year to confirm the use of the appropriate cost index, as specified in the current Agreement.
 Confirmation/verification of the calculations (formulas) within the methodology as they apply to the 2023 rate year based on the current Agreement.

Overview of the Agreement
The current Agreement with Recology isintended to continue to provide the Belmont community with high‐quality waste collection, waste reduction, recycling, and composting programs.   In order to maximize the quality of services and waste‐diversion potential, the City granted to Recology an exclusive right to provide these services within the City.  In order to balance that exclusive right to provide these solid waste services against the costs/rates associated with that program, the parties needed to develop an approach or methodology that fairly compensated (and limited) the charges that Recology could charge the City’s customers.   To address this requirement, Article 11 of the Agreement contains specific language, and a methodology, for annually establishing the maximum rates for the up‐coming calendar year for both regularly scheduled (Schedule L) and additional services (Schedule Q).

The Agreement provides for an orderly process and
approach to establish rates for the City and compensation for Recology.  The review being undertaken by the City and HDR is a part of that orderly process, and the City is
performing its due diligence to verify and confirm that the maximum rates calculated by Recology are in accordance
with the Agreement.   The agreement stipulates this as
follows:

Article 11, “The Contractor’s Compensation, Pass‐Through Costs and Rates” determines the annual compensation for Recology’s collection and recycling services.  This calculation of annual compensation sets the Contractor’s “Maximum Rates for Regularly Scheduled Services” (Attachment L) and “Additional Services” (Attachment Q).   Within the franchise agreement, Attachment L is established in 11.04 of Article 11, Annual Adjustment of Maximum Rates for Schedule Services.  Attachment Q is established in 11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

The review being undertaken
by the City and HDR is a part of
that orderly process, and the
City is performing its due
diligence to verify and confirm
that the maximum rates
calculated by Recology are in
accordance with the
Agreement.
153
Executive Summary 3
City of Belmont – Review of 2023 Solid Waste Rates
Regularly Scheduled Service (Attachment L) – Review of Recology’s Calculated Maximum
On July 31, 2022, Recology provided to the City a letter outlining their calculation of the rates for rate year 2023.  The City retained HDR Engineering, Inc. (HDR) to provide the rate review of the proposed 2023 rates as has been performed annually since 2013, which was to confirm that the overall methodology is in conformance with the current Agreement.   In addition, HDR also verified or confirmed that the proper cost data appeared to be used within the analysis, and that the mathematical calculations are correct.   In providing this review, HDR also attempted to independently calculate the rate index used for Schedule Q rates(e.g., consumer price index (CPI‐ U General)).  This report details the City’s process to revise the maximum rates that may be charged for solid waste, recyclable materials, and organic materials collection services for rate year 2023.

The rates that Recology charges its customers include Recology (contractor) compensation, SBWMA costs to operate the Shoreway transfer facility, waste disposal costs, franchise fees, and other related charges.  Article 11 of the Agreement provides the framework or methodology for the determination of the maximum rate for the upcoming year.   In very simple terms, the Agreement calls for Recology to annually take the existing maximum rate that is in effect and multiply each rate by an “adjustment multiplier”.  The adjustment multiplier is essentially a cost index to develop Total Target Revenue for the rate year.

The rate adjustment multiplier is composed of three elements; the 2023 Base Contractor’s Compensation based on CPI cost adjustments, the 2022 Performance Incentive/Disincentive adjustment, and the 2023 pass through costs which comprise both disposal and agency payments.   In addition is a fourth element this year which is the reversal of the prior year disincentive for 2021.  For 2023 these elements are a total rate index adjustment of 3.66% as shown in Table ES‐1.

Table ES – 1
Summary of 2023 Rate Adjustment to 2022 Rates
Cost Component
2022
Target
Revenue
2023
Target
Revenue
$
Difference
% Adjustment
to 2022 Rates
Total Base Compensation $4,452,207 $4,768,384 $316,177 3.74% Performance (Inc.)./Dis. 2,122 (5,459) (7,581) (0.09%)
Pass Thru Costs 4,002,879 4,010,571 7,692 0.09%
Plus Disincentive Payable 2021 6,849 0 (6,849) (0.08%)
Total Target Revenue $8,464,058 $8,773,496 $309,439 3.66% In the review of Recology’s Total Target Revenue for the 2023 rate year, HDR concluded that the Total Target Revenue used the appropriate data and information for the time period and the calculations within the methodology were correct.  As a result of our review, HDR concluded that based upon the current Agreement, the City’s maximum solid waste rates for 2022 should be 154
Executive Summary 4
City of Belmont – Review of 2023 Solid Waste Rates
increased by 3.66% to rate year 2023 proposed rates.  Provided in this report is a more detailed discussion of each of the elements of the calculation of the 2023 maximum rate calculation and the basis for HDR’s summary conclusion.

Presented below in Table ES‐2 are the present monthly residential rate and the proposed residential rates for 2023.

Table ES – 2
Summary of the Present and Proposed Residential Solid Waste Rates (Regularly Scheduled - $/Month)
Present Proposed
Monthly 2023 $/Month
Schedule Schedule Description Rate Rates Change
R20G Residential Waste ‐ 20 Gallons $34.94 $36.22 $1.28 R32G Residential Waste ‐ 32 Gallons $41.68 $43.21 $1.53 R64G Residential Waste ‐ 64 Gallons $82.06 $85.06 $3.00 R96G Residential Waste ‐ 96 Gallons $123.08 $127.59 $4.50 In addition to the above residential rates for regularly scheduled service, the City and Recology have a number of otherrate schedulesforregularly scheduled solid waste services.  These include the following:
 Commercial Waste Carts (20 gallons to 96 gallons)
 Commercial Waste Bins (1 yard to 6 yards; 1 day to 7 days per week pickup)  Commercial Organics (1 yard to 6 yards; 1 day to 7 days per week pickup)  Commercial Organics Carts (20 gallons to 96 gallons; 1 day to 7 days per week pickup)  Commercial Waste 3 Yard Compactor
 Solid Waste Compactor (per yard)
Each of these commercial rate schedules were increased by the overall 3.66% rate increase.  A more detailed discussion of these other regularly scheduled services can be found in Section 4 of the report and also within the Technical Appendices as Attachment L rate schedules.

Additional Services (Attachment Q) – Review of Recology’s Calculated Maximum
In addition to the regularly scheduled rates, there are also rates for “additional services”.  The rates for additional services are contained in Attachment Q of the Agreement and are annually updated in accordance with the Agreement.  Attachment Q is established in 11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

The Maximum Rate set forth in Attachment Q is adjusted annually by multiplying the then effective April CPI‐U General for the year in which rates are set and divided by the April CPI‐U from the year prior to the year in which rates are set.  For example, the April CPI‐U‐General is 324.878 for 2022 and the April CPI‐U‐General for 2021 is 309.419.  Therefore, each Maximum 155
Executive Summary 5
City of Belmont – Review of 2023 Solid Waste Rates
Rate is multiplied by the April CPI‐U‐General for 2022 and divided by the April CPI‐U‐General for 2021.  This resulted in an overall rate increase of 5.00% (324.878 / 309.419) for Attachment Q rates effective in 2023 for the additional services.

A more detailed discussion of these additional services can be found in Section 4 of the report and also within the Technical Appendices as Attachment Q rate schedules.

Summary Conclusions and Recommendations
Based on the limited review undertaken, it was the conclusion of HDR that the maximum rates, as calculated by Recology, were in conformance with the City’s current Agreement.  In reaching this conclusion, HDR has relied upon the data and information as supplied by the City and Recology.  Given that conclusion, HDR would recommend that the City revise the residential and commercial rates based on the proposed rates provided in Table ES‐1.  Finally, the additional services (Attachment Q), as calculated by Recology and as reviewed within this report, should also be adopted for 2023 based on the CPI increase of 5.00%.

City Council Review
On September 13, 2022, HDR will present to the City of Belmont City Council the proposed 3.66% rate adjustment for 2023 rates for the scheduled services, Schedule L, and a 5.00% rate adjustment for additional services, Schedule Q.

Summary of the Review of Solid Waste Rates
This completes the summary review and analysis for the City’s solid waste rates.  A full and complete discussion of the review of Recology’s solid waste rates can be found in the following sections of this report.
156
Introduction and Overview of the Report 6
City of Belmont – Review of 2023 Solid Waste Rates

1.1 Introduction
The City of Belmont (City) is a member of the South Bayside Waste Management Authority (SBWMA).  In 2018, the signed an Agreement with Recology of San Mateo County (Recology) for solid waste collection services, including the collection of recycling and organic materials.

Through the Agreement (i.e., 7.01.A.5, 11.01.A, 11.06), the annual compensation for Recology’s collection and recycling services is contractually determined.  At the same time, the Agreement calls for the City to adopt solid waste rates, but not at a level which exceeds the Contractor’s “Maximum Rates for Regularly Scheduled or Unscheduled Services”.  Ultimately, Recology bills the City’s customers for the solid waste services at the rates established by the City of Belmont City Council.

The 2018 Agreement is for a 15‐year term, for rate years 2021 through 2035.  This solid waste rate review represents the third year under the current Agreement.   While the current Agreement is similar to the 2010 agreement, there are certain differences.   Both franchise agreements contain specific language and exhibits related to the development of the maximum rates for a given year.

The general approach for rate adjustments (2022 – 2035) is based on changes in specific cost indices for the primary cost categories outlined by Recology for the base contractor’s compensation.  For example, in 2023 the costs, will be adjusted by the change in the specific cost indices from 2021 to 2023. These cost indices include CPI‐U, CPI‐U‐Motor Fuel, CPI‐W, etc.  The agreement has outlined each of the specific cost indices that will be used in escalating the base costs for future year rate adjustments.   The total target revenues for rate year 2023 will be compared to the total target revenues in the prior year rate year 2022.  This comparison will result in the rate multiplier to be used on 2022 rates to establish the proposed 2023 rates.

1.2 Limitations of HDR’s Review
It isimportant to understand that HDR has provided a limited review of Recology’s maximum rate calculations for the 2023 rate year.  The data and information used by Recology to calculate the City’s maximum rates were reviewed by another outside firm.  HDR did not provide a review of this basic input data as a part of this study.  Therefore, HDR and the City have assumed that the data and information input into Recology’s rate calculations are reasonable and appropriate.

Having said that, HDR did a limited cross‐check to verify the inputs into Recology’s model, from the database of previously reviewed basic input data and information.

Within HDR’s review, the three key items reviewed were the overall methodology, compliance to the agreed upon methodology, and verification of the data inputs.   First, the overall methodology is generally well‐laid out within Article 11 of the current Agreement.  Given that, HDR reviewed Recology’s methodology for compliance with our understanding of the required methodology for the 2023 rate year.  At the same time, HDR also reviewed the data inputs and information used within the methodology as applied to the 2022 rate year.  While the data and information were previously reviewed, the selection and use of the appropriate costs and

1.0 Introduction and Overview of the Report
157
Introduction and Overview of the Report 7
City of Belmont – Review of 2023 Solid Waste Rates
adjustment factors must comply with the methodology.   Finally, HDR confirmed/verified the calculations (formulas) used within the methodology as applied to the 2023 rate year were accurate.  As a part of HDR’s review, these three aspects of Recology’s rate filing were reviewed and verified.

1.3 Organization of the Report
This report is organized in a manner that reflects the general approach used by HDR to review Recology’s maximum ratesfor “Regularly Scheduled” and “Additional Services”.  The nextsection of thisreport provides a brief overview of the relevant portions of the Agreement.  Section 3 then provides a discussion and overview of the technical review undertaken by HDR of the Recology rate calculations.   From that review, HDR was then able to review and verify the proposed maximum rates for Regularly Scheduled and Additional Services.  The proposed maximum rates are discussed and shown in Section 4.  Finally, Section 5 provides a summary of HDR’s findings, conclusions, and recommendations from this study.
158
Overview of the Agreement 8
City of Belmont – Review of 2023 Solid Waste Rates

2.1 Introduction
An important starting point for reviewing the City’s solid waste rates is to gain an understanding of the current Agreement which is an extension of the original 2010 franchise agreement.  This section of the report is intended to provide a brief overview of the relevant portions of the City’s current Agreement with Recology to help the reader better understand the basis for this review of the rates.

The review and discussion contained herein is not intended to be comprehensive in nature, nor provide any legal interpretation or opinion regarding the relevant portions of this Agreement as it relates to this study.

2.2 Overview of the Agreement
As noted, the agreement was extended in 2018 for an additional 15‐year term for rate years 2021 through 2035.   This is the third rate year under the current, extended, Agreement.   The Agreement is very similar to the 2010 franchise agreement but does contain some relevant changesto Article 11 which determines Recology’s compensation and the City’ssolid waste rates.

Similar to the 2010 agreement, for 2021 and beyond, Recology’s annual compensation for collection and recycling services is outlined in the Agreement and contractually determined.  The Agreement calls for the City to establish and adopt their own solid waste rates, but not at a level which exceeds the Contractor’s “Maximum Rates for
Regularly Scheduled Services” referred to as Attachment L and “Maximum Rates for Additional Services”, referred to as Attachment Q2.   The Agreement between the parties
contains specific language and exhibits related to the
development of the maximum rates for a given year for
both Attachments L and Q.

The Agreement provides for an orderly process and
approach to establish rates for the City and compensation for Recology.  The review being undertaken by the City and HDR is a part of that orderly process, and the City is performing its due diligence to verify and confirm that the maximum rates calculated by Recology are in accordance with the Agreement for rate year 2023.

More specific to the Agreement, Article 11 – “The Contractor’s Compensation, Pass‐Through Costs and Rates” provides the analytical framework for determining the annual compensation for Recology’s collection and recycling services.  This calculation of annual compensation setsthe Contractor’s “Maximum Rates for Regularly Scheduled Services” known as Attachment L and “Additional Services” known as Attachment Q.  Attachment L is established in 11.04 of Article 11, 2 Under the 2010 franchise agreement, Regularly Scheduled services were referred to as Attachment R and Additional Services was referred to as Schedule Q.

2.0 Overview of the Agreement
. . . and the City is performing
its due diligence to verify and
confirm that the maximum
rates calculated by Recology
are in accordance with the
Agreement for the 2023 rate
year.
159
Overview of the Agreement 9
City of Belmont – Review of 2023 Solid Waste Rates
Annual Adjustment of Maximum Rates for Schedule Services.  Attachment Q is established in

11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

2.3 Regularly Scheduled Services (Attachment L)
As noted above, Article 11 of the Agreement provides the analytical framework or methodology for the determination of the maximum rates for the upcoming year.  In very simple terms, the Agreement calls for Recology to annually take the existing maximum rate that is in effect and multiply each rate by an “adjustment multiplier”.  The adjustment multiplier is essentially a “cost index” based on CPI value adjustments to arrive at Total Target Revenue for the rate year.  The Total Target Revenue for the current year is divided by the prior year Total Target Revenue per

11.04.A. as follows:
“ . . . Beginning with the adjustment for Rate Year 2022, each Maximum Rate set forth in Attachment L shall be adjusted annually by multiplying the then‐effective Maximum Rate by the Adjustment Multiplier. The Adjustment Multiplier used to calculate the Maximum Ratesthat will be effective in a given Rate Year (the “Adjustment Year”)shall be calculated by dividing Total Target Revenue for the Adjustment Year (calculated pursuant to Table 2 below) by Total Target Revenue for the Rate Year prior to the Adjustment Year (the “Current Year”).”3
However for only Rate Year 2022 the “prior” year will be the 2021 adjusted Total Target Revenue of $7,888,920 as follows in 11.04A.
“ . . . For purposes of determining Maximum Rates for Rate Year 2022, Total Target Revenue for Rate Year 2021 shall be the same as Total Contractor’s Compensation for that year (i.e. $7,888,920).”4
Going forward in rate year 2023 to 2035 the adjustment multiplier will be the current year Total Target Revenue divided by the prior year Total Target Revenue.  In rate year 2023 the Total Target Revenue for 2023 rate year will be divided by the prior 2022 Total Target.

The franchise agreement provides the cost index for the various components to calculate Total Target Revenue.  The Total Target Revenue isstated in total dollars.  For example, the Total Target Revenue for 2022 was $8,464,058.  Going forward, for each year the cost index is calculated by adding together the various component costs which are composed of the following cost elements:
 Direct Labor (Wages for CBA’s, Benefits for CBA’s, Payroll Taxes, Worker’s Compensation)  Direct Fuel Costs
 General Expenses Direct and Indirect
 General Expenses Depreciation
 Profit Calculation
 Interest
 Performance Incentives/Performance Disincentives
 Pass Through Costs
3 Franchise Agreement, Section 11.04(A), Adjustment Multiplier for Regularly Scheduled Services, p. 99. 4 Franchise Agreement, Section 11.04(A), Adjustment Multiplier for Regularly Scheduled Services, p. 99. 160
Overview of the Agreement 10
City of Belmont – Review of 2023 Solid Waste Rates
o Disposal Costs (i) Projected Next Year, (ii) Actual Prior Year, (iii) less Prior Projected Year)
o Agency Payments
The general approach for future year rate adjustments (2023 – 2035) is based on changes in specific cost indicesfor the primary cost categories outlined by Recology for the base contractor’s compensation.  For example, in 2023 the costs will be adjusted by the change in the specific cost indices from 2022 to 2023.  These cost indices include CPI‐U, CPI‐U‐Motor Fuel, CPI‐W, etc.  The current Agreement outlines each of the specific cost indices that will be used in escalating the base costs (adjusted 2021 Total Target Revenue) for future year rate adjustments.  For rate year 2023, the 2023 Total Target Revenue is compared to the 2022 Total Target Revenue of $8,464,058. For rate year 2023, the specific cost indices will compare for the current year index to the 2020 index and the 2022 adjusted Total Target Revenue.

Finally, the disposal costs are calculated separately from base contractor’s compensation.  The current franchise agreement uses a similar approach to establishing the annual adjustments to the disposal costs.  Essentially, all increases or changes in disposal costs are passed through as direct rate adjustments to the customer.

2.4 Additional Services (Attachment Q)
The rates for additional services are addressed in the current franchise agreement and are annually updated in accordance with the Agreement.  Ratesfor Additional Services are discussed and established in 11.05 of Article 11, Annual Adjustment of Maximum Rates for Additional Services.

11.05 – Annual Adjustment of Maximum Rates for Additional Services A. The Maximum Rates for Rate Year 2021 for the additional services described in Attachment Q shall be the charges for those services determined under the SBWMA‐wide methodology, adjusted as necessary to pass through the Franchise Fee and any other Agency fees under this Agreement. Beginning with the adjustment for Rate Year 2022, each Maximum Rate set forth in Attachment Q shall be adjusted annually by multiplying the then‐effective Maximum Rate by April CPI‐U‐General for the year in which the calculation is made and dividing the result by April CPI‐U‐General for the year prior to the year in which the calculation is made. For example, to calculate the Maximum Rates set forth in Attachment Q effective in 2025, each such Maximum Rate effective in 2024 shall be multiplied by CPI‐U‐General for April 2024 and divided by CPI‐U‐General for April 2023.

The adjustment to Schedule Q is based upon a cost‐indexing approach and a CPI for general inflation is used.  For example, assume the April 2025 CPI‐U‐General is 300.000 and the April 2024 CPI‐U‐General is 295.000.  This would result in an adjustment to the Additional Services rates of

1.7%. (300.000 / 295.000 = 1.017 or 1.7%).

161
Overview of the Agreement 11
City of Belmont – Review of 2023 Solid Waste Rates

2.5 Summary
This section of the report has provided a brief overview of the relevant portions of the current Agreement with Recology.   While this overview of the Agreement has been necessarily abbreviated, it does provide a good understanding of the basic framework or methodology used to calculate the maximum rates for Regularly Scheduled Services and Additional Services. 162
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 12 City of Belmont – Review of 2023 Solid Waste Rates

3.1 Introduction
As a part of the Agreement, Recology calculates the maximum rates for the up‐coming calendar year.  The calculated maximum rates are formula driven, and as noted in the prior section of the report, there is relatively clear language and numeric examples of the rate process.  The purpose of this section of the report is to provide an overview of Recology’s rate filing to the City for the 2023 rate year, along with HDR’s technical review of that filing.  Article 11.04 specifically outlines the establishment of maximum rates for 2023 and after for regularly scheduled services.

3.2 Overview of Recology’s 2023 Rate Application
On July 31, 2022, Recology provided to the City a letter and the detailed worksheets outlining their calculation of the maximum rates for rate year 2023.  The rate application letter indicated a maximum increase adjustment of 3.66%.  HDR reviewed that calculation and determined based upon the information provided that it appears to be in agreement with the current Agreement.

For 2023, the adjustment multiplier is based on CPI cost adjustment by component.   HDR conducted a review of Recology’s calculations and determined, based on the information provided, that it appears to be in compliance with the Agreement.  Provided below in Table 3‐1 is an overview of Recology’s Total Target Revenue calculation for rate year 2023

3.0 Review of Recology’s Calculated Maximum
Rates for Regularly Scheduled Services
163
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 13 City of Belmont – Review of 2023 Solid Waste Rates
Table 3 – 1
Overview of Recology’s Total Target Revenue Calculation Rate Year 2023 Cost Component
Adj. 2021
Target
Revenue
April 2020
CPI Index
April 2022
CPI Index
Change
2020 to 2023
2023
Target
Revenue
Direct Labor Related
Wages for CBA’a $1,310,584 290.304 322.0210 1.109 $1,453,771 Benefits for CBA’s 608,287 548.136 573.254 1.046 636,161 Payroll Taxes 109,005 N/A N/A 117,755
Workers Compensation 93,961 290.304 322.021 1.109 104,227 Direct Fuel Costs 169,992 209.994 414.03 1.972 335,161
General Expense Direct & Indirect 1,211,383 298.074 324.848 1.090 1,320,296 Depreciation 281,317 N/A N/A 281,317
Profit 397,271 N/A N/A 445,995
Interest 73,679 N/A N/A 73,679
Performance Inc./Disincentives                  0 N/A N/A          (5,459) Base Contractor’s Compensation $4,255,479 $4,762,925
Agency Components 2,051,120 $2,281,102
Disposal Projected Cost (i) $1,745,620
Disposal Actual Prior Year Cost (ii) 1,772,859
Disposal Prior Projected Cost (iii) ‐1,789,017
Disposal Cost Component $1,732,664 $1,729,462
Total Target Revenue $8,039,263 $8,773,496
(i) The Contractor’s projected costs for April 1 of that calendar year through March 31 of the following year plus (ii)   The Contractors’ actual costs April 1 of the year prior through March 31 of the calendar year minus (iii) The contractor’s previous projection.

As noted above, the City retained HDR to review the Recology calculations (Table 3‐1) to confirm that the proper data appeared to be used within the analysis, and that the mathematical calculations were correct for the 2023 rate year.  While Table 3‐1 appears rather simple and straight‐forward, the calculations are, in some cases, much more complex with other detailed worksheets behind them.

Provided below is a more detailed discussion of the analytical steps taken to review the Recology calculations and the results of our review.

3.3 Overview of General Approach Used to Review Costs
As noted in Section 2, an important starting point for reviewing Recology’s compensation is understanding the Agreement.  HDR reviewed the documents, then independently reviewed the rate year 2023 maximum rate calculations.  HDR developed spreadsheets to review and attempt to duplicate the Recology calculations for 2023.  In this way, HDR could review the data sources 164
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 14 City of Belmont – Review of 2023 Solid Waste Rates
used and verify their appropriateness, while at the same time, verifying the formulas used within the calculations.

3.4 Summary Conclusions of HDR’s Review of the Maximum Rate Calculations   Based on HDR’s review of Recology’s 2023 rate application, HDR concluded that the costs contained in Table 3‐1 used appropriate cost data and information for the time period and the calculations within the methodology were correct.  As a result of our independent review HDR concluded that based upon the existing Agreement, the maximum rates should be calculated based on the increase in rates of 3.66%.

3.5 HDR’s Detailed Review of the Total Target Revenue Calculations As previously discussed, the focus of HDR’s review was on the calculations used to establish the total targetrevenue for rate year 2023 or the “Maximum Ratesfor Regularly Scheduled Services”.

Article 11 of the Agreement form the basis for the calculations.  As shown in Table 3‐1, there is one primary calculation component to the maximum rate calculation, the CPI value adjustment.

3.5.1 CPI Value Adjustment
The general approach for future year rate adjustments (2023 – 2035) is based on changes in specific cost indicesfor the primary cost categories outlined by Recology for the base contractor’s compensation.  For example, in 2023 the 2021 adjusted base target revenue will be adjusted by the change in the specific cost indices from 2020 to 2022.  These cost indices include CPI‐U, CPI‐ U‐Motor Fuel, CPI‐W, etc.  The current Agreement outlines each of the specific cost indices that will be used in escalating the base adjusted target revenue for future year rate adjustments.  For Rate Year 2023 and thereafter the specific cost indices will compare for the current year index to the 2020 index and the 2021 adjusted Total Target Revenue.   In simplified terms, general operating costs are adjusted annually by the use of a CPI value.  The CPI value index is segregated into nine main components.  They are as follows:
 Direct Labor ‐ The direct labor includes wages for CBA’s, benefits for CBA’s, payroll taxes, and worker’s compensation.   Wages for CBA’s, benefits for CBA’s, and worker’s compensation for base year 2021 is multiplied by the difference between the 2020 base year CPI for that component and the current year (2021) CPI for that component.  In very simplified terms, the agreement uses the wages for CBAs at the start of the agreement of 2021 and then simply adjusts wages for CBAs by a CPI amount based on 2020 CPI and the current year CPI.  Payroll tax is a formula based on the wages times 8.1%.  Direct Fuel – The fuel for base year 2021 is multiplied by the difference between the 2020 average price per gallon and the average price per gallon of fuel for the twelve month period ending March 31 of the Calendar Year.
 General Expense Direct and Indirect – The general expense base for 2021 is multiplied by the difference between the 2020 base year Consumer Price Index and the current year Consumer Price Index.
 Depreciation Vehicles, Containers, Indirect – The vehicle deprecation remains fixed at $193,109 for rate year 2022‐2026.  Values for rate years 2027‐2035 shall be determined as part of the SBWMA‐wide rate application for rate year 2027.   The container 165
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 15 City of Belmont – Review of 2023 Solid Waste Rates
depreciation remains fixed at $77,090 for rate years 2022‐2035 unless additional containers are purchased. The indirect remains fixed at $7,409 for rate years 2022‐2035.  Profit Calculation – The profit is calculated by taking the sum of direct labor, direct fuel, general expenses direct and indirect, and the depreciation vehicles, containers and indirect for the current rate year, divide by 0.905, and subtract from the result the sum of direct labor, direct fuel, general expenses direct and indirect, and the depreciation vehicles, containers and indirect for the current rate year components for the rate year.

This calculation represents application of the 90.5% operating ratio to Contractor’s calculated total annual cost of operations.
 Disposal Costs – (i) The Contractor’s projected costs for April 1 of that calendar year through March 31 of the following year plus (ii) the Contractors’ actual costs April 1 of the year prior through March 31 of the calendar year minus (iii) the contractor’s previous projection.
 Interest – The value remains fixed at $72,732 for rate years 2022‐2035 unless additional vehicles or containers are purchased.
 Performance‐Based – Is the sum of incentives and disincentives the year immediately preceding the Calendar Year of the Cost Index.   The determination of incentives and disincentives is independently determined by another outside party.  Agency Payment – The anticipated amount of total Agency payments as detailed in Article 11 (direct labor, direct fuel, general expenses direct and indirect, depreciation, profit, interest, performance incentives & disincentives, and disposal costs, divided by (1 – 0.26) then multiplying the result by 0.26.

For each of the above components, HDR reviewed the source data and information used within Recology’s calculations.  As a part of Recology’s packet of information, the source data used by Recology was attached to the application letter.  While much of the cost data and information had previously been audited by another outside independent consultant, in those cases where other key assumptions to the analysis were needed (e.g., CPI index), HDR attempted to independently review them.

Based on the changes from the 2022 total target revenue to the 2023 total target revenue the costs increased by $309,439 or 3.66% overall ($8,773,496  ‐  $8,464,058 = $309,439 or $309,439/$8,464,058 = 3.66%).   The majority of the components are based on specific cost indexes and/or formulas as explained previously.  Disposal costs are based on projections and actuals and are made of three components the (i) Contractor’s projected costs, (ii) the Contractors’ actual costs of the year prior, and the (iii) Contractor’s previous projection.  Provided below in Table 3‐2 is a summary of the changes in target revenue compared from 2022 to 2023.

166
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 16 City of Belmont – Review of 2023 Solid Waste Rates
Table 3 – 2
Summary of Changes in Total Target Revenue from 2022 to 2023 Cost Component
2022
Target
Revenue
2023
Target
Revenue
$
Difference
%
Difference
Base Contractor Compensation
Direct Labor Related $2,189,750 $2,311,915 $122,165 5.58% Direct Fuel Costs 234,012 335,161 101,149 43.22%
General Expense Direct & Indirect 1,257,489 1,320,315 62,826 5.00% Depreciation 281,317 281,317 0 0.00%
Profit 415,960 445,997 30,037 7.22%
Interest 73,679 73,679 0 0.00%
Total Base Compensation $4,452,207 $4,768,384 $316,177
Performance (Inc.)./Dis. 2,122 (5,459) (7,581) (357.26%) Total Pass Thru Costs
Disposal Projected Cost (i) $1,789,017 $1,745,620 (43,397) (2.43%) Disposal Actual Prior Year Cost (ii) 1,747,652 1,772,859 25,207 1.44% Disposal Prior Projected Cost (iii) (1,732,664) (1,789,017) (56,353) 3.25% Agency Payments $2,198,874 $2,281,109    82,235 3.74%
Total Pass Thru Costs $4,002,879 $4,010,571 $7,692
Plus Disincentive Payable 2021 6,849 0 (6,849) (100.0%) Total Target Revenue $8,464,058 $8,773,496 $309,439 3.66% In a more simplified orsummarized manner, The rate adjustment multiplier is composed of three elements; the 2023 CPI cost adjustments, the 2022 Incentive/Disincentive adjustment, and the 2023 pass through costs which comprise both disposal and agency payment.   Table 3‐3 summarizes this adjustment by component.

Table 3 – 3
Summary of 2023 Rate Adjustment to 2022 Rates
Cost Component
2022
Target
Revenue
2023
Target
Revenue
$
Difference
% Adjustment
to 2022 Rates
Total Base Compensation $4,452,207 $4,768,384 $316,177 3.74% Performance (Inc.)./Dis. 2,122 (5,459) (7,581) (0.09%)
Pass Thru Costs 4,002,879 4,010,571 7,692 0.97%
Plus Disincentive Payable 2021 6,849 0 (6,849) (0.08%)
Total Target Revenue $8,464,058 $8,773,496 $309,439 3.66% 167
Review of Recology’s Calculated “Maximum Rates for Regularly Scheduled Services” 17 City of Belmont – Review of 2023 Solid Waste Rates

3.6 Conclusions Regarding the Calculation of the Maximum Rate Based on the review of the Recology rate calculation, HDR concluded that the calculation as provided by Recology appears appropriate and in keeping with the current Agreement.   In reaching this conclusion, HDR reviewed and verified the data inputs into the calculation, while also confirming the overall methodology and calculations.   Based upon our conclusions, the calculated Maximum Rate Index for 2023 is an increase of 3.66% in overall rates for regularly scheduled services.
168
Review of the Proposed 2023 Solid Waste Rates 18
City of Belmont – Review of 2023 Solid Waste Rates

4.1 Introduction
In the previous section of this report, the cost basis for the City’s 2023 solid waste rates was reviewed and provides the basis for determining the City’s maximum rates for rate year 2023.

This section of the report will review the maximum solid waste rates for Regularly Scheduled Services (Attachment L) and Additional Services (Attachment Q).

4.2 Residential Regularly Scheduled Service (Attachment L) From the review of the rate index multiplier, it was concluded that the analysis developed by Recology appears to comply with the City’s Agreement.   The overall adjustment to revenues derived from rates for 2023 is a 3.66% increase in the existing rates.  In developing the calculated maximum rates, Recology provided a schedule of the rates.   HDR reviewed the calculated maximum rates to confirm that they use the appropriate multiplier.   Presented below is a discussion of the present solid waste rates and the proposed 2023 rates for residential and commercial customers. Provided below in Table 4‐1 are the proposed 2023 Residential rates for Schedule L (regularly scheduled services).

Table 4–1
Summary of the Present and Proposed Residential Solid Waste Rates (Regularly Scheduled - $/Month)
Present Proposed
Monthly 2023 $/Month
Schedule Schedule Description Rate Rates Change
R20G Residential Waste ‐ 20 Gallons $34.94   $36.22   $1.28 R32G Residential Waste ‐ 32 Gallons $41.68   $43.21   $1.53 R64G Residential Waste ‐ 64 Gallons $82.06   $85.06   $3.00 R96G Residential Waste ‐ 96 Gallons $123.08   $127.59   $4.50

4.3 Commercial Carts Regularly Scheduled Service (Attachment L) Some commercial waste customers have similar service to the residential customers in that they have cart sizes that range from 20 gallons to 96 gallons.  However, a difference between the residential and commercial service is the number of pick‐ups per week.  A commercial customer may choose their level of service (number of pick‐ups per week).  Presented in Table 4‐2 is a summary of the current commercial rates and the calculated maximum rate for 2023.   The maximum calculated rate assumes a 3.66% increase from the present rates.   Some minor rounding of the rates may occur for purposes of ease of administration.

4.0 Review of the Proposed 2023 Solid Waste
Rates
169
Review of the Proposed 2023 Solid Waste Rates 19
City of Belmont – Review of 2023 Solid Waste Rates
Table 4 – 2
Summary of the Present and Calculated Max. Commercial Solid Waste Rates (By Gallon Cart Size; Regularly Scheduled ‐ $/Month)
As can be seen, the rates have maintained the existing structure for commercial waste customers with carts.

4.4 Commercial Waste Bins Regularly Scheduled Service
Other commercial customers have larger bins which range in size from 1 yard to 6 yards.  These commercial waste customers also have the option of different levels of service and can select the number of pick‐ups per week.  Presented in Table 4‐3 is a summary of the current commercial waste bin rates and the calculated maximum rate for 2023.   The maximum calculated rate assumes a 3.66% increase from the present rates.  Some minor rounding of the rates may occur for purposes of ease of administration.

C20G Commercial Waste ‐ 20 Gallon
Present 2021 Monthly Rate $44.58 $91.70 $136.53 $187.45 $237.16 $296.74 $361.48 Calculated Maximum 2023 Rate $46.21 $95.06 $141.53 $194.31 $245.84 $307.60 $374.71 $/Month Change $1.63 $3.36 $5.00 $6.86 $8.68 $10.86 $13.23 C32G Commercial Waste ‐ 32 Gallon
Present 2021 Monthly Rate $49.50 $101.90 $151.68 $208.27 $263.49 $329.70 $401.63 Calculated Maximum 2023 Rate $51.31 $105.63 $157.23 $215.89 $273.13 $341.77 $416.33 $/Month Change $1.81 $3.73 $5.55 $7.62 $9.64 $12.07 $14.70 C64G Commercial Waste ‐ 64 Gallon
Present 2021 Monthly Rate $95.72 $193.14 $293.04 $394.03 $500.86 $610.35 $714.51 Calculated Maximum 2023 Rate $99.22 $200.21 $303.77 $408.45 $519.19 $632.69 $740.66 $/Month Change $3.50 $7.07 $10.73 $14.42 $18.33 $22.34 $26.15 C96G Commercial Waste ‐ 96 Gallon
Present 2021 Monthly Rate $138.35 $283.39 $430.05 $581.73 $735.46 $925.79 $1,080.07 Calculated Maximum 2023 Rate $143.41 $293.76 $445.79 $603.02 $762.38 $959.67 $1,119.60 $/Month Change $5.06 $10.37 $15.74 $21.29 $26.92 $33.88 $39.53 170
Review of the Proposed 2023 Solid Waste Rates 20
City of Belmont – Review of 2023 Solid Waste Rates
Table 4 – 3
Summary of the Present and Calculated Max. Commercial Solid Waste Rates (By Bin Size in Yards; Regularly Scheduled ‐ $/Month)
The commercial waste rates for customers with bins have maintained the existing rate structure and rate relationships.

4.5 Commercial Organics Bins Regularly Scheduled Service The rate charged for commercial organics is tied to the commercial waste rate.  Commercial organics rates are charged at 70% of the commercial waste rate, for a comparable size bin.

Similar to the commercial waste bin customers, commercial organics customers have bins which range in size from 1 yard to 6 yards.  Similar to the commercial waste customer, the commercial organics customers also have the option of different levels of service and can select the number of pick‐ups per week.  Presented in Table 4‐4 is a summary of the current commercial organics bin rates and the calculated maximum rate for 2023.  The maximum calculated rate assumes a

3.66% increase from the present rates.  Some rounding of the rates may occur for purposes of ease of administration.

C1YG Commercial Waste ‐ 1 Yard
Present 2021 Monthly Rate $232.14 $472.63 $717.24 $964.70 $1,214.15 $1,515.32 $1,787.89 Calculated Maximum 2023 Rate $240.64 $489.93 $743.49 $1,000.01 $1,258.59 $1,570.78 $1,853.33 $/Month Change $8.50 $17.30 $26.25 $35.31 $44.44 $55.46 $65.44 C2YG Commercial Waste ‐ 2 Yard
Present 2021 Monthly Rate $466.97 $941.60 $1,420.71 $1,903.31 $2,392.73 $2,824.75 $3,345.44 Calculated Maximum 2023 Rate $484.06 $976.06 $1,472.71 $1,972.97 $2,480.30 $2,928.14 $3,467.88 $/Month Change $17.09 $34.46 $52.00 $69.66 $87.57 $103.39 $122.44 C2YG1 Commercial Waste ‐ 2 Yard
Present 2021 Monthly Rate $466.97 $941.60 $1,420.71 $1,903.31 $2,392.73 $2,824.75 $3,345.44 Calculated Maximum 2023 Rate $484.06 $976.06 $1,472.71 $1,972.97 $2,480.30 $2,928.14 $3,467.88 $/Month Change $17.09 $34.46 $52.00 $69.66 $87.57 $103.39 $122.44 C3YG Commercial Waste ‐ 3 Yard
Present 2021 Monthly Rate $704.26 $1,417.02 $2,133.96 $2,853.04 $3,574.60 $4,339.41 $5,109.55 Calculated Maximum 2023 Rate $730.04 $1,468.88 $2,212.06 $2,957.46 $3,705.43 $4,498.23 $5,296.56 $/Month Change $25.78 $51.86 $78.10 $104.42 $130.83 $158.82 $187.01 C4YG Commercial Waste ‐ 4 Yard
Present 2021 Monthly Rate $961.38 $1,939.38 $2,917.40 $3,906.54 $4,899.86 $5,934.38 $6,990.56 Calculated Maximum 2023 Rate $996.57 $2,010.36 $3,024.18 $4,049.52 $5,079.19 $6,151.58 $7,246.41 $/Month Change $35.19 $70.98 $106.78 $142.98 $179.33 $217.20 $255.85 C6YG Commercial Waste ‐ 6 Yard
Present 2021 Monthly Rate $1,478.54 $2,998.70 $4,507.55 $6,003.56 $7,520.90 $9,092.10 $10,648.98 Calculated Maximum 2023 Rate $1,532.65 $3,108.45 $4,672.53 $6,223.29 $7,796.16 $9,424.87 $11,038.73 $/Month Change $54.11 $109.75 $164.98 $219.73 $275.26 $332.77 $389.75 171
Review of the Proposed 2023 Solid Waste Rates 21
City of Belmont – Review of 2023 Solid Waste Rates
Table 4 –4
Summary of the Present and Calculated Maximum Commercial Organics Solid Waste Rates (By Bin Size in Yards; Regularly Scheduled ‐ $/Month)

4.6 Commercial Organics Carts Regularly Scheduled Service Commercial customers can also have the smaller gallon‐sized carts for organic waste.  Presented in Table 4‐5 is a summary of the current commercial organics cart rates and the calculated maximum rate for 2023.   The maximum calculated rate assumes a 3.66% increase from the present rates.   Some minor rounding of the rates may occur for purposes of ease of administration.

C1YO Commercial Organics ‐ 1 Yard
Present 2021 Monthly Rate $162.51 $330.83 $502.05 $675.29 $849.91 $1,060.74 $1,251.53 Calculated Maximum 2023 Rate $168.46 $342.94 $520.43 $700.01 $881.02 $1,099.56 $1,297.34 $/Month Change $5.95 $12.11 $18.38 $24.72 $31.11 $38.82 $45.81 C2YO Commercial Organics ‐ 2 Yard
Present 2021 Monthly Rate $326.89 $659.11 $994.50 $1,332.31 $1,674.88 $1,977.32 $2,341.81 Calculated Maximum 2023 Rate $338.85 $683.23 $1,030.90 $1,381.07 $1,736.18 $2,049.69 $2,427.52 $/Month Change $11.96 $24.12 $36.40 $48.76 $61.30 $72.37 $85.71 C3YO Commercial Organics ‐ 3 Yard
Present 2021 Monthly Rate $492.98 $991.94 $1,493.78 $1,997.13 $2,502.21 $3,037.59 $3,576.68 Calculated Maximum 2023 Rate $511.02 $1,028.25 $1,548.45 $2,070.22 $2,593.79 $3,148.77 $3,707.59 $/Month Change $18.04 $36.31 $54.67 $73.09 $91.58 $111.18 $130.91 C4YO Commercial Organics ‐ 4 Yard
Present 2021 Monthly Rate $672.97 $1,357.56 $2,042.18 $2,734.58 $3,429.89 $4,154.10 $4,893.39 Calculated Maximum 2023 Rate $697.60 $1,407.25 $2,116.92 $2,834.67 $3,555.42 $4,306.14 $5,072.49 $/Month Change $24.63 $49.69 $74.74 $100.09 $125.53 $152.04 $179.10 C6YO Commercial Organics ‐ 6 Yard
Present 2021 Monthly Rate $1,034.98 $2,099.09 $3,155.27 $4,202.50 $5,264.63 $6,364.46 $7,454.28 Calculated Maximum 2023 Rate $1,072.86 $2,175.92 $3,270.75 $4,356.31 $5,457.32 $6,597.40 $7,727.11 $/Month Change $37.88 $76.83 $115.48 $153.81 $192.69 $232.94 $272.83 172
Review of the Proposed 2023 Solid Waste Rates 22
City of Belmont – Review of 2023 Solid Waste Rates
Table 4 – 5
Summary of the Present and Calculated Maximum Commercial Organics Solid Waste Rates (By Gallon Cart Size; Regularly Scheduled ‐ $/Month) The commercial organics cart rates have maintained the existing rate structure and rate relationships.

4.7 Other Miscellaneous Solid Waste Rates
The solid waste rates also include other solid waste rates for multi‐family customers.   The maximum calculated rate assumes a 3.66% increase from the present rates.   Some minor rounding of the rates may occur for purposes of ease of administration.  These rates are shown below in Table 4‐6
Table 4 – 6
Summary of the Present and Calculated Maximum Other Miscellaneous Solid Waste Rates (Regularly Scheduled ‐ $/Month)

C32O Commercial Organics ‐ 32Gallon
Present 2021 Monthly Rate $34.67 $71.33 $106.17 $145.80 $184.45 $230.81 $281.16 Calculated Maximum 2023 Rate $35.94 $73.94 $110.06 $151.14 $191.20 $239.26 $291.45 $/Month Change $1.27 $2.61 $3.89 $5.34 $6.75 $8.45 $10.29 C64O Commercial Organics ‐ 64Gallon
Present 2021 Monthly Rate $67.02 $135.20 $205.12 $275.83 $350.61 $427.21 $500.15 Calculated Maximum 2023 Rate $69.47 $140.15 $212.63 $285.93 $363.44 $442.85 $518.46 $/Month Change $2.45 $4.95 $7.51 $10.10 $12.83 $15.64 $18.31 C96O Commercial Organics ‐ 96Gallon
Present 2021 Monthly Rate $96.85 $198.36 $301.03 $407.20 $514.82 $648.04 $756.05 Calculated Maximum 2023 Rate $100.39 $205.62 $312.05 $422.10 $533.66 $671.76 $783.72 $/Month Change $3.54 $7.26 $11.02 $14.90 $18.84 $23.72 $27.67 C3CG Commercial Waste 3 Yard Compactor
Present 2021 Monthly Rate $1,691.12
Calculated Maximum 2023 Rate $1,753.01
$/Month Change $61.89
Solid Waste Compactor Rate Per Yard
Present 2021 Monthly Rate $130.11
Calculated Maximum 2023 Rate $134.87
$/Month Change $4.76
173
Review of the Proposed 2023 Solid Waste Rates 23
City of Belmont – Review of 2023 Solid Waste Rates

4.8 Rates for Additional Services (Attachment Q)
Recology also provides a number of services that are not considered “regularly scheduled” services and these particular services are not included as a part of the Attachment L rates discussed above.  These services are considered “Additional Services” (i.e., Schedule Q) and as discussed in Section 2, they are adjusted using a cost index for general inflation.

The Maximum Rate set forth in Attachment Q is adjusted annually by multiplying the then effective April CPI‐U General for the year in which rates are set and divided by the April CPI‐U from the year prior to the year in which rates are set.  For example, the April CPI‐U‐General is 324.878 for 2022 and the April CPI‐U‐General for 2021 is 309.419.  Therefore, each Maximum Rate is multiplied by the April CPI‐U‐General for 2022 and divided by the April CPI‐U‐General for 2021.  This resulted in an overall rate increase of 5.00% (324.878 / 309.419) for Attachment Q rates effective in 2023 for the additional services.   Details of the Additional Service rates (Schedule Q) can be found in Technical Appendix B.

4.9 Summary
HDR reviewed the Recology rate calculation and concluded that the resulting maximum solid waste rates for both regularly scheduled services (Attachment L) and additional services (Attachment Q) for rate year 2023 were calculated in a manner which reflected the intent of the Agreement.
174
Summary of the Solid Waste Rate Findings, Conclusions and Recommendations 24 City of Belmont – Review of 2023 Solid Waste Rates

5.1 Introduction
This report has reviewed the calculated Maximum Rate as developed by Recology.  HDR used a systematic process to review the base‐year costs, along with the resulting maximum rates for regularly scheduled service.

5.2 Summary Findings, Conclusions and Recommendations
HDR has confirmed that the rate adjustment application and the accompanying maximum rate schedules submitted by Recology meet the requirements of the Agreement. On September 13, 2022, HDR will present the proposed 2023 rates for Schedule L of 3.66% and unscheduled services, Schedule Q, of 5.00% to the City Council.

5.3 Looking Ahead – Future Rate Adjustment to 2024
The 2024 rate adjustment will include CPI value adjustment components for the current year (2023 for rate year 2024) compared to the 2020 CPI value components and the adjusted 2021 target revenue.  The multiplier will be based on the 2024 Total Target Revenue compared to the 2023 Total Target Revenue of $8,773,496.

5.4 Summary
This completes the review conducted by HDR for the City of Belmont on the proposed 2023 Solid Waste rates.   This report has met the City’s requirement to conduct a due diligence on the proposed compensation to Recology and the resulting regularly scheduled and additional services solid waste rates.

5.0 Summary of Solid Waste Rate Findings,
Conclusions and Recommendations
175
The following table specifies Maximum Allowable Rates for Regularly Scheduled Services. These Maximum Rates shall be adjusted annually in accordance with Article 11. The following Attachment L rates are the proposed 2023 rates.

Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
Technical Appendix A – Attachment L
Regularly Scheduled Service
176
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
177
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate

178
Attachment L
Maximum Rate Schedule
Effective January 1, 2023 to December 31, 2023
Monthly Rate
179
The following table specifies Maximum Allowable Rates for Additional Services. These Maximum Rates shall be adjusted annually in accordance with Article 11. The following Attachment Q rates are the proposed 2023 rates.

Technical Appendix B – Attachment Q
Additional Services
180
Schedule Q
Additional Services (Continued)
181
Schedule Q
Additional Services (Continued)

182
Schedule Q
Additional Services (Continued)
No. Additional Service Category Reference Agency‐Approved Maximum Rate Description
16 Additional Compost Material
Delivery Section 5.11
A ‐ $161.22 per
delivery
B ‐ $322.47 per
delivery
A ‐ "one‐way" only delivery
by Contractor where
Contractor delivers to and
unloads compost at an
Agency‐approved location
B‐ "Round‐trip" delivery by
Contractor where Contractor
delivers compost in a Drop
Box to an Agency‐approved
location and returns at a
later time or date to pick up
the Drop Box and any
remaining compost (charge
includes the delivery of and
later pick‐up of the Drop
Box)
17 Community Drop‐Off Events Section 5.13 $26,313.47 per event or day
Per event or day targeting
5,000 households.  Does not
include disposal or public
education expenses.

No. Additional Service Category Reference Agency‐Approved Maximum Rate Description
18 Collection for Agency‐
Sponsored and Non‐Agency
sponsored Community Events
Section 5.08
A ‐ $3,869.62
B ‐ $6,449.37
C ‐ $9,674.07
A ‐ One day event with a
projected 2,500 or fewer
attendees
B ‐ One (1) or two (2) day
events with a projected
2,501 to 7,500 attendees per
day             C ‐ One (1) or two
(2) day events with a
projected 7,501 to 10,000
attendees per day.
183
Schedule Q
Additional Services (Continued)
184
See reverse for residential rate proposals.
20 32 64 96
1 $46.21 $51.31 $99.22 $143.41
2 95.06 105.63 200.21 293.76
3 141.53 157.23 303.77 445.79
4 194.31 215.89 408.45 603.02
5 245.84 273.13 519.19 762.38
6 307.60 341.77 632.69 959.67
7 374.71 416.33 740.66 1,119.60
RECOLOGY’S PROPOSED
2023 MAXIMUM GARBAGE

COLLECTION RATES
Nov. 22, 2022 at 7 p.m.

Belmont City Hall
1 Twin Pines Lane, Belmont, CA 94002
or via Zoom
(https://belmont-gov.zoom.us)
Meeting ID: 95745673035

COMMERICAL CARTS
1 2 3 4 6
1 $240.64 $484.06 $730.04 $996.57 $1,532.65
2 489.93 976.06 1,468.88 2,010.36 3,108.45
3 743.49 1,472.71 2,212.06 3,024.18 4,672.53
4 1,000.01 1,972.97 2,957.46 4,049.52 6,223.29
5 1,258.59 2,480.30 3,705.43 5,079.19 7,796.16
6 1,570.78 2,928.14 4,498.23 6,151.58 9,424.87
7 1,853.33 3,467.88 5,296.56 7,246.41 11,038.73

COMMERICAL BINS
# of pickups per week
Monthly rates based on cart size in gallons. Organics rates on webpage. Monthly rates based on bin size in cubic yards. Organics rates on webpage. # of pickups per week For additional information and to see a complete listing of all proposed rates, including commercial rates, visit www.belmont.gov/departments/public-works/garbage-recycling. 1 Twin Pines Lane
Belmont, CA 94002
Operation of the Shoreway Environmental Center for waste and recycling
Residential weekly curbside collection for garbage,
recycling, and organics
Commercial collection for garbage, recycling, and organics Two free pre-scheduled bulky item pick-ups per year.

Curbside cell phone & battery collection -- place on top of black cart in a clear plastic bag
Holiday tree recycling
Free mattress recycling at Shoreway
Once-a-year free, confidential document shredding event Energy-efficient, cleaner emission garbage and recycling collection trucks
Street Sweeping
WHAT DO RATES PAY FOR?
Proposed Rates effective Jan. 1, 2023 through Dec. 31, 2023 - 3.66% increase over 2022 rates.

Notice of Public Hearing
This notice is to advise Belmont property owners and
solid waste customers of the City Council proceedings
to consider maximum allowable rates for garbage and
recyclables collection services in the City of Belmont.

Adoption of new rates will result in the maximum rates
related charges in 2023. Belmont follows the protest
procedures of Proposition 218 and Article XIIID of the
California Constitution.

Attachment D
185
In 2018, Belmont entered into an amended and restated Franchise Agreement with Recology of San Mateo County (Recology) for recyclable materials, organic materials, and solid waste collection services from Jan. 1, 2021 to December 31, 2035. The Franchise Agreement provides for an annual review of the maximum rates that Recology may charge Belmont residential and commercial customers for regular and unscheduled services. Each year, Recology proposes, City staff analyzes, and the City Council adopts the maximum allowable rates per the Franchise Agreement. For calendar year 2023, Recology is proposing an adjustment multiplier rate of 3.66%, which is the proposed 2023 rate increase to all the residential and commercial carts and bins over rates charged in 2022.

Residential customers are offered different cart sizes ranging from 20-gallon to 96-gallon. For calendar year 2023, the proposed maximum rates are as follows: 20-galloncart at $36.22; 32- gallon cart at $43.21; 64-gallon cart at $85.06; and the 96-gallon cart at $127.59. The proposed 2023 commercial adjustment multiplier rate is an increase of 3.66% over the 2022 rates for all carts and bins. See residential carts chart below.

Did you know? Recology also provides several “Additional Services” that are not considered “regularly scheduled” services, such as return trip, additional on-call bulky item collection, lock service, container cleaning service, and others.

An overall rate increase of 5% for calendar year 2023 is being proposed for Additional Services. For a detailed listing of all proposed rates, including commercial rates, please visit www.belmont.gov/departments/public-works/garbagerecycling.

Cart Size
in Gallons Waste Description
20 Residential Waste
20 Gallons
$34.94 $36.22 $1.28
32 Residential Waste
32 Gallons
$41.68 $43.21 $1.53
64 Residential Waste
64 Gallons
$82.06 $85.06 $3.00
96 Residential Waste
96 Gallons
$123.08 $127.59 $4.51
2022

CURRENT
RATES

PROPOSED
RATES 2023
$/Month
Change
See reverse for commercial rate proposals and rate protest instructions. 1 Twin Pines Lane
Belmont, CA 94002
ZOOM: BELMONTGOV.ZOOM.US
MEETING ID: 95745673035

CITY COUNCIL CHAMBERS

RESIDENTIAL CARTS
One (1) garbage cart provided to customer.

Two (2) bulky items collections annually.

One (1) 64-gallon recycling cart & One (1) 96-gallon
yard waste cart.

Rate based on one (1) pickup per week.

Residential customers are billed based on their garbage cart size. The monthly rate noted here includes the
following:

Or scan this QR code
South Bayside Waste Management Authority
(SBWMA), also known as Rethinkwaste.org, is
comprised of 11 member agencies, including:

Belmont, Burlingame, East Palo Alto, Foster City,
Hillsborough, Menlo Park, Redwood City, San Carlos,
City of San Mateo, County of San Mateo, and the
West Bay Sanitary District.

Each member agency has its own Franchise
Agreement with Recology for garbage and recycling
collection services within its own jurisdictions.

SBWMA provides coordinated waste management
related staff services to member agencies and
manages the operations of the Shoreway
Environmental Center in San Carlos. The Shoreway
Center is open to all.

SOUTH

BAYSIDE
WASTE

MANAGEMENT

AUTHORITY
Need help sorting your waste?
Visit: www.recology.com/recologysan-mateo-county/what-goeswhere-residential/ WHAT GOES WHERE?
Happy planet says
'Thank you, for
recycling!'
To oppose the proposed rate changes, submit a formal written protest at the hearing or, via postal mail or hand delivery, to the City Clerk’s office.

A formal written protest must be submitted in writing, contain a description of the property (street address) and include the original signature of the property owner or solid waste customer (per state law, fax or e-mail is not acceptable).

Protests will be tabulated pursuant to procedures that have been adopted by the City Council.

If written protests are submitted with respect to a majority (50% plus 1) of the affected parcels within the City, then the proposed changes will not be approved.

Protests may be mailed to: City Clerk, City of Belmont, 1 Twin Pines Lane, Suite 375, Belmont, CA 94002
HOW CAN I OPPOSE THE PROPOSED RATES?
TUESDAY, NOV. 22, 2022
7 P.M.

Notice of Public Hearing
186

Audit Committee Report

STAFF REPORT
Meeting Date: November 22, 2022
Agency: City of Belmont
Staff Contact: Grace Castaneda, Finance Director, (650) 595-7436 Agenda Title: Report from Audit Committee Regarding Annual Financial Report for Fiscal Year Ending June 30, 2022
Agenda Action: Other
Recommendation
The Audit Committee recommends the City Council receive the financial reports and recommendations of the City’s independent auditor.

Strategic Focus Area
Fiscal and Organizational Sustainability
Background
The Audit Committee, comprised of the Vice Mayor McCune and Council Member Hurt, provides independent review and oversight of the City of Belmont’s financial reporting processes, internal controls, and independent auditors. By effectively carrying out its functions and responsibilities, the Audit Committee helps to ensure that staff properly develops and adheres to a sound system of internal controls, that procedures are in place to objectively assess management’s practices, and that the independent auditors, through their own review, objectively assess the City’s financial reporting practices. In fulfilling these duties, the Audit Committee met this calendar year on April 19th, May 27th, and November 7th.

For the fiscal year ended June 30, 2022, the reports include:
▪ Annual Comprehensive Financial Report (ACFR)
▪ Memorandum on Internal Control and Required Communications ▪ Measure A Funds Report on Compliance
▪ Measure I Fund Financial Statements
▪ Measure W Funds Report on Compliance
▪ Agreed Upon Procedures Report on Compliance with Proposition 111 (City) ▪ Agreed Upon Procedures Report on Compliance with Proposition 111 (BFPD) Analysis
From an oversight standpoint, the Audit Committee has been able to provide an independent review of the City’s financial reporting processes and internal controls and finds that the City is in good financial health and is maintaining control over budgeted activities. For the fiscal year ended June 30, 2022, the City’s general funds, which include the General Fund and Measure I Fund, ended with a $21.0 million fund balance, of which $17.6 million is classified as “unassigned” and is therefore available for expenditure. As of June 30, 2022, the General Fund balance met both the minimum $5 million and the 187

Audit Committee Report
target 33% of operating expenditure budget, or $7.7 million, reserve requirements.

In an effort to make the financial statements clearer and more understandable to readers, the ACFR includes a Letter of Transmittal and a Management Discussion and Analysis section that summarize and highlight the City’s financial results. They are intended to be read in conjunction with the accompanying Basic Financial Statements in the ACFR.

The ACFR has been audited by an independent, certified, and licensed auditor. On November 7th, the Audit Committee received the auditor’s opinion, annual financial reports, and Memorandum on Internal Control (MOIC). At this meeting, the auditor discussed the City’s financial results with the Audit Committee, along with City management. The Audit Committee determined that the reports and related information were fairly presented, to the extent such a determination can be made solely on the basis of such conversations. The Audit Committee also determined the reports were comprehensive and adequately disclosed the financial position and results of operations for the City.

In addition, the Audit Committee formally received the MOIC from the City’s independent auditor. A MOIC consists of notes to material weaknesses, significant deficiencies, and other matters that include new Government Accounting Standards Board (GASB) pronouncements that could impact financial reporting and operations taking effect in the next few years and opportunities for strengthening internal controls and operating efficiency.

As prescribed by policy, the Audit Committee at its meeting on November 7th directed the Chair to transmit this report to the City Council. By doing so, the Committee is recommending that that the financial reports and recommendations of the auditor are made public. Furthermore, in performing this function, the Audit Committee has discharged its duties and met its responsibilities.

As for discharging its other responsibilities, the Audit Committee makes the following comments:

1. The Audit Committee has reviewed its provision of funding. No changes are proposed.

2. The Audit Committee has considered and determined there is no need to retain a financial expert to assist in fulfilling its responsibilities.

3. The Audit Committee has reviewed updates to the best practices, which have been added to the City’s financial policies.

With respect to the reports, the Audit Committee would like to draw attention to the following:
▪ The Independent Auditors have issued an unmodified opinion, which is the highest level of assurance possible.

The City of Belmont has a long history of being a best practice city and, as such, incorporates Best Practices and Advisories issued annually by the Government Finance Officers Association (GFOA) into its Financial Policies. GFOA Best Practices and Advisories are written as a guide, identifying specific policies and procedures contributing to improved government management. They aim to promote and facilitate positive change rather than to codify current accepted practices. 188

Audit Committee Report
Periodically, the Best Practices and Advisories will include new or modified recommended practices that apply to the City. The Audit Committee recognizes the importance of Best Practices and Advisories in the design, operation, and administration of the City’s internal control system in discharging its fiduciary duty and, similarly to the reports discussed previously, recommends City Council receive the updates to the Financial Policies. Staff would also like to draw attention to the annual budget document, which includes a Financial Policies section. It serves as a central reference point to the most important of the City’s policies, which are critical to the continued financial health of our local government.

The Audit Committee wishes to express its appreciation to the City’s management, and in particular, the Finance Department staff, for the information they have provided for the Committee to compile this report.

Alternatives

1. Take no action

2. Refer to staff with direction
Attachments
A. ACFR, including Transmittal Letter
B. Memorandum on Internal Control
C. Required Communications
D. Financial Policy Updates Memorandum
On file and available on the City’s website:

1. Measure A Funds Report on Compliance

2. Measure I Fund Financial Statements

3. Measure W Funds Report on Compliance

4. Agreed Upon Procedures Report on Compliance with Proposition 111 (City) (on file and available in the Finance Department)

5. Agreed Upon Procedures Report on Compliance with Proposition 111 (BFPD) (on file and available in the Finance Department)
Fiscal Impact
☒ No Fiscal Impact
Receipt of the financial reports and recommendations of the City’s independent auditor for the fiscal year ended June 30, 2022 has no fiscal impact.
☐ Funding Source Confirmed:

Source: Purpose: Public Outreach:

Other* Statutory/Contractual Requirement Posting of Agenda Other*
*Audit Committee
189

CALIFORNIA
Annual Comprehensive
Financial Report
For the year ended June 30, 2022
California
Resilient together
190

CI TY O F
To enrich the quality of life
for our community with the
services provided for a safe,
fulfilling and vibrant life.

We are celebrated for enhancing:
• Distinctive community character
• Easy mobility
• Natural beauty
• Thriving culture
• Thriving economy
www.belmont.gov
Mission
Vision
191

CITY OF BELMONT, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared by

FINANCE DEPARTMENT
192
This Page Left Intentionally Blank
193
Introductory Section
World Cup Soccer, Belmont 194
This Page Left Intentionally Blank
195

CITY OF BELMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents Page
i
INTRODUCTORY SECTION:

Table of Contents ..................................................................................................................................................... i Letter of Transmittal .............................................................................................................................................. vii Organizational Chart and Principal Officials ............................................................................................... viii FINANCIAL SECTION:

Independent Auditor’s Report ............................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements:

Government Wide Financial Statements:

Statement of Net Position .................................................................................................................... 20 Statement of Activities ......................................................................................................................... 21 Fund Financial Statements:

Governmental Funds:

Balance Sheet ................................................................................................................................... 24 Reconciliation of the Governmental Funds – Balance Sheet with the Statement of Net Position ............................................................................................................. 25 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 26 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statements of Activities ....................................................................................... 27 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

General Fund ................................................................................................................................. 28 Belmont Fire Protection District Special Revenue Fund ............................................................... 29

196

CITY OF BELMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents Page
ii
FINANCIAL SECTION (Continued):

Proprietary Funds:

Statement of Net Position ................................................................................................................ 32 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................ 33 Statement of Cash Flows .................................................................................................................. 34 Fiduciary Funds:

Statement of Fiduciary Net Position ................................................................................................. 36 Statement of Changes in Net Position .............................................................................................. 37 Notes to Basic Financial Statements ........................................................................................................... 39 Required Supplementary Information:

Cost Sharing Multiple-Employer Defined Benefit Pension Plan – Last 10 Years:

Schedule of Proportionate Share of the Net Pension Liability City Safety Plan and City Miscellaneous Plan ................................................................................. 98 Schedule of Contributions – City Safety Plan and City Miscellaneous Plan ...................................... 99 City Other Post Employment Benefits – Schedule of Changes in the City’s Net OPEB Liability and Related Ratios ................................................................................................................ 100 City Other Post Employment Benefits – Schedule of Contributions ......................................................... 101 District Other Post Employment Benefits – Schedule of Changes in the Belmont Fire Protection District’s Net OPEB Liability and Related Ratios ................................................................................. 102 District Other Post Employment Benefits – Schedule of Contributions ................................................... 103 Supplemental Information:

General Fund:

Combining Schedule of Revenues, Expenditures and Changes In Fund Balances ....................................................................................................................... 107 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual .......................................................................................... 108 197

CITY OF BELMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents Page
iii
FINANCIAL SECTION (Continued):

Non-major Governmental Funds:

Combining Balance Sheet .............................................................................................................. 114 Combining Statement of Revenues, Expenditures and Changes In Fund Balances ....................................................................................................................... 120 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual ........................................................................................ 126 Internal Service Funds:

Combining Statement of Net Position ........................................................................................... 138

Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 140 Combining Statement of Cash Flows ............................................................................................. 142 STATISTICAL SECTION:

Financial Trends:

Net Position by Component – Last Ten Fiscal Years .............................................................................. 149 Changes in Net Position – Last Ten Fiscal Years ..................................................................................... 150 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................. 154 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ............................................ 156 Revenue Capacity:

Assessed Value of Taxable Property – Last Ten Fiscal Years .................................................................. 158 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ...................................................... 159 Principal Property Tax Payers – Current Year and Nine Years Ago ........................................................ 160 Property Tax Levies and Collections – Last Ten Fiscal Years .................................................................. 161 198

CITY OF BELMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents Page
iv
STATISTICAL SECTION: (Continued)
Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................... 162 Computation of Direct and Overlapping Debt ....................................................................................... 163 Computation of Legal Bonded Debt Margin .......................................................................................... 164 Bond Coverage:

Continuing Disclosure
2016 Sewer Revenue and Sewer Refunding Revenue Bonds
(2001 and 2006 Sewer Revenue Bonds) and 2019 Sewer Revenue Bonds – Last Ten Fiscal Years ................................................................................................................. 165 2009A, 2018, and 2022 Sewer Treatment Facility Revenue Bonds – Last Ten Fiscal Years .............. 166 Successor Agency (Including Former Redevelopment Agency Bonds) – Last Ten Fiscal Years ......... 167 Sewer System Summary Statement of Historical Revenue and Expenditures .................................. 168 Ten Largest Users of the Sewer System ............................................................................................ 169 Number of Sewer Service Users ....................................................................................................... 169 Sewer Service Revenues by Class of User ......................................................................................... 169 Schedule of Budgeted and Projected Sewer Treatment Facility Charges and Associated Debt Service ....................................................................................................... 170 Community Facilities District No. 2000-1 Continuing Disclosures .................................................... 171 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................... 172 Principal Employers – Current Year and Ten Years Ago ......................................................................... 173

199

CITY OF BELMONT
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents Page
v
STATISTICAL SECTION: (Continued)
Operating Information:

Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ......................................................................................................................... 174 Operating Indicators by Function/Program – Last Ten Fiscal Years ....................................................... 176 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................... 178 Successor Agency Assessed Valuations ......................................................................................................... 182 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 ................................................................................................................. 187 200
This Page Left Intentionally Blank
201
vii
Message from the Finance Director
November 3, 2022
To the Citizens of the City of Belmont, California:

We are pleased to present the City of Belmont’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022.

Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City, and in particular, the Finance Department. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.

The following pages in this transmittal are intended to summarize and highlight the City’s financial results for the fiscal year just ended and complement the Management’s Discussion & Analysis (MD&A) and basic financial statements.

The MD&A, which provides a more comprehensive look at the City’s financial results, includes a narrative introduction, overview, and analysis. Readers are encouraged to read the MD&A, which can be found immediately following the independent auditor’s report in the financial section of the Annual Comprehensive Financial Report, along with accompanying basic financial statements.

The preparation of the Annual Comprehensive Financial Report was made possible by the dedicated service of the entire staff of the Finance Department. Sincere appreciation is expressed to all those who assisted and contributed to its preparation.

Respectfully,
Grace Castaneda
Finance Director
One Twin Pines Lane | Belmont, CA 94002 | 650-595-7408 | belmont.gov Belmont
202
viii
About City of Belmont
The City of Belmont, incorporated in 1926, is located on the San Francisco Peninsula, midway between San Francisco and San Jose. The City of Belmont operates under the council-manager form of government. Policy-making and legislative authority are vested in a governing council consisting of the mayor and four other members. The City Council is responsible, amongst other things, for passing ordinances, adopting the budget, appointing commissions, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing day-to-day operations of the City, and for appointing the heads of the various departments.

The City provides a full range of services including police and fire protection; sanitation services; construction and maintenance of highways, streets, and infrastructure; community development; parks; recreational activities; and general government activities.

Organizational Chart and Principal Officials
203
ix
General Fund Results
$13.2
$17.7
$15.7 $17.1
$21.0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
General Fund Balance Trends The City continues to manage and recover from the impacts of the coronavirus pandemic. Prior year successes in
stabilizing operations, a General Fund balance and financial assistance from the Federal Government are available to partially mitigate the effects of the pandemic.

FY 2022 revenues increased by $2.8 million to $30.5 million from $27.7 million in prior year. Tax revenues were $21.0 million, including $2.3 million of Measure I revenue.

FY 2022 expenditures were managed and below the final
budget by $3.8 million.

Total fund balance of the General Fund increased by $3.8 million to $21.0 million, due primarily to the first of two tranches of $3.2 million American Rescue Plan Act (ARPA) Federal Coronavirus State and Local Fiscal Recovery Funds.

The City is still recovering from impacts of the pandemic, with the long-term forecast projecting close to a 25% drop in fund balance in the next five years.

Looking forward, FY 2023 Adopted Budget is $28.3 million, including $4.4 million transfer out to support other funds. It projects a General Fund Reserve balance of $20.6 million. This meets the target reserve policy set by City Council, which is 33% of total General Fund operations, with a minimum of $5 million.

Governmental Fund Results
*includes Measure I

61.3%

5.8%

10.3%

21.3%

1.3%
Revenues
Taxes
Licenses and Permits
Intergovernmental
Charges for Current Services
Other
Belmont Fire Protection District
The San Mateo Consolidated Fire Department (SMC Fire) Joint Powers Authority (JPA) was established on November 22, 2017 by the City of San Mateo, the City of Belmont/Belmont Fire Protection District, and the City of Foster City/Estero Municipal Improvement District to provide integrated and comprehensive fire protection, fire prevention, and emergency response services to all three communities. SMC Fire commenced operations on January 13, 2019.

11.0%

49.2%

3.8%

10.6%

10.0%

15.4%
Expenditures
General Government
Public Safety
Highways & Streets
Culture & Recreation
Urban Redevelopment
Other
204
x
Long-Term Debt
At the end of fiscal year 2022, the City had a total of $78.4 million in long-term debt. The existing long-term debt does not include addressing deferred capital maintenance and retirement obligations discussed in greater detail below.

Cash Management
Cash temporarily idle during the year was invested in U.S. Government securities and with the State Treasurer’s Local Agency Investment Fund (LAIF).

Risk Management
Since 2004, the City has purchased primary workers’ compensation insurance with no deductible. All claims from that date are covered 100% by the carrier. Prior to 2004, the City maintained a self-insurance program for workers’ compensation. The City also purchases commercial insurance against general liability claims above the City’s self-insured retention of $250,000.

Internal Control
Management is responsible for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatement.

Enterprise Fund Results
FY 2022 operating revenues of $21.2 million
were 1.1% higher than last year, due primarily
to an increase in the collection of sewer service
charges.

FY 2022 operating expenses were flat at $11.3
million.

FY 2023 Adopted Budget includes $16.4 million
for operations and $6.4 million in sewer system
capital improvements.
$33.2 $37.0 $43.0 $49.5 $56.0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Enterprise Fund Net Position
205
xi
Long-Term Financial Planning & Major Initiatives
The City has long been fiscally responsible with a focus on long-term sustainability. It provides an extended financial projection as part of the budget process, allowing the City to be proactive in seeking both short-term and long-term budget solutions.

The City Council annually performs a review of the City’s strategic plan, including priorities and policy modifications.

This year’s collaborative and productive discussions to address Belmont’s critical issues generated five Strategic Focus Areas to build on the City’s continued momentum and success. A unified vision for the future uses the following City Council focus areas as its roadmap for action over the next 3-5 years, as highlighted below.

Strategic Focus Areas
Infrastructure and Mobility Economic Development & Housing Fiscal & Organizational Stability Public Safety
Quality of Life
206
xii
Capital and Retirement Obligations
The chart below summarizes the City’s capital and retirement obligations as of June 30, 2022. $4,599
$44,120
$29,641
$24,262
$4,831
(000's)
Synthetic Turf Lease Sewer Treatment Bonds Sewer Collection Bonds OPEB Pensions
207
xiii
Facts and Statistics

2022 Population
27,203

FTE Employees
City – 134.30
Area

4.61 Sq. Miles
Parks & Recreation
Recreation Class Participants – 52,714
Developed Parks – 15
Acres of Open Space – 287.58
Acres of Developed Parks – 61.4
Permit Center
Permits Issued – 1,854 
Inspections Performed – 5,635 
Public Safety
Police
Calls for Service – 20,858 
Parking Violations – 1,574 
Physical Arrests – 504 
Traffic Violations – 1,150 
Fire
Calls for Service – 2,510 
Plan Checks – 171 
Annual Fire Inspections – 340 
Public Works
Sewer
Miles of Sewer – 85
Sewer Connections – 7,690 
Storm Drains
Miles of Storm Drains – 27
Storm Drain Inlets – 1,500
Streets
Miles of Streets – 70
Streetlights – 1,465
Traffic Signals – 18
208
xiv
Contact Us:

Finance Director
Finance Department
Belmont City Hall
One Twin Pines Lane, Suite 320
Belmont, CA 94002
Phone (650) 595-7433
[email protected]
Request for Information
This financial report is designed to provide a general overview of the City of Belmont’s finances for all those interested.

Questions concerning any information provided in this report should be addressed to the Finance Director or for additional information regarding the City’s financial activities, including past award winning Annual Comprehensive Financial Reports, transparency efforts and best practices please visit the City at www.belmont.gov.

Top 10 Employers*

1. RingCentral, Inc.

2. Autobahn Motors

3. Safeway Store #1138

4. Lunardi’s Market

5. Silverado – Belmont Hills

6. Nikon Precision Inc.

7. Woodmont Real Estate Services

8. Sunrise of Belmont

9. Merry Moppet Preschool, Inc.

10. Nikon Research Corporation of America
*Excludes governmental agencies and not for profit entities Vision Statement
The City’s Vision Statement typically drives Council’s
Strategic Focus Areas, goals and objectives, and
includes the following areas:
• Distinctive Community Character
• Easy Mobility
• Natural Beauty
• Thriving Culture
• Thriving Economy
209
Financial Section
Employee Wellness Hike, Water Dog Lake 210
This Page Left Intentionally Blank
211
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Belmont, 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 Belmont, California (City), 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, based on our audit and report of the other auditors, the financial statements 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, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary 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.

We did not audit the financial statements of San Mateo Consolidated Fire Department (SMC Fire) as of and for the year ended June 30, 2021, related to the calculation of the Investment in Joint Venture. The Investment in this Joint Venture represents 2%, 3% and 0%, respectively, of the assets, net position and revenues of the governmental activities. The financial statements of SMC Fire were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the calculation of the Investment in Joint Venture, is based solely on the report of the other auditors.

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 responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical 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. 1 212
Responsibility 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; this includes 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 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.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 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 responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
2 213
Change in Accounting Principles
Management adopted the provisions of the Governmental Accounting Standards Board Statement No. 87 – Leases, which became effective during the year ended June 30, 2022 and had material effects on the financial statements as discussed in Note 10 to the financial statements:

The emphasis of this matter does not constitute a modification to our opinions.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management, 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 certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the 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 financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
3 214
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 exits, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 3, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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
November 3, 2022
4 215

CITY OF BELMONT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Management of the City of Belmont offers this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022, to make the financial statements clearer and more understandable. We encourage readers to consider the information presented here in conjunction with the additional information furnished in our letter of transmittal.

FINANCIAL HIGHLIGHTS
• The City’s total assets increased by $28.5 million to $309.5 million, of which $174.0 million represented governmental assets and $135.5 million represented business-type assets. • City’s total liabilities decreased by $22.3 million to $117.4 million, of which $39.2 million were governmental liabilities and $78.2 million were business-type liabilities. • The City’s total net position increased by $22.0 million (14.6%) from the prior year . On June 30, 2022, net position totaled $172.0 million, comprised of $116.0 million for governmental activities and $56.0 million for business-type activities. Of the $172.0 million net position, $32.3 million is unrestricted which can be used to meet the City’s ongoing obligations. • City-wide revenues were $84.0 million, of which $62.8 million were generated by governmental activities and $21.2 million were generated by business-type activities. • City-wide expenses were $62.1 million, of which $47.3 million were incurred by governmental activities and $14.8 million were incurred by business-type activities. • Governmental Fund balances increased by $9.0 million (17.7%) to $59.8 million. Of this amount, $17.6 million, or 29.5%, was unassigned fund balance and available for spending at the City’s discretion.
• Governmental Fund revenues were $58.5 million, an increase of $4.8 million (9.0%) from prior fiscal year.
• Governmental Fund expenditures decreased by $0.7 million to $52.3 million, from prior year. • Enterprise Fund net position increased by $6.5 million (13.0%) to $56.0 million. Of this amount, $28.8 million (51.5%) was unrestricted net position and available for spending at the City’s discretion.
• Enterprise Fund operating revenues were $21.2 million compared to $20.9 million in the prior year.
• Enterprise Fund operating expenses were $11.3 million, a slight increase of $48 thousand comparing to the prior fiscal year.
• In April 2022, the 2022 Sewer Treatment Facilities Revenue Refunding Bonds of $6.4 million were issued. The proceeds were used to refund the 2009A Sewer Treatment Facility Revenue Bonds. The refunding resulted in an overall debt services savings of $3.5 million. • The City received the first of two tranches of $3.2 million one-time ARPA Federal Coronavirus State and Local Fiscal Recovery Funds in the current fiscal year. • Net pension liability decreased by $16.2 million (41.5%) from prior year to $24.3 million. The decrease was primarily due to high returns on CalPERS investments as of the measurement date on June 30, 2021.
5 216

OVERVIEW OF THE FINANCIAL STATEMENTS
The Annual Comprehensive Financial Report is composed of the following:

1. Introductory section, which includes the Transmittal Letter and general information,

2. Management’s Discussion and Analysis (this part),

3. Basic Financial Statements, which include the Government-wide and the Fund financial statements along with the Notes to these financial statements,

4. Required and Other Supplemental Information, and

5. Statistical information.

The Basic Financial Statements
The Basic Financial Statements consist of the Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position—long-term and short-term.

The Government-wide Financial Statements provide a longer-term view of the City’s activities as a whole and consist of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar that used by corporations. The Statement of Activities provides information about all of the City’s revenues and expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each of the City’s programs. The Statement of Activities explains in detail the change in Net Position for the year.

The Fund Financial Statements report the City’s operations in more detail than the City-wide statement and focus primarily on the short-term activities of the City’s General Fund and other Major Funds. The Fund Financial Statements measure only current revenues and expenditures, current assets, liabilities, and fund balances; they exclude capital assets, long-term debt, and other long-term amounts.

Major Funds account for the major financial activities of the City and are presented individually, while the activities of Non-major Funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major Funds are explained below.

The Government-wide Financial Statements
The Government-wide Financial Statements provide a broad view of the City’s finances in a manner like private-sector businesses and consist of the Statement of Net Position and the Statement of Activities.

The Statement of Net Position provides information about the financial position of the City as a whole, including its capital assets plus deferred outflow of resources and long-term liabilities plus deferred inflow of resources, with the difference reported as net position. Over time, increase or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
6 217
The Statement of Activities presents information on all City’s revenues and expenses with the emphasis on measuring net revenues or expenses of each of the City’s programs. The statement explains in detail how the City’s net position changed during the most recent 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. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., loans receivable, and earned but unused compensated leaves).

The City’s basic services are considered governmental activities, including, general government, public safety, highways and streets, culture and recreation, urban development, and miscellaneous. These services are supported by taxes, intergovernmental revenues, and program revenues, such as user fees and charges. The City’s governmental activities also include the activities of two separate legal entities:
the Belmont Fire Protection District and the Belmont Joint Powers Financing Authority. The City is financially accountable for these entities.

The City’s enterprise activities are reported as Business-type activities, including sewer, storm drainage, and solid waste. Unlike governmental services, these activities are supported by charges paid by users based on the amount of service they use and are intended to recover all costs.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Belmont, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds at the City of Belmont can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

The Fund financial statements provide detailed information about each of the City’s significant funds, called Major Funds. Each Major Fund is presented individually with all Non-major Funds summarized and presented in a single column. Subordinate schedules present the detail of these non-major funds.

Major Funds present the major activities of the City for the year. The General Fund is always a Major Fund, and other funds may change from year to year because of changes in the pattern of the City’s activities.

The City has one Major Governmental Fund in fiscal year 2022 in addition to the General Fund, which is discussed in the Analysis of Major Governmental Funds section.

Comparisons of Budget and Actual financial information are presented for the General Fund and other Major governmental funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
7 218
Governmental fund financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are presented only in the government-wide financial statements.

The focus of governmental funds is narrower than that of government-wide financial statements, so it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions.

Because governmental fund financial statements do not encompass the long-term focus of the government-wide statements, additional information is provided that reconciles the governmental fund financial statements to the government-wide statements explaining the relationship (or differences) between them.

Proprietary funds. The City maintains two different types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as businesstype activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, storm drain, and solid waste activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its workers compensation, liability, vision, benefit prefunding, fleet and equipment, facilities management, and other such services. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for Sewer, Storm Drainage, and Solid Waste activities. Internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

Fiduciary funds. The City acts as an agent on behalf of outside parties, holding funds collected, and disbursing them as directed or required. The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position and Statement of Changes in Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations.

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found following the fund financial statements in this report.

Other Information
Information concerning the City’s pension and other post-employment benefits can be found in Required Supplementary Information Section. The combining statements and schedules in connection with General Fund, non-major Governmental Funds, and Internal Service Funds can be found in the Supplemental information section of this report.
8 219

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Governmental Activities
Tables 1 and 2 present the net position and changes in net position of the City’s governmental activities on June 30, 2021 and June 30, 2022.

Table 1
Governmental Activities Net Position on June 30
(in Thousands)
2022 2021*
Current and other assets $89,175 $70,021
Capital assets 84,835 79,455
Total assets 174,010 149,476
Deferred outflows related to pension 8,440 8,796
Deferred outflows related to OPEB 1,593 1,812
Total deferred outflows 10,033 10,608
Current and other liabilities 6,499 5,148
Long-term obligations outstanding 32,767 51,954
Total liabilities 39,266 57,102
Deferred inflows related to pension 17,176 703
Deferred inflows related to OPEB
Deferred inflows related to leases
3,678
7,925
1,784
Total deferred inflows 28,779 2,487
Net position:

Net investment in capital assets 80,638 74,700
Restricted 31,882 29,925
Unrestricted 3,478 (4,130)
Total net position $115,998 $100,495
*Due to the implementation of Government Accounting
Standards Board Statement 87 on Leases during the fiscal year ended June 30, 2022, financial data shown for the previous year has not been restated and may not be comparable. See Note 10 for additional information.
9 220
Table 2
Changes in Governmental Activities Net Position
for the year ended June 30
(in Thousands)
2022 2021*
Revenues
Program revenues:

Charges for services $17,367 $17,708
Operating grants and contributions 5,895 3,457
Capital grants and contributions 1,869 1,228
Total program revenues 25,131 22,393
General revenues:

Taxes:

Property taxes
Sales taxes
20,469
6,602
20,132
5,970
Transient occupancy 2,432 1,321
Franchise 1,474 1,373
Motor vehicle in lieu 2,833 1,943
Equity in (losses) of joint ventures
Gain on sale of capital assets
(221)
4,050
405
Other
Total general revenues
67 37,706
281
31,425
Total revenues
Expenses
62,837 53,818
General government 7,642 8,168
Public safety 24,909 25,706
Highways and streets 2,937 2,564
Culture and recreation 6,218 5,707
Urban redevelopment 5,520 5,678
Interest on long-term debt 108 120
Total expenses 47,334 47,943
Change in net position 15,503 5,876
Net position-Beginning 100,495 94,619
Net position-Ending $115,998 $100,495
*Due to the implementation of Government Accounting Standards Board Statement 87 on Leases during the fiscal year ended June 30, 2022, financial data shown for the previous year has not been restated and may not be comparable. See Note 10 for more information.
10 221
Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. At the close of the fiscal year 2022, the governmental activities’ total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $116.0 million,

15.4% increase from the prior year.

The largest portion, approximately $80.6 million, of the City’s net position represents its investment in infrastructure and other capital assets (e.g., land, buildings, machinery, equipment, and infrastructure), net of amounts borrowed to finance that investment. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be liquidated for these liabilities.

An additional portion of the City’s governmental net position of $31.9 million, or 27.5%, represents resources that are subject to external restrictions and may only be used to construct specified capital projects, debt service, or special revenue programs. The restrictions on these funds were placed by outsiders and cannot be changed by the City.

The remaining $3.5 million of net position is unrestricted. Unrestricted net position can, when positive, be used to finance day-to-day operations without constraints established by debt covenants or other legal requirements or restrictions.

Changes in Net Position
The Statement of Activities provides information about all the City’s revenues and all its expenses, with the emphasis on measuring net revenues or expenses of each of the City’s programs. The Statement of Activities explains in detail the change in Net Position for the year.

The City’s governmental activities net position increased by $15.5 million. Governmental activities revenue increased by $9.0 million to $62.8 million. Compared to prior year, program revenues increased by $2.7 million, or 12.2%. The governmental activities expenses decreased by $0.6 million to $47.3 million.
11 222
The following charts display the City’s governmental activities revenues by source, as well as expenses and program revenues for fiscal year 2022.

3.0%

9.4%

27.6%

4.5%

49.3%

6.2%
Revenues by Source
Governmental Activities
Capital grants and contributions Operating grants and contributions Charges for services Motor vehicle in lieu
Taxes Investment earnings and rentals and other
$0
$5,000
$10,000
$15,000
$20,000
$25,000
General government Public safety Highways and
streets
Culture and
recreation
Urban
redevelopment
Expenses and Program Revenues
Governmental Activities
(in thousands)
Program Revenues Expenses
12 223
Business-Type Activities
The City’s business-type activities include sewer collection, sewer treatment, storm drainage, and solid waste. Tables 3 and 4 present the net position and changes in net position of the City’s business-type activities on June 30, 2021 and June 30, 2022.

Table 3
Business-Type Net Position on June 30
(in Thousands)
2022 2021
Current and other assets $102,428 $98,154
Capital assets 33,023 33,316
Total assets 135,451 131,470
Deferred outflows related to pension 714 774
Deferred outflows related to OPEB 135 160
Total deferred outflows 849 934
Current and other liabilities 4,475 4,088
Long-term debt outstanding 73,689 78,584
Total liabilities 78,164 82,672
Deferred inflows related to pension 1,862 80
Deferred inflows related to OPEB 311 150
Total deferred inflows 2,174 230
Net position:

Net investment in capital assets 1,163 3,971
Restricted 25,992 24,301
Unrestricted 28,807 21,230
Total net position $55,962 $49,502
13 224
Table 4
Business-Type Activities
Changes in Net Position for the year ended June 30
(in Thousands)
2022 2021
Revenues
Program Revenues:

Charges for Services $21,150 $20,914
Operating Grants and Contributions 59
Capital Grants and Contributions
Total program revenues 21,209 20,914
General Revenues and Transfers:

Investment earnings and transfers 15 205
Total general revenues and transfers 15 205
Total revenues 21,224 21,119
Expenses
Sewer 12,072 12,131
Storm Drainage 2,190 2,056
Solid Waste 502 453
Total expenses 14,764 14,640
Change in net position 6,460 6,479
Net position-Beginning 49,502 43,023
Net position-Ending $55,962 $49,502
Net Position
At the close of the fiscal year, the net position of business-type activities was $56.0 million, an increase of $6.5 million (13.0%) from the prior fiscal year. $1.2 million or 2.1% of net position was invested in capital assets, net of related debt, $26.0 million or 46.4% is restricted for sewer treatment facility activities, and $28.8 million or 51.5% are unrestricted and available for the operations of the proprietary funds.

Changes in Net Position
Total program revenues of business-type activities were $21.2 million in fiscal year 2022. This was an increase of $0.3 million over the prior year. Total expenses were $14.8 million, a slight increase of $0.1 million over the prior year.
14 225

GOVERNMENTAL FUNDS FINANCIAL ANALYSIS
Table 5 below summarizes the Governmental Funds’ balances.

Table 5
Financial Highlights at Fund Level for the year ended June 30 (in Thousands)
2022 2021
Total assets $72,102 $53,975
Total liabilities
Deferred Inflows
4,391
7,925
3,181
Total fund balances 59,786 50,794
Total revenues 58,525 53,711
Total expenditures 52,318 53,064
Total other financing sources (uses) 2,785 (122)
As of June 30, 2022, the City’s Governmental Funds reported combined ending fund balances of $59.8 million, an increase of $9.0 million, or 17.7%, from the prior year. In comparison with the prior year, revenues increased by $4.8 million to $58.5 million, and expenditures decreased by $0.8 million to $52.3 million.

Analysis of Major Governmental Funds
General Fund
As the principal operating fund of the City, the General Fund, by definition, is a Major Governmental fund. The General Fund accounted for 52.1% of total governmental revenues and 44.6% of total expenditures. City basic services are accounted for in the General Fund, including public safety, general government, culture and recreation and community development.

As of June 30, 2022, the total fund balance of General Fund increased by $3.8 million to $21.0 million, representing a 22.2% increase over the prior year. This increase was primarily due to the receipt of $3.2 million ARPA Federal Coronavirus State and Local Fiscal Recovery Funds.

The unassigned fund balance of $17.6 million represents 84.2% of the total fund balance. Since the unassigned fund balance represents available liquid resources for spending at the City’s discretion, it may be useful to compare the unassigned fund balance to total fund expenditures. The City’s unassigned fund balance represents 75.6%, or equates to approximately 276 days, of total General Fund expenditures (excluding transfers out) for the year. 15 226
General Fund Budgetary Highlights
The fiscal year 2022 adopted budget for General Fund expenditures amounted to $26.9 million (excluding $3.0 million transfers out). The final budget amount was $27.1 million. General Fund revenues budget was adopted at $28.4 million, and the final budget amount was $29.8 million.

Overall expenditures were below the final budget by $3.8 million, mainly due to unfilled positions and delay of capital projects that are expected to be completed in fiscal year 2023. Overall revenues exceeded the final budget by $0.7 million. The positive variance was driven primarily by the recovery in transient occupancy tax.

Belmont Fire Protection District Fund
The Belmont Fire Protection District Fund (the District) accounts for resources received by a special district, shown as a blended component unit, from the citizens of Belmont and the unincorporated Harbor Industrial Area to finance fire protection and suppression services.

As of June 30, 2022, the fund balance increased $0.8 million over the prior year to $16.2 million. Overall revenues decreased slightly to $12.5 million. Overall expenditures increased by $0.6 million over the prior year to $11.6 million, mainly due to the increase in member agency contributions for contracted fire services. The District has a $10.0 million reserve set aside for replacing facilities.

Analysis of the Enterprise Funds
Sewer Collections
Compared to prior year, operating revenues increased $0.1 million to $16.4 million. Operating expenses dropped by $0.1 million to $8.5 million. Net position totaled $25.6 million, an increase of $5.6 million from the prior year, due in part from an increase in the collection of sewer service charges. Of this amount, $27.5 million was unrestricted, including equity interest in Silicon Valley Clean Water Joint Powers Authority (SVCW) (Note 14). The remaining net position was a negative $1.9 million in net investment in capital assets, due to the recording of the current net book value of the capital assets, less the outstanding balance of debt issued to finance these assets.

Sewer Treatment
Compared to prior year, operating revenues decreased $0.1 million to $3.1 million and operating expenses were relatively unchanged at $0.1 million. Net position totaled $26.0 million, a $1.7 million increase compared to prior year, all of which is restricted for sewer treatment facility activities.

Storm Drainage Fund
This fund is used to account for the maintenance of the storm drain system and other activities related to the mandated National Pollution Discharge Elimination System (NPDES). 16 227
Storm drainage fund operating revenues, which consist primarily of NPDES storm drain charges and street sweeping charges, increased nominally to $1.0 million. Operating expenses increased slightly to $2.2 million. Net position totaled $2.6 million, with $3.0 million invested in capital assets and a negative $0.4 million in unrestricted net position due to the recording of the net pension and OPEB liabilities and related deferred outflows/inflows of resources.

Solid Waste Fund
Both operating revenues and operating expenditures were relatively flat at $0.6 million and $0.5 million respectively, from the prior year. Net position was $1.8 million, which is unrestricted as to use.

CAPITAL ASSETS
Table 6 presents the City’s capital assets on June 30, 2021 and June 30, 2022. Additional information can be found in Note 7 to the financial statements.

Table 6
Capital Assets on June 30
(in Thousands)
2022 2021
Governmental Activities
Land $13,493 $12,610
Construction in progress 4,402 391
Buildings 38,469 38,469
Improvements other than buildings 5,450 5,288
Streets and infrastructure 71,885 68,816
Machinery and equipment 7,032 6,546
Vehicles 4,792 4,607
Less accumulated depreciation (60,688) (57,274)
Totals $84,835 $79,455
Business-Type Activities
Land $15 $15
Construction in progress 6,229 5,263
Improvements other than buildings 48,557 48,168
Machinery and equipment 327 327
Less accumulated depreciation (22,105) (20,457)
Totals $33,023 $33,316

DEBT ADMINISTRATION
Table 7 summarizes the City’s long-term debt on June 30, 2021 and June 30, 2022. Additional information on the City’s long-term debt can be found in Note 8 to the financial statement. 17 228
Table 7
Long Term Debt on June 30
(in Thousands)
2022 2021
Governmental Activity Debt:

Capital Lease:
2019 Synthetic Turf Installation project, 2%, due 2029 $4,599 $5,159 Subtotal Governmental Activity Debt 4,599 5,159
Business-type Activities Debt – Sewer Enterprise Funds:

Long-Term Bonds Payable:
2009 Sewer Revenue Bonds, 3%-5%, due 2042 6,950
2016 Sewer Refunding Revenue Bonds, 3%-5% due 2035 7,906 8,467 2016 Sewer Revenue Bonds, 2%-50% due 2046 15,656 15,770 2018 Sewer Treatment Revenue Bonds, 5% due 2048
2019 Sewer Collection Bonds, 5% due 2049
2022 Sewer Revenue Bonds, 2.15%, due 2033
23,233
20,558
6,408
23,694
20,970
Subtotal Business-type Activities Debt 73,761 75,851
Total Long-Term Obligations $78,360 $81,010
In April 2022, the 2022 Sewer Treatment Facilities Revenue Refunding Bonds of $6.4 million were issued. The proceeds were used to refund the 2009A Sewer Treatment Facility Revenue Bonds. The refunding resulted in an overall debt services savings of $3.5 million.

On June 30, 2022, the City had total long-term debt outstanding $78.4 million, excluding compensated absences, pension and OPEB liabilities. The reduction in debt over the prior year was mainly due to scheduled retirements that were made. A majority of the outstanding long-term debt is composed of bonds secured by specified revenue sources, e.g., sewer charges.

ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The economy of the City and its major initiatives for the coming year are discussed in detail in the accompanying Transmittal Letter.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this Report should be directed to the Finance Department at One Twin Pines Lane, Suite 320, Belmont, CA 94002. Additional information about the City’s operations and activities can be obtained from the website at www.belmont.gov.
18 229

STATEMENT OF NET POSITION AND

STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and deferred outflows of resources and all its liabilities and deferred inflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue and Capital Projects Funds. Since the City’s Internal Service Funds service these funds, their activities are consolidated with Governmental Activities, after eliminating 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 is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, current deferred outflows/inflows of resources, available revenues and measurable expenditures.

The format of the Statement of Activities 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 program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City, the Belmont Fire Protection District and the Belmont Joint Powers Financing Authority, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for the activities of these entities.

These financial statements along with the fund financial statements and footnotes are called Basic Financial Statements.
19 230

CITY OF BELMONT

STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments (Note 3) $62,853,474 $48,128,622 $110,982,096 Cash and investments with fiscal agent (Note 3) 6,111,822 6,111,822 Receivables:

Accounts 2,593,725 237,972 2,831,697
Interest 199,453 199,453
Due from other governmental agencies 1,369,906 195,284 1,565,190 Notes receivable (Note 5) 6,560,415 6,560,415
Leases (Note 10) 8,111,856 8,111,856
Prepaids and other assets 1,837,262 1,837,262
Land held for resale (Note 6) 1,651,791 1,651,791
Net OPEB asset (Note 12) 156,163 156,163
Investment in SVCW - Joint Venture (Note 14A) 47,753,980 47,753,980 Investment in SMC Fire - Joint Venture (Note 14A) 3,840,269 3,840,269 Capital assets (Note 7)
Land and construction in progress 17,894,474 6,243,891 24,138,365 Depreciable assets, net 66,940,756 26,779,211 93,719,967 Total Assets 174,009,544 135,450,782 309,460,326

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 11B) 8,440,171 714,024 9,154,195 Related to OPEB (Note 12) 1,592,555 134,734 1,727,289
Total Deferred Outflows of Resources 10,032,726 848,758 10,881,484

LIABILITIES
Accounts payable and other liabilities 3,601,548 1,760,880 5,362,428 Unearned revenue 4,152 4,152
Deposits 1,029,714 1,029,714
Compensated absences (Note 1H)
Due within one year 944,958 119,457 1,064,415
Due in more than one year 1,686,421 103,164 1,789,585
Long-term debt (Note 8)
Due within one year 572,010 2,595,000 3,167,010
Due in more than one year 4,027,260 71,166,164 75,193,424 Net Pension Liability (Note 11)
Due in more than one year 22,219,592 2,042,897 24,262,489 Net OPEB Liability (Note 12)
Due in more than one year 4,609,962 376,801 4,986,763
Claims payable (Note 13)
Due within one year 346,855 346,855
Due in more than one year 223,696 223,696
Total Liabilities 39,266,168 78,164,363 117,430,531

DEFERRED INFLOWS OF RESOURCES
Related to leases (Note 10) 7,924,510 7,924,510
Related to pensions (Note 11B) 17,175,843 1,862,399 19,038,242 Related to OPEB (Note 12) 3,677,980 311,166 3,989,146
Total Deferred Inflows of Resources 28,778,333 2,173,565 30,951,898 NET POSITION (Note 9)
Net investment in capital assets 80,638,254 1,163,216 81,801,470 Restricted for:

Capital projects 2,618,096 2,618,096
Special revenue programs:

Belmont Fire Protection District 16,182,901 16,182,901
Recreation 1 1
Senior Activities 90,044 90,044
Library Maintenance & Operations 835,588 835,588
City Trees 297,128 297,128
Street Improvements Measures A, W and Grants 2,361,955 2,361,955 Traffic Mitigation 200,429 200,429
Athletic Field Maintenance 375,498 375,498
Affordable Housing Successor Agency 6,467,886 6,467,886 Housing Inclusionary 2,452,257 2,452,257
Sewer Treatment Facility Charge 25,991,829 25,991,829
Total Restricted Net Position 31,881,783 25,991,829 57,873,612 Unrestricted 3,477,732 28,806,567 32,284,299
Total Net Position $115,997,769 $55,961,612 $171,959,381 See accompanying notes to financial statements
20 231

CITY OF BELMONT

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:

General government $7,642,172 $6,161,208 $37,605 ($1,443,359) ($1,443,359) Public safety 24,908,569 370,671 3,398,131 (21,139,767) (21,139,767) Highways and streets 2,936,535 868,986 2,336,787 $1,831,026 2,100,264 2,100,264 Culture and recreation 6,218,434 4,942,718 85,476 37,500 (1,152,740) (1,152,740) Urban redevelopment 5,520,422 5,023,122 37,500 (459,800) (459,800) Interest on long-term debt 107,965 (107,965) (107,965)
Total Governmental Activities 47,334,097 17,366,705 5,895,499 1,868,526 (22,203,367) (22,203,367) Business-type Activities:

Sewer Collections 10,634,189 16,360,163 $5,725,974 5,725,974 Sewer Treatment 1,437,779 3,142,679 1,704,900 1,704,900 Storm Drainage 2,190,249 1,024,532 (1,165,717) (1,165,717) Solid Waste 502,470 623,030 58,914 179,474 179,474
Total Business-type Activities 14,764,687 21,150,404 58,914 6,444,631 6,444,631 Total $62,098,784 $38,517,109 $5,954,413 $1,868,526 (22,203,367) 6,444,631 (15,758,736) General revenues:

Taxes:

Property taxes 20,468,903 20,468,903
Sales taxes 6,602,318 6,602,318
Transient occupancy taxes 2,432,335 2,432,335
Franchise 1,473,569 1,473,569
Motor vehicle in lieu, unrestricted 2,833,129 2,833,129 Gain on sale of capital assets (Note 5) 4,050,000 4,050,000 Investment earnings and rentals (166,620) (53,021) (219,641) Miscellaneous 12,680 67,983 80,663
Total general revenues 37,706,314 14,962 37,721,276
Change in Net Position 15,502,947 6,459,593 21,962,540
Net Position-Beginning 100,494,822 49,502,019 149,996,841 Net Position-Ending $115,997,769 $55,961,612 $171,959,381 See accompanying notes to financial statements
21 232
This Page Left Intentionally Blank
233

FUND FINANCIAL STATEMENTS
Fund Financial Statements are presented by individual major funds, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year.

MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City. Individual non-major funds may be found in the Supplemental section.

GENERAL FUND
The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police protection, parks operations and maintenance, and legal and administrative services. The General Fund also accounts for Measure I, a half cent local district tax approved in 2016 that will expire in 30 years. This general tax funding source provides for street and road and storm drain repair.

BELMONT FIRE PROTECTION DISTRICT SPECIAL REVENUE FUND
To account for property taxes received and expended by the District on providing fire protection services to the City of Belmont and the unincorporated Harbor Industrial Area. 23 234

CITY OF BELMONT

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
Belmont
Fire Other Total
Protection Governmental Governmental
General District Funds Funds
ASSETS
Cash and investments (Note 3) $20,538,667 $14,442,491 $16,503,912 $51,485,070 Receivables:

Accounts 608,023 6,333 193,684 808,040
Interest 199,453 199,453
Due from other governmental agencies 1,137,313 43,333 189,260 1,369,906 Notes (Note 5) 6,560,415 6,560,415
Leases (Note 10) 8,111,856 8,111,856
Due from other funds (Note 4B) 101,214 101,214
Prepaids and other assets 77,789 1,736,353 1,814,142
Land held for resale (Note 6) 298,748 1,353,043 1,651,791 Total Assets $31,073,063 $16,228,510 $24,800,314 $72,101,887

LIABILITIES
Accounts payable and other liabilities $1,240,174 $11,227 $2,053,515 $3,304,916 Unearned revenue 4,152 4,152
Deposits 952,831 76,883 1,029,714
Due to other funds (Note 4B) 52,300 52,300
Total Liabilities 2,197,157 11,227 2,182,698 4,391,082

DEFERRED INFLOWS OF RESOURCES
Related to leases (Note 10) 7,924,510 7,924,510
FUND BALANCES (Note 9)
Nonspendable 376,537 1,736,353 2,112,890
Restricted 14,480,930 16,496,752 30,977,682
Committed for:

Measure I Infrastructure 2,938,455 2,938,455
Special Revenue Programs 2,422,303 2,422,303
Assigned 3,698,561 3,698,561
Unassigned 17,636,404 17,636,404
Total Fund Balances 20,951,396 16,217,283 22,617,616 59,786,295 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $31,073,063 $16,228,510 $24,800,314 $72,101,887 See accompanying notes to financial statements
24 235

CITY OF BELMONT
Reconciliation of the

GOVERNMENTAL FUNDS -- BALANCE SHEET
with the

STATEMENT OF NET POSITION
JUNE 30, 2022
Total fund balances reported on the governmental funds balance sheet $59,786,295 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. 84,835,230

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and 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.

Cash and investments 11,368,404
Accounts receivable 1,785,685
Prepaids and other assets 23,120
Accounts payable and other liabilities (296,632)
Due to other funds (48,914)
Claims payable (570,551)
Compensated absences (229,967)

DEFERRED INFLOWS AND OUTFLOWS
The deferred outflows below are not currents assets or financial resources; and the deferred inflows are not due and payable in the current period and therefore are not reported in the Governmental Funds.

Deferred outflows related to pensions 8,440,171
Deferred outflows related to OPEB 1,592,555
Deferred inflows related to pensions (17,175,843)
Deferred inflows related to OPEB (3,677,980)

LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:

Net OPEB asset 156,163
Investment in JPA Equity 3,840,269
Long-term debt (4,599,270)
Net OPEB liability (4,609,962)
Compensated absences (2,401,412)
Net pension liability (22,219,592)
NET POSITION OF GOVERNMENTAL ACTIVITIES $115,997,769
See accompanying notes to financial statements
25 236

CITY OF BELMONT

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022
Belmont Fire Other Total
Protection Governmental Governmental
General District Funds Funds

REVENUES
Taxes $20,994,552 $12,752,858 $2,129,616 $35,877,026
Licenses and permits 1,068,168 2,344,489 3,412,657
Fines and forfeitures 156,422 156,422
Use of money and property 466,772 (352,481) 178,550 292,841 Intergovernmental 3,269,239 50,904 2,686,762 6,006,905
Charges for current services 4,439,421 8,042,528 12,481,949 Miscellaneous 84,196 213,236 297,432
Total Revenues 30,478,770 12,451,281 15,595,181 58,525,232

EXPENDITURES
Current:

General government 5,750,762 5,750,762
Public safety 13,921,818 11,596,380 242,493 25,760,691
Highways and streets 2,001,625 2,001,625
Culture and recreation 1,949,999 3,408,665 5,358,664
Urban redevelopment 5,219,975 5,219,975
Capital outlay 1,709,387 41,113 5,808,046 7,558,546
Debt service:

Principal 560,035 560,035
Interest and fiscal charges 107,965 107,965
Total Expenditures 23,331,966 11,637,493 17,348,804 52,318,263

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 7,146,804 813,788 (1,753,623) 6,206,969

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets 4,050,000 4,050,000 Transfers in (Note 4A) 6,252,414 6,252,414
Transfers (out) (Note 4A) (3,344,679) (4,172,566) (7,517,245) Total Other Financing Sources (Uses) (3,344,679) 6,129,848 2,785,169 NET CHANGE IN FUND BALANCES 3,802,125 813,788 4,376,225 8,992,138 BEGINNING FUND BALANCES 17,149,271 15,403,495 18,241,391 50,794,157 ENDING FUND BALANCES $20,951,396 $16,217,283 $22,617,616 $59,786,295 See accompanying notes to financial statements
26 237

CITY OF BELMONT
Reconciliation of the

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the

STATEMENT OF ACTIVITIES
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 $8,992,138 Amounts reported for governmental activities in the Statement of Activities are different because of the following:

CAPITAL ASSETS TRANSACTIONS
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 capital outlay and departmental expenditures are therefore added back to fund balance 7,408,547 Assets transferred from land held for resale are added back to fund balance 913,537 Retirements of capital assets are deducted from fund balance (30,507) Depreciation expense is deducted from the fund balance
(Depreciation expense is net of internal service fund depreciation of $560,282 which has already been allocated to serviced funds) (2,910,663)

LONG TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-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 560,035

ACCRUAL OF NON-CURRENT ITEMS
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):

Investment in SMC Fire - Joint Venture 651
Compensated absences (22,073)
Pension expense (1,037,249)
OPEB expense 165,336

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.

The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.

Change in Net Position - All Internal Service Funds 1,463,195 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $15,502,947 See accompanying notes to financial statements
27 238

CITY OF BELMONT

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 Amounts (Negative)
REVENUES:

Taxes $18,422,529 $19,733,529 $20,994,552 $1,261,023
Licenses and permits 1,072,512 1,072,512 1,068,168 (4,344) Fines and forfeitures 164,000 164,000 156,422 (7,578)
Use of money and property 1,114,844 1,092,844 466,772 (626,072) Intergovernmental 3,230,660 3,230,660 3,269,239 38,579
Charges for current services 4,364,328 4,453,328 4,439,421 (13,907) Miscellaneous 7,465 47,465 84,196 36,731
Total Revenues 28,376,338 29,794,338 30,478,770 684,432 EXPENDITURES:

Current:

General government 6,294,336 7,205,899 5,750,762 1,455,137 Public safety 14,430,563 14,430,563 13,921,818 508,745
Culture and recreation 2,027,378 2,027,378 1,949,999 77,379 Capital outlay 4,110,000 3,460,000 1,709,387 1,750,613
Total Expenditures 26,862,277 27,123,840 23,331,966 3,791,874

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,514,061 2,670,498 7,146,804 4,476,306

OTHER FINANCING SOURCES (USES)
Transfers out (Note 4A) (3,015,000) (4,243,000) (3,344,679) 898,321 Total Other Financing Sources (Uses) (3,015,000) (4,243,000) (3,344,679) 898,321 NET CHANGE IN FUND BALANCE ($1,500,939) ($1,572,502) 3,802,125 $5,374,627 BEGINNING FUND BALANCE 17,149,271
ENDING FUND BALANCE $20,951,396
See accompanying notes to financial statements
28 239

CITY OF BELMONT

BELMONT FIRE PROTECTION DISTRICT 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:

Taxes $14,587,974 $12,597,474 $12,752,858 $155,384
Use of money and property 38,873 38,873 (352,481) (391,354) Intergovernmental 64,290 71,290 50,904 (20,386)
Total Revenues 14,691,137 12,707,637 12,451,281 (256,356) EXPENDITURES:

Current:

Public safety 11,559,733 11,650,733 11,596,380 54,353
Capital outlay 42,500 41,113 1,387
Total Expenditures 11,559,733 11,693,233 11,637,493 55,740 NET CHANGE IN FUND BALANCE $3,131,404 $1,014,404 813,788 ($200,616) BEGINNING FUND BALANCE 15,403,495
ENDING FUND BALANCE $16,217,283
See accompanying notes to financial statements
29 240
This Page Left Intentionally Blank
241

PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City has identified the funds below as major proprietary funds in fiscal year 2022.

SEWER COLLECTIONS FUND
To account for sanitary sewer services provided to the citizens of Belmont. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvement, and billing and collections.

SEWER TREATMENT FUND
To account for capital improvements made to the Silicon Valley Clean Water Authority treatment plant and related capital improvements. Revenue for the improvements comes from the sewer treatment facility charge paid by users connected to the sanitary system.

STORM DRAINAGE FUND
To account for the maintenance of the storm drain system, street sweeping and other activities related to the mandated National Pollution Discharge Elimination System (NPDES). Funding comes from customers connected to the City's sewer system, due to extensive infiltration and intrusion to the City's sewer system, street sweeping charges, and NPDES charges.

NON-MAJOR FUND:

SOLID WASTE FUND
To account for operating costs associated with administering the solid waste franchise. 31 242

CITY OF BELMONT

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental
Nonmajor- ActivitiesSewer Sewer Storm Solid Internal Service Collections Treatment Drainage Waste Totals Funds
ASSETS
Current Assets:

Cash and investments (Note 3) $39,148,019 $6,172,352 $801,685 $2,006,566 $48,128,622 $11,368,404 Cash and investments with fiscal agent (Note 3) 3,292,294 2,819,528 6,111,822 Accounts receivable 171,844 55,563 10,565 237,972 1,785,685 Prepaids and other assets 23,120
Due from other governmental agencies 48,884 146,400 195,284 Total Current Assets 42,612,157 9,047,443 861,134 2,152,966 54,673,700 13,177,209 Noncurrent Assets:

Investment in SVCW joint venture (Note 14) 717,644 47,036,336 47,753,980 Capital assets (Note 7):

Land and construction in progress 6,201,312 42,579 6,243,891 Depreciable assets, net 23,803,358 2,975,853 26,779,211 1,412,037 Total Noncurrent Assets 30,722,314 47,036,336 3,018,432 80,777,082 1,412,037 Total Assets 73,334,471 56,083,779 3,879,566 2,152,966 135,450,782 14,589,246

DEFERRED OUTFLOWS
Related to pension (Note 11B) 409,007 241,925 63,092 714,024 Related to OPEB (Note 12) 80,800 35,674 18,260 134,734
Total Deferred Outflows 489,807 277,599 81,352 848,758

LIABILITIES
Current Liabilities:

Accounts payable and other liabilities 1,305,487 450,602 4,791 1,760,880 296,632 Due to other funds (Note 4B) 48,914
Claims payable (Note 13) 346,855
Long-term debt (Note 8) 900,000 1,695,000 2,595,000
Compensated absences (Note 1H) 70,235 39,224 9,998 119,457 80,814 Total Current Liabilities 2,275,722 2,145,602 44,015 9,998 4,475,337 773,215 Noncurrent Liabilities:

Claims payable (Note 13) 223,696
Compensated absences (Note 1H) 63,271 19,720 20,173 103,164 149,153 Long-term debt (Note 8) 43,219,816 27,946,348 71,166,164 Net pension liability (Note 11) 1,170,215 692,170 180,512 2,042,897 Net OPEB liability (Note 12) 225,969 99,766 51,066 376,801 Total Noncurrent Liabilities 44,679,271 27,946,348 811,656 251,751 73,689,026 372,849 Total Liabilities 46,954,993 30,091,950 855,671 261,749 78,164,363 1,146,064

DEFERRED INFLOWS
Related to pension (Note 11B) 1,066,822 631,014 164,563 1,862,399 Related to OPEB (Note 12) 186,607 82,388 42,171 311,166 Total Deferred Inflows 1,253,429 713,402 206,734 2,173,565 NET POSITION (Note 9)
Net investment in capital assets (1,855,216) 3,018,432 1,163,216 1,412,037 Restricted for treatment facility 25,991,829 25,991,829 Unrestricted 27,471,072 (430,340) 1,765,835 28,806,567 12,031,145 Total Net Position $25,615,856 $25,991,829 $2,588,092 $1,765,835 $55,961,612 $13,443,182 See accompanying notes to financial statements
Business-type Activities-Enterprise Funds
32 243

CITY OF BELMONT

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Governmental
Nonmajor- ActivitiesSewer Sewer Storm Solid Internal Service Collections Treatment Drainage Waste Totals Funds

OPERATING REVENUES
Charges for current services
Sewer service charges $13,995,360 $3,142,679 $17,138,039 Sewer connection fees 2,255,284 2,255,284
NPDES storm drain charges $499,152 499,152
Street sweeping 481,867 481,867
Garbage franchise fee $623,030 623,030
Interdepartmental charges 109,519 43,513 153,032 $9,150,541 Total Operating Revenues 16,360,163 3,142,679 1,024,532 623,030 21,150,404 9,150,541

OPERATING EXPENSES
Personnel services 1,709,147 881,025 340,359 2,930,531
Services and supplies 5,406,610 125,473 1,068,694 162,111 6,762,888 Insurance premiums 937,913
Professional and legal 1,599,319
Operating costs 3,998,218
Pension and other post employment benefits 1,355,121
Insurance claims, net of change in claims payable 12,989 Depreciation 1,407,649 240,530 1,648,179 560,282
Total Operating Expenses 8,523,406 125,473 2,190,249 502,470 11,341,598 8,463,842 Operating Income (Loss) 7,836,757 3,017,206 (1,165,717) 120,560 9,808,806 686,699

NONOPERATING REVENUES (EXPENSES)
Interest (45,649) (14,039) 2,028 4,639 (53,021) 261,812 Interest expense (1,387,174) (1,312,306) (2,699,480)
Loss from investment in SVCW - Joint Venture (Note 14) (723,609) (723,609) Gain from sale of capital assets 17,408
Intergovernmental and miscellaneous 67,983 58,914 126,897 145,982 Total Nonoperating Revenues (Expenses) (2,156,432) (1,326,345) 70,011 63,553 (3,349,213) 425,202 Income (Loss) Before Transfers 5,680,325 1,690,861 (1,095,706) 184,113 6,459,593 1,111,901 Transfers in (Note 4A) 98,948 98,948 351,294
Transfers (out) (Note 4A) (98,948) (98,948)
Net transfers (98,948) 98,948 351,294
Change in net position 5,581,377 1,690,861 (996,758) 184,113 6,459,593 1,463,195 BEGINNING NET POSITION 20,034,479 24,300,968 3,584,850 1,581,722 49,502,019 11,979,987 ENDING NET POSITION $25,615,856 $25,991,829 $2,588,092 $1,765,835 $55,961,612 $13,443,182 See accompanying notes to financial statements
Business-type Activities-Enterprise Funds
33 244

CITY OF BELMONT

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Business-type Activities-Enterprise Funds Governmental
Nonmajor- ActivitiesSewer Sewer Storm Solid Internal Service Collections Treatment Drainage Waste Totals Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $16,207,314 $3,137,258 $974,659 $518,112 $20,837,343 Other receipts 67,983 58,914 126,897
Interdepartmental charges 109,519 43,513 153,032 $9,230,797 Payments to suppliers (6,068,513) (125,473) (1,086,938) (165,890) (7,446,814) (4,376,988) Payments to employees (1,505,788) (746,422) (276,228) (2,528,438) (3,411,411) Claims paid (22,208)
Cash Flows from Operating Activities 8,742,532 3,011,785 (747,205) 134,908 11,142,020 1,420,190

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Interfund receipts 98,948 98,948 400,208
Interfund payments (98,948) (98,948)
Cash Flows from Noncapital Financing Activities (98,948) 98,948 400,208

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Proceeds from sale of capital assets 17,408
Acquisition of capital assets (1,256,460) (98,948) (1,355,408) (559,158) Proceeds from issuance of capital debt 6,408,000 6,408,000 Payment to refunding escrow (6,846,292) (6,846,292)
Principal payments on capital debt (865,000) (555,000) (1,420,000) Interest paid (1,605,375) (1,432,461) (3,037,836)
Investment in SVCW (2,849,226) (2,849,226)
Cash Flows from Capital and Related Financing Activities (3,726,835) (5,274,979) (98,948) (9,100,762) (541,750)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and rents (45,649) (14,039) 2,028 4,639 (53,021) 261,812 Cash Flows from Capital and Related Investing Activities (45,649) (14,039) 2,028 4,639 (53,021) 261,812 Net Cash Flows 4,871,100 (2,277,233) (745,177) 139,547 1,988,237 1,540,460 Cash and investments at beginning of period 37,569,213 11,269,113 1,546,862 1,867,019 52,252,207 9,827,944 Cash and investments at end of period $42,440,313 $8,991,880 $801,685 $2,006,566 $54,240,444 $11,368,404 Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:

Operating income (loss) $7,836,757 $3,017,206 ($1,165,717) $120,560 $9,808,806 $686,699 Adjustments to reconcile operating income (loss) to cash flows from operating activities:

Depreciation 1,407,649 240,530 1,648,179 560,282
Miscellaneous 67,983 58,914 126,897 145,982
Change in assets, deferred outflows and liabilities:

Receivables, net (43,330) (5,421) (6,360) (104,918) (160,029) (73,557) Accounts payable (661,903) (18,244) (3,779) (683,926) 89,903 Claims payable (7,369)
Deferred outflows 55,165 27,321 2,840 85,326
Deferred inflows 1,112,609 646,412 184,893 1,943,914
Net pension liability (826,853) (489,075) (127,546) (1,443,474) Net OPEB liability (132,944) (50,984) (4,747) (188,675) Compensated absences (4,618) 929 8,691 5,002 18,250
Cash Flows from Operating Activities $8,742,532 $3,011,785 ($747,205) $134,908 $11,142,020 $1,420,190 Non-cash transactions
Amortization of Bond Premiums $222,730 $105,513 $328,243 Loss from investment in SVCW - Joint Venture (Note 14) (723,609) (723,609) ($500,879) $105,513 ($395,366)
See accompanying notes to financial statements
34 245

FIDUCIARY FUNDS
Successor Agency Private-Purpose Trust Fund (Successor Agency) accounts for the activities related to the wind-down of the former Redevelopment Agency.

Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity. The Library Community Facilities District Custodial Fund accounts for payment of interest and principal on debt service of the District for the construction, maintenance and operations of the Library building.
35 246

CITY OF BELMONT

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
Custodial
Fund
Successor Library
Agency Community
Private-Purpose Facilities
Trust Fund District
ASSETS
Cash and investments (Note 3) $260,577
Due from other governmental agencies 9,815
Total Assets 270,392
NET POSITION (DEFICIT):

Restricted for:

Bondholders 270,392
Total Net Position (Deficit) $270,392
See accompanying notes to financial statements
36 247

CITY OF BELMONT

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Custodial
Fund
Successor Library
Agency Community
Private-Purpose Facilities
Trust Fund District
Additions:

Property taxes $3,922,881
Special assessments $674,058
Intergovernmental 112,732
Use of money and property 975 239
Total Additions 4,036,588 674,297
Deductions:

Urban redevelopment 296,868
Payments to bondholders 670,833
Interest expense 310,156
Total Deductions 607,024 670,833
Change in net position 3,429,564 3,464
Beginning Net Position (Deficit) (3,429,564) 266,928
Ending Net Position (Deficit) $270,392
See accompanying notes to financial statements
37 248
This Page Left Intentionally Blank
249

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Belmont was incorporated as a general law city in 1926. The City operates under the Council-Manager form of government and is governed by a five member council elected by the City’s voters. The City provides the following services: public safety (police and fire), highways and streets, sewer, storm drainage, solid waste, recreation, public improvements, planning and zoning, building inspections, general administration services, and economic development.

The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below.

A. Reporting Entity
The financial statements of the City of Belmont include the financial activities of the City, the Belmont Fire Protection District and the Belmont Joint Powers Financing Authority. All of these entities are controlled by and dependent on the City and their financial activities have been aggregated and merged (termed “blended”) with those of the City in the accompanying financial statements.

The Belmont Fire Protection District, established in 1928, is a special district created under the general laws of California to provide fire protection services to City residents. The District is controlled by the City and has the same governing board as the City, which also performs all accounting and administrative functions for the District. The financial activities of the District have been included in these financial statements in the Belmont Fire Protection District Special Revenue Fund. The District does not issue separate financial statements.

The Belmont Joint Powers Financing Authority is a separate government entity whose purpose is to assist with the financing certain public capital facilities for the City through the issuance of bonds or other forms of debt. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. The Authority does not issue separate financial statements.

B. Major Funds
The City’s major governmental and enterprise funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund-type.

Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
39 250

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reported the following major governmental funds in the accompanying financial statements:

General Fund – The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police protection, parks operations and maintenance, and legal and administrative services. The General Fund also accounts for Measure I, a half cent local district tax approved in 2016 that will expire in 30 years. This general tax funding source provides for street and road and storm drain repair.

Belmont Fire Protection District Special Revenue Fund – To account for property taxes received and expended by the District on providing fire protection services to the City of Belmont and the unincorporated Harbor Industrial Area.

The City reported the following enterprise funds as major funds in the accompanying financial statements:

Sewer Collections Fund – To account for certain sanitary sewer services provided to the citizens of Belmont. Activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvement, and billing and collections.

Sewer Treatment Fund – To account for capital improvements made to the Silicon Valley Clean Water Authority treatment plant and related capital improvements. Revenue for the improvements comes from the sewer treatment facility charge paid by users connected to the sanitary system.

Storm Drainage Fund – To account for the maintenance of the storm drain system, street cleaning and other activities related to the mandated National Pollution Discharge Elimination System (NPDES). Funding comes from customers connected to the City's sewer system, due to extensive infiltration and intrusion to the City's sewer system, street sweeping charges, and NPDES charges.

The City also reports the following fund types:

Internal Service Funds
The funds account for workers’ compensation, general liability, vision, benefit prefunding, fleet and equipment management, and facilities management; all of which are provided to other departments on a cost-reimbursement basis.
40 251

CITY OF BELMONT

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 or trustee for individuals, private organizations, and other governments. The City has one custodial fund: the Library Community Facilities District Fund, a fund reporting cash and investments for the District. The Successor Agency Private-purpose Trust Fund accounts for the financial activities assumed by the Successor Agency from the former Redevelopment Agency. The financial activities of these funds are excluded from the Government-wide financial statements, and are presented in a separate Fiduciary Fund financial statement.

C. Basis of Accounting
The government-wide, proprietary fund 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 governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, lease liabilities, claims and judgments, and 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 and financing through leases are reported as other financing sources.

Those revenues susceptible to accrual are property, sales and use, transient occupancy, franchise and gas taxes, business license taxes, intergovernmental revenues, grants, parking fines and interest revenue. Other fines, licenses and permits, and charges for services are not susceptible to accrual because they are not measurable until collected.

Non-exchange transactions, in which the City gives or receives value without directly, receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Certain indirect costs are included in program expenses reported for individual functions and activities.
41 252

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.

These Standards require that the financial statements described below be presented.

Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements 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.

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-type 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 specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the government’s proprietary funds and various other functions of the City.

Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

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.
42 253

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

E. Revenue Recognition for Enterprise Funds
Sewer and Storm Drain user fee revenues are placed on the county tax rolls. The County bills customers annually and requires payment prior to year-end. Solid waste revenue is remitted by Recology San Mateo County as part of garbage services. At year-end there were no material uncollected sewer, storm drain, or solid waste user fees.

F. Property Tax
San Mateo County assesses properties, and it bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest, and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.

Secured property tax is due in two installments, on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively.

Unsecured property tax is due on July 1 and becomes delinquent on August 31. Collection of delinquent accounts is the responsibility of the County, which retains all penalties.

The term “unsecured” refers to taxes on personal property other than real estate, land, and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available as defined above, generally within sixty days.

G. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available, except for intangible right to use lease assets, the measurement of which is discussed in Note 10 below. Contributed capital assets are valued at their estimated acquisition value on the date contributed.

The City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems.

Capital assets with limited useful lives and the right to use leased assets are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. 43 254

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets:

Building and Building Improvements 40 years
Improvements Other than Buildings 25-75 years
Streets and Infrastructure 25-100 years
Machinery and Equipment 5-10 years
Vehicles 5-10 years
Non-infrastructure and infrastructure assets with historical costs exceeding $5,000 and $25,000 respectively are capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

H. Compensated Absences
Compensated absences comprise unpaid vacation and the vested portion of sick leave, which are accrued as earned. Employee bargaining unit agreements specify the vested portion of unused sick leave, which accumulates and is paid at time of termination of City employment. The City’s liability for compensated absences is recorded in various Governmental funds and Proprietary funds as appropriate. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be paid due to terminations are recorded as fund liabilities; the long term portion is recorded in the Statement of Net Position.

The changes of the compensated absences were as follows:

Business-Type Activities
Governmental Sewer Storm Solid
Activities Collections Drainage Waste Total
Summary of Activity:

Beginning Balance $2,591,056 $138,124 $58,015 $21,480 $2,808,675 Additions 1,082,106 75,652 44,348 23,995 1,226,101
Retirements (1,041,783) (80,270) (43,419) (15,304) (1,180,776) Ending Balance $2,631,379 $133,506 $58,944 $30,171 $2,854,000 Financial Statement
Presentation:

Due within One Year $944,958 $70,235 $39,224 $9,998 $1,064,415 Due in More than One Year 1,686,421 63,271 19,720 20,173 1,789,585 Total Ending Balance $2,631,379 $133,506 $58,944 $30,171 $2,854,000 44 255

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.

I. Fair Value Hierarchy
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

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.

J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet 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 position 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 net position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position 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.

K. 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, deferred outflows/inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
45 256

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. New, Closed and Renamed Funds
The Public Art Special Revenue Fund was established to account for the development fee paid in lieu of providing public art elements in certain private development projects that will be used by the City to fund public art installations consistent with the Public Art Master Plan.

The activity for the newly established General Plan Maintenance Special Revenue Fund was previously reported as a component of the Development Services Special Revenue Fund, and is used to account for activities related to the General Plan update.

With the final dissolution of the Successor Agency discussed in Note 16, the Successor Agency Private-Purpose Trust Fund was closed as of June 30, 2022.

The Low Moderate Income Housing Special Revenue Fund was renamed to the Affordable Housing Special Revenue Fund and the Inclusionary Housing Special Revenue Fund was renamed to the Housing Mitigation Fees Special Revenue Fund.

NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
The City Manager submits to the City Council a proposed annual operating budget for the ensuing fiscal year. The operating budget includes proposed expenditures and the means of financing them and is subjected to public hearings where comments are obtained for consideration. The Council adopts the budget through passage of a budget resolution at which time the proposed expenditures become appropriations. The budget is effective the following July 1 and may be amended by subsequent resolutions. The City Manager is authorized to transfer appropriations between any departments; however, any revisions, which increase the total appropriations of any fund, must be approved by the Council. Transfers not included in the original budget must be approved by the Finance Director. Where not contractually committed, expenditures may not exceed appropriations at the fund level. Unencumbered appropriations lapse at year end. Supplemental appropriations adopted by the Council are included in the budget versus actual statements.

Formal budgetary integration is employed as a management control device. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.

46 257

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (Continued)
Encumbrances outstanding at year end do not constitute expenditures or liabilities and are reappropriated in the following year budget. Budget amounts include appropriations, which are formally integrated into the City’s accounting records for all funds. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all funds.

Encumbrances outstanding by fund as of June 30, 2022 were as follows:

General Fund $2,015,564
5,953,918
$7,969,482
Major Governmental Funds:

Total Encumbrances
Non-Major Governmental Funds
Expenditures exceeded budget for the following funds:

Fund
Expenditures in
Excess of
Non-Major Governmental Funds:

Recreation Special Revenue Fund $30,786
Supplemental Law Enforcement Services Special Revenue Fund 29,135 Sufficient resources were available within each fund to finance the excess amounts.

NOTE 3 – CASH AND INVESTMENTS
The City pools cash from all sources and all funds except Cash and Investments held by Trustees so that it can be invested consistent with the principles of safety and liquidity, while individual funds can make expenditures at any time.

A. Policies
California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities 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 their form. 47 258

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

B. Classification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or Agency agreements.

Cash and investments as of June 30, 2022 consist of the following:

Statement of Net Position
Cash and investments $110,982,096
Cash and investments with fiscal agent 6,111,822
Fiduciary Funds
Cash and investments 260,577
Total Cash and Investments $117,354,495
Cash and Investments Available for Operations is used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.

As of June 30, 2022, the City holds $8,967,636 in unexpended proceeds from the Sewer Revenue Bonds, Series 2019, which were included in Cash and Investments, but recorded in the Sewer Collections Enterprise Fund. The restricted fund is to be spent on project costs as defined in the underlying indenture.

C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the investment types included in the following schedule, provided the credit ratings of the issuers are acceptable to the City, and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive. 48 259

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Authorized Investment Type
Maximum
Maturity
Minimum Credit
Quality
Maximum % of
Portfolio
Maximum
Investment In
One Issuer
Local Agency Municipal Bonds 5 years None None None
U.S. Treasury Obligations 5 years None None None
State of California and Other State
Obligations 5 years None None None
CA Local Agency Obligations 5 years None None None
U.S. Agency Securities 5 years None None None
Bankers Acceptances 180 days None 40% 30%
Commercial Paper (pooled) 270 days A1 / P1 40% 10%
Commercial Paper (non-pooled) 270 days A1 / P1 25% 10%
Negotiable Certificates of Deposit 5 years None 30% None Non-Negotiable Certificates of
Deposit 5 years None None None
Placement Service Deposits 5 years None 50% (A) None
Placement Service Certificates of
Deposit 5 years None 50% (A) None
Repurchase Agreements 1 year None None None
Reverse Repurchase Agreements
and Securities Lending Agreements 92 days None
20% of base
value of
portfolio None
Medium Term Corporate Notes 5 years A 30% None
Mutual Funds N/A
Top rating
category 20% 10%
Money Market Mutual Funds N/A
Top rating
category 20% 10%
Collateralized Bank Deposits 5 years None None None
Mortgage Pass-Through and AssetBacked Securities 5 years AA 20% None County Pooled Investment Funds N/A None None None
Joint Powers Authority Pool N/A Multiple None None
California Local Agency Investment
Fund N/A None None $75M per account
Voluntary Investment Program Fund N/A None None None
Supranational Obligations (B) 5 years AA 30% None
(A) 50% maximum % of portfolio is for deposits and certificates of deposit combined. (B) Only those obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IADB) D. Investments Authorized by Debt Agreements
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 its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. These bond indentures did not disclose limitations for maximum percentage of portfolio and investment in one issuer. 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:
49 260

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Authorized Investment Type Maximum Maturity Minimum Credit Quality Local Agency Municipal Bonds N/A Two highest rating categories U.S. Treasury Obligations N/A N/A
State of California Obligations N/A A2/A
CA Local Agency Obligations N/A N/A
U.S. Agency Securities (A) N/A N/A
Bankers Acceptances 1 year A1
Commercial Paper 270 days A-1 +
Short-Term Certificates of Deposit 1 year A-1+
Repurchase Agreements 30 days A, AMoney Market Mutual Funds N/A AA-M Collateralized Bank Deposits N/A N/A gy
Fund N/A N/A
Unsecured CD's, deposit accounts,
time deposits, bankers acceptances 365 Days A-1+
Special Revenue Bonds N/A AAPrefunded Municipal Obligations N/A AAA FDIC insured deposit N/A N/A
Investment Agreements N/A AAPre Refunded Municipal Obligations N/A Two highest rating categories Cash N/A N/A
(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), Export-Import Bank, Farm Credit System Financial Assistance Corporation, Farmers Home Administration, General Services Administration, United States Maritime Administration, Small Business Administration, Government National Mortgage Association (GNMA), United States Department of Housing & Urban Development (PHA's), the Federal Home Loan Mortgage Corporation (FHLMC) and Federal Housing Administration debentures.

The 2019 Sewer Revenue Bonds also allow investment in Federal Housing Administration debentures.

E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of the City’s investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:

50 261

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
12 Months 13 to 24
Investment Type or less Months Total
California Local Agency Investment Fund $109,242,170 $109,242,170 Held by Trustees:

Money Market Mutual Funds 358,723 358,723
U.S. Treasury Notes 2,504,761 $2,607,539 5,112,300
Total Investments $112,105,654 $2,607,539 114,713,193
Cash in banks and on hand 2,641,302
Total Cash and Investments $117,354,495
F. Local Agency Investment Fund
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.

The City reports its investment in LAIF at the amortized costs provided by LAIF, which is the same as the value of the pool share. The balance available for withdrawal is based on the accounting records maintained 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. Bond 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 mortgage 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 matured in an average of 311 days.

G. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
51 262

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
The following is a summary of the fair value hierarchy of the City’s investments as of June 30, 2022:

Investment Type Level 1
Exempt or
Amortized Cost Total
California Local Agency Investment Fund $109,242,170 $109,242,170 Held by Trustees:

Money Market Mutual Funds 358,723 358,723
U.S. Treasury Notes $5,112,300 5,112,300
Total Investments $5,112,300 $109,600,893 $114,713,193
U.S. Treasury Notes totaling $5,112,300 classified in Level 1 of the fair value hierarchy are valued using quoted prices in an active market for identical assets. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. These prices are obtained from various pricing sources by the custodian bank. As an external investment pool, the Local Agency Investment Fund is exempt from the fair value hierarchy.

H. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2022 are provided by Standard and Poor’s except as noted.

Total
Investment Type AAAm Investments
Money Market Mutual Funds $358,723 $358,723
Not rated:

California Local Agency Investment Fund 109,242,170
Exempt from rating requirement:

U.S. Treasury Notes 5,112,300
Total investments $114,713,193
52 263

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 4 – INTERFUND TRANSACTIONS
A. Transfers Between Funds
The purpose of the majority of transfers is to provide annual subsidiary to the transit fund, which has made an expenditure on behalf of another fund. Less often, a transfer may be made to open or close a fund.

Transfers between funds during the fiscal year ended June 30, 2022 were as follows:

Amount
Fund Receiving Transfer Fund Making Transfer Transferred Special Revenue Funds
Recreation General Fund $766,377
Development Services General Fund 334,492
General Plan Maintenance Development Services Special Revenue Fund 738,129 (b) Supplemental Law Enforcement Services General Fund 78,938 Street Maintenance General Fund 183,476
Road Maintenance and Rehabilitation Account (SB1) General Fund 244,238 (a) Capital Projects Funds
Infrastructure General Fund 1,385,864 (a)
Planned Park Park Impact Fees Capital Projects Fund 2,500,000 (a) Open Space Planned Park Capital Projects Fund 20,900 (a) Enterprise Fund
Storm Drainage Sewer Collections Enterprise Fund 98,948 (a) Internal Service Fund
Facilities Management General Fund 351,294
$6,702,656
The purpose of the significant transfers that were not routine in nature or consistent with activities of the fund making the transfers is set forth below:
(a) Transfer to fund capital projects.
(b) To establish new fund.

In addition to the above transfers, the Affordable Housing Special Revenue Fund transferred land held for resale in the amount of $913,537 to governmental activities capital assets. 53 264

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
B. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after at the end of the fiscal year. The Street Maintenance Special Revenue Fund and the Facilities Management Internal Service Fund owed the General Fund $52,300 and $48,914, respectively, as of June 30, 2022.

NOTE 5 – NOTES RECEIVABLE
These notes are summarized below:

Project Amount
Mid‐Peninsula Horizons, Inc. $243,018
Home Buyer Assistance Program 228,250
Firehouse Square           6,089,147
Total notes receivable $6,560,415
The former Belmont Redevelopment Agency (Agency) entered into the loan programs below to improve the quality of housing and to increase the availability of affordable housing. With the dissolution of the former Redevelopment Agency, the City elected to become the successor to the former Agency’s housing activities and as a result assumed the loans receivable as of February 1, 2012.

On September 30, 1992 the former Agency made a loan to Mid‐Peninsula Horizons, Inc., a nonprofit corporation, to assist in financing an affordable housing project. The Agency loan is secured by a second deed of trust.  The loan bears interest at one percent per annum and is due along with interest in 2039 or the date the project is no longer subject to a related regulatory agreement with HUD, whichever is later.

In fiscal year 1999, the former Agency began providing financial assistance for first time home buyers through the Home Buyer Assistance Program.  Loans provide down payment assistance to qualified home buyers in Belmont.  Loans are long‐term low interest loans for down payments on the purchase of single‐family residences, town homes, or condominiums.  Loans are secured by a deed of trust.

54 265

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 5 – NOTES RECEIVABLE (Continued)
On October 22, 2019 the City approved Development Agreements with MP Firehouse Square Associates, L.P., and Belmont Firehouse Square LLC for the construction of a new four-story, mixed-use residential/commercial building consisting of 65 affordable rental apartment units, a manager's unit, amenity space, a community room, and 3,748 square feet of retail and commercial space; and a 15-unit market rate for sale townhome component. The project site is located on City-owned property at 1300 El Camino Real and 875 O'Neill Avenue that was to be sold to the developer for $2,616,150. The City had committed to loan the Developer up to $5,598,000, comprised of the Predevelopment Component ($316,000), the Construction Component ($2,000,000) and the Construction Contingency Amount ($2,598,000). On July 14, 2020, the City amended the terms of the Development Agreements to instead ground lease the property to the Developer for a period of seventy (70) years at the rate of one dollar ($1.00) per year, paid annually, and reduce the project funding to a predevelopment loan of up to $1,000,000, a construction loan of up to $1,150,000, and a grant of $1,000,000. Total potential costs to the City will not exceed $5,648,000. During the year ended June 30, 2020, the developer drew down $1,000,000 of the predevelopment loan, and during the year ended June 30, 2021, the developer drew down the construction loan of $1,150,000 and the grant of $1,000,000. The loans bear simple interest at three percent per annum and is payable from residual receipts as defined in the Agreement and is due upon the earliest of the transfer of the project or the developer’s interest in the property in a manner that is not approved by the City, the occurrence of a Developer event of default, or 70 years from the date of the promissory note or August 2090.

The balance of the loans as of June 30, 2022, including accrued interest, was $2,289,147.

In August 2021, the City and Belmont Firehouse Square, LLC entered into an amended and restated Development Agreement that includes selling property for its appraised value of $4,800,000 for phase 2 of the project, which includes the 15-unit market rate for sale townhomes.

In June 2022, the Agreement was assigned to Belmont Firehouse Square Property, LLC. On June 30, 2022 the City and Belmont Firehouse Square Property, LLC, closed the sale of phase 2 of the Firehouse Square project. Per the Amended and Restated Development Agreement, the developer paid the City $1,000,000 at close of escrow; the balance of the sales price of $3,800,000 was funded by a loan from the City's affordable housing funds. The loan is secured by a promissory note and deed of trust on the property. Prior to or concurrently with the sale of each townhome unit in the project, the Developer is required to pay the City in cash an amount equal to the then outstanding indebtedness under the Promissory Note divided by the number of unsold townhome units existing immediately prior to the sale of such townhome unit, which will be credited to the outstanding balance of the loan. The loan bears compound interest at four percent per month and is payable no later than December 31, 2024. The balance of the loan as of June 30, 2022 was $3,800,000.
55 266

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 6 – LAND HELD FOR RESALE
The City purchased parcels of land as part of efforts to develop or redevelop properties. Land held for resale is carried in the financial statements at the lower of cost or estimated net realizable value.

With the dissolution of the Redevelopment Agency in fiscal year 2012, the City elected to assume housing activities as the Housing Successor, and the land held for resale was transferred to the Affordable Housing Special Revenue Fund on February 1, 2012.

NOTE 7 – CAPITAL ASSETS
A. Capital Asset Additions and Retirements
Capital assets at June 30 comprise:

Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022 Governmental Activities
Capital assets not being depreciated:

Land $12,609,903 $913,537 ($30,507) $13,492,933
Construction in progress 391,266 4,025,909 ($15,634) 4,401,541 Total capital assets not being depreciated 13,001,169 4,939,446 (30,507) (15,634) 17,894,474 Capital assets being depreciated:

Buildings and building improvements 38,468,962 38,468,962 Improvements other than buildings 5,287,545 162,357 5,449,902 Streets and infrastructure 68,816,408 3,053,314 15,634 71,885,356 Machinery and equipment 6,547,505 484,240 7,031,745
Vehicles 4,607,467 241,885 (56,989) 4,792,363
Total capital assets being depreciated 123,727,887 3,941,796 (56,989) 15,634 127,628,328 Less accumulated depreciation for:

Buildings and building improvements 18,076,418 908,046 18,984,464 Improvements other than buildings 1,921,822 234,792 2,156,614 Streets and infrastructure 27,471,795 1,704,994 29,176,789 Machinery and equipment 5,844,135 346,628 6,190,763
Vehicles 3,959,446 276,485 (56,989) 4,178,942
Total accumulated depreciation 57,273,616 3,470,945 (56,989) 60,687,572 Net depreciable assets 66,454,271 470,851 15,634 66,940,756 Governmental activities capital assets, net $79,455,440 $5,410,297 ($30,507) $84,835,230 56 267

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 7 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2021 Additions June 30, 2022
Business-type activities
Capital assets not being depreciated:

Land $14,792 $14,792
Construction in progress 5,262,950 $966,149 6,229,099
Total capital assets not being depreciated 5,277,742 966,149 6,243,891 Capital assets being depreciated:

Improvements other than buildings 48,167,870 389,259 48,557,129 Machinery and equipment 326,766 326,766
Total capital assets being depreciated 48,494,636 389,259 48,883,895 Less accumulated depreciation
Improvements other than buildings 20,140,321 1,646,208 21,786,529 Machinery and equipment 316,184 1,971 318,155
Total accumulated depreciation 20,456,505 1,648,179 22,104,684 Net depreciable assets 28,038,131 (1,258,920) 26,779,211 Business-type activities capital assets, net $33,315,873 ($292,771) $33,023,102 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 required to be accounted for as revenues at the time the capital assets are acquired.

C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:

Governmental Activities
General Government $1,116,774
Public Safety 88,895
Highways and Streets 1,261,557
Culture and Recreation 443,437
Depreciation Charges to Internal Service Funds 560,282
Total Governmental Activities $3,470,945
Business-Type Activities
Sewer Collections $1,407,649
Storm Drainage 240,530
Total Business-Type Activities $1,648,179

57 268

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – 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 related debt.

This debt will be repaid only out of governmental funds but is not accounted for in these funds because this debt does not require an appropriation or expenditure in this accounting period.

Proprietary Fund (Enterprise) long-term debt is accounted for in the proprietary funds, which will repay the debt because these funds are accounted for on the full-accrual basis in a similar manner to commercial operations.

The City’s debt issues and transactions are summarized below and discussed in detail thereafter.

A. Current Year Transactions and Balances
Balance as of June 30, 2022
Balance Due Within Due Beyond
June 30, 2021 Additions Retirements One Year One Year

GOVERNMENTAL ACTIVITIES DEBT
Lease Financing
2019 San Mateo County
2%, due 2029 $5,159,305 $560,035 $572,010 $4,027,260
Total Governmental Activities Debt 5,159,305 560,035 572,010 4,027,260

BUSINESS-TYPE ACTIVITIES DEBT
Bonds:
2009A Sewer Treatment Facility
Revenue Bonds

3.00%-5.00%, due serially to 2042 6,950,000 6,950,000
2016 Sewer Revenue Refunding Bonds

3.00%-5.00%, due serially to 2035 7,720,000 485,000 505,000 6,730,000 Premium 747,409 76,657 670,752
2016 Sewer Revenue Bonds

2.00%-5.00%, due serially to 2046 15,730,000 110,000 110,000 15,510,000 Premium 40,528 4,158 36,370
2018 Sewer Treatment Revenue Bonds
5%, due serially to 2048 20,845,000 355,000 375,000 20,115,000 Premium 2,848,861 105,513 2,743,348
2019 Sewer Revenue Bonds
5%, due serially to 2049 16,925,000 270,000 285,000 16,370,000 Premium 4,044,609 141,915 3,902,694
Subtotal Bonds 75,851,407 8,498,243 1,275,000 66,078,164 Direct Placement:

2.15%, due serially to 2033 $6,408,000 1,320,000 5,088,000 Total Business-Type Activities Debt 75,851,407 6,408,000 8,498,243 2,595,000 71,166,164 Total Long-Term Obligations $81,010,712 $6,408,000 $9,058,278 $3,167,010 $75,193,424 2022 Sewer Treatment Revenue
Refunding Obligations
58 269

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – LONG TERM DEBT (Continued)
B. 2019 San Mateo County Lease Agreement
On December 18, 2019, the City entered into Lease and Sublease Agreements with the County of San Mateo under which the City leased the Belmont Sports Complex & Conference Center to the County for which the County made a one-time up-front lease payment to the City in the amount of $6,000,000. Simultaneously, the City will sublease back from the County with annual rental payments over a lease term of 10 years, at a fixed interest rate of 2% per year. The Sublease is secured by the Belmont Sports Complex and the funds are to be used for turf replacement. The Sublease is repayable in semi-annual payments of $334,000 beginning April 15, 2020 through December 15, 2029. While the pledge of repayment is from the General Fund, repayment will be made from Planned Park (Quimby/Park In Lieu) and Park Impact Fees. To terminate the Sublease after having fully paid all installment payments through and including the year seven payment, the City may make a one-time, lumpsum payment to the County of $1,926,013.

C. Summary of Sewer Debt Issues
On December 30, 2009, the Authority issued $8,500,000 principal amount of Sewer Treatment Facility Revenue Bonds, Series 2009A. Proceeds will be used to finance certain improvements to the Silicon Valley Clean Water’s sewer treatment facility. Interest is due semiannually on February 1 and August 1 and principal is due annually on August 1 and is payable solely from Sewer Treatment Facility Revenues. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if the following conditions occur: default on debt service payments. There were no such events during the fiscal year ending June 30, 2022. The 2009A Bonds were called on May 27, 2022.

On October 1, 2018, the Authority issued $21,385,000 in Sewer Treatment Facility Revenue Bonds, Series 2018. Proceeds will be used to finance certain improvements to the Silicon Valley Clean Water’s sewer treatment facility. Interest is due semiannually on February 1 and August 1 and principal is due annually on August 1 and is payable on parity with the 2009A bonds solely from Sewer Treatment Facility Revenues. Interest on the Bonds commenced August 1, 2019.

The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; or bankruptcy filing by the City. There were no such events during the fiscal year ending June 30, 2022.

59 270

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – LONG TERM DEBT (Continued)
On April 29. 2022, the Authority issued $6,408,000 principal amount of 2022 Sewer Treatment Facilities Revenue Refunding Obligations. Proceeds from the Installment Purchase Agreement were used to refund the Series 2009A Bonds. Interest is due semiannually on February 1 and August 1 and principal is due annual on August 1 and is payable solely from Sewer Treatment Facility Revenues. The Agreement is on parity with the Series 2018 Bonds. Principal and interest payments on the Agreement commence on August 1, 2022 and continue through 2033. The Agreement contains events of default that allow the Authority to declare all principal and accrued interest to be immediately due and payable if any of the following conditions occur: default on debt service payments; failure of the City to observe or perform the conditions, covenants or agreement terms of the Agreement; or bankruptcy filing by the City. There were no such events during the fiscal year ending June 30, 2022. The refunding resulted in an overall debt service savings of $3,507,151. The net present value of the debt service savings is called an economic gain and amounted to $2,337,020. The 2009A Bonds were called on May 27, 2022.

The pledge of future Sewer Treatment Facility charges ends upon repayment of $43,133,276 in remaining debt service on the 2018 Bonds and 2022 Obligations which is scheduled to occur in 2048. For fiscal year 2022, Sewer Treatment Facility Revenues amounted to $3,142,679 and debt service, excluding payments related to the bond refunding, was $3,150,457.

On March 2016, the Authority issued $9,945,000 in Sewer Revenue Refunding Bonds, Series 2016 and $16,120,000 in Sewer Revenue Bonds, Series 2016 with interest rates ranging from

3.0% to 5.0% and 2.0% to 5.0% respectively. The $11,094,848 in net proceeds (including a $1,149,848 premium and after payment of $104,670 in underwriting fees and other issuance costs) of the Sewer Revenue Refunding Bonds, Series 2016, were used to refund $10,830,000 of outstanding 2001 and 2006 Series Sewer Revenue Bonds which had interest rates ranging from

4.375% to 5.00% and 4.00% to 4.375% respectively. The net proceeds of $15,182,357 from the Sewer Revenue Bonds, Series 2016 (including a $62,357 premium and after payment of $169,662 in underwriting fees and other issuance costs) will be used to finance improvements to the City’s sewer system.

The 2016 Revenue Bonds are general obligations of the City, payable solely from System Revenues and all amounts on deposit in the System Revenue Fund collected by the City of Belmont. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if the following conditions occur: default on debt service payments. There were no such events during the fiscal year ending June 30, 2022.
60 271

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – LONG TERM DEBT (Continued)
On November 20, 2019, the Authority issued $17,095,000 principal amount of Sewer Revenue Bonds, Series 2019. Proceeds will be used to finance certain improvements to the sewer collection, conveyance and treatment system of the City. Interest is due semiannually on February 1 and August 1, commencing February 1, 2020 and principal is due annually on August

1. The Bonds are payable on parity with the 2016 bonds, solely from System Revenues and all amounts on deposit in the System Revenue Fund collected by the City. The Bonds are structured with a par optional redemption date of August 1, 2029. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if the following conditions occur: default on debt service payments.

There were no such events during the fiscal year ending June 30, 2022.

The pledge of future Sewer Collections Fund Revenues ends upon repayment of $63,888,905 in remaining debt service on the 2016 Sewer Revenue Refunding Bonds, 2016 Sewer Revenue Bonds and 2019 Sewer Revenue Bonds, which is scheduled to occur in 2049. For fiscal year 2022, Sewer Fund Revenues, excluding sewer treatment facility revenue, including operating revenues, but not connection charges or non-operating interest earnings, amounted to $16,360,163 and operating costs including operating expenses, but not interest, depreciation or amortization amounted to $7,115,757. Net revenues available for debt service amounted to $9,244,406.

D. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt with specified repayment terms:

Business-Type Activities
For the Year Ending Lease Financing Bonds Direct Placement June 30 Principal Interest Principal Interest Principal Interest 2023 $572,010 $95,990 $1,275,000 $2,602,496 $1,320,000 $89,904 2024 584,022 83,978 1,335,000 2,540,321 1,346,000 94,923 2025 596,729 71,271 1,405,000 2,471,820 725,000 72,660
2026 609,489 58,511 1,470,000 2,399,946 740,000 56,911
2027 622,522 45,478 1,545,000 2,324,572 757,000 40,818
2028 - 2032 1,614,498 55,502 8,720,000 10,634,967 1,150,000 93,312 2033 - 2037 10,700,000 8,623,706 370,000 7,998
2038 - 2042 13,110,000 6,160,543
2043 - 2047 14,790,000 3,034,034
2048 - 2050 5,650,000 365,250
Total $4,599,270 $410,730 $60,000,000 $41,157,655 $6,408,000 $456,526 Governmental Activities
E. Special Assessment Debt With No City Commitment
On February 4, 2004, the Community Facilities District No. 2000-1 issued Special Tax Bonds, Series 2004A for $8,650,000 to finance the construction, maintenance and building operations of a new library. The City has no legal or moral liability with respect to the payment of this debt, which is secured by proceeds of an annual special tax levy received by the District. Therefore, this debt is not included in the long-term debt of the City. As of June 30, 2022, the outstanding balance was $4,425,000.
61 272

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 – LONG TERM DEBT (Continued)
Pursuant to the terms of the underlying indenture for the Special Tax Bonds, the Trustee holds a Surety Bond issued by AMBAC Assurance Corporation as a debt service reserve for the Bonds.

During fiscal 2010-11, AMBAC declared bankruptcy. As of the date of this report, the Trustee had not requested, and the District had not obtained, a replacement surety bond.

NOTE 9 – 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, if any, over all its liabilities and deferred inflows, if any, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below.

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, 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 redevelopment funds restricted to low and moderate income 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 generally accepted accounting principles which require the City to classify its 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:

62 273

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for resale are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by resolution of the City Council. Nonspendable amounts subject to council commitments 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 Council or its designee 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 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.

Detailed classifications of the City’s fund balances, as of June 30, 2022, are below:
63 274

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
Belmont
Fire Other
General Protection Governmental
Fund Balance Classifications Fund District Funds Total
Nonspendables:

Items not in spendable form:

Prepaids $77,789 $1,736,353 $1,814,142
Land held for resale 298,748 298,748
Total Nonspendable Fund Balances 376,537 1,736,353 2,112,890 Restricted for:

Transportation $2,562,384 2,562,384
Belmont Fire Protection District 14,480,930 14,480,930
Special Revenue Programs:

Recreation 11
Library Maintenance & Operations 835,588 835,588
City Trees 297,128 297,128
Athletic Field Maintenance 375,498 375,498
Senior Donations 90,044 90,044
Public Art 395,576 395,576
Affordable Housing 8,920,143 8,920,143
Capital Projects 2,712,060 2,712,060
Special Assessment District 308,330 308,330
Total Restricted Fund Balances 14,480,930 16,496,752 30,977,682 Committed to:

Measure I Infrastructure 2,938,455 2,938,455
Special Revenue Programs:

Development Services 1,084,263 1,084,263
General Plan Maintenance 1,305,231 1,305,231
Public Safety 32,809 32,809
Total Committed Fund Balances 2,938,455 2,422,303 5,360,758 Assigned to:

Capital Projects 3,698,561 3,698,561
Total Assigned Fund Balances 3,698,561 3,698,561
Unassigned 17,636,404 17,636,404
Total Unassigned Fund Balances 17,636,404 17,636,404
Total Fund Balances $20,951,396 $16,217,283 $22,617,616 $59,786,295 64 275

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
C. Minimum Fund Balance Policies
The City Council has established a policy with adoption of the annual budget that the General Fund balance should be maintained at a target of 33% of operating expenditures with a $5,000,000 minimum. In addition, the City Council has established a $250,000 Contingency appropriation which may be used to pay for an emergency or an uncertain occurrence. The use of contingency funds requires City Council approval. As of June 30, 2022, the City is in compliance with its minimum fund balance policies.

D. Belmont Fire Protection District
The District established a $10,000,000 reserve of fund balance for the future replacement of a fire station. The reservation is included in the Belmont Fire Protection District Special Revenue Fund’s restricted fund balance.

E. Net Investment In Capital Assets
The balances related to Net Investment in Capital Assets are comprised of the following as of June 30, 2022:

Governmental Business-Type
Activities Activities Total
Capital Assets, Net of Accumulated Depreciation $84,835,230 $33,023,102 $117,858,332 Less Capital Debt (4,599,270) (44,119,816) (48,719,086) Plus Unspent Bond Proceeds 402,294 12,259,930 12,662,224 Net Investment in Capital Assets $80,638,254 $1,163,216 $81,801,470 F. Restatement
The City implemented the provisions of Governmental Accounting Standards Board Statement No. 87 – Leases 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 $8,222,012 as of July 1, 2021 and restated and increased the balances in that amount, and the net effect on beginning net position was zero. See the Leases disclosure in Note 10. 65 276

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 10 – LEASES
A. Policies
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 for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivable or liabilities with an initial, individual value of $100,000 or more, based on the future lease payments remaining at the start of the lease.

Lessee – The City does not have any noncancellable leases of nonfinancial assets as of June 30, 2022, other than the financed purchase discussed in Note 8. If there were such leases outstanding, the City would recognize a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the 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, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments 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 lessor 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 noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price 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 and lease liabilities are reported with longterm debt on the statement of net position.

Lessor – The City is a lessor for noncancellable leases of buildings and facilities. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and fund financial statements.

66 277

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
At the commencement of a lease, the City initially measures the lease receivable at 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 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 judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is 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.

B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2022 were:

Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
1070 Sixth Avenue Rentals $311,578 $306,960
Facilities Rentals 998,171 969,156
Billboard Lease 4,952,751 4,819,567
Airspace Lease 1,849,356 1,828,827
Total governmental activities leases receivable $8,111,856 $7,924,510

67 278

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
The City’s leases receivable and transactions are summarized below and discussed in detail thereafter.

Balance
June 30, 2021 Balance
(as restated) Additions Retirements June 30, 2022
Governmental Activities
Leases Receivable (Lessor)
1070 Sixth Avenue Rentals $149,372 $246,925 $84,719 $311,578 Facilities Rentals 1,123,498 125,327 998,171
Billboard Lease 5,014,296 61,545 4,952,751
Airspace Lease 1,934,846 85,490 1,849,356
Total governmental activities leases receivable $8,222,012 $246,925 $357,081 $8,111,856 1070 Sixth Avenue Rentals – The City leases office space attached to City Hall to third parties.

During the year ended June 30, 2022, of the three office space leases, the City had two leases that were subject to being recorded as leases receivable under generally accepted accounting principles. The original lease terms were just over five years each and as of June 30, 2022, the two leases had nine months and five years remaining. The leases can be renewed for one additional five year term upon written notice of the tenant. The City recognized $85,355 in lease revenue and $2,345 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.

Facilities Rentals – The City leases various facilities to third parties. During the year ended June 30, 2022, the City had three leases, with original lease terms ranging from ten to thirty years and as of June 30, 2022, the leases had 4.5 to 9.8 years remaining. The City recognized $154,341 in lease revenue and $29,157 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.

Billboard Lease – The City leases billboard space to a third party. The original term of the lease was thirty years and as of June 30, 2022, the lease had 25 years remaining. The rent is based on a minimum annual guaranteed payment, paid on a monthly basis, which increases 3% per year.

In addition, the City receives a percentage rent if that amount exceeds the minimum annual guaranteed payment. The City recognized $194,730 in lease revenue and $136,895 in interest revenue during the current fiscal year related to this lease. Also, the City has deferred inflows of resources associated with this lease that will be recognized as revenue over the lease term.

Airspace Lease – The City leases airspace to a third party. The original term of the lease was twenty years, but the most recent amendment in October 2019 extended the lease term for ten years, with two five year options. As of June 30, 2022, the City determined that the remaining lease term is seventeen years. The City recognized $106,019 in lease revenue and $51,972 in interest revenue during the current fiscal year related to this lease. Also, the City has deferred inflows of resources associated with this lease that will be recognized as revenue over the lease term.
68 279

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – PENSION PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

A. General Information about the Pension Plan
Plan Description – All qualified employees are eligible to participate in the City’s separate Safety (Police and Fire) and Miscellaneous (all other) Employee Pension Rate Plans. The City’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multipleemployer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multipleemployer defined benefit pension plan, regardless of the number of rate plans the employer sponsors. The City sponsors six rate plans and the District sponsors three rate plans as follows:
• City Miscellaneous (Tier 1)
• City Miscellaneous (Tier 2)
• City Miscellaneous (Tier 3)
• City Safety (Tier 1)
• City Safety (Tier 2)
• City Safety (Tier 3)
• District Safety (Tier 1)
• District Safety (Tier 2)
• District Safety (Tier 3)
The Plan is administered by the California Public Employees’ Retirement System (CalPERS).

Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website (www.calpers.ca.gov.)
With the transfer of the District’s personnel to the San Mateo Consolidated Fire Department Joint Powers Authority in January 2019 discussed in Note 14A, the District’s Safety Plan is closed to new entrants.
69 280

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – PENSION PLAN (Continued)
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily 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 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect at June 30, 2022 are summarized as follows:

Tier 1 Tier 2 Tier 3
Hire date
Prior to
August 1, 2012 (1)
On or after
August 1, 2012 (1)
On or after
January 1, 2013
Benefit formula 2% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Final Average Compensation Period One Year Three Year Three Year Retirement age 50 - 67 50 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 7.0% 7.0% 7.0%
Required employer contribution rates (normal cost) 11.19% 10.65% 7.65% Tier 1 Tier 2 Tier 3
Hire date
Prior to
October 1, 2011
On or after
October 1, 2011
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Final Average Compensation Period One Year Three Year Three Year Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3.0% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.0% 9.0% 13.0%
Required employer contribution rates (normal cost) 23.71% 20.64% 13.13% District Safety Rate Plans
Tier 1 Tier 2 Tier 3
Hire date
Prior to January 1,
2012
On or after
January 1, 2012
On or after
January 1, 2013
Benefit formula 3% @ 55 2% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Final Average Compensation Period Three Year Three Year Three Year Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 2.4% to 3.0% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 0.0% 0.0% 0.0%
Required employer contribution rates (normal cost) 0.0% 0.0% 0.0% City Safety Rate Plans
City Miscellaneous Rate Plans
(1) For unrepresented employees, the hire date that determines the level of benefits is December 28, 2012. (2) The District’s Safety Plan has no active participants as of January 2019. 70 281

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – PENSION PLAN (Continued)
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan 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. The dollar amounts are billed on a monthly basis or may be paid in a lump sum at a discount. The City’s and District’s required contributions for the unfunded liability were $3,457,519 and $89,609, respectively, in fiscal year 2022, which were made under the lump sum option.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.

Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

For the year ended June 30, 2022, the contributions recognized as part of pension expense for the Plan were as follows:

Safety Miscellaneous Total
Contributions - employer $2,752,531 $2,825,996 $5,578,527 During fiscal year 2022, the City made additional contributions to reduce the unfunded liability balances in the Safety and Miscellaneous rate plans in the amounts of $197,493 and $233,520, respectively, which are Included in the contribution amounts above.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported the collective net pension liabilities for its proportionate shares of the net pension liability of the Plan as follows:

Share of Net
Pension Liability
Safety Rate Plans $11,813,386
Miscellaneous Rate Plans 12,449,103
Total Net Pension Liability $24,262,489
Pension liabilities are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities net pension liabilities is liquidated primarily by the General Fund and the Belmont Fire Protection District Special Revenue Fund. 71 282

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – PENSION PLAN (Continued)
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2021 and 2022 was as follows:

Safety Miscellaneous
Proportion - June 30, 2021 0.30% 0.50%
Proportion - June 30, 2022 0.34% 0.66%
Change - Increase (Decrease) 0.04% 0.16%
For the year ended June 30, 2022, the City recognized pension expense of $8,581,277. 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 measurement date $5,578,527 Differences between actual and expected experience 3,414,340 Changes in assumptions
Net differences between projected and actual earnings on plan investments - ($17,898,644)
Change in proportion and differences between actual
contributions and proportionate share of
contributions 161,328 (1,139,598)
Total $9,154,195 ($19,038,242)
$5,578,527 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense (credits) as follows:

Year Ended Annual
June 30 Amortization
2023 ($3,042,103)
2024 (3,448,589)
2025 (4,033,793)
2026 (4,938,089)
72 283

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – PENSION PLAN (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2021, the total pension liability was determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2021 total pension liability was based on the following actuarial methods and assumptions:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth (1)
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.15% (2)
Mortality Derived using CalPERS Membership Data for all Funds (3) Post Retirement Benefit Increase
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3) The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using the Society of Actuaries 90% of Scale MP-2016. For more details on this table, please refer to the December 2017 Experience Study report based on CalPERS demographic data from 1997 to 2015 that can be found on the CalPERS website.

The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability for the Plan was

7.15%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. 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.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 73 284

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – PENSION PLAN (Continued)
In determining the long-term expected rate of return, CalPERS took into account both shortterm and long-term market return expectations as well as the expected pension fund cash flows.

Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a buildingblock 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 to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects the 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% 0.00% -0.92%
Total 100%
(b) An expected inflation of 2.00% used for this period. (c) An expected inflation of 2.92% used for this period. (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 and Global Debt Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:

Discount Rate
1% Decrease Current 1% Increase

6.15% 7.15% 8.15%
Safety $21,831,889 $11,813,386 $3,584,422
Miscellaneous 23,348,465 12,449,103 3,438,756
Total $45,180,354 $24,262,489 $7,023,178
74 285

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 – PENSION PLAN (Continued)
C. Subsequent Event – Reduction of CalPERS Discount Rate On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds 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 allocation 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, mortality rates and rates of salary increases that were adopted by the CalPERS Board.

These new assumptions will be reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

NOTE 12 – OTHER POST EMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans By resolution and through agreements with its labor units, the City and District provide certain health care benefits for retired employees (spouse and dependents are not included) under thirdparty insurance plans (Retiree Health Care Benefits Plans). The City and District participate in the CalPERS health care plan, which is governed under the California Public Employees Health and Medical Care Act (PEMCHA). During fiscal year 2008, the City Council and, during fiscal year 2012, the District passed resolutions to participate in the California Employers Retirees Benefit Trust (CERBT), an irrevocable trust established to fund OPEB. CERBT is an agent multiple-employer defined benefit other postemployment benefits plan administrated by CalPERS, and is managed by an appointed board not under the control of the City Council or Fire Board of Directors. CERBT consists of participating employers of the State of California and public agencies. Individual employers may establish more than one plan.

The CERBT was established by Chapter 331 of the 1988 California Statutes, and employers elect to participate in the CERBT to pre-fund health, dental, and other non-pension postemployment benefits for their retirees and survivors. The CERBT has pooled administrative and investment functions, while separate employer accounts are maintained to prefund and pay for health care or other postemployment benefits in accordance with the terms of the participating employers’ plans. There are three CalPERS Board approved investment strategies for employers to choose from depending on their expected levels of return and volatility. Benefit provisions are established by participating employers.
75 286

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
The CERBT Trusts are not considered a component unit by the City or District and have been excluded from these financial statements. Separately issued financial statements for CERBT may be obtained from CALPERS at P.O. Box 942709, Sacramento, CA 94229-2709.

A summary of eligibility and retiree contribution requirements for the City and District Plans are shown below by bargaining unit:

Eligibility Service or Disability Retirement from the City - Age and service requirements:

AFSCME
- 50 & 10 hired before 7/1/1985 and retired before 7/1/2001 - 50 & 12 retired after 7/1/2001 and retired before 8/1/2012 - 50 & 12 hired after 8/1/2012 or who retire due to disability BPOA
- 50 & 12 retired before 7/1/2001
- 50 & 12 retired on or after 7/1/2001 and hired before 10/11/2011 - 50 & 12 hired on or after 10/11/2011
MMCEA
- 50 & 12 retired before 7/1/2001
- 50 & 12 retired on or after 7/1/2001 and hired before 10/1/2012 - 50 & 12 hired on or after 10/1/2012 or who retire due to disability Unrepresented
- 50 & 12 retired before 7/1/2001
- 50 & 12 retired on or after 7/1/2001 and hired before 1/1/2013 - 50 & 12 hired on or after 1/1/2013 or who retire due to disability Service or Disability Retirement from District
- 50 & 5
Transitioning to District from BSCFD
- 50 & 15 including service with BSCFD or South County Fire Authority, provided that 5 years must be with the District; or effective 10/1/2012, employees with 25 years of service (including any time served with SCFA or BSCFD) may retire after 3 years.

Benefit Service Retirement:
- Retire before 7/1/2001 - Bay Area Single premium for retiree selected plan - Retire on or after 7/1/2001 and hired prior to 10/11/2011 (BPOA), 10/1/2012 (MMCEA), 8/1/2012 (AFCME), 1/1/2013 (Unrepresented) - Receive a benefit which, when added to the CalPERS Minimum Employer Contribution, brings the total up to the lesser of the Bay Area single premium rate for the medical plan selected by the retiree and the Bay Area Kaiser single rate. - Hired on or after 10/11/2011 (BPOA), 10/1/2012 (MMCEA), 8/1/2012 (AFCME), 1/1/2013 (Unrepresented)- Public Employees' Medical Hospital Care Act (PEMHCA) minimum only.

Disability Retirement:
- Miscellaneous Group - Same benefit as service retirement or PEMHCA minimum if eligibility requirement not met. - BPOA - same benefit as service retirement but without the age or service requirement.

Retirement from District:
- PEHMCA minimum, subject to "unequal method"
Transitioning to District from BSCFD (or on active eligible list until 10/1/12):
- Receive a benefit which, when added to the CalPERS Minimum Employer Contribution, brings the total up to the lesser of the Bay Area single premium rate for the medical plan selected by the retiree and the Bay Area Kaiser single rate.

Surviving Spouse
Continuation
City:
- Public Employees Medical Hospital Care Act (PEMHCA) minimum only.

District:
- Based on CalPERS retirement election
- PEMHCA Minimum
- Unequal Method
Public Employees'
Medical Hospital Care
Act (PEMHCA)
minimum
CalPERS minimum employer contribution:

YEAR PEMHCA Minimum
2022 $149
2023+ Increase medical care component of CPI
76 287

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
In accordance with the City and District budgets, the Actuarially Determined Contribution (ADC) is to be funded throughout the year as a percentage of payroll. For the year ended June 30, 2022, the City’s contributions to the Plan were $1,059,766. The District did not make any current year contributions.

Employees Covered by Benefit Terms – Membership in the Plans consisted of the following at the June 30, 2021 measurement date:

City
Inactive employees or beneficiaries currently receiving benefits 102 Inactive employees entitled to but not yet receiving benefits 24 Active employees 120
Total 246
District
Inactive employees or beneficiaries currently receiving benefits 8 Inactive employees entitled to but not yet receiving benefits 14 Active employees 0
Total 22
As of June 30, 2022, there were approximately 129 active City eligible participants, 106 eligible City retirees or surviving spouses, exclusive of living spouses and dependents, receiving benefits, and 23 retirees that were eligible, but not enrolled in the Plan benefits. For the District, as of June 30, 2022 there were no active District eligible participants and there were 8 eligible District retirees or surviving spouses, exclusive of living spouses and dependents, receiving benefits and 14 retirees that were eligible, but not enrolled in the Plan benefits.

OPEB Liabilities, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB – For purposes of measuring the net OPEB liabilities, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s and District’s OPEB Plans and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by CERBT. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. 77 288

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability
Actuarial Methods and Assumptions – The City and District net OPEB liabilities were measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:

City
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal level percent of pay Actuarial Assumptions:

Discount Rate 6.25%
Inflation 2.50%
Salary Increases 2.75%
Mortality Rates Same as CalPERS (1)
Healthcare Cost Trend Rates Pre-Medicare: 6.50% for 2023, and trending down to

3.75% in 2076 and beyond.

Medicare (Non-Kaiser): 5.65% in 2023, trending down
to 3.75% in 2076 and beyond.

Medicare (Kaiser): 4.60% in 2023, trending down to

3.75% in 2076 and beyond.

PEMHCA: 4.00% of retiree premium
District
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal level percent of pay Actuarial Assumptions:

Discount Rate 5.25%
Inflation 2.50%
Salary Increases No active District employees
Mortality Rates Same as CalPERS (1)
Healthcare Cost Trend Rates Pre-Medicare: 6.50% for 2023, and trending down to

3.75% in 2076 and beyond.

Medicare (Non-Kaiser): 5.65% in 2023, trending down
to 3.75% in 2076 and beyond.

Medicare (Kaiser): 4.60% in 2023, trending down to

3.75% in 2076 and beyond.

PEMHCA: 4.00% of retiree premium
(1) The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using Society of Actuaries Mortality Improvement Scale MP 2021. For more details on this table, please refer to the CalPERS 2000-2019 experience study report available on the CalPERS website.
78 289

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

City
Asset Class
Target
Allocation
Long-term expected real
rate of return
Global Equity 49.0% 4.56%
Long US Treasuries 5.0% 0.29%
Mortgage-Backed Securities 5.0% 0.49%
Investment Grade Corporates 4.0% 1.56%
High Yield 4.0% 3.00%
Sovereigns 5.0% 2.76%
TIPS 5.0% -0.08%
Commodities 3.0% 1.22%
REITs 20.0% 4.06%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return 6.25%
District
Asset Class
Target
Allocation
Long-term expected real
rate of return
Global Equity 23.0% 4.56%
Long US Treasuries 11.0% 0.29%
Mortgage-Backed Securities 11.0% 0.49%
Investment Grade Corporates 9.0% 1.56%
High Yield 9.0% 3.00%
Sovereigns 11.0% 2.76%
TIPS 9.0% -0.08%
Commodities 3.0% 1.22%
REITs 14.0% 4.06%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return 5.25%
79 290

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
Change of Assumptions – For the measurement date of June 30, 2021, the discount rate decreased from 6.75% to 6.25% for the City and to 5.25% for District, the inflation rate decreased from 2.75% to 2.50%, the payroll growth rate decreased from 3.00% to 2.75%, and the mortality improvement scale was updated to Scale MP- 2021. In addition, in September 2021, the District changed from CERBT’s Investment Strategy 1 to 3, to reflect a lower investment risk profile.

Discount Rate – The discount rate used to measure the total OPEB liability was 6.25% for the City and 5.25% for the District. The projection of cash flows used to determine the discount rate assumed that City and District contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plans’ fiduciary net position were each projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
80 291

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
C. Changes in Net OPEB Liability
The changes in the net OPEB liability for each plan follows:

City Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balance at Report Date June 30, 2021 $15,042,788 $7,101,158 $7,941,630 Changes for the year:

Service Cost 346,358 346,358
Interest on the Total OPEB Liability 1,012,016 1,012,016 Differences between Expected and Actual
Experience (1,009,642) (1,009,642)
Changes of Assumptions (304,718) (304,718)
Contributions
Employer - Department's contribution 876,080 (876,080)
Employer - implicit subsidy 162,997 (162,997)
Employee -
Net Investment Income 1,964,480 (1,964,480)
Benefit payments, including Refunds of Employee
Contributions (629,633) (629,633) -
Implicit Rate Subsidy Fulfilled (162,997) (162,997) -
Administrative Expense (4,676) 4,676
Other Changes -
Net changes (748,616) 2,206,251 (2,954,867)
Balance at June 30, 2022 $14,294,172 $9,307,409 $4,986,763 District Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balance at June 30, 2021 $1,350,067 $1,993,409 ($643,342) Changes for the year:

Service Cost -
Interest on the Total OPEB Liability 87,950 87,950
Differences between Expected and Actual
Experience 781,678 781,678
Changes of Assumptions 167,346 167,346
Contributions
Employer - Department's contribution -
Employer - implicit subsidy -
Employee -
Net Investment Income 550,861 (550,861)
Benefit payments, including Refunds of Employee
Contributions (68,772) (68,772) -
Implicit Rate Subsidy Fulfilled (25,449) (25,449) -
Administrative Expense (1,066) 1,066
Other Changes -
Net changes 942,753 455,574 487,179
Balance at June 30, 2022 $2,292,820 $2,448,983 ($156,163) June 30, 2022 Total, Both Plans $16,586,992 $11,756,392 $4,830,600 81 292

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
Detailed information about the OPEB plans’ fiduciary net position is available in the separately issued CalPERS Annual Comprehensive Financial Report that may be obtained from CalPERS website.

OPEB liabilities are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities net OPEB liabilities is liquidated primarily by the General Fund and the Belmont Fire Protection District Special Revenue Fund.

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 and District, as well as what the City's or District’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:

City Trend Rate
1% Decrease 5.25%
Net OPEB Liability (Asset) $6,665,343
Current Discount Rate 6.25%
Net OPEB Liability (Asset) $4,986,763
1% Increase 7.25%
Net OPEB Liability (Asset) $3,576,772
District Trend Rate
1% Decrease 4.25%
Net OPEB Liability (Asset) $115,178
Current Discount Rate 5.25%
Net OPEB Liability (Asset) ($156,163)
1% Increase 6.25%
Net OPEB Liability (Asset) ($382,484)
82 293

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
The following presents the net OPEB liability of the City and District, as well as what the City's and District’s net OPEB liability 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:

City Trend Rate
1% Decrease 5.5% Decreasing to 2.75%
Net OPEB Liability (Asset) $3,544,708
Trend Rate 6.5% Decreasing to 3.75%
Net OPEB Liability (Asset) $4,986,763
1% Increase 7.5% Decreasing to 4.75%
Net OPEB Liability (Asset) $6,713,811
District Trend Rate
1% Decrease 5.5% Decreasing to 2.75%
Net OPEB Liability (Asset) $101,514
Trend Rate 6.5% Decreasing to 3.75%
Net OPEB Liability (Asset) ($156,163)
1% Increase 7.5% Decreasing to 4.75%
Net OPEB Liability (Asset) ($372,500)

83 294

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City and District recognized OPEB expense of $156,645 and $824,940, respectively. At June 30, 2022, the City and District reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
City of Resources of Resources
Employer contributions subsequent to measurement date $1,059,766 Differences between actual and expected experience ($2,178,147) Changes of assumptions 578,438 (440,155)
Net differences between projected and actual earnings on OPEB plan investments (1,051,027)
Total $1,638,204 ($3,669,329)
Deferred Outflows Deferred Inflows
District of Resources of Resources
Employer contributions subsequent to measurement date $89,085 Differences between actual and expected experience
Changes of assumptions ($28,440)
Net differences between projected and actual earnings on OPEB plan investments (291,377)
Total $89,085 ($319,817)
Grand Total, Both Plans $1,727,289 ($3,989,146)
$1,148,851 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:

Fiscal Year Annual Amortization
Ended June 30 City District
2023 ($697,847) ($72,979)
2024 (695,167) (72,274)
2025 (701,071) (75,786)
2026 (663,311) (87,578)
2027 (196,173) (4,310)
Thereafter (137,322) (6,890)
84 295

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
F. Deferred Compensation Plans
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under the Plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, and death or in an emergency as defined by the Plan.

The Plan is part of the public agency agent multiple-employer defined contribution plans that are administered by Mission Square Retirement (formerly ICMA RC). Benefit provisions under the Plan are established by City resolution.

The City has no liability for any losses incurred by the Plan and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent investor. The City has a contract with Mission Square to manage and invest the assets of the Plan. The administrator pools the assets of the Plan with those of other participants and does not make separate investments for the City. The assets in the Plan are the sole property of the participants or their beneficiaries. Since the assets held under the Plan are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements. The Plan requires investments to be stated at fair market value and it requires all gains and losses on Plan investments to accrue directly to participant accounts.

A summary of eligibility and employer contribution requirements for the City’s Plan are shown below by bargaining unit:
85 296

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 – OTHER POST EMPLOYMENT BENEFITS (Continued)
AFSCME
All employees:
-1.3% of base salary plus $150.00 per month.

Employees hired before August 1, 2012 receive additional deferred compensation contributions as follows:
- Employees that waive the City's medical insurance receive $150.07 per month for plan year 2022 - Employees that continue to waive coverage as of January 1, 2023 receive an additional $150.07 per month (for a total of $300.14).
- Employees that later elect to be covered by the City's medical insurance no longer receive the additional deferred compensation contributions.

BPOA
Police Records Specialist I and II, Community Service Officer and Police Dispatcher:
- $100.00 per month.

Employees hired before October 11, 2011 receive additional deferred compensation contributions as follows:
- Employees that waive the City's medical insurance receive $192.38 per month for plan year 2022 - Employees that change coverage status (i.e., waiver to coverage, coverage to waiver, or increase/decrease in level of coverage) are treated as an employee hired after October 11, 2011. -Employees who previously waived coverage, but elected coverage due to a qualifying life event occurring in plan year 2021 shall be permitted on a one-time basis to waive coverage on or before June 1, 2022 as part of a qualifying life event occurring before that date and receive the $192.38 in deferred compensation as if the employee had waived coverage as of January 1, 2022 for plan year 2022. - Employees that later elect to be covered by the City's medical insurance no longer receive the additional deferred compensation contributions.

MMCEA
Certain classifications (31 specific class titles):
-$335.00 per month
Employees hired before October 1, 2012 receive additional deferred compensation contributions as follows:
- Employees that waive the City's medical insurance receive $150.07 per month for plan year 2022 - Employees that continue to waive coverage as of January 1, 2023 receive an additional $150.07 per month (for a total of $300.14).
- Employees that later elect to be covered by the City's medical insurance no longer receive the additional deferred compensation contributions.

Unrepresented:

All employees:
-$350.00 per month
City Manager:
-5% of annual base salary
City Attorney:
-4% of annual base salary
The City’s required contributions for the year ended June 30, 2022 totaled $314,261.

The District previously sponsored two public agency agent multiple-employer defined contribution Deferred Compensation Plans. Since the District does not have any active employees, it no longer makes contributions to the Plans.
86 297

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 13 – RISK MANAGEMENT
The City is exposed to various risks of loss related to theft of, damage to, and destruction of assets; general liability; errors and omissions; injuries to employees; natural disasters; and inverse condemnation.

The City is a member of Public Risk Innovation, Solutions and Management (PRISM) (formerly the California State Association of Counties Excess Insurance Authority (CSAC EIA)) for general liability, worker’s compensation and other coverage. PRISM is a public entity risk pool of cities and counties within California. Loss contingency reserves established by the PRISM are funded by contributions from member agencies. The City pays an annual contribution to the PRISM, which includes its pro-rata share of excess insurance premiums, charges for pooled risk, claims adjusting and legal costs, and administrative and other costs to operate the risk pool. The City paid contributions of $1,106,034 for the year ended June 30, 2022. PRISM provides insurance through the pool up to a certain level, beyond which group purchased commercial excess insurance is obtained. PRISM is currently fully funded. No provision has been made on these financial statements for liabilities related to possible additional assessments.

Audited financial statements for PRISM are available from PRISM, 75 Iron Point Circle, Suite 200, Folsom, CA 95630.

A. Liability Coverage
The PRISM provides general liability coverage up to $25,000,000 per occurrence above the City’s $250,000 self-insured retention. The City has auto physical damage commercial coverage through PRISM of $3,933,386 above the City’s deductible of $1,000 or $5,000, depending on the size of the vehicle, and commercial property coverage at the replacement value of the property with a limit of $200,000,000 above the City’s deductible of $10,000. The City also purchases pollution insurance through PRISM with coverage of $2,000,000 per occurrence and up to $25,000,000 in aggregate above the City’s deductible of $250,000. The City’s pollution insurance prior to July 1, 2021 included coverage of $10,000,000 per occurrence and up to $50,000,000 in the aggregate above the City’s deductible of $250,000.

B. Workers Compensation Coverage
Effective December 1, 2004 the City purchased insurance for workers compensation through PRISM with coverage up to statutory limits after the City’s self-insured retention of zero. This policy also covered the District as of October 1, 2011, until the San Mateo Consolidated Fire Department discussed in Note 13A commenced operations on January 13, 2019. Prior to those dates, the City purchased commercial insurance for workers compensation coverage up to statutory limits that had deductibles ranging from $100,000 to $275,000. 87 298

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 13 – RISK MANAGEMENT (Continued)
C. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Workers’ Compensation and General Liability Internal Service Funds. Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

For the fiscal years ended June 30, 2022, 2021 and 2020 the amount of settlements did not exceed insurance coverage.

The City’s liability for uninsured claims is limited to workers’ compensation and general liability claims, as discussed above, and was estimated by management based on prior year’s claims experience as follows:
2022 2021
Balance, July 1 $577,920 $999,674
Net change in claims liabilities 7,030 (327,275)
Claims paid (14,399) (94,479)
Balance, June 30 $570,551 $577,920
NOTE 14 – JOINT VENTURES
The City participates in the joint ventures discussed below through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint venture is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint venture, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities for certain of these joint ventures are not the City’s responsibility and the City generally does not have an equity interest in the assets of each joint venture except upon dissolution of the joint venture. 88 299

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 14 – JOINT VENTURES (Continued)
A. Equity Interests
The City has recorded its equity interest in the following joint ventures:

Silicon Valley Clean Water Joint Powers Authority (SVCW), formerly known as the South Bayside System Authority, was formed in 1975 between the Cities of San Carlos, Belmont and Redwood City and the West Bay Sanitary District to operate a wastewater treatment facility. The cost of operating and maintaining the facility is divided in proportion to the volume of sewage entering from each member entity, based on three-year averages and updated annually. SVCW applies the JPA-defined formula to allocate annual budgeted operating costs to the four member entities and the City’s proportionate share was 11.1% for fiscal year 2022 and is projected to be 11.1% in fiscal year 2023. The City’s share of debt service of SVCW is allocated to the member entities according to the Joint Power Authority Agreement-defined percentage of ownership, as well as member’s participation in each debt issuance. As SVCW continues to fund capital construction projects, debt service payments will peak in fiscal year 2029-30, once significant projects are complete, and all necessary debt is secured. The City’s actual and projected share of debt service costs range from $178,425 in fiscal year 2022 to $1.43 million in fiscal year 2033. The City’s proportionate share of operating and maintaining the facility and debt service, during the year ended, June 30, 2022 was $2,849,225.

In addition, during fiscal year 2009, the SVCW and its members authorized the commencement of a major renovation and replacement project to its infrastructure wastewater facility. In conjunction with that project, the City is obligated to fund its share of project costs. The City’s share of project costs is 9.45%, based on the percentages for each member entity defined in the Joint Power Authority Agreement, which are based on each member’s dry weather capacity owned and its allocated share of future dry weather capacity.

The City has an equity interest in the net assets of SVCW, which has been recorded as Investment in SVCW in the Sewer Enterprise Funds based on the latest audited financial statements of SVCW as of June 30, 2021, plus the additional capital contribution made during the year ended June 30, 2022. The loss from investment in SVCW was $723,609 for the year ended June 30, 2022, and the investment was comprised of the following:

Sewer Sewer
Collections Treatment Total
Balance June 30, 2021 $1,441,253 $44,187,110 $45,628,363 Change in investment (723,609) (723,609)
Additional capital contribution 2,849,226 2,849,226
Balance June 30, 2022 $717,644 $47,036,336 $47,753,980
Financial statements may be obtained by mailing a request to the Silicon Valley Clean Water, 1400 Radio Road, Redwood City, CA 94065.
89 300

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 14 – JOINT VENTURES (Continued)
San Mateo Consolidated Fire Department (SMC Fire) Joint Powers Authority (JPA) was established on November 22, 2017 by the City of San Mateo, the City of Belmont/Belmont Fire Protection District and the City of Foster City/Estero Municipal Improvement District to provide integrated and comprehensive fire protection, fire prevention, and emergency response services to all three communities serving a population of over 164,000. SMC Fire commenced operations on January 13, 2019. Thereafter, certain costs, including the annual employer contribution associated with the unfunded CalPERS pension liability remain with Belmont. Effective January 13, 2019, Belmont’s financial contributions to SMC Fire are accounted for annually as an investment in equity interest in its government-wide financial statements.

SMC Fire is governed under the terms of the JPA Agreement by a Board of Directors consisting of one voting representative and one alternate who are elected members from the governing boards of the three JPA Member Agencies. Each member agency has the following weighted vote: City of San Mateo (60%), Belmont (20%) and City of Foster City (20%). The City’s contributions to SMC Fire in fiscal year 2022 to fund capital outlay and operations totaled $8,405,749. The City has an equity interest in the net assets of SMC Fire, which has been recorded as an Investment in SMC Fire in the governmental activities based on the latest audited financial statements of SMC Fire as of June 30, 2021, plus the capital contributions made during the year ended June 30, 2022, and the investment is comprised of the following:

Governmental
Activities
Balance June 30, 2021 $3,839,618
Change in investment (221,349)
Additional capital contribution 222,000
Balance June 30, 2022 $3,840,269
Audited financial statements are available from City of San Mateo, 330 West 20th Avenue, San Mateo, CA 94403.

B. Other Jointly Governed Organizations
The City also participates in the following jointly governed organizations under which it is obligated to fund annual operating costs, but there is no ongoing equity interest in the net assets of the organizations:

City/County Association of Governments of San Mateo County (C/CAG) was formed in 1990 between the various cities in San Mateo County to prepare, adopt, monitor and enforce state mandated plans for the management of traffic congestion, integrated solid waste, airport land use, hazardous waste and county-wide housing element. The City’s contribution to C/CAG was $84,372 for the year ended June 30, 2022. Financial statements may be obtained by mailing a request to the City of San Carlos, 666 Elm Street, San Carlos, CA 94070. 90 301

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 14 – JOINT VENTURES (Continued)
Peninsula Traffic Congestion Relief Agency was formed by the cities of San Mateo County and San Mateo County to attempt to mitigate traffic congestion. The Agency is funded through a Countywide sales tax levied for transportation systems improvements.

Belmont-San Carlos Fire Department was formed in 1979 between the City of San Carlos and Belmont Fire Protection District on an equal basis to provide more efficient fire protection services. Any assets used by the Department but owned by the member agencies prior to the creation of the Department remain the property of the members.

On September 30, 2011, the Department terminated providing services to the Members. As a result, the Department’s employees were laid off, its capital assets were distributed to the Members and certain lease obligations were assumed by the Members. Subsequent to that date, the Department operates in an inactive mode, collecting Member contributions to fund legacy costs, such as pension and retiree medical obligations and claims payable, remaining after service termination. As required under the Agreement, these legacy costs are funded through contributions from Members according to the average of annual funding formulas used to determine Member contributions. The City’s contribution was roughly $1.7 million for the year ended June 30, 2022.

The Department had a negative net position balance of $30.2 million per its audited financial statements as of June 30, 2022. Belmont's share of this balance was 47.1% or approximately $14.2 million. The negative position is due to unfunded liabilities of the Department.

South Bayside Waste Management Authority (SBWMA) is a joint powers agreement formed on October 13, 1999. Members of the South Bayside Waste Management Authority currently include the cities of Atherton, Belmont, Burlingame, East Palo Alto, Foster City, Hillsborough, Menlo Park, Redwood City, San Carlos, San Mateo, as well as the West Bay Sanitary District and the County of San Mateo. The Members are required by AB939 to reduce, recycle and reuse solid waste generated within their respective jurisdictions and to provide source reduction, recycling and composting activities. The South Bayside Waste Management Authority’s purpose is to assist its members in meeting these requirements.

NOTE 15 – COMMITMENTS AND CONTINGENT LIABILITIES
A. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation, which is likely to have a material adverse effect on the financial position of the City.
91 302

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 15 – COMMITMENTS AND CONTINGENT LIABILITIES (Continued) B. Grant Programs
The City participates in Federal, State and local grant programs. These programs have been audited by the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

C. San Mateo County Animal Shelter
Since 1951 cities in San Mateo County have contracted with the County to manage animal control field and sheltering services. The current shelter has been determined to be inadequate to meet current animal sheltering services. In May 2014, all the municipalities signed an agreement, effective September 9, 2014, to share in the construction costs for a new animal control center by repaying the County through a 30-year, interest free lease agreement in the amount of $20.2 million. The certificate of occupancy for the shelter was issued in May 2020 and the final costs of construction totaled $25.7 million. The City’s share of annual lease payment is based on a methodology of three year average of shelter use and percentage of population. Payment on the lease commenced on July 1, 2020 and the City paid $25,821 for the year ended June 30, 2022.

The cities and the County entered into a new animal care and control, shelter services, and animal licensing agreement effective July 1, 2021 for 5 years ending on June 30, 2026, under which the annual shared contractor and administrative costs total $6.9 million and the annual license fees are expected to be approximately $190 thousand. The City’s share of the costs is 2.58%, or $180 thousand per year for the contractor and administrator costs, plus actual license fees of approximately $5 thousand per year. Payments under the agreement totaled $145,591 for the year ended June 30, 2022.

D. COVID-19 Global Pandemic
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of businesses and shelter in place orders for all but those deemed essential services. City Hall remained closed to the public until July 2021, and although many of the City’s services are considered essential, certain other services transitioned to online.

The City's major revenue sources, including businesses that collect sales and transient occupancy taxes, have been directly impacted by these events. However, the ultimate financial impact and duration cannot be reasonably estimated at this time.
92 303

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 16 – SUCCESSOR AGENCY TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES A. Redevelopment Dissolution
Effective January 31, 2012, all Redevelopment Agencies were dissolved. Certain assets of the former Belmont Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and all remaining former Redevelopment Agency assets and liabilities were distributed to the Successor Agency.

ABx1 26 and AB1484 directed the State Controller to review the activities of all former redevelopment agencies and successor agencies to determine whether an asset transfer between a former redevelopment agency and any public agency occurred on or after January 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.

The Belmont Successor Agency received a Finding of Completion from the California Department of Finance (DOF) in October 1, 2014, pursuant to Health and Safety Code (HSC) Section 34179.7.

The City, acting as the Successor Agency, prepared a Long Range Property Management Plan (LRPMP) in compliance with AB 1484, which was approved by the Belmont Oversight Board on February 12, 2015, and subsequently submitted to the State DOF. Following the submission of the LRPMP to DOF, the Successor Agency identified additional information which necessitated revising the LRPMP previously submitted. On May 28, 2015, the Successor Agency Oversight Board approved a revised LRPMP, which was approved by the State DOF on September 4, 2015.

On December 19, 2017, the State DOF approved the Belmont Successor Agency's Last and Final Recognized Obligations Payment Schedule.

In April 2021, both the Belmont Successor Agency and San Mateo Countywide Oversight Board took a series of actions to initiate early defeasance of the outstanding Senior Series 2014A and Subordinate Series 2014B Bonds (“2014 Series Bonds”) held by the Successor Agency. This included approval of amendments to the 2014 Series Bonds indentures of trust, approval of an Amended Last and Final Recognized Obligations Payment Schedule, and directing the Successor Agency to defease the bonds and initiate final dissolution of the Successor Agency. DOF approved the Amended Last and Final ROPS on July 30, 2021.

The 2014 Series Bonds were defeased in January 2022 as detailed below, after which the Successor Agency and San Mateo Countywide Oversight Board took the required actions to dissolve the Belmont Successor Agency. DOF issued a final dissolution approval letter on April 27, 2022; all Successor Agency operations have been terminated as of June 30, 2022.

B. San Mateo Countywide Consolidated Oversight Board
On July 1, 2018, the duties of the Belmont Oversight Board transferred to a new San Mateo Countywide Consolidated Oversight Board, which is responsible for overseeing the winddown affairs of all Successor Agencies in San Mateo County, including the Belmont Successor Agency. 93 304

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 16 – SUCCESSOR AGENCY TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued) C. Long-Term Debt

1. Current Year Transactions and Balances
The Successor Agency assumed the long-term obligations of the former Redevelopment Agency as of February 2012. The debt issues and transactions are summarized below.

Balance as of June 30, 2022
Balance Due Within Due Beyond
June 30, 2021 Retirements One Year One Year
Redevelopment Long-Term Bonds Payable:
2014 Series A Refunding Bonds,

2.22%-3.41%, due serially to 2030 $3,095,000 $3,095,000 2014 Series B Subordinated Bonds,

2.33%-3.89%, due serially to 2030 1,840,000 1,840,000
Total $4,935,000 $4,935,000 $0 $0
On August 19, 2014, the Successor Agency issued the $7,375,000 Series 2014A Senior Tax Allocation Refunding Bonds to facilitate a current refunding of the outstanding 1999A Bonds; and the $3,050,000 Series 2014AB Subordinate Tax Allocation Refunding Bonds to facilitate a current refunding of both outstanding 1999B Bonds and 1996 Housing Set-Aside Bonds.

In December 2021, the Successor Agency received a one-time lump sum allocation of property taxes from San Mateo County in the amount of $3,856,881, which the Successor Agency used along with cash on hand and available debt service fund totaling $598,684 to advance refund $4,100,000 of the outstanding 2014AB Bonds, which were to mature in fiscal year 2030. In January 2022, the Successor Agency deposited $4,455,565 in an irrevocable trust with an escrow agent to provide funds for the future debt service payments on the refunded bonds until they can be called in August 2024. As a result, the 2014AB Bonds are considered defeased and the liability for those bonds has been removed from the statement of net position. The defeasance was undertaken to terminate the Successor Agency’s enforceable financial obligations, expedite dissolution of the Successor Agency, and generate tax savings and benefit for local taxing entities and resulted in a savings to the Redevelopment Property Tax Trust Fund of $719,564. The outstanding balance of the defeased bonds was $4,100,000 as of June 30, 2022. 94 305

CITY OF BELMONT

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 16 – SUCCESSOR AGENCY TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued) D. State Approval of Enforceable Obligations
The Successor Agency previously prepared a Recognized Obligation Payment Schedule (ROPS) annually that contained all proposed expenditures for the subsequent twelve-month period.

The ROPS is subject to the review and approval of the Oversight Board as well as the 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 State Department of Finance approved the Successor Agency’s Last and Final ROPS on December 19, 2017, which detailed the maximum RPTTF distribution of $8,318,869 over the next 12 years. The Successor Agency was to receive semiannual RPTTF distributions up to the maximum approved amount on the Last and Final ROPS and could submit no more than two requests to amend the approved Last and Final ROPS. To facilitate the defeasance of the 2014AB Bonds discussed above, the Successor Agency amended the Last and Final ROPS payment schedule, which was approved by the Department of Finance on July 30, 2021 and the Successor Agency will not receive additional distributions. 95 306
This Page Left Intentionally Blank
307

REQUIRED SUPPLEMENTARY INFORMATION
308
City of Belmont
Cost Sharing Multiple-Employer Defined Benefit Pension Plan Last 10 Years*

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Safety Rate Plan
Measurement Date - June 30, 2014 2015 2016 2017 2018 2019 2020 2021 Plan's proportion of the Net Pension Liability
(Asset) 0.20% 0.20% 0.31% 0.31% 0.31% 0.31% 0.30% 0.34% Plan's proportion share of the Net Pension
Liability (Asset) $12,312,595 $13,427,040 $16,249,057 $18,263,828 $18,172,487 $19,293,513 $20,251,178 $11,813,386 Plan's Covered Payroll $3,572,606 $3,842,764 $4,758,030 $4,919,474 $5,180,593 $4,397,264 $4,078,548 $4,078,548 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered
Payroll 345% 349% 342% 371% 351% 439% 497% 290%
Miscellaneous Rate Plan
Measurement Date - June 30, 2014 2015 2016 2017 2018 2019 2020 2021 Plan's proportion of the Net Pension Liability
(Asset) 0.48% 0.48% 0.48% 0.48% 0.48% 0.50% 0.50% 0.66% Plan's proportion share of the Net Pension
Liability (Asset) $16,585,515 $13,198,544 $16,585,515 $19,048,251 $18,686,649 $20,209,752 $21,245,410 $12,449,103 Plan's Covered Payroll $8,929,517 $8,858,005 $9,854,986 $10,289,053 $10,592,598 $10,632,569 $9,489,183 $9,890,731 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered
Payroll 186% 149% 168% 185% 176% 190% 224% 126%
Plan Totals
Measurement Date - June 30, 2014 2015 2016 2017 2018 2019 2020 2021 Plan's proportion of the Net Pension Liability
(Asset) 0.68% 0.68% 0.79% 0.79% 0.79% 0.81% 0.80% 1.00% Plan's proportion share of the Net Pension
Liability (Asset) $28,898,110 $26,625,584 $32,834,572 $37,312,079 $36,859,136 $39,503,265 $41,496,588 $24,262,489 Plan's Covered Payroll $12,502,123 $12,700,769 $14,613,016 $15,208,527 $15,773,191 $15,029,833 $13,567,731 $14,051,612 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered
Payroll 231.15% 209.64% 224.69% 245.34% 233.68% 262.83% 305.85% 172.67% Plan’s Fiduciary Net Position as a Percentage of
the Total Pension Liability 79.82% 78.40% 74.06% 73.31% 75.26% 75.26% 75.10% 88.29% * Fiscal year 2015 was the first year of implementation 98 309
City of Belmont
Cost Sharing Multiple-Employer Defined Benefit Pension Plan Last 10 Years*

SCHEDULE OF CONTRIBUTIONS
Safety Rate Plan
Fiscal Year Ended June 30, 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution $1,125,011 $2,287,426 $2,058,664 $2,263,676 $2,293,736 $2,660,652 $2,700,413 $2,752,531 Contributions in relation to the actuarially
determined contributions (1,125,011) (2,287,426) (2,058,664) (2,263,676) (2,293,736) (2,660,652) (2,700,413) (2,752,531) Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0 $0 Covered payroll $3,842,764 $4,758,030 $4,919,474 $5,180,593 $4,397,264 $4,078,548 $4,160,881 $4,035,453 Contributions as a percentage of
covered payroll 29.28% 48.08% 41.85% 43.70% 52.16% 65.24% 64.90% 68.21% Miscellaneous Rate Plan
Fiscal Year Ended June 30, 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution $1,137,293 $1,903,476 $1,523,004 $1,663,314 $1,921,271 $2,633,458 $2,799,829 $2,825,996 Contributions in relation to the actuarially
determined contributions (1,137,293) (1,903,476) (1,523,004) (1,663,314) (1,921,271) (2,633,458) (2,799,829) (2,825,996) Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0 $0 Covered payroll $8,858,005 $9,854,986 $10,289,053 $10,592,598 $10,632,569 $9,489,183 $9,890,731 $9,621,685 Contributions as a percentage of
covered payroll 12.84% 19.31% 14.80% 15.70% 18.07% 27.75% 28.31% 29.37% Plan Totals
Fiscal Year Ended June 30, 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution $2,262,304 $4,190,902 $3,581,668 $3,926,990 $4,215,007 $5,294,110 $5,500,242 $5,578,527 Contributions in relation to the actuarially
determined contributions (2,262,304) (4,190,902) (3,581,668) (3,926,990) (4,215,007) (5,294,110) (5,500,242) (5,578,527) Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0 $0 Covered payroll $12,700,769 $14,613,016 $15,208,527 $15,773,191 $15,029,833 $13,567,731 $14,051,612 $13,657,138 Contributions as a percentage of
covered payroll 17.81% 28.68% 23.55% 24.90% 28.04% 39.02% 39.14% 40.85% * Fiscal year 2015 was the first year of implementation. 99 310
City of Belmont
Schedule of Changes in the City's Net OPEB Liability and Related Ratios Agent Multiple Employer Defined Benefit OPEB Plan
For the measurement year ending June 30
Last 10 Years*
Measurement Date - June 30, 2017 2018 2019 2020 2021
Total OPEB Liability
Service Cost $370,743 $381,865 $375,298 $336,270 $346,358 Interest on the total OPEB Liability 1,013,089 1,022,229 1,101,266 974,383 1,012,016 Actual and expected experience difference - - (2,333,966) - (1,009,642) Changes in assumptions - (430,465) 1,023,392 - (304,718) Changes in benefit terms - - - - -
Benefit Payments (592,208) (608,758) (669,829) (581,052) (629,633) Implicit rate subsidy fulfilled (218,910) (234,234) (234,234) (152,749) (162,997) Net change in total OPEB liability 572,714 130,637 (738,073) 576,852 (748,616) Total OPEB liability - beginning 14,500,658 15,073,372 15,204,009 14,465,936 15,042,788 Total OPEB liability - ending (a) $15,073,372 $15,204,009 $14,465,936 $15,042,788 $14,294,172 Plan fiduciary net position
Contributions - employer-City's contribution $920,754 $880,232 $940,286 $909,577 $876,080 Contributions - employer-implicit subsidy 218,910 234,234 234,234 152,749 162,997 Net investment income 465,943 401,898 370,618 258,178 1,964,480 Benefit payments (592,208) (608,758) (669,829) (581,052) (629,633) Implicit rate subsidy fulfilled (218,910) (234,234) (234,234) (152,749) (162,997) Administrative expense (2,373) (2,813) (1,269) (5,308) (4,676) Net change in plan fiduciary net position 792,116 670,559 639,806 581,395 2,206,251 Plan fiduciary net position - beginning 4,417,282 5,209,398 5,879,957 6,519,763 7,101,158 Plan fiduciary net position - ending (b) $5,209,398 $5,879,957 $6,519,763 $7,101,158 $9,307,409 Net OPEB liability - ending (a)-(b) $9,863,974 $9,324,052 $7,946,173 $7,941,630 $4,986,763 Plan fiduciary net position as a percentage of the
total OPEB liability 34.56% 38.67% 45.07% 47.21% 65.11% Covered-Employee Payroll $13,696,266 $14,265,327 $14,953,325 $15,418,025 $15,860,488 Net OPEB liability as percentage of coveredemployee payroll 72.02% 65.36% 53.14% 51.51% 31.44% Notes to Schedule:
*The City adopted GASB 75 during the fiscal year ended June 30, 2018. 100
311
Fiscal Year Ending June 30, 2018 2019 2020 2021 2022
Actuarially determined contribution $1,153,043 $1,229,277 $1,018,423 $1,039,077 $1,061,419 Contributions in relation to the
actuarially determined contributions (1,139,664) (1,174,520) (1,062,326) (1,039,077) (1,059,766) Contribution deficiency (excess) $13,379 $54,757 ($43,903) $0 $1,653 Covered-employee payroll $14,265,327 $14,953,325 $15,418,025 $15,860,488 $15,413,540 Contributions as a percentage of
covered-employee payroll 8.0% 7.9% 6.9% 6.6% 6.9%
Notes to Schedule
Valuation date: 7/1/2017 7/1/2017 7/1/2019 7/1/2019 7/1/2019 Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry age normal, level percent of pay Amortization Method Closed period, level percent of pay Amortization Period 15 years
Inflation 2.5% for 2018 and 2019; 2.75% for 2020, 2021 and 2022 Assumed Payroll Growth 3.0% for 2018, 2.75% for 2019 and 2022, 3.0% for 2020 and 2021 Healthcare trend rates 6.50%, trending down to 3.84% for 2018

7.0%, trending down to 3.84% for 2019

6.3%, trending down to 4.0% for 2020, 2021 and 2022
Rate of return on assets 7.0% for 2018, 7.28% for 2019 and 6.75% for 2020, 2021 and 2022 Mortality rate CalPERS Rates
Retirement Rates CalPERS Rates
* Fiscal year 2018 was the first year of implementation.

Agent Multiple Employer Defined Benefit OPEB Plan

SCHEDULE OF CONTRIBUTIONS
City of Belmont
For the fiscal year ending June 30
Last 10 Years*
101
312
City of Belmont
Schedule of Changes in the Belmont Fire Protection District's Net OPEB Liability and Related Ratios
Agent Multiple Employer Defined Benefit OPEB Plan
For the measurement year ending June 30
Last 10 Years*
Measurement Date - June 30, 2017 2018 2019 2020 2021
Total OPEB Liability
Service Cost $135,523 $139,589 $140,544 $ - $ -
Interest on the total OPEB Liability 123,123 132,415 152,041 87,946 87,950 Actual and expected experience difference - - (956,257) - 781,678 Changes in assumptions - (45,680) 98,289 - 167,346
Changes in benefit terms - - - - -
Benefit Payments (60,100) (39,972) (43,125) (63,553) (68,772) Implicit rate subsidy fulfilled (32,332) (34,595) (34,595) (18,011) (25,449) Net change in total OPEB liability 166,214 151,757 (643,103) 6,382 942,753 Total OPEB liability - beginning 1,668,817 1,835,031 1,986,788 1,343,685 1,350,067 Total OPEB liability - ending (a) $1,835,031 $1,986,788 $1,343,685 $1,350,067 $2,292,820 Plan fiduciary net position
Contributions - employer-District's contribution $338,844 $179,326 $139,141 $363 $ - Contributions - employer-implicit subsidy 32,332 34,595 34,595 18,011 - Net investment income 90,364 114,253 113,037 75,366 550,861 Investment Gains on Expected Return 27,956 - -
Benefit payments (60,100) (39,972) (43,125) (63,553) (68,772) Implicit rate subsidy fulfilled (32,332) (34,595) (34,595) (18,011) (25,449) Administrative expense (608) (839) (385) (1,311) (1,066) Net change in plan fiduciary net position 396,456 252,768 208,668 10,865 455,574 Plan fiduciary net position - beginning 1,124,652 1,521,108 1,773,876 1,982,544 1,993,409 Plan fiduciary net position - ending (b) $1,521,108 $1,773,876 $1,982,544 $1,993,409 $2,448,983 Net OPEB liability - ending (a)-(b) $313,923 $212,912 ($638,859) ($643,342) ($156,163) Plan fiduciary net position as a percentage of the total OPEB liability 82.89% 89.28% 147.55% 147.65% 106.81%
Covered-employee payroll $4,177,634 $4,249,486 $2,979,220 $217,500 $ - Net OPEB liability as percentage of covered-employee
payroll 7.51% 5.01% -21.44% -295.79% n/a
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation. 102
313
City of Belmont
Belmont Fire Protection District
For the fiscal year ending June 30
Last 10 Years*

SCHEDULE OF CONTRIBUTIONS
Agent Multiple Employer Defined Benefit OPEB Plan
Fiscal Year Ending 2018 2019 2020 2021 2022
Actuarially determined contribution $185,827 $165,429 $0 $0 $0 Contributions in relation to the
actuarially determined contributions (371,176) (213,921) (18,374) - (89,085) Contribution deficiency (excess) ($185,349) ($48,492) (18,374) - (89,085) Covered payroll $4,249,486 $2,979,220 $217,500 $0 $0
Contributions as a percentage of
covered payroll 8.73% 7.18% 8.45% N/A N/A
Notes to Schedule
Valuation date: 7/1/2017 7/1/2017 7/1/2019 7/1/2019 7/1/2019 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal, level percent of pay Amortization method Closed period, level percent of pay Amortization period 18 years
Inflation 2.5% for 2018 and 2019; 2.75% for 2020, 2021 and 2022 Assumed Payroll Growth 3.0% for 2018, 2.75% for 2019, 3.0% for 2020 and 2021 and 0% for 2022 Healthcare trend rates 6.50%, trending down to 3.84% for 2018

7.0%, trending down to 3.84% for 2019

6.3%, trending down to 4.0% for 2020, 2021 and 2022
Rate of return on assets 7.0% for 2018, 7.28% for 2019 and 6.75% for 2020, 2021 and 2022 Mortality rate CalPERS Rates
Retirement Rates CalPERS Rates
* Fiscal year 2018 was the first year of implementation. 103
314
This Page Left Intentionally Blank
315

SUPPLEMENTAL INFORMATION
316
This Page Left Intentionally Blank
317

CITY OF BELMONT

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022
Total
General
General Measure I Fund

REVENUES
Taxes $18,719,369 $2,275,183 $20,994,552
Licenses and permits 1,068,168 1,068,168
Fines and forfeitures 156,422 156,422
Use of money and property 459,411 7,361 466,772
Intergovernmental 3,269,239 3,269,239
Charges for current services 4,439,421 4,439,421
Miscellaneous 84,196 84,196
Total Revenues 28,196,226 2,282,544 30,478,770

EXPENDITURES
Current:

General government 5,750,762 5,750,762
Public safety 13,921,818 13,921,818
Culture and recreation 1,949,999 1,949,999
Capital outlay 1,709,387 1,709,387
Total Expenditures 21,622,579 1,709,387 23,331,966

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 6,573,647 573,157 7,146,804

OTHER FINANCING SOURCES (USES)
Transfers (out) (1,958,815) (1,385,864) (3,344,679)
Total Other Financing Sources (Uses) (1,958,815) (1,385,864) (3,344,679) NET CHANGE IN FUND BALANCES 4,614,832 (812,707) 3,802,125 BEGINNING FUND BALANCES 13,398,109 3,751,162 17,149,271 ENDING FUND BALANCES $18,012,941 $2,938,455 $20,951,396 107
318

CITY OF BELMONT

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
General
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $16,409,153 $17,520,153 $18,719,369 $1,199,216
Licenses and permits 1,072,512 1,072,512 1,068,168 (4,344) Fines and forfeitures 164,000 164,000 156,422 (7,578)
Use of money and property 1,105,775 1,083,775 459,411 (624,364) Intergovernmental 3,230,660 3,230,660 3,269,239 38,579
Charges for current services 4,364,328 4,453,328 4,439,421 (13,907) Miscellaneous 7,465 47,465 84,196 36,731
Total Revenues 26,353,893 27,571,893 28,196,226 624,333 EXPENDITURES:

Current:

General government 6,294,336 6,896,699 5,750,762 1,145,937 Public safety 14,430,563 14,430,563 13,921,818 508,745
Culture and recreation 2,027,378 2,027,378 1,949,999 77,379 Capital outlay
Total Expenditures 22,752,277 23,354,640 21,622,579 1,732,061

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,601,616 4,217,253 6,573,647 2,356,394

OTHER FINANCING SOURCES USES
Transfers in
Transfers out (3,015,000) (2,863,000) (1,958,815) 904,185 Total Other Financing Sources (Uses) (3,015,000) (2,863,000) (1,958,815) 904,185 NET CHANGE IN FUND BALANCE $586,616 $1,354,253 4,614,832 $3,260,579 BEGINNING FUND BALANCE 13,398,109
ENDING FUND BALANCE $18,012,941
108
319
Measure I Total General Fund
Variance with Variance with
Budgeted Amounts Final Budget Budgeted Amounts Final Budget Actual Positive Actual Positive
Original Final Amounts (Negative) Original Final Amounts (Negative) $2,013,376 $2,213,376 $2,275,183 $61,807 $18,422,529 $19,733,529 $20,994,552 $1,261,023 1,072,512 1,072,512 1,068,168 (4,344)
164,000 164,000 156,422 (7,578)
9,069 9,069 7,361 (1,708) 1,114,844 1,092,844 466,772 (626,072) 3,230,660 3,230,660 3,269,239 38,579
4,364,328 4,453,328 4,439,421 (13,907)
7,465 47,465 84,196 36,731
2,022,445 2,222,445 2,282,544 60,099 28,376,338 29,794,338 30,478,770 684,432 309,200 309,200 6,294,336 7,205,899 5,750,762 1,455,137 14,430,563 14,430,563 13,921,818 508,745
2,027,378 2,027,378 1,949,999 77,379
4,110,000 3,460,000 1,709,387 1,750,613 4,110,000 3,460,000 1,709,387 1,750,613 4,110,000 3,769,200 1,709,387 2,059,813 26,862,277 27,123,840 23,331,966 3,791,874 (2,087,555) (1,546,755) 573,157 2,119,912 1,514,061 2,670,498 7,146,804 4,476,306 (1,380,000) (1,385,864) (5,864) (3,015,000) (4,243,000) (3,344,679) 898,321 (1,380,000) (1,385,864) (5,864) (3,015,000) (4,243,000) (3,344,679) 898,321 ($2,087,555) ($2,926,755) (812,707) $2,114,048 ($1,500,939) ($1,572,502) 3,802,125 $5,374,627 3,751,162 17,149,271
$2,938,455 $20,951,396
109
320
This Page Left Intentionally Blank
321

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Recreation – To account for certain recreation programs where a large portion of the expenditures are financed by user fees.

Library Maintenance and Operations – To account for funds restricted for the maintenance and operations of the library, which is financed by parcel tax and special tax revenue.

City Trees – To account for the removal of trees required for the development of property, which is financed by user fees.

Development Services – To account for the Permit Center and Development Regulation Programs. This fund makes it possible for staff to track and determine if development fees are covering the direct and indirect cost of providing these services. State law allows for full recovery of these costs.

General Plan Maintenance – To account for activities related to the General Plan Update which are financed by user fees.

Supplemental Law Enforcement Services – To account for resources received from the State of California to be spent on front line law enforcement needs.

Public Safety – To account for grants and donations committed to the Police Department’s activities.

Street Maintenance – To account for gas tax resources restricted for expenditure on streets.

Street Improvements – To account for the City’s portion of the special half cent sales tax (Measure A) receipts restricted for street expenditures and other street related grants.

Measure W – To account for the City’s portion of the special half cent sales tax (Measure W) receipts restricted for street expenditures.

Athletic Field Maintenance – To account for athletic field maintenance and operations, which are financed by player registration fees.

Affordable Housing – To account for all housing operations of the City of Belmont in its capacity as the Housing Successor Agency to the former Belmont Redevelopment Agency. Activities include asset property management, rental operations, and long range housing planning.

Housing Mitigation Fees – To account for residential mitigation fees collected from new development activity, including the residential housing in-lieu fee and the commercial linkage fee. These housing mitigation fees are intended to be used to lessen the burdens created by new residential and nonresidential development on the need for affordable housing.

Road Maintenance and Rehabilitation Account Fund (RMRA) – To account for gas tax resources restricted for expenditure on basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. Senate Bill (SB) 1, the Road Repair and Accountability Act of 2017 provides funding for local streets and roads over the next 10 years. 111
322
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Senior Donations – To account for donations from the community to be used for senior services and programming.

Public Art – To account for the private development fee paid in lieu of incorporating art elements in the development to provide funds for art installations on City property.

Traffic Mitigation – To account for transportation impact fees. Traffic Impact Fee revenues will be used to mitigate the impacts of new development by requiring new development to contribute to future transportation system investments in the City based on maintaining the existing proportionate level of investment in the City’s transportation infrastructure.

CAPITAL PROJECTS FUNDS
General Facilities – To account for the construction and maintenance of improvements to general-use City facilities.

Infrastructure – To account for expenditures associated with the City infrastructure, including streets, retaining walls, bridges, culverts, and waterways.

Comcast – To account for the purchase and installation of hardware within City Hall to broadcast events to Pen TV, our Public Education Government Channel.

Planned Park – To account for the acquisition and improvement of parks, playgrounds, and recreation facilities.

Special Assessment District – To account for maintenance and improvement costs within City’s Special Assessment District boundaries. Resources represent funds remaining after the retirement of Special Assessment Debt.

Open Space – To account for the accumulation of resources for the acquisition, preservation, and improvements of open space.

Park Impact Fees – The Park Impact Fee Fund is to account for park impact fees, interest earned thereon and their expenditure, pursuant to the Mitigation Fee Act, needed to ensure that the City can construct park and recreation facilities and improvements needed for the population growth created by new development consistent with the policies of the City of Belmont General Plan. 112
323
This Page Left Intentionally Blank
324
Library
Maintenance
and City Development
Recreation Operations Trees Services
ASSETS
Cash and investments $8,749 $836,903 $297,253 $1,251,097 Receivables:

Accounts 58,426 1,026
Due from other
governmental agencies 4,410
Notes
Land held for redevelopment
Total Assets $67,175 $841,313 $297,253 $1,252,123

LIABILITIES
Accounts payable and other liabilities $67,174 $5,725 $125 $167,860 Deposits
Due to other funds
Total Liabilities 67,174 5,725 125 167,860

FUND BALANCES
Restricted 1 835,588 297,128
Committed 1,084,263
Assigned
Total Fund Balances 1 835,588 297,128 1,084,263
Total Liabilities and
Fund Balances $67,175 $841,313 $297,253 $1,252,123

SPECIAL REVENUE FUNDS

CITY OF BELMONT

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2022
114
325

SPECIAL REVENUE FUNDS
Supplemental
Law
General Plan Enforcement Public Street Street
Maintenance Services Safety Maintenance Improvements Measure W $1,305,231 $32,875 $1,369,724 $1,391,591
$11,611 19,407 65,714
70,439 63,551
$1,305,231 $32,875 $82,050 $1,452,682 $1,457,305
$66 $29,750 $548,032
52,300
66 82,050 548,032
904,650 $1,457,305
$1,305,231 32,809
1,305,231 32,809 904,650 1,457,305
$1,305,231 $32,875 $82,050 $1,452,682 $1,457,305
(Continued)
115
326

SPECIAL REVENUE FUNDS
Road Maintenance
Athletic Field Affordable Housing and Rehabilitation
Maintenance Housing Mitigation Fees Account (SB1)
ASSETS
Cash and investments $385,821 $939,369 $163,110 $424,896 Receivables:

Accounts
Due from other
governmental agencies 50,860
Notes 4,271,268 2,289,147
Land held for redevelopment 1,353,043
Total Assets $385,821 $6,563,680 $2,452,257 $475,756

LIABILITIES
Accounts payable and other liabilities $10,323 $18,911 $475,756 Deposits 76,883
Due to other funds
Total Liabilities 10,323 95,794 475,756

FUND BALANCES
Restricted 375,498 6,467,886 $2,452,257
Committed
Assigned
Total Fund Balances 375,498 6,467,886 2,452,257
Total Liabilities and
Fund Balances $385,821 $6,563,680 $2,452,257 $475,756

CITY OF BELMONT

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2022
116
327

SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS
Senior Public Traffic General Planned
Donations Art Mitigation Facilities Infrastructure Comcast Park $90,141 $395,576 $200,429 $724,921 $3,473,844 $396,000 $2,004,690 37,500
$90,141 $395,576 $200,429 $724,921 $3,511,344 $396,000 $2,004,690 $97 $701,786 $15,305
97 701,786 15,305
90,044 395,576 $200,429 $396,000 1,989,385
$724,921 2,809,558
90,044 395,576 200,429 724,921 2,809,558 396,000 1,989,385 $90,141 $395,576 $200,429 $724,921 $3,511,344 $396,000 $2,004,690 (Continued)
117
328

CAPITAL PROJECTS FUNDS
Total
Special Nonmajor
Assessment Open Park Governmental
District Space Impact Fees Funds
ASSETS
Cash and investments $308,330 $176,687 $326,675 $16,503,912 Receivables:

Accounts 193,684
Due from other
governmental agencies 189,260
Notes 6,560,415
Land held for redevelopment 1,353,043
Total Assets $308,330 $176,687 $326,675 $24,800,314

LIABILITIES
Accounts payable and other liabilities $12,605 $2,053,515 Deposits 76,883
Due to other funds 52,300
Total Liabilities 12,605 2,182,698

FUND BALANCES
Restricted $308,330 $326,675 16,496,752
Committed 2,422,303
Assigned 164,082 3,698,561
Total Fund Balances 308,330 164,082 326,675 22,617,616
Total Liabilities and
Fund Balances $308,330 $176,687 $326,675 $24,800,314

CITY OF BELMONT

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2022
118
329
This Page Left Intentionally Blank
330

CITY OF BELMONT

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
Library
Maintenance
and City Development
Recreation Operations Trees Services

REVENUES
Taxes $302,838
Licenses and permits $2,344,489
Use of money and property ($1,587) 2,018 $716 1,235
Intergovernmental 109,356
Charges for current services 1,962,796 9,295 2,741,811
Miscellaneous 6,509 9,880
Total Revenues 2,077,074 304,856 10,011 5,097,415

EXPENDITURES
Current:

Public safety
Highways and streets
Culture and recreation 2,863,957 431,670 39,292
Urban redevelopment 4,764,466
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 2,863,957 431,670 39,292 4,764,466

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (786,883) (126,814) (29,281) 332,949

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets
Transfers in 766,377 334,492
Transfers (out) (738,129)
Total Other Financing
Sources (Uses) 766,377 (403,637)
NET CHANGE IN FUND BALANCES (20,506) (126,814) (29,281) (70,688) BEGINNING FUND BALANCES 20,507 962,402 326,409 1,154,951 ENDING FUND BALANCES $1 $835,588 $297,128 $1,084,263

SPECIAL REVENUE FUNDS
120
331

SPECIAL REVENUE FUNDS
Supplemental
Law
General Plan Enforcement Public Street Street
Maintenance Services Safety Maintenance Improvements Measure W $566,651 $850,784 $376,762
$2,434 ($100) $79 5 5,152 1,766
161,285 974,082 829,190
549,576 539,805
23,148 500 156,935
575,158 161,185 79 1,106,961 1,986,953 1,207,718
240,123 2,370
2,001,625
8,056
3,243,388
8,056 240,123 2,370 2,001,625 3,243,388
567,102 (78,938) (2,291) (894,664) (1,256,435) 1,207,718 738,129 78,938 183,476
738,129 78,938 183,476
1,305,231 (2,291) (711,188) (1,256,435) 1,207,718
35,100 711,188 2,161,085 249,587
$1,305,231 $32,809 $904,650 $1,457,305
(Continued)
121
332

CITY OF BELMONT

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
Road Maintenance
Athletic Field Affordable Housing and Rehabilitation
Maintenance Housing Mitigation Fees Account (SB1)

REVENUES
Taxes
Licenses and permits
Use of money and property $908 $83,557 $67,058 $215
Intergovernmental 536,938
Charges for current services 90,528
Miscellaneous 5,298 7,401
Total Revenues 96,734 90,958 67,058 537,153

EXPENDITURES
Current:

Public safety
Highways and streets
Culture and recreation 73,743
Urban redevelopment 447,453
Capital outlay 24,760 1,104,828
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 98,503 447,453 1,104,828

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,769) (356,495) 67,058 (567,675)

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets 4,050,000
Transfers in 244,238
Transfers (out) (913,537)
Total Other Financing
Sources (Uses) 3,136,463 244,238
NET CHANGE IN FUND BALANCES (1,769) 2,779,968 67,058 (323,437) BEGINNING FUND BALANCES 377,267 3,687,918 2,385,199 323,437 ENDING FUND BALANCES $375,498 $6,467,886 $2,452,257
122
333

SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS
Senior Public Traffic General Planned
Donations Art Mitigation Facilities Infrastructure Comcast Park $32,581
$209 $349 $429 $1,744 $7,192 ($500)
75,000 $911
395,227 200,000
3,565
3,774 395,576 200,429 1,744 82,192 33,492 (500)
3 104,052 960,510 178,672
560,035
107,965
3 104,052 960,510 846,672
3,771 395,576 200,429 (102,308) (878,318) 33,492 (847,172) 1,385,864 2,500,000
(20,900)
1,385,864 2,479,100
3,771 395,576 200,429 (102,308) 507,546 33,492 1,631,928 86,273 827,229 2,302,012 362,508 357,457
$90,044 $395,576 $200,429 $724,921 $2,809,558 $396,000 $1,989,385 (Continued)
123
334

CITY OF BELMONT

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022

CAPITAL PROJECTS FUNDS
Total
Special Nonmajor
Assessment Open Park Governmental
District Space Impact Fees Funds

REVENUES
Taxes $2,129,616
Licenses and permits 2,344,489
Use of money and property $725 $397 $4,549 178,550
Intergovernmental 2,686,762
Charges for current services 1,553,490 8,042,528
Miscellaneous 213,236
Total Revenues 725 397 1,558,039 15,595,181

EXPENDITURES
Current:

Public safety 242,493
Highways and streets 2,001,625
Culture and recreation 3,408,665
Urban redevelopment 5,219,975
Capital outlay 63,452 128,384 5,808,046
Debt service:

Principal 560,035
Interest and fiscal charges 107,965
Total Expenditures 63,452 128,384 17,348,804

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 725 (63,055) 1,429,655 (1,753,623)

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets 4,050,000
Transfers in 20,900 6,252,414
Transfers (out) (2,500,000) (4,172,566)
Total Other Financing
Sources (Uses) 20,900 (2,500,000) 6,129,848
NET CHANGE IN FUND BALANCES 725 (42,155) (1,070,345) 4,376,225 BEGINNING FUND BALANCES 307,605 206,237 1,397,020 18,241,391 ENDING FUND BALANCES $308,330 $164,082 $326,675 $22,617,616 124
335
This Page Left Intentionally Blank
336

CITY OF BELMONT

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS

LIBRARY MAINTENANCE

RECREATION AND OPERATIONS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes $303,706 $302,838 ($868)
Licenses and permits
Use of money and property ($1,587) ($1,587) 3,709 2,018 (1,691) Intergovernmental $84,958 109,356 24,398
Charges for current services 1,711,736 1,962,796 251,060 Miscellaneous 24,125 6,509 (17,616)
Total Revenues 1,820,819 2,077,074 256,255 307,415 304,856 (2,559)

EXPENDITURES
Current
Public safety
Highways and streets
Culture and recreation 2,833,171 2,863,957 (30,786) 415,430 431,670 (16,240) Urban redevelopment
Capital outlay 32,000 32,000
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 2,833,171 2,863,957 (30,786) 447,430 431,670 15,760

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,012,352) (786,883) 225,469 (140,015) (126,814) 13,201

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets
Transfers in 1,085,000 766,377 (318,623)
Transfers (out)
Total Other Financing Sources (Uses) 1,085,000 766,377 (318,623) NET CHANGE IN FUND BALANCES $72,648 (20,506) ($93,154) ($140,015) (126,814) $13,201 BEGINNING FUND BALANCES 20,507 962,402
ENDING FUND BALANCES $1 $835,588
126
337

SPECIAL REVENUE FUNDS

CITY TREES DEVELOPMENT SERVICES GENERAL PLAN MAINTENANCE Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,844,000 $2,344,489 $500,489
$1,306 $716 ($590) 2,011 1,235 (776) $1,811 $2,434 $623 5,000 9,295 4,295 2,416,186 2,741,811 325,625 500,000 549,576 49,576 7,000 9,880 2,880 23,148 23,148
6,306 10,011 3,705 4,269,197 5,097,415 828,218 501,811 575,158 73,347 73,990 39,292 34,698
5,419,685 4,764,466 655,219 115,000 8,056 106,944
73,990 39,292 34,698 5,419,685 4,764,466 655,219 115,000 8,056 106,944 (67,684) (29,281) 38,403 (1,150,488) 332,949 1,483,437 386,811 567,102 180,291 1,200,000 334,492 (865,508) 738,129 738,129
(738,129) (738,129) (200,000) 200,000
1,200,000 (403,637) (1,603,637) (200,000) 738,129 938,129 ($67,684) (29,281) $38,403 $49,512 (70,688) ($120,200) $186,811 1,305,231 $1,118,420 326,409 1,154,951
$297,128 $1,084,263 $1,305,231
(Continued)
127
338

SPECIAL REVENUE FUNDS

SUPPLEMENTAL LAW

ENFORCEMENT SERVICES PUBLIC SAFETY
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes
Licenses and permits
Use of money and property ($100) ($100) $132 $79 ($53)
Intergovernmental $196,882 161,285 (35,597)
Charges for current services
Miscellaneous
Total Revenues 196,882 161,185 (35,697) 132 79 (53)

EXPENDITURES
Current
Public safety 210,988 240,123 (29,135) 5,000 2,370 2,630 Highways and streets
Culture and recreation
Urban redevelopment
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 210,988 240,123 (29,135) 5,000 2,370 2,630

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (14,106) (78,938) (64,832) (4,868) (2,291) 2,577

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets
Transfers in 78,000 78,938 938
Transfers (out)
Total Other Financing Sources (Uses) 78,000 78,938 938
NET CHANGE IN FUND BALANCES $63,894 ($63,894) ($4,868) (2,291) $2,577 BEGINNING FUND BALANCES 35,100
ENDING FUND BALANCES $32,809
FOR THE YEAR ENDED JUNE 30, 2022

CITY OF BELMONT

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
128
339

SPECIAL REVENUE FUNDS

STREET MAINTENANCE STREET IMPROVEMENTS MEASURE W
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,266,101 $566,651 ($699,450) $870,890 $850,784 ($20,106) $361,601 $376,762 $15,161 1,895 5 (1,890) 4,321 5,152 831 4,000 1,766 (2,234)
2,787,000 974,082 (1,812,918) 829,190 829,190
673,031 539,805 (133,226)
500 500 80,000 156,935 76,935
1,941,027 1,106,961 (834,066) 3,742,211 1,986,953 (1,755,258) 365,601 1,207,718 842,117 2,357,330 2,001,625 355,705
5,222,177 3,243,388 1,978,789 600,000 600,000
2,357,330 2,001,625 355,705 5,222,177 3,243,388 1,978,789 600,000 600,000 (416,303) (894,664) (478,361) (1,479,966) (1,256,435) 223,531 (234,399) 1,207,718 1,442,117 400,000 183,476 (216,524) 580,000 (580,000)
400,000 183,476 (216,524) 580,000 (580,000)
($16,303) (711,188) ($694,885) ($899,966) (1,256,435) ($356,469) ($234,399) 1,207,718 $1,442,117 711,188 2,161,085 249,587
$904,650 $1,457,305
(Continued)
129
340

SPECIAL REVENUE FUNDS

ATHLETIC FIELD MAINTENANCE AFFORDABLE HOUSING
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes
Licenses and permits
Use of money and property $1,277 $908 ($369) $80,726 $83,557 $2,831 Intergovernmental 310,000 (310,000)
Charges for current services 75,000 90,528 15,528
Miscellaneous 5,000 5,298 298 7,401 7,401
Total Revenues 81,277 96,734 15,457 390,726 90,958 (299,768)

EXPENDITURES
Current
Public safety
Highways and streets
Culture and recreation 80,000 73,743 6,257
Urban redevelopment 646,843 447,453 199,390
Capital outlay 25,000 24,760 240
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 105,000 98,503 6,497 646,843 447,453 199,390

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (23,723) (1,769) 21,954 (256,117) (356,495) (100,378)

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets 3,750,000 4,050,000 300,000 Transfers in
Transfers (out) (913,537) (913,537)
Total Other Financing Sources (Uses) 3,750,000 3,136,463 (613,537) NET CHANGE IN FUND BALANCES ($23,723) (1,769) $21,954 $3,493,883 2,779,968 ($713,915) BEGINNING FUND BALANCES 377,267 3,687,918
ENDING FUND BALANCES $375,498 $6,467,886

CITY OF BELMONT

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
130
341

SPECIAL REVENUE FUNDS

ROAD MAINTENANCE AND
HOUSING MITIGATION FEES REHABILITATION ACCOUNT (SB1)
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,906 $67,058 $65,152 $2,669 $215 ($2,454) $322 $209 ($113) 531,107 536,938 5,831
280,035 (280,035)
5,000 3,565 (1,435)
281,941 67,058 (214,883) 533,776 537,153 3,377 5,322 3,774 (1,548) 3 (3)
1,775,000 1,104,828 670,172
1,775,000 1,104,828 670,172 3 (3)
281,941 67,058 (214,883) (1,241,224) (567,675) 673,549 5,322 3,771 (1,551) 244,238 244,238
244,238 244,238
$281,941 67,058 ($214,883) ($1,241,224) (323,437) $917,787 $5,322 3,771 ($1,551) 2,385,199 323,437 86,273
$2,452,257 $90,044
(Continued)

SENIOR DONATIONS
131
342

SPECIAL REVENUE FUND CAPITAL PROJECT FUND

GENERAL FACILITIES
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes
Licenses and permits
Use of money and property $4,000 $429 ($3,571) $3,647 $1,744 ($1,903) Intergovernmental
Charges for current services 284,095 200,000 (84,095)
Miscellaneous
Total Revenues 288,095 200,429 (87,666) 3,647 1,744 (1,903)

EXPENDITURES
Current
Public safety
Highways and streets
Culture and recreation
Urban redevelopment
Capital outlay 413,076 104,052 309,024
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 413,076 104,052 309,024

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 288,095 200,429 (87,666) (409,429) (102,308) 307,121

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets
Transfers in
Transfers (out)
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES $288,095 200,429 ($87,666) ($409,429) (102,308) $307,121 BEGINNING FUND BALANCES 827,229
ENDING FUND BALANCES $200,429 $724,921
FOR THE YEAR ENDED JUNE 30, 2022

CITY OF BELMONT

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

TRAFFIC MITIGATION
132
343

CAPITAL PROJECT FUNDS

INFRASTRUCTURE PLANNED PARK
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $32,581 $32,581
$10,545 $7,192 ($3,353) $10,433 ($500) ($10,933)
228,334 75,000 (153,334) $1,377 911 (466)
238,879 82,192 (156,687) 1,377 33,492 32,115 10,433 (500) (10,933) 12,279,334 960,510 11,318,824 120,000 120,000 335,754 178,672 157,082 560,035 560,035
107,965 107,965
12,279,334 960,510 11,318,824 120,000 120,000 1,003,754 846,672 157,082 (12,040,455) (878,318) 11,162,137 (118,623) 33,492 152,115 (993,321) (847,172) 146,149 800,000 1,385,864 585,864 3,000,000 2,500,000 (500,000) (20,900) (20,900)
800,000 1,385,864 585,864 2,979,100 2,479,100 (500,000) ($11,240,455) 507,546 $11,748,001 ($118,623) 33,492 $152,115 $1,985,779 1,631,928 ($353,851) 2,302,012 362,508 357,457
$2,809,558 $396,000 $1,989,385
(Continued)

COMCAST
133
344

CAPITAL PROJECT FUNDS

SPECIAL ASSESSMENT DISTRICT
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes
Licenses and permits
Use of money and property $1,148 $725 ($423) $847 $397 ($450) Intergovernmental
Charges for current services
Miscellaneous
Total Revenues 1,148 725 (423) 847 397 (450)

EXPENDITURES
Current
Public safety
Highways and streets
Culture and recreation
Urban redevelopment
Capital outlay 91,365 63,452 27,913
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 91,365 63,452 27,913

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,148 725 (423) (90,518) (63,055) 27,463

OTHER FINANCING SOURCES (USES)
Gain from the sale of capital assets
Transfers in 20,900 20,900
Transfers (out)
Total Other Financing Sources (Uses) 20,900 20,900
NET CHANGE IN FUND BALANCES $1,148 725 ($423) ($69,618) (42,155) $27,463 BEGINNING FUND BALANCES 307,605 206,237
ENDING FUND BALANCES $308,330 $164,082

CITY OF BELMONT

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022

OPEN SPACE
134
345

CAPITAL PROJECT FUND
Variance
Positive
Budget Actual (Negative)
$1,403 $4,549 $3,146
194,570 (194,570)
1,774,696 1,553,490 (221,206)
10,000 (10,000)
1,980,669 1,558,039 (422,630)
306,900 128,384 178,516
306,900 128,384 178,516
1,673,769 1,429,655 (244,114)
(3,000,000) (2,500,000) 500,000
(3,000,000) (2,500,000) 500,000
($1,326,231) (1,070,345) $255,886
1,397,020
$326,675

PARK IMPACT FEES
135
346
This Page Left Intentionally Blank
347

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. 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 presented separately in the Fund financial statements, including the funds below.

Workers’ Compensation – To account for the City’s workers’ compensation insurance program.

Liability Insurance – To account for coverage on the City’s and District’s general and automobile liability.

Self-Funded Vision – To account for the City’s vision reimbursement plan for its employees.

Benefit Prefunding – To account for certain accrued employee benefits.

Fleet and Equipment Management – To account for the interdepartmental services provided by the Fleet Management division and Information Technology division.

Facilities Management – To account for the interdepartmental services provided by the Facilities Management Division.
137
348
Fleet and
Workers' Liability Self-Funded Benefit Equipment
Compensation Insurance Vision Prefunding Management
ASSETS
Cash and investments $1,767,999 $1,950,896 $13,182 $1,194,877 $6,441,450 Accounts receivable 1,777,937 1,003
Prepaids and other assets 23,120
Depreciable capital assets, net 1,230,946
Total Assets 1,767,999 3,728,833 13,182 1,194,877 7,696,519

LIABILITIES
Accounts payable 19 3,094 13,182 113,214 122,650
Due to other funds
Claims payable
Current portion 7,607 339,248
Due in more than one year 223,696
Compensated absences
Current portion 49,109
Due in more than one year 86,410
Total Liabilities 231,322 342,342 13,182 113,214 258,169

NET POSITION
Net investment in capital assets 1,230,946
Unrestricted 1,536,677 3,386,491 1,081,663 6,207,404
Total Net Position $1,536,677 $3,386,491 $1,081,663 $7,438,350

CITY OF BELMONT

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2022
138
349
Facilities
Management Total
$11,368,404
$6,745 1,785,685
23,120
181,091 1,412,037
187,836 14,589,246
44,473 296,632
48,914 48,914
346,855
223,696
31,705 80,814
62,743 149,153
187,835 1,146,064
181,091 1,412,037
(181,090) 12,031,145
$1 $13,443,182
139
350
Fleet and
Workers' Liability Self-Funded Benefit Equipment
Compensation Insurance Vision Prefunding Management

OPERATING REVENUES
Interdepartmental charges for services $729,143 $478,959 $10,717 $1,371,536 $5,074,775 Total Operating Revenues 729,143 478,959 10,717 1,371,536 5,074,775

OPERATING EXPENSES
Insurance premiums 537,628 400,285
Professional and legal 16,346 188,722 3,136 94,135 953,605 Operating costs 239,463 1,995,553
Pension and other post employment benefits 1,355,121
Insurance claims, net of change in claims payable 2,359 3,021 7,609 Depreciation 552,139
Total Operating Expenses 556,333 592,028 10,745 1,688,719 3,501,297 Operating Income (Loss) 172,810 (113,069) (28) (317,183) 1,573,478

NONOPERATING REVENUES (EXPENSES)
Gain from sale of capital assets 17,408
Use of money and property 3,664 4,455 28 2,726 14,121
Miscellaneous 23,154 120,279 2,549
Total Nonoperating Revenues (Expenses) 26,818 124,734 28 2,726 34,078 Income (Loss) Before Transfers 199,628 11,665 (314,457) 1,607,556 Transfers in
Change in Net Position 199,628 11,665 (314,457) 1,607,556 BEGINNING NET POSITION 1,337,049 3,374,826 1,396,120 5,830,794 ENDING NET POSITION $1,536,677 $3,386,491 $1,081,663 $7,438,350

CITY OF BELMONT

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
140
351
Facilities
Management Total
$1,485,411 $9,150,541
1,485,411 9,150,541
937,913
343,375 1,599,319
1,763,202 3,998,218
1,355,121
12,989
8,143 560,282
2,114,720 8,463,842
(629,309) 686,699
17,408
236,818 261,812
145,982
236,818 425,202
(392,491) 1,111,901
351,294 351,294
(41,197) 1,463,195
41,198 11,979,987
$1 $13,443,182
141
352
Fleet and
Workers' Liability Self-Funded Benefit Equipment
Compensation Insurance Vision Prefunding Management

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from other funds $752,297 $533,837 $10,717 $1,371,536 $5,077,531 Payments to vendors (556,632) (589,684) (3,136) (333,598) (1,525,590) Payment to or on behalf of employees (1,245,287) (1,418,770) Claims paid (6,916) (5,833) (9,459)
Cash Flows from Operating Activities 188,749 (61,680) (1,878) (207,349) 2,133,171

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Interfund receipts
Cash Flows from Noncapital
Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (517,414)
Proceeds from sale of capital assets 17,408
Cash Flows from Capital and Related
Financing Activities (500,006)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and rents 3,664 4,455 28 2,726 14,121
Cash Flows from Investing Activities 3,664 4,455 28 2,726 14,121 Net Cash Flows 192,413 (57,225) (1,850) (204,623) 1,647,286 Cash and investments at beginning of period 1,575,586 2,008,121 15,032 1,399,500 4,794,164 Cash and investments at end of period $1,767,999 $1,950,896 $13,182 $1,194,877 $6,441,450 Reconciliation of operating income (loss) to
net cash flows from operating activities:

Operating income (loss) $172,810 ($113,069) ($28) ($317,183) $1,573,478 Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:

Depreciation 552,139
Miscellaneous revenues 23,154 120,279 2,549
Change in assets and liabilities:

Accounts receivables (65,401) 207
Prepaids and other net assets (7,831)
Accounts payable (2,658) (677) (1,850) 109,834 8,060
Claims payable (4,557) (2,812)
Compensated absences 4,569
Cash Flows from Operating Activities $188,749 ($61,680) ($1,878) ($207,349) $2,133,171

CITY OF BELMONT

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
142
353
Facilities
Management Total
$1,484,879 $9,230,797
(1,368,348) (4,376,988)
(747,354) (3,411,411)
(22,208)
(630,823) 1,420,190
400,208 400,208
400,208 400,208
(41,744) (559,158)
17,408
(41,744) (541,750)
236,818 261,812
236,818 261,812
(35,541) 1,540,460
35,541 9,827,944
$11,368,404
($629,309) $686,699
8,143 560,282
145,982
(532) (65,726)
(7,831)
(22,806) 89,903
(7,369)
13,681 18,250
($630,823) $1,420,190
143
354
This Page Left Intentionally Blank
355
Statistical Section
Belmont Water Dog356Run
This Page Left Intentionally Blank
357

STATISTICAL SECTION
This part 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 says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject 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 Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. Assessed Value of Taxable Property

2. Direct and Overlapping Property Tax Rates

3. Principal Property Taxpayers

4. Property Tax Levies and Collections
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. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin

4. Bonded Debt Pledged Revenue Coverage:
a. 2016 Sewer Revenue and Sewer Refunding Revenue Bonds and 2019 Sewer Revenue Bonds – Last Ten Fiscal Years
b. 2009A and 2018 Sewer Treatment Facility Revenue Bonds and 2022 Sewer Treatment Facility Obligations
c. Former Redevelopment Agency Bonds

5. Continuing Disclosure Requirements:
a. Sewer System Summary Statement of Historical Revenue and Expenditures b. Ten Largest Users of the Sewer System
c. Number of Sewer Service Users
d. Sewer Service Revenues by Class of User
e. Schedule of Budgeted and Projected Sewer Treatment Facility Charges and Associated Debt Service
f. Community Facilities District No. 2000-1
147
358
STATISTICAL SECTION (Continued)
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 for the relevant year.
148
359

CITY OF BELMONT

NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
As of June 30,
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets $67,417,898 $66,107,787 $65,328,759 $67,139,553 $69,831,130 Restricted 6,722,358 6,664,041 6,904,176 6,904,177 11,714,283 Unrestricted 11,312,129 13,628,786 (8,619,488) (a) (9,680,086) (a) (188,113) Total governmental activities $85,452,385 $86,400,614 $63,613,447 $64,363,644 $81,357,300 Business-type activities
Net investment in capital assets $5,418,984 $6,447,043 $8,424,614 $16,739,430 $6,439,038 Restricted 3,108,105 3,108,838 5,383,408 9,143,559 14,957,819 Unrestricted 8,317,276 11,627,962 8,634,126 (a) (a) 8,602,110 Total business-type activities $16,844,365 $21,183,843 $22,442,148 $25,882,989 $29,998,967 Primary government
Net investment in capital assets $72,836,882 $72,554,830 $73,753,373 $83,878,983 $76,270,168 Restricted 9,830,463 9,772,879 12,287,584 16,047,736 26,672,102 Unrestricted 19,629,405 25,256,748 14,638 (a) (9,680,086) (a) 8,413,997 Total primary government $102,296,750 $107,584,457 $86,055,595 $90,246,633 $111,356,267 As of June 30,
2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $67,969,307 $69,521,925 $74,539,932 $74,700,385 $80,638,254 Restricted 24,061,436 24,039,737 26,494,396 29,925,106 31,881,783 Unrestricted (12,213,657) (b) (4,098,068) (6,415,098) (4,130,669) 3,477,732 Total governmental activities $79,817,086 $89,463,594 $94,619,230 $100,494,822 $115,997,769 Business-type activities
Net investment in capital assets $5,536,183 $3,453,035 $4,445,755 $3,971,403 $1,163,216 Restricted 17,728,929 20,219,035 22,464,351 24,300,968 25,991,829 Unrestricted 9,913,265 (b) 13,315,730 16,112,774 21,229,648 28,806,567 Total business-type activities $33,178,377 $36,987,800 $43,022,880 $49,502,019 $55,961,612 Primary government
Net investment in capital assets $73,505,490 $72,974,960 $78,985,687 $78,671,788 $81,801,470 Restricted 41,790,365 44,258,772 48,958,747 54,226,074 57,873,612 Unrestricted (2,300,392) (b) 9,217,662 9,697,676 17,098,979 32,284,299 Total primary government $112,995,463 $126,451,394 $137,642,110 $149,996,841 $171,959,381 (a) Fiscal year 2015 was the first year of implementation for GASB 68. (b) Fiscal year 2018 was the first year of implementation for GASB 75. (20,000)
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
T
h
o
u
s
a
n
d
s
Net investment in capital assets Restricted Unrestricted 149
360
Fiscal Year Ended June 30,
2013 2014 2015 2016
Expenses
Governmental Activities:

General government $5,353,940 $5,592,651 $5,244,211 $5,439,850 Public safety 18,000,012 19,429,456 19,218,589 19,906,577 Highways and streets 3,242,496 3,412,713 3,340,232 2,998,364 Culture and recreation 4,275,013 4,530,410 5,018,290 4,729,514 Urban redevelopment 1,885,099 2,295,295 2,268,840 3,436,088 Interest on long term debt 68,175 37,019 24,850 16,708
Total Governmental Activities Expenses 32,824,735 35,297,544 35,115,012 36,527,101 Business-Type Activities:

Sewer Collection 6,715,514 6,657,220 7,654,335 8,251,781 Sewer Treatment 403,386
Storm drainage 1,338,902 1,236,911 1,446,650 1,603,968
Solid waste 469,298 459,967 223,392 283,045
Total Business-Type Activities Expenses 8,523,714 8,354,098 9,324,377 10,542,180 Total Primary Government Expenses $41,348,449 $43,651,642 $44,439,389 $47,069,281 Program Revenues
Governmental Activities:

Charges for Services:

General Government $4,463,544 $4,601,332 $4,937,130 $5,780,785 Public Safety 1,152,475 1,177,218 1,143,332 998,958
Highways and streets 382,904 459,815 473,341 464,902
Culture and recreation 2,087,336 2,130,365 2,729,732 2,629,840 Urban redevelopment 2,560,400 3,069,625 3,627,765 3,860,509 Operating Grants and Contributions 1,636,424 1,817,345 2,042,316 1,861,488 Capital Grants and Contributions 874,168 519,254 411,980 2,746,475 Total Government Activities
Program Revenues 13,157,251 13,774,954 15,365,596 18,342,957 Business-Type Activities:

Charges for Services:

Sewer Collection 10,086,878 11,290,621 11,905,392 9,623,230 Sewer Treatment 3,124,223
Storm drainage 549,863 520,119 943,554 903,147
Solid Waste 781,612 867,710 458,337 443,408
Operating Grants and Contributions
Capital Grants and Contributions
Total Business-Type Activities
Program Revenue 11,418,353 12,678,450 13,307,283 14,094,008 Total Primary Government
Program Revenues $24,575,604 $26,453,404 $28,672,879 $32,436,965 Net (Expense)/Revenue
Governmental Activities ($19,371,771) ($21,522,590) ($19,749,416) ($18,184,144) Business-Type Activities 64,404 4,324,352 3,982,906 2,018,171 Total Primary Government Net Expense ($19,307,367) ($17,198,238) ($15,766,510) ($16,165,973)

CITY OF BELMONT

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
150
361
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
$5,671,719 $6,598,992 $5,621,928 $8,461,468 $8,168,398 $7,642,172 21,282,999 23,461,443 21,608,132 24,687,962 25,705,962 24,908,569 2,785,012 3,182,025 2,845,390 2,768,906 2,563,851 2,936,535 4,759,282 5,344,942 5,754,393 6,727,967 5,707,179 6,218,434 3,223,265 3,447,979 3,274,118 4,504,187 5,678,182 5,520,422 5,592 3,169 644 41,615 119,690 107,965
37,727,869 42,038,550 39,104,605 47,192,105 47,943,262 47,334,097 8,251,781 9,087,660 11,292,920 10,066,509 10,760,135 10,634,189 403,386 517,015 1,121,846 1,376,670 1,370,917 1,437,779 1,603,968 1,566,875 1,893,199 2,119,817 2,056,207 2,190,249 283,045 338,756 284,968 343,075 452,750 502,470
10,542,180 11,510,306 14,592,933 13,906,071 14,640,009 14,764,687 $48,270,049 $53,548,856 $53,697,538 $61,098,176 $62,583,271 $62,098,784 $8,184,093 $6,868,959 $6,142,052 $6,577,974 $8,880,620 $6,161,208 1,113,555 1,425,037 1,250,205 404,688 413,536 370,671
498,637 490,979 504,891 808,673 1,220,787 868,986
5,997,226 3,250,607 3,589,282 2,948,206 2,966,339 4,942,718 4,701,066 3,692,543 4,104,255 4,212,747 4,227,537 5,023,122 1,767,235 2,175,529 2,196,042 3,511,589 3,456,820 5,895,499 596,190 1,262,562 107,597 944,285 1,227,833 1,868,526
22,858,002 19,166,216 17,894,324 19,408,162 22,393,472 25,130,730 10,974,015 10,451,746 11,131,538 12,711,450 16,273,536 16,360,163 3,087,872 3,225,639 3,178,480 3,196,757 3,181,962 3,142,679 875,926 886,380 922,892 969,136 968,969 1,024,532
429,212 428,446 457,015 482,843 489,560 623,030
37,862 23,408 15,650 98,099 58,914
1,708,952
15,404,887 15,015,619 17,414,527 17,458,285 20,914,027 21,209,318 $38,262,889 $34,181,835 $35,308,851 $36,866,447 $43,307,499 $46,340,048 ($14,869,867) ($22,872,334) ($21,210,281) ($27,783,943) ($25,549,790) ($22,203,367) 4,862,707 3,505,313 2,821,594 3,552,214 6,274,018 6,444,631 ($10,007,160) ($19,367,021) ($18,388,687) ($24,231,729) ($19,275,772) ($15,758,736) (Continued)
151
362

CITY OF BELMONT

CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property taxes $10,918,478 $11,864,792 $13,134,287 $14,132,122 Incremental property tax
Sales taxes 2,792,298 2,831,248 3,085,607 3,613,991
Other taxes 3,017,599 3,260,000 3,487,040 3,957,259
Motor vehicle in lieu 1,941,735 2,168,184 2,474,536 2,436,212 Investment earnings and rentals 531,126 603,489 590,418 540,269 Miscellaneous/Gain on sale 1,847 1,743,106 3,803 6,263
Gain on sale of capital assets
Loss on disposal of capital assets (39,381)
Equity in gains/(losses) of joint ventures
Transfers (437,270)
Extraordinary items
Total Government Activities 19,203,083 22,470,819 22,736,310 24,248,846 Business-Type Activities:

Investment earnings 9,971 15,126 17,275 77,370
Miscellaneous 57,142
Transfers 1,216 45,769 437,270
Total Business-Type Activities 11,187 15,126 63,044 571,782 Total Primary Government $19,214,270 $22,485,945 $22,799,354 $24,820,628 Change in Net Position
Governmental Activities ($168,688) $948,229 $2,986,894 $6,064,702 Business-Type Activities 75,591 4,339,478 4,045,950 2,589,953 Total Primary Government ($93,097) $5,287,707 $7,032,844 $8,654,655 152
363
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
$15,527,210 $16,894,686 $18,038,474 $19,236,918 $20,132,097 $20,468,903 3,882,588 5,134,206 5,543,213 5,128,787 5,969,774 6,602,318 3,927,717 4,039,400 4,916,495 5,177,005 2,693,563 3,905,904 2,619,042 2,786,304 2,987,318 3,076,967 1,943,403 2,833,129 588,798 981,525 1,713,215 1,680,176 280,325 (166,620)
3,663 89,454 238,833 7,550 727 12,680
4,050,000
(2,580,759) 405,493
(1,367,824)
26,549,018 29,925,575 30,856,789 32,939,579 31,425,382 37,706,314 104,041 489,367 975,602 1,115,042 126,076 (53,021)
118 36,854 12,227 79,045 67,983
1,367,824
104,159 526,221 987,829 2,482,866 205,121 14,962
$26,653,177 $30,451,796 $31,844,618 $35,422,445 $31,630,503 $37,721,276 $11,679,151 $7,053,241 $9,646,508 $5,155,636 $5,875,592 $15,502,947 4,966,866 4,031,534 3,809,423 6,035,080 6,479,139 6,459,593 $16,646,017 $11,084,775 $13,455,931 $11,190,716 $12,354,731 $21,962,540 153
364

CITY OF BELMONT

FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2013 2014 2015 2016 2017
General Fund
Nonspendable $504,390 $568,336 $1,130,963 $627,500
Restricted 251,184
Assigned 1,377,103 2,327,624 $1,507,974
Unassigned 5,696,079 6,258,460 5,590,065 7,540,974 10,500,188 Total General Fund $6,200,469 $8,203,899 $9,048,652 $9,048,948 $11,378,872 All Other Governmental Funds
Restricted $12,218,243 $12,090,398 $13,099,710 $13,099,725 $19,239,022 Committed 258,684 104,039 5,644 (140,892) 936,200
Assigned 706,293 1,213,342 2,111,573 2,111,572 2,289,075 Unassigned (1,550,397) (146,538)
Total all other governmental funds $11,632,823 $13,407,779 $15,070,389 $15,070,405 $22,464,297 Fiscal Year Ended June 30,
2018 2019 2020 2021 2022
General Fund
Nonspendable $641,355 $641,115 $641,273 $639,099 $376,537 Committed 1,879,332 2,903,606 2,101,292 3,751,162 2,938,455 Assigned
Unassigned 10,683,682 14,204,643 12,995,874 12,759,010 17,636,404 Total General Fund $13,204,369 $17,749,364 $15,738,439 $17,149,271 $20,951,396 (a) All Other Governmental Funds
Nonspendable $1,736,353
Restricted $23,400,819 $23,504,778 $30,017,035 $29,119,357 30,977,682 Committed 784,403 658,745 443,069 1,190,051 2,422,303
Assigned 4,116,485 3,602,036 4,070,714 3,335,478 3,698,561 Unassigned
Total all other governmental funds $28,301,707 $27,765,559 $34,530,818 $33,644,886 $38,834,899 (a) (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
($10,000)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Nonspendable Restricted Assigned Unassigned Committed
154
365
This Page Left Intentionally Blank
366

CITY OF BELMONT

CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2013 2014 2015 2016
Revenues
Taxes $17,464,202 $18,781,620 $20,592,362 $22,462,269
Licenses and permits 1,443,249 1,665,790 1,846,367 2,085,424 Fines and forfeitures 513,511 298,584 210,470 234,582
Use of money and property 394,871 420,581 585,120 599,818 Intergovernmental 4,569,617 4,594,173 5,098,802 5,496,855 Charges for current services 6,780,019 7,466,219 8,517,414 8,574,373 Miscellaneous 788,182 835,735 868,303 1,387,317
Total Revenues 31,953,651 34,062,702 37,718,838 40,840,638 Expenditures
Current:

General government 4,001,340 3,967,090 4,219,915 4,300,780 Public safety 17,261,172 18,527,071 19,146,371 19,872,825 Highways and streets 2,053,990 1,843,701 2,195,722 1,814,166 Culture and recreation 3,949,834 4,162,256 4,817,387 4,525,998 Urban redevelopment 1,817,983 1,949,465 2,522,957 3,442,355 Capital outlay 1,245,112 1,425,306 1,736,968 3,390,421
Debt service:

Principal 213,581 97,907 451,490 55,316
Interest and fiscal charges 68,175 37,019 24,850 16,708 Total Expenditures 30,611,187 32,009,815 35,115,660 37,418,569 Excess (deficiency) of revenues over
(under) expenditures 1,342,464 2,052,887 2,603,178 3,422,069 Other Financing Sources (Uses)
Transfers in 1,512,645 1,458,800 2,859,034 1,984,813
Transfers (out) (1,774,541) (1,783,301) (2,954,849) (4,869,841) Gain from sale of capital assets
Proceeds from sale of capital assets 2,050,000 686,750
Proceeds of debt issuance
Total other financing sources (uses) (261,896) 1,725,499 (95,815) (2,198,278) Net Change in fund balances $1,080,568 $3,778,386 $2,507,363 $1,223,791 Debt service as a percentage of
noncapital expenditures 1.0% 0.4% 1.4% 1.4%
156
367
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
$24,901,868 $27,919,446 $30,101,322 $32,173,339 $33,671,449 $35,877,026 2,800,954 2,317,393 2,026,047 2,156,235 3,421,169 3,412,657 168,763 216,183 164,265 160,211 170,105 156,422
759,981 1,228,596 1,947,782 2,070,593 1,021,749 292,841 4,819,712 4,975,667 5,611,404 6,106,124 1,677,393 6,006,905 14,587,389 9,890,785 10,296,325 10,012,330 12,337,351 12,481,949 937,673 2,069,817 609,958 236,306 1,411,931 297,432
48,976,340 48,617,887 50,757,103 52,915,138 53,711,147 58,525,232 4,955,053 5,151,403 5,563,535 6,251,896 6,894,135 5,750,762 21,056,427 22,788,288 25,312,692 24,684,871 25,665,084 25,760,691 1,909,799 1,935,535 2,115,327 2,312,159 2,361,710 2,001,625 5,038,819 5,274,846 5,766,923 5,897,618 5,414,402 5,358,664 3,495,988 3,358,362 3,362,011 4,400,315 5,491,628 5,219,975 3,828,413 1,382,112 5,316,611 8,912,121 6,569,459 7,558,546 57,641 60,064 30,972 292,385 548,310 560,035
5,592 3,169 644 41,615 119,690 107,965
40,347,732 39,953,779 47,468,715 52,792,980 53,064,418 52,318,263 8,628,608 8,664,108 3,288,388 122,158 646,729 6,206,969 1,697,887 5,931,220 2,671,111 4,740,278 2,355,020 6,252,414 (1,834,158) (6,932,421) (1,963,685) (6,108,102) (2,476,849) (7,517,245) 4,050,000
8,000 13,033
6,000,000
(128,271) (1,001,201) 720,459 4,632,176 (121,829) 2,785,169 $8,500,337 $7,662,907 $4,008,847 $4,754,334 $524,900 $8,992,138

0.2% 0.2% 0.1% 0.1% 1.4% 1.5%
157
368
Fiscal Year Secured Property (a) Unsecured Property Total Assessed to Increased Total Ended Assessed Estimated Assessed Estimated Assessed Estimated Estimated From Direct June 30 Value Actual Value Value Actual Value Value (b) Actual Value (b) Actual Value Prior Year Tax Rate (c) 2013 $4,712,109,574 $4,712,109,574 $59,006,643 $59,006,643 $4,771,116,217 $4,771,116,217 100% 5.19% 1% 2014 5,013,618,086 5,013,618,086 61,287,931 61,287,931 5,074,906,017 5,074,906,017 100% 6.37% 1% 2015 5,290,249,361 5,209,249,361 65,747,681 65,747,681 5,355,997,042 5,274,997,042 100% 3.94% 1% 2016 5,648,901,772 5,648,901,772 63,091,530 63,091,530 5,711,993,302 5,711,993,302 100% 8.28% 1% 2017 6,077,587,115 6,077,587,115 57,759,601 57,759,601 6,135,346,716 6,135,346,716 100% 7.41% 1% 2018 6,477,809,867 6,477,809,867 56,079,812 56,079,812 6,533,889,679 6,533,889,679 100% 6.50% 1% 2019 6,951,922,956 6,951,922,956 62,126,944 62,126,944 7,014,049,900 7,014,049,900 100% 7.35% 1% 2020 7,453,883,672 7,453,883,672 87,805,614 87,805,614 7,541,689,286 7,541,689,286 100% 15.42% 1% 2021 7,946,879,729 7,946,879,729 85,078,190 85,078,190 8,031,957,919 8,031,957,919 100% 14.51% 1% 2022 8,281,898,247 8,281,898,247 93,084,659 93,084,659 8,374,982,906 8,374,982,906 100% 19.40% 1% SOURCES: SAN MATEO COUNTY CONTROLLER
(a) Secured Property includes State Board Roll
(b) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. (c) 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.

The City of Belmont encompasses more than 15 tax rate areas.

CITY OF BELMONT

ASSESSED VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
$20
$220
$420
$620
$820
$1,020
$1,220
$1,420
$1,620
$1,820
$2,020
$2,220
$2,420
$2,620
$2,820
$3,020
$3,220
$3,420
$3,620
$3,820
$4,020
$4,220
$4,420
$4,620
$4,820
$5,020
$5,220
$5,420
$5,620
$5,820
$6,020
$6,220
2013 2014 2015 2016 2017
Millions
Secured Property Unsecured Property
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Secured Property Unsecured Property
158
369

CITY OF BELMONT

DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Fiscal City of School
Year Belmont Districts Total
2013 $1.0000 $0.0747 $1.0747
2014 1.0000 0.0690 1.0690
2015 1.0000 0.0805 1.0805
2016 1.0000 0.1046 1.1046
2017 1.0000 0.0944 1.0944
2018 1.0000 0.0948 1.0948
2019 1.0000 0.0854 1.0854
2020 1.0000 0.0852 1.0852
2021 1.0000 0.0771 1.0771
2022 1.0000 0.0759 1.0759
Source: San Mateo County Controller - Rates are per $100 of assessed value.

0.0000

0.2000

0.4000

0.6000

0.8000

1.0000

1.2000

1.4000

1.6000
2013
2014
2015
2016
2017
Per Hundred $
City of Belmont School Districts
General Rates
0 0.2

0.4 0.6

0.8 1

1.2 1.4

1.6 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Hundred $
City School General
159
370

CITY OF BELMONT

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
PMI Belmont II LLC $122,781,654 1 1.48%
B9 Island Parkway LLC 98,263,341 2 1.19%
600 Clipper Operating LLC 96,073,366 3 1.16%
1 Shoreway Owner LLC 90,250,000 4 1.09%
Catania Limited Partnership 55,135,343 5 0.67%
Belmont Hotels LLC 52,627,514 6 0.64%
Nikon Precision Inc. 40,233,957 7 0.49% $44,889,123 3 0.95% Safeway Inc. 37,859,430 8 0.46% 18,508,685 9 0.39%
SRE California3 LLC 37,673,985 9 0.45%
Prime Old County LP 35,006,958 10 0.42% 30,114,438 4 0.64% Hines VAF II 600 Clipper LP 53,333,240 1 1.13%
Oracle Corporation 47,634,413 2 1.01%
Essex Carlmont Woods Apartment LP 27,058,951 5 0.57%
SSL Landlord LLC 26,928,000 6 0.57%
ECI Two Belmont LLC 24,969,554 7 0.53%
SRE 20,950,977 8 0.44%
Nazareth Vista (formerly Paradigm Healthcare L.P. 16,926,739 10 0.36% Subtotal $665,905,548 8.04% $311,314,120 6.61%
Total Net Assessed Valuation:

Fiscal Year 2021-22 $8,281,898,247
Fiscal Year 2012-13 $4,712,109,574
Source: County of San Mateo Assessor's Office Fiscal Year Combined Secured Tax Rolls. 160
371

CITY OF BELMONT

PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Percent
of Total
Current Percent Total Tax
Fiscal Total Tax of Levy Tax Collections
Year Tax Levy (1) Collections (2) Collected (a) Collections to Tax Levy 2013 $2,870,820 $2,798,324 97.47% $2,798,324 97.47%
2014 3,062,643 3,018,311 98.55% 3,018,311 98.55%
2015 3,240,621 3,196,712 98.65% 3,196,712 98.65%
2016 3,455,413 3,409,309 98.67% 3,409,309 98.67%
2017 3,706,404 3,672,355 99.08% 3,672,355 99.08%
2018 3,928,687 3,909,998 99.52% 3,909,998 99.52%
2019 4,174,608 4,169,363 99.87% 4,169,363 99.87%
2020 4,450,637 4,437,632 99.71% 4,437,632 99.71%
2021 4,695,353 4,641,802 98.86% 4,641,802 98.86%
2022 4,900,439 5,211,925 (b) 106.36% (b) 5,211,925 106.36% Source: (1) San Mateo County Controller.
(2) City of Belmont General Ledger
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 which allows the County to keep all interest and delinquency charges collected.
(b) Includes $345,855 received for Belmont RDA dissolution that was not in tax levy. $500
$1,000
$1,500
$2,000
$2,500
$3,000
2013 2014 2015 2016 2017
Thousands
Tax Levied Total Tax Collections
$2,500
$2,750
$3,000
$3,250
$3,500
$3,750
$4,000
$4,250
$4,500
$4,750
$5,000
$5,250
$5,500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Tax Levied Total Tax Collections
161
372

CITY OF BELMONT

RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
Leases
Fiscal and
Year Notes Total
2013 $753,390 $753,390
2014 655,483 655,483
2015 203,992 203,992
2016 147,677 147,677
2017 91,036 91,036
2018 30,972 30,972
2019 0 0
2020 5,707,615 5,707,615
2021 5,159,305 5,159,305
2022 4,027,260 4,027,260
Business-Type Activities
Sewer Total Percentage
Fiscal Revenue and Primary of Assessed Per
Year Obligation Bonds Total Government Valuation (a) Capita (a) 2013 $20,740,000 $20,740,000 $21,493,390 0.45% $816.74
2014 20,210,000 20,210,000 20,865,483 0.41% 785.63
2015 19,660,000 19,660,000 19,863,992 0.37% 742.63
2016 33,920,000 33,920,000 34,067,677 0.60% 1,233.98
2017 34,376,186 34,376,186 34,467,222 0.56% 1,260.55
2018 33,615,381 33,615,381 33,646,353 0.51% 1,228.51
2019 57,279,454 57,279,454 57,279,454 0.82% 2,107.88
2020 77,449,650 77,449,650 83,157,265 1.10% 3,118.12
2021 75,851,407 75,851,407 81,010,712 1.01% 2,936.55
2022 71,166,164 71,166,164 75,193,424 0.90% 2,764.16
Note : Debt amounts include premiums, discounts, or other amortization amounts.

Sources: City of Belmont
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) (Demographic Statistics) for assessed value and population data. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Total Governmental Total Business
162
373

CITY OF BELMONT

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2022
2021-22 Assessed Valuation $8,410,535,906
City's Share
Total Debt of Debt
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT June 30, 2022 % Applicable (1) June 30, 2022 City of Belmont $4,027,260 100.000% $4,027,260
Total Direct Debt $4,027,260 $4,027,260
San Mateo Community College District $733,897,184 3.158% $23,176,473 Sequoia Union High School District 475,140,000 7.257% 34,480,910 Belmont-Redwood Shores School District 63,777,230 49.990% 31,882,237 Belmont-Redwood Shores School District Belmont School Facilities Improvement District 40,110,864 84.048% 33,712,379 Belmont-Redwood Shores School District Redwood Shores School Facilities Improvement District 18,565,000 7.660% 1,422,079 Midpeninsula Regional Open Space District 84,575,000 0.001% 846 City of Belmont Community Facilities District No. 2000-1 4,425,000 100.000% 4,425,000 Total Overlapping Debt 1,420,490,278 129,099,924
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $1,424,517,538 $133,127,184 OVERLAPPING GENERAL FUND DEBT: