Belvedere City Council
December 12, 2022

DECEMBER 12, 2022, 6:30 P.M.

TELECONFERENCE MEETING
On March 3, 2020, Governor Newsom proclaimed a State of Emergency due to the COVID-19 pandemic that remains in effect. This meeting will be held remotely consistent with Executive Order N-29-20 and Assembly Bill 361, modifying provisions of the Brown Act to allow teleconference meetings at the current time.

Members of the public are encouraged to participate remotely via Zoom or telephone pursuant to the information and link below. The Council will take public comment by email or by speaking at the meeting. Members of the public are entitled to provide public comment once on each agenda item when it is called. Those who wish to comment on an agenda item during the meeting should use the “raise hand” function or should write “I wish to make a public comment” in the chat section. If you have called into the meeting and wish to speak, please press *9. Council will not entertain comments made in the chat function. Upon being recognized by the Mayor, please limit your oral statement to no more than three minutes.

The public may also submit comments in advance of the meeting by emailing the City Clerk at: [email protected]. Please write “Public Comment” in the subject line. Comments submitted one hour prior to the commencement of the meeting will be presented to the City Council and included in the public record for the meeting.

City of Belvedere is inviting you to a scheduled Zoom meeting.

Topic: Belvedere Regular City Council Meeting
Time: December 12, 2022, 6:30 P.M.

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AGENDA – REGULAR MEETING

BELVEDERE CITY COUNCIL
DECEMBER 12, 2022, 6:30 P.M.

TELECONFERENCE MEETING

COMMENTS ON AGENDA ITEMS BY MEMBERS OF THE AUDIENCE
Members of the public are encouraged to participate remotely via Zoom or telephone. The Council will take public comment by email or by speaking at the meeting. Members of the public are entitled to provide public comment once on each agenda item when it is called. Those who wish to comment on an agenda item during the meeting should use the “raise hand” function or should write “I wish to make a public comment” in the chat section. If you have called into the meeting and wish to speak, please press *9. Council will not entertain comments made in the chat function. Upon being recognized by the Mayor, please limit your oral statement to no more than three minutes. The Council welcomes comments raised by interested citizens but typically does not respond during the comment period. 6:30 PM CALL TO ORDER

OPEN FORUM
This is an opportunity for any citizen to briefly address the City Council on any matter that does not appear on this agenda. Upon being recognized by the Mayor, please limit your oral statement to no more than three minutes. Matters that appear to warrant a more lengthy presentation or Council consideration may be placed on the agenda for further discussion at a later meeting.

DECLARE ELECTION RESULTS

1. Adopt Resolution 2022-57 Reciting the Facts of the Belvedere General Election Held on November 8, 2022, Declaring the Results, and Such other Matters as Provided by Law.

2. Swearing in of Councilmembers Beginning New Terms.

3. City Council Reorganization.
a. Acknowledgment of Councilmember Campbell
b. Election of Mayor
c. Election of Vice Mayor
d. Acknowledgment of outgoing Mayor Sally Wilkinson

REPORTS & PRESENTATIONS

4. City Council Reports.

5. City Manager Report.

CONSENT CALENDAR
The Consent Calendar consists of items that the City Council considers to be routine, or Council has discussed previously and do not require further discussion. Unless any item is specifically removed by any member of the City Council, staff, or the public, the Consent Calendar will be adopted by one motion. Items removed will be considered in the sequence as they appear below. If any member of the public wishes to have an item removed, please raise your hand when called and indicate the item.

6. Approve Minutes of the October 20, 2022, Special Joint Meeting of the City Council & Planning Commission.

7. Approve the Warrants for October 2022.

8. Adopt Resolution 2022-58 Authorizing the Continuation of Teleconference Public Meetings Pursuant to Government Code section 54953(e) (Assembly Bill 361).

9. Approve the Fiscal Year 2021-22 Financial Audit.

10. Adoption on Second Reading of Ordinance No. 2022-09 of the City of Belvedere Amending Chapter

2.08 - City Council - of Title 2 of the Belvedere Municipal Code by Amending Sections 2.08.010 and 2.08, Repealing Sections 2.08.020 and 2.08.050, and Renumbering Existing Sections Consistent with the Amendments.

11. Adopt Resolution 2022-59 amending Administrative Policy Manual section 6.2 to change the timing of the annual report provided by that the Parks, Open Space and Lanes Committee.

12. Waive Further Reading and Authorize Introduction and/or Adoption of Resolutions and Ordinances by Title Only (Standard procedural item – no backup information provided).

PUBLIC HEARING

13. Introduction & First Reading of an Ordinance of the City of Belvedere to Amend Sections 18.08.040 (L) (Former) 19.04.020, and Add Sections 18.04.040(L)(New), 19.04.035, 10.08.527, Chapter 18.27 and Chapter 19.77 to the City of Belvedere Municipal Code, all to comply with Senate Bill 9.

14. Consideration and Possible Adoption of Resolution 2022-60 Approving Changes to the Master Schedule of Fees for Road Closures and Encroachment Permits.

OTHER SCHEDULED ITEMS

15. Consideration and Possible Adoption of a Resolution 2022-61 Amending Sections 5.2. of the Belvedere Administrative Policy Manual (APM) City Operations.

Staff Recommendation: Adopt the Resolution as presented.

16. Consideration of a Pilot Program For the Marking and Identification of Aggressive Coyotes.

Staff Recommendation: Approve the pilot program.

17. Discussion and Appointment of Council Members to Various Regional Boards and Committees.

ADJOURN
NOTICE: WHERE TO VIEW AGENDA MATERIALS
Staff reports and other materials distributed to the City Council are available for public inspection at the following locations:
• Online at www.cityofbelvedere.org/archive.aspx
• Belvedere City Hall, 450 San Rafael Avenue, Belvedere. (Materials distributed to the City Council after the Thursday before the meeting are available for public inspection at this location only.) • Belvedere-Tiburon Library, 1501 Tiburon Boulevard, Tiburon.

To request automatic mailing of agenda materials, please contact the City Clerk at (415) 435-3838.

NOTICE: AMERICANS WITH DISABILITIES ACT
The following accommodations will be provided, upon request, to persons with a disability: agendas and/or agenda packet materials in alternate formats and special assistance needed to attend or participate in this meeting. Please make your request at the Office of the City Clerk or by calling 415/435-3838. Whenever possible, please make your request four working days in advance.

AGENDA ITEM NO. : 01

DECLARE ELECTION RESULTS BELVEDERE CITY COUNCIL
DECEMBER 12, 2022
To: Mayor and City Council
From: Leticia Miguel, City Clerk
Subject: Adopt resolution reciting the facts of the Belvedere general election held on November 8, 2022, declaring the results, and such other matters as provided by law.

Recommended Motion/Item Description
That the City Council adopt the resolution as presented.

Background
State law requires that the Council adopt a resolution reciting the facts of the contested election for three Council seats.

Findings
The official vote count in the Certificate of Canvass of Vote by the Marin County Registrar of Voters is:

Belvedere City Council
Peter E. Mark 676
Jane Cooper 662
Brian Davis 524
Richard N. Snyder 370

Belvedere City Council, Short Term
Sally Wilkinson 740
Carolyn Lund 452
Measure D
Yes 560
No 708
The number of residents registered to vote in Belvedere was 1,647; 1304 ballots were cast with a

79.17% voter turnout.

BELVEDERE CITY COUNCIL
DECEMBER 12, 2005

Attachment
Proposed resolution.

CITY OF BELVEDERE
RESOLUTION NO. 2022-57

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELVEDERE,

RECITING THE FACTS OF THE CONSOLIDATED MUNICIPAL ELECTION HELD ON NOVEMBER 8, 2022, DECLARING THE RESULT, AND SUCH OTHER MATTERS

AS PROVIDED BY LAW
________________________________________________________________________ WHEREAS, a Consolidated Municipal Election was held and conducted in the City of Belvedere, California, on Tuesday, November 8, 2022, as required by law; and WHEREAS, that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the Elections Code of the State of California for the holding of consolidated elections in general law cities; and
WHEREAS, pursuant to Resolution No. 2022-30, adopted June 13, 2022, the County Registrar of Voters canvassed the returns of the election and has certified the results to this City Council, the results are received, attached and made a part hereof as Exhibit “A”.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Belvedere as follows:

SECTION 1. That the whole number of ballots cast in the City was 1304.

SECTION 2. That the names of the persons voted for at the election for Member of the City Council, Full Term were Peter E. Mark, Jane Cooper, Brian Davis, Richard N. Snyder, and that the names of the persons voted for at the election for Member of the City Council, Short Term were Sally Wilkinson and Carolyn Lund.

SECTION 3. That the measures voted upon at the election were as follows:

To advance public safety; strengthen infrastructure against earthquakes; support fire suppression; safeguard water, sewer and other utilities; secure evacuation routes; and provide other general services, shall the measure establishing Belvedere as a Charter City and enacting a real estate property transfer tax of $8 per $1,000 to be paid by buyers or sellers of real property, providing $1,600,000 annually, to end in 30 years or less, with audits and citizen oversight, benefiting Belvedere, be adopted?
YES
NO
SECTION 3. That the number of votes given in the City to each of the persons above named for the respective offices for which the persons were candidates and for and against the measure are as listed in Exhibit A, attached.

Resolution No. 2022-57
Belvedere City Council

SECTION 4. The City Council does declare and determine that: Peter E. Mark and Jane Cooper were elected as Members of the City Council for the full term of four years, and Sally Wilkinson was elected as a Member of the City Council for the short term of two years.

SECTION 5. The City Council does declare and determine that: As a result of the election, a simple majority of the voters on the measure (Measure D) did not vote in favor of the measure and that this measure did not pass.

SECTION 6. The City Clerk shall enter on the records of the City Council of the City a statement of the result of the election, showing: (a) The whole number of votes cast in the City; (b) The names of the persons voted for; (c) For what office each person was voted for; (d) The measures voted upon; (e) The number of votes given in the City’s single precinct to each person and for and against each measure.

SECTION 7. That the City Elections Official shall immediately sign and deliver to each of the persons so elected a Certificate of Election signed by the City Elections Official and authenticated.

That the City Elections Official shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California.

SECTION 8. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Belvedere on December 12, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:________________________
Sally Wilkinson, Mayor
ATTEST:_____________________________
Leticia Miguel, City Clerk
AGENDA ITEM NO. :6

CONSENT CALENDAR BELVEDERE CITY COUNCIL
December 12, 2022
To: Mayor and City Council
From: Harrison Tregenza, Interim City Clerk.

Reviewed by: Robert Zadnik, City Manager
Subject: Approve minutes of the October 20, 2022 joint City Council/Planning Commission meeting.

Recommended Motion/Item Description
That the City Council approve the minutes as part of the Consent Calendar.

Attachments
Draft Minutes.
1 CITY OF BELVEDERE WORKSHOP

JOINT CITY COUNCIL & PLANNING COMMISSION
OCTOBER 20, 2022, 6:00 P.M.

REMOTE VIA ZOOM

MINUTES
______________________________________________
COUNCIL PRESENT: James Campbell, Nancy Kemnitzer, Peter Mark, and Sally Wilkinson COUNCIL ABSENT: James Lynch
COMMISSION PRESENT: Kevin Burke, Patricia Carapiet, Ashley Johnson, Marsha Lasky, Larry Stoehr COMMISSION ABSENT: Nena Hart and Claire Slaymaker
STAFF PRESENT: City Manager Robert Zadnik, Director of Planning and Building Irene Borba, Assistant City Attorney Ann Danforth, Associate Planner Samie Malakiman These minutes are intended to reflect the general content of the regular meeting. An audio file of the meeting is available:
https://www.cityofbelvedere.org/agendacenter.

CALL TO ORDER IN REMOTE OPEN SESSION
The meeting was called to order by Chair Carapiet at 6:01 P.M. via remote Zoom meeting.

Director of Planning and Building Irene Borba read the COVID-19 notice and public participation instructions.

Director of Planning and Building Irene Borba took roll call.

SCHEDULED ITEMS

1. Housing Element Update Overview
Director of Planning and Building Irene Borba introduced the item. Assistant City Attorney Ann Danforth gave a verbal report on the Housing Element update, summarizing new State laws, new changes and requirements, and new reporting and enforcement provisions. EMC Planning Group Principal Planner Ande Flower gave a presentation on the 6th Cycle Housing Element, going over the background of the update, the general roles for housing production, the Regional Housing Needs Allocation (RHNA), RHNA for the 6th Cycle Housing Element, and income variations within affordability categories.

2. Sites Analysis Overview
EMC Planning Group Principal Planner Ande Flower continued his presentation, reviewing the sites analysis. Mr. Flower’s presentation covered reasonable sites for future housing, how the sites were selected, the Belvedere inventory of sites, who owns the inventory list sites, accessory dwelling units (ADUs), secondary housing units, Senate Bill 9 (SB-9), and Senate Bill 10 (SB10).

3. Policy Overview
EMC Planning Group Principal Planner Ande Flower continued his presentation, giving an overview of policy. Mr. Flower’s presentation covered existing housing conditions and policy goals.

4. AFFH – Affirmatively Furthering Fair Housing
EMC Planning Group Principal Planner Ande Flower continued his presentation, summarizing Affirmatively Furthering Fair Housing (AFFH). Mr. Flower’s presentation covered Assembly Bill 686 (AB 686), the definition of AFFH, the goals of AFFH, the demographic data, and California State guidance for AFFH. 2 5. Providing Feedback
EMC Planning Group Principal Planner Ande Flower provided information on how the public can submit feedback to the City of Belvedere on the Housing Element.

6. Q&A Session
EMC Planning Group Principal Planner Ande Flower and Director of Planning and Building Irene Borba introduced the item.

Chair Carapiet asked for feedback on the Housing Element from each member of the City Council and Planning Commission.

Councilmember Campbell asked when Belvedere would hear out from the California Department of Housing & Community Development (HCD) whether the Housing Element was accepted.

Mr. Flower replied that 45 days after submitting, Belvedere should hear from their reviewer at HCD and start receiving feedback.

Councilmember Kemnitzer asked if Belvedere is on target to meet the deadline without asking for an extension, or if staff anticipates asking for an extension.

Mr. Flower replied that he does not anticipate Belvedere receiving a ‘ready to certify’ letter at the end of the 90-day window.

Mr. Flower added that whether or not an Environmental Impact Report (EIR) is necessary will also determine Belvedere’s ability to meet the deadline.

Councilmember Kemnitzer asked Mr. Flower to clarify the difference between a commitment to build an ADU and a letter of interest to build an ADU.

Mr. Flower replied that a letter of interest is not binding.

Councilmember Mark asked if Mr. Flower is looking for ‘big picture’ comments or specific site comments at this meeting.

Mr. Flower replied that this meeting’s goal to is inform the public so they can make comments on the Housing Element and added that receiving written comments is the preferred method of feedback.

Councilmember Mark commented that he would like Belvedere to have hard copies of the draft Housing Element available at City Hall for the public to view. Councilmember Mark commented that there is a discrepancy between the Housing Element’s affordability allocation and current development projects. He and asked Mr. Flower how Belvedere could address the discrepancy.

Mr. Flower replied that Belvedere could address this discrepancy by becoming a ‘pro-housing community’ which would help Belvedere receive grants that would increase the likelihood of meeting its affordability goals.

Mayor Wilkinson commented that the 44% buffer compared to 160 targets units is high compared to other communities and asked where Mr. Flower hopes the buffer will land.

Mr. Flower replied that the buffer is at the discretion of the City Council and that he would recommend 20%.

Mayor Wilkinson asked if HCD has provided pushback to communities that have relied heavily on ADUs in their Housing Elements.

Mr. Flower replied that HCD is reticent to allow any Housing Element with a ADU usage Above 200%. And recommended that Belvedere does not attempt more than 200% ADUs.

Mayor Wilkinson asked if HCD weighs certain sized units differently. 3 Mr. Flower replied that HCD gives equal weight to all units, regardless of size.

Commissioner Johnson asked if there would be repercussions for Belvedere if it meets the 160, but not the affordability quotient.

Mr. Flower replied that there are consequences for cities that do not meet their affordability levels.

Commissioner Johnson asked if Belvedere has any other avenues to require developers to hit a certain percentage of lower affordability brackets, outside of becoming a ‘pro-housing community”.

Mr. Flower replied in the negative.

Commissioner Stoehr asked if Mr. Flower considered net acreage rather than total lot acreage when calculating the potential number of units for sites.

Mr. Flower replied that he has directed his staff to calculate net acreage instead of gross acreage for lots that are adjacent to the Belvedere Lagoon.

Commissioner Stoehr asked Mr. Flower to review the house and ADU on the lot at 447 Belvedere Ave.

Commissioner Burke asked Mr. Flower to provide more information on the policy changes that led to the requirement that Belvedere go above 21 ADUs.

Mr. Flower replied that the housing numbers were calculated based on past performance and using the 30-30-30-10 model.

Commissioner Burke asked if additional units referenced in Chloe Byruck’s August 18, 2022 letter to Irene Borba were not included in the 235 total additional capacity units calculation.

Mr. Flower replied that the additional units in Ms. Byruck’s letter are included in the 235 total additional capacity units calculation.

Commissioner Burke asked if Mr. Flower is recommending the 120% contingency for all income groups.

Mr. Flower replied in the affirmative.

Commissioner Lasky asked about the maximum of number of ADU’s Belvedere is allowed.

Mr. Flower replied that the maximum amount is 200%, which would be 42 ADU’s.

In response to a chat question asking if ADUs not currently accounted for can be counted in the next RHNA cycle, Mr. Flower replied in the affirmative.

Councilmember Campbell asked if Belvedere can claim ADUs that aren’t registered, or if that process needs to be done through the ADU’s owner.

Director of Planning and Building Irene Borba replied that the process is undertaken when the ADU’s owner fills out an application with Belvedere.

Commissioner Stoehr asked how the income group gets established for newly built ADUs.

Mr. Flower replied that Belvedere does not keep an inventory of ADUs, so the income group is established following the 30-30- 30-10 model.
4 Councilmember Mark commented that he would hesitate to let a private developer dictate Belvedere’s Housing Element.

Mr. Flower replied that Belvedere is having challenges coming up with sites and sees a private developer as an ally in reaching the baseline numbers.

Councilmember Mark asked why the Boardwalk site would need to be re-zoned.

Director of Planning and Building Irene Borba replied that the current zoning ordinance only allows mixed use with a conditional use permit.

Mayor Wilkinson asked if Belvedere will need an EIR if it is determined that rezoning is necessary.

Mr. Flower replied that rezoning is the primary reason for an EIR, but that there may be other reasons to undertake one.

Assistant City Attorney Ann Danforth clarified that if the Housing Element increases density or facilitates development that causes environmental impacts that were not studied in a previous EIR, then a new EIR would be required.

Mayor Wilkinson asked if certified Housing Elements in other cities are receiving pushback from their communities in the form of litigation.

Mr. Flower replied that some communities are opting for a categorical exemption, and so far, have not been challenged in court.

Commissioner Carapiet asked if removing the conditional use permit aspect of the C-1 district zoning ordinance would count as rezoning.

Mr. Flower replied that making that change would not be cause for an EIR.

Assistant City Attorney Ann Danforth added that making this change would require a zoning ordinance amendment, but not every zoning ordinance amendment requires an EIR.

Commissioner Carapiet asked if the current height code is being used to calculate the unit count.

Mr. Flower replied that the unit count was calculated using density allowed, rather than height.

Commissioner Carapiet commented that it would be helpful to have a printed copy of the Housing Element available at City Hall for residents to read. Commissioner Carapiet commented that it would be helpful to have information on the Belvedere website about the purpose of a ‘pro-housing community’.

Mr. Flower replied that the ‘pro-housing community’ designation is based on a criteria system and that HCD would look favorably upon Belvedere qualifying for as many criteria as possible, even if it does not get enough for the official designation.

Commissioner Carapiet asked if the discrepancy between acreage and net acreage has been fixed in the Housing Element.

Mr. Flower replied in the affirmative.

Commissioner Carapiet then opened up the item for public comment.

Nonviolent Communication Santa Cruz (NVC Santa Cruz) Core Team Member Kristin Masters and be diversity Founder Lee Robinson set ground rules for providing feedback on the Housing Element.

David Sandrich commented that there should be an emphasis in the Housing Element on public safety issues due to natural 5 disasters. Mr. Sandrich commented that there should be clear communication on what changes have been made to the Housing Element. Mr. Sandrich asked if Tom Price Park is no longer on the list.

Commissioner Carapiet replied in the affirmative.

Mr. Sandrich asked if Mr. Flower said in his presentation that Belvedere would not miss its RHNA deadlines.

Mr. Flower replied that it is Belvedere’s goal to meet the deadline, but it is very likely that they will have to ask HCD for an extension.

Mr. Sandrich asked if the Housing Element will be submitted to HCD before January 31, 2023.

Mr. Flower replied in the affirmative.

Mr. Sandrich commented that the changes to the Housing Element should be published in the Ark Newspaper. Mr. Sandrich commented that the City Council needs to be more vocal about fighting HCD’s requirements.

Mr. Flower replied that there is information on public safety issues in Appendix C of the Housing Element.

Andrew Barnett asked if Belvedere can frontload easily developed properties early in the cycle and prioritize the properties that are more difficult to be developed later in the cycle.

Mr. Flower replied that there is a legal barrier that prevents Belvedere from mandating sites to be developed at certain affordable levels.

Mr. Barnett asked why Belvedere can’t take the affordability numbers and put them into the requirements for certain developments.

Mr. Flower replied that Belvedere has an inclusionary law that requires a financial analysis if the development goes above a 15% requirement.

Aging Action Initiative (AAI) Program Director Linda Jackson commented that Belvedere is a naturally occurring retirement community (NORC). Ms. Jackson commented that 87% of older residents want to age in their own home. Ms. Jackson advocated for Belvedere to build ADUs and support homeowners to build ADU’s and multi-family housing.

Jim Allen asked if Belvedere will be checking to determine if developers are renting out units at below market rate.

Commissioner Carapiet replied that she agrees with Mr. Allen and would like to discuss how oversight can be implemented into the Housing Element.

Mr. Allen commented that some seniors in Belvedere may not be able to live in below market rate units because their income is too high.

Greenbelt Alliance Resilience Manager Jordan Grimes commented that increasing density and making it easier to build multifamily housing are important climate resilience actions. Mr. Grimes shared his concern that the density for certain sites is too low and that the Housing Element doesn’t meet HCD’s standard for providing significant evidence of the suitability of nonvacant sites. Mr. Grimes encouraged Belvedere to not stray from HCD’s formula of 21 ADU’s in the Housing Element, as it will then be rejected by HCD. Mr. Grimes encouraged Belvedere to review possible constraints on development because that is what HCD is looking for.

Jenny Silva asked how the Belvedere Land Company will build additional units if Belvedere doesn’t undertake any rezoning.

Ms. Silva commented that the Housing Element programs are vague and don’t provide milestones. She recommended that 6 Belvedere put together a rental registry. Ms. Silva commented that community resistance to certain developments should be addressed in the Housing Element.

Sandra Donnell asked if the Belvedere building fees or public utility charges will set rates to encourage or discourage the fulfillment of Belvedere’s RHNA numbers.

Councilmember Mark commented that addressing the affordability of multi-unit housing is a topic Belvedere is going to think about.

Marin Environmental Housing Collaboration (MEHC) Board Member Bob Pendoley commented that the Housing Element is missing a basic inclusionary affordable housing requirement. Mr. Pendoley commented that the Housing Element is missing incentives for providing affordable housing. Mr. Pendoley commented that the Belvedere Land Company is asking for a height limit increase and floor area ratio (FAR) increase, and that their request should be seriously considered by Belvedere. Mr.

Pendoley commented it would be helpful if Belvedere discussed their experience with ADUs thus far. Mr. Pendoley commented that it would be helpful if the Housing Element explained how the R-15 district works and how it facilitates both ADUs and junior accessory dwelling units (JADUs). Mr. Pendoley encouraged Belvedere to go forward with the Thompson Dorfman project.

Mr. Allen commented that traffic on the Tiburon Peninsula must be solved and that it will require a cultural shift away from cars.

Commissioner Carapiet asked the City Council and Planning Commission members to share any comments they have regarding the public comment.

Councilmember Mark commented that Mr. Sandrich’s comments on public safety are significant.

Councilmember Kemnitzer responded to Mr. Sandrich’s comments by stating that the Housing Element does take public safety into account. Councilmember Kemnitzer commented that she would like the conclusion of the Housing Element to incorporate Belvedere’s aspirations and the efforts that Belvedere is making on this issue.

Mayor Wilkinson advocated for elevating the issues of public safety and transportation into the Housing Element. Mayor Wilkinson commented that getting the Housing Element certified is the Belvedere’s priority right now.

Commissioner Lasky commented that it would be advantageous to concentrate housing in a district that already has multi-family housing and in the Boardwalk shopping center.

Commissioner Johnson commented that the Planning Commission is balancing between maintaining the character of Belvedere and addressing the need for more housing.

Commissioner Burke commented that he thinks it’s important to receive more input from the Belvedere community and encouraged those in the meeting to reach out and engage with their neighbors on this issue.

Commissioner Stoehr commented that it would be helpful if the Housing Element included more information on Belvedere’s options to reach the mandated distribution of affordable income housing.

Commissioner Carapiet commented that her priority is to have a Housing Element that respects the current community and meets the requirements set forth by HCD.

Councilmember Mark asked via Zoom chat if there is going to be another public meeting on the Housing Element in the future.

Mr. Flower replied they will be hosting a public meeting to hear from those who would like to live in Belvedere.

7 ADJOURN
The meeting was adjourned at 8:09 P.M.

THE FOREGOING MINUTES were approved at a regular meeting of the Belvedere City Council on December 12, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:

Approve: __________________________
, Mayor
Attest: _ _______________
Leticia Miguel, City Clerk
THE FOREGOING MINUTES were approved at a regular meeting of the Belvedere City Council on December 14, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:

Approve: __________________________
Patricia Carapiet, Chair
Attest: _ _______________
Leticia Miguel, City Clerk
AGENDA ITEM NO. : 7

CONSENT CALENDAR BELVEDERE CITY COUNCIL
DECEMBER 12, 2022
To: Mayor and City Council
From: Helga Cotter, Administrative Services Director
Subject: Approve Warrants of October 2022
Recommended Motion/Item Description
That the City Council approve the October 2022 warrants as part of the Consent Calendar.

Attachments
Warrants.

Check Number Check Date Vendor # (Name) Net Amount Check Description 27693 10/11/2022 AMMI PUBLISHING COMP. INC 920.00 Automatic Generated Check 27694 10/11/2022 AT&T 338.46 Automatic Generated Check
27695 10/11/2022 AT&T MOBILITY 216.55 Automatic Generated Check 27696 10/11/2022 BROC BUILT CONSTRUCTION 9.90 Automatic Generated Check 27697 10/11/2022 CALIFORNIA BUILDING STAND 171.42 Automatic Generated Check 27698 10/11/2022 CODE PUBLISHING LLC 99.30 Automatic Generated Check 27699 10/11/2022 COMCAST 135.87 Automatic Generated Check 27700 10/11/2022 COUNTY OF MARIN‐MARIN.ORG 4,574.58 Automatic Generated Check 27701 10/11/2022 DEPT. OF CONSERVATION 523.08 Automatic Generated Check 27702 10/11/2022 ELIZABETH MITCHELL 5,433.93 Automatic Generated Check 27703 10/11/2022 FLYERS ENERGY, LLC 1,860.88 Automatic Generated Check 27704 10/11/2022 GOLDFARB LIPMAN ATTORNEYS 3,434.00 Automatic Generated Check 27705 10/11/2022 GOODMAN BUILDING SUPPLY 204.30 Automatic Generated Check 27706 10/11/2022 GROVES ASSOCIATES 510.00 Automatic Generated Check 27707 10/11/2022 JACKSON'S 294.28 Automatic Generated Check 27708 10/11/2022 SAN FRANCISCO YACHT CLUB 101.00 Automatic Generated Check 27709 10/11/2022 STERICYCLE INC 140.95 Automatic Generated Check 27710 10/11/2022 VERIZON 132.78 Automatic Generated Check 27711 10/11/2022 VERIZON 603.96 Automatic Generated Check 27712 10/11/2022 WAGEWORKS INC. 200.00 Automatic Generated Check 27713 10/11/2022 WELLS FARGO VENDOR FINANCIAL SERVICES LLC 147.95 Automatic Generated Check 27714 10/11/2022 WESTERN EXTERMINATOR COMPANY 600.00 Automatic Generated Check 27715 10/13/2022 CITY OF NOVATO 55.00 Automatic Generated Check A‐1211 10/3/2022 GLOBAL PAYMENTS 302.99 Electronic Payment A‐1212 10/4/2022 CALPERS 32,825.78 Electronic Payment
A‐1213 10/6/2022 EFTPS 18,066.65 Electronic Payment
A‐1214 10/6/2022 CA EDD 5,859.11 Electronic Payment
A‐1215 10/7/2022 CALPERS 18,136.30 Electronic Payment
A‐1216 10/6/2022 PITNEY BOWES 500.00 Electronic Payment A‐1217 10/11/2022 PACIFIC GAS & ELECTRIC 2,957.95 Electronic Payment A‐1218 10/12/2022 TAKE CARE/WAGE WORKS 312.00 Electronic Payment A‐1219 10/12/2022 TAKE CARE/WAGE WORKS 50.00 Electronic Payment A‐1220 10/18/2022 WESTAMERICA BANK 285.99 Electronic Payment A‐1221 10/18/2022 COMCAST 48.85 Electronic Payment
A‐1222 10/19/2022 CONNECT YOUR CARE 13.32 Electronic Payment A‐1223 10/20/2022 EFTPS 14,477.40 Electronic Payment
A‐1224 10/21/2022 CA EDD 4,726.57 Electronic Payment
A‐1225 10/21/2022 CALPERS 17,760.27 Electronic Payment
A‐1226 10/21/2022 DELTA DENTAL 2,955.16 Electronic Payment A‐1227 10/21/2022 AT&T 69.72 Electronic Payment
A‐1228 10/24/2022 RELIANT STANDARD LIFE/ADD 315.92 Electronic Payment A‐1229 10/26/2022 LINCOLN LTD 612.37 Electronic Payment A‐1230 10/27/2022 AFLAC INSURANCE CO 181.42 Electronic Payment A‐1231 10/28/2022 PITNEY BOWES 169.98 Electronic Payment AP101122‐01 10/11/2022 ALHAMBRA & SIERRA SPRINGS 48.92 Electronic Payment AP101122‐02 10/11/2022 ARBORSCIENCE 900.00 Electronic Payment

CITY OF BELVEDERE

WARRANTS REPORT
OCTOBER 2022
BANK ACCOUNT 1000
OPERATING CHECKING ACCOUNT
page 1
Check Number Check Date Vendor # (Name) Net Amount Check Description

CITY OF BELVEDERE

WARRANTS REPORT
OCTOBER 2022
BANK ACCOUNT 1000
OPERATING CHECKING ACCOUNT
AP101122‐03 10/11/2022 BAY ALARM COMPANY 350.73 Electronic Payment AP101122‐04 10/11/2022 CARBONITE INC. 390.72 Electronic Payment AP101122‐05 10/11/2022 CIRA 24,523.00 Electronic Payment AP101122‐06 10/11/2022 DC ELECTRIC GROUP, INC. 311.10 Electronic Payment AP101122‐07 10/11/2022 ECORP CONSULTING INC. 882.50 Electronic Payment AP101122‐08 10/11/2022 EDMUND H. SAN DIEGO 614.88 Electronic Payment AP101122‐09 10/11/2022 GENARO MUNIZ 28.48 Electronic Payment AP101122‐10 10/11/2022 JESUS ARGUELLES 738.25 Electronic Payment AP101122‐11 10/11/2022 JESUS ARGUELLES 960.30 Electronic Payment AP101122‐12 10/11/2022 JOANNE OHEHIR 393.75 Electronic Payment AP101122‐13 10/11/2022 MARY NEILAN 614.88 Electronic Payment AP101122‐14 10/11/2022 MCNABB CONSTRUCTION INC 101,121.56 Electronic Payment AP101122‐15 10/11/2022 MEYERS NAVE 1,930.50 Electronic Payment AP101122‐16 10/11/2022 PARISI TRANSPORTATION CONSULTING INC. 1,800.00 Electronic Payment AP101122‐17 10/11/2022 PARISI TRANSPORTATION CONSULTING INC. 5,770.00 Electronic Payment AP101122‐18 10/11/2022 PORAC RETIREE MEDICAL TRU 2,100.00 Electronic Payment AP101122‐19 10/11/2022 WILLDAN FINANCIAL SERVICE 8,388.79 Electronic Payment AP101122‐20 10/11/2022 WILLDAN FINANCIAL SERVICE 7,559.95 Electronic Payment Total for Bank Account 1000   ‐‐‐‐‐>   300,764.25
page 2
Check Number Check Date Vendor # (Name) Net Amount Check Description 147 10/5/2022 DIRECT DEPOSIT 72,751.63 Electronic Payment 148 10/18/2022 DIRECT DEPOSIT 65,774.95 Electronic Payment P‐210 10/5/2022 MASS MUTUAL 527.21 Electronic Payment
P‐211 10/18/2022 MASS MUTUAL 527.21 Electronic Payment
PR100622‐01 10/5/2022 BPOA 92.30 Electronic Payment
PR100622‐02 10/5/2022 ICMA‐RC 4,768.55 Electronic Payment PR100622‐03 10/5/2022 GARNISHMENT 692.31 Electronic Payment PR102022‐01 10/18/2022 BPOA 92.30 Electronic Payment
PR102022‐02 10/18/2022 ICMA‐RC 4,613.94 Electronic Payment PR102022‐03 10/18/2022 GARNISHMENT 692.31 Electronic Payment Total for Bank Account 1010   ‐‐‐‐‐>   150,532.71
Grand Total of all Bank Accounts ‐‐‐‐‐> 451,296.96
PAYROLL CHECKING ACCOUNT

CITY OF BELVEDERE

WARRANTS REPORT
OCTOBER 2022
BANK ACCOUNT 1010
page 3
AGENDA ITEM NO. : 8

CONSENT CALENDAR BELVEDERE CITY COUNCIL
DECEMBER 12, 2022
To: Mayor and City Council
From: Robert Zadnik, City Manager

Subject: A Resolution Authorizing the Continuation of Teleconference Public Meetings Pursuant to Government Code section 54953(e) (Assembly Bill 361)

RECOMMENDATION
That the City Council adopt a Resolution authorizing the continued use of teleconference meetings pursuant to Assembly Bill 361 and give direction to staff as necessary.

BACKGROUND
In September 2021, the Ralph M. Brown Act (Brown Act) was amended by Assembly Bill 361 to allow teleconference meetings during a state of emergency. AB 361 amends Government Code section 54953 to allow virtual board meetings through December 31, 2023 in any of the following circumstances:

1. The legislative body holds a meeting during a proclaimed state of emergency and state or local officials have imposed or recommended measures to promote social distancing.

2. The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

3. The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

To continue to hold virtual meetings while California’s state of emergency remains active, the body must make findings every 30 days that: 1) the body has reconsidered the circumstances of the state of emergency and 2) that the state of emergency continues to directly impact the ability of the members to meet safely in person or state and state or local officials continue to impose or recommend measures to promote social distancing.

The attached resolution makes the findings to confirm the conditions still exist to allow the continuation of teleconference public meetings pursuant to AB 361 for the City Council and on behalf all lower legislative bodies in the City.

CONSENT CALENDAR BELVEDERE CITY COUNCIL
DECEMBER 12, 2022

ENVIRONMENTAL DETERMINATION
A meeting format determination under AB 361 is not a “project” under the California Environmental Quality Act, because it does not involve an activity that has the potential to cause a direct or reasonably foreseeable indirect physical change in the environment. (Pub. Res. Code § 21065)

CORRESPONDENCE
As of the writing of this report, no correspondence has been received regarding this agenda item.

RECOMMENDED ACTIONs
That the City Council adopt the Resolution authorizing the continued use of teleconference meetings pursuant to Assembly Bill 361 and give direction to staff as necessary.

ATTACHMENT

1. Resolution.

CITY OF BELVEDERE
RESOLUTION NO. 2022-58

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELVEDERE AUTHORIZING TELECONFERENCE MEETINGS PURSUANT TO GOVERNMENT CODE SECTION 5953(e) (ASSEMBLY BILL 361)
___________________________________________________________________________ WHEREAS, the City of Belvedere is committed to preserving public access and participation in the meetings of the City Council; and
WHEREAS, all meetings of the City of Belvedere’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code §§ 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and WHEREAS, on March 4, 2020 Governor Newsom declared a State of Emergency pursuant to Government Code section 8625 due to the COVID-19 pandemic, which State of Emergency remains in effect; and WHEREAS, State Executive Orders N-25-20 and N-29-20, suspended certain provisions of the Brown Act (Gov. Code, §§ 54950 et seq.) to allow public meetings to be held virtually without opening a physical space to the public, which provisions expired September 30, 2021; and WHEREAS, effective September 16, 2021, Assembly Bill 361 allows local agencies to continue to hold remote public meetings through December 31, 2023 when there is a State-declared emergency, and when state or local officials have imposed or recommended measures to promote social distancing or as a result of the declared emergency, meeting in-person would result in an imminent risk to the health or safety of attendees; and
WHEREAS, the Government Code section 8625 State of Emergency remains in effect; and WHEREAS, on July 28, 2021, the California Department of Public Health issued guidance calling for the use of face coverings and stating that the Delta Variant is two times as contagious as early COVID-19 variants, leading to increasing infections, the Delta Variant accounts for over 80% of cases sequenced, and cases and hospitalizations of COVID-19 are rising throughout the state; and AGENDA ITEM NO.: 9

CONSENT CALENDAR BELVEDERE CITY COUNCIL
DECEMBER 12, 2022
To: Mayor and City Council
From: Helga Cotter, Administrative Services Director
Robert Zadnik, City Manager
Subject: Audited Financial Statements – FY2021-22
Recommended Motion/Item Description
It is recommended that the City Council receive and file the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022.

Background
An independent audit was performed by the CPA firm, Maze & Associates. The goal of a financial statement audit is to provide users with a reasonable assurance from an independent source that the information presented in the statements is reliable. The attached Annual Comprehensive Financial Report (ACFR) was deemed neutral, consistent, and clear in the opinion of the City’s auditor. The Memorandum on Internal Control prepared by the auditor indicated that there were no deficiencies in internal control to report.

The ACFR is being submitted to the Government Finance Officers Association (GFOA) for consideration as part of the Certificate for Excellence in Financial Reporting program. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting. The City has received the GFOA certification for the past eight years and believes that the recent ACFR meets the requirements to again merit GFOA recognition.

The City’s Finance Committee met on November 10, 2022, to review the financial statements with the auditor. After suggesting some minor edits, the committee unanimously recommended that the City Council accept the audited ACFR for FY2021-22.

Fiscal Impact
No fiscal impact occurs as a result of the City Council’s acceptance of these reports. The FY2021-22 ACFR and related reports are presented as the actual results of the City’s financial activities for the year.

CONSENT CALENDAR BELVEDERE CITY COUNCIL
DECEMBER 12, 2022

Attachments

1. FY2021-22 Annual Comprehensive Financial Report

2. Auditor’s Memorandum on Internal Control

3. Auditor’s Required Communications Letter

4. Auditor’s Report on Gann Limit
Resolution No. 2022-58
Belvedere City Council

WHEREAS, on January 5, 2022, the California Department of Public Health issued guidance again requiring universal masking indoors and stating that the Omicron Variant is more contagious than early COVID-19 variants and the Delta Variant, and has increased the seven-day average case rate more than sixfold and doubled COVID-19 hospitalization rates; and WHEREAS, the universal masking requirements in all indoor public settings, social distancing guidance, vaccination availabilities and the increase in knowledge about protections against COVID19 variant exposure or transmission led the CDPH to amend their masking guidance to allow the universal indoor masking requirement to expire on February 15, 2022; and WHEREAS, the requirement for unvaccinated persons to mask in indoor public settings and businesses was replaced on March 1, 2022 by a strong recommendation that all persons, regardless of vaccine status, mask in indoor public settings and businesses; and WHEREAS, the Delta and Omicron Variants have caused, and will continue to cause, conditions of imminent peril to the health safety of persons within the City; and WHEREAS, public meetings involve many people in shared indoor spaces, in close proximity for hours, and City meetings rooms have limited mechanical and natural ventilation, creating a health risk for members of the public at this time;
WHEREAS, as a result of the continuing declared emergency, public meetings in-person would result in an imminent risk to the health or safety of attendees; and WHEREAS, the City provides in the public notices and agendas for all public meetings the online and telephone options for participation in public meetings, protecting the right of the public to address their local officials and to participate in public meetings, and posts this information on the City’s website, including instructions on how to access the public meeting remotely; now, therefore be it; and WHEREAS, a meeting format determination under AB 361 is not a “project” under the California Environmental Quality Act, because it does not involve an activity that has the potential to cause a direct Resolution No. 2022-58
Belvedere City Council

or reasonably foreseeable indirect physical change in the environment. (Pub. Res. Code § 21065.)
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Belvedere, based on the findings set forth above and incorporated herein, that public meetings of the City’s legislative bodies shall be held using remote technology in compliance with the requirements of Government Code section 54953(e) and all other applicable laws for thirty (30) days following the date of adoption of this Resolution.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Belvedere on November 14, 2022, by the following vote:

AYES: COOPER, KEMNITZER, LYNCH, MARK, WILKINSON
NOES:

ABSENT:

RECUSED:

APPROVED:___________________________
, Mayor
ATTEST:______________________
Leticia Miguel, City Clerk

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

PREPARED BY THE

FINANCE DEPARTMENT
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INTRODUCTORY

SECTION
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CITY OF BELVEDERE, CALIFORNIA
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 ........................................................................................................................................................ v Elected Officials and Administrative Personnel ............................................................................................................ ix Organization Chart .......................................................................................................................................................... x City Map ......................................................................................................................................................................... xi FINANCIAL SECTION:

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

Government-wide Financial Statements:

Statement of Net Position ........................................................................................................................... 16 Statement of Activities – Governmental Activities .................................................................................... 17 Fund Financial Statements:

Governmental Funds:

Balance Sheet .......................................................................................................................................... 20 Reconciliation of the Governmental Funds – Balance Sheet to the Government-Wide Statement of Net Position .................................................................................... 22 Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................. 24 Reconciliation of the Governmental Funds – Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ........................................................................................................................ 26

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

Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................................ 28 Statement of Changes in Fiduciary Net Position ......................................................................................... 29 Notes to Basic Financial Statements ................................................................................................................... 31 Required Supplementary Information:

Budgetary Comparison Schedules:

General Fund ................................................................................................................................................ 70 Fire Protection Special Revenue Fund ......................................................................................................... 71 Notes to Required Supplementary Information ........................................................................................... 72 Defined Pension Plan – Miscellaneous and Safety Cost-Sharing Multiple-Employer Plans:

Schedule of Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date ..................................................................................................................... 73 Schedule of Contributions and Notes to Schedule ...................................................................................... 74 Schedule of Changes in the Net Pension Liability and Related Ratios ....................................................... 75 Defined Benefit Pension Plan – PARS Retirement Enhancement Plan (REP):

Schedule of Contributions ............................................................................................................................ 76 Other Postemployment Benefit Plan:

Schedule of Changes in the City’s Net OPEB Liability and Related Ratios ............................................... 77 Schedule of Contributions ............................................................................................................................ 78 Supplementary Information:

Budgetary Comparison Schedule, Major Capital Projects Fund:

General Capital Improvement Fund ............................................................................................................ 80

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

General Fund:

Combining Balance Sheet ............................................................................................................................. 81 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ...................................... 82 Non-major Governmental Funds:

Combining Balance Sheets ........................................................................................................................... 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................................................................................................................................... 85 Budgetary Comparison Schedule Equipment Replacement Fund ................................................................ 86 Custodial Funds:

Combining Statement of Fiduciary Net Position .......................................................................................... 87 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 88 STATISTICAL SECTION:

Financial Trends:

Net Position by Component - Last Ten Fiscal Years ...................................................................................... 91 Changes in Net Position - Last Ten Fiscal Years ............................................................................................ 92 Program Revenues by Function/Program - Last Ten Fiscal Years ................................................................. 94 Fund Balances, of Governmental Funds - Last Ten Fiscal Years ................................................................... 95 Changes in Fund Balances, of Governmental Funds - Last Ten Fiscal Years ................................................ 96 Revenue Capacity:

City-Wide Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ................................................................................................................................... 97 Taxable Property by Use Code, City-Wide - Last Ten Fiscal Years .............................................................. 98 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ............................................................. 99

CITY OF BELVEDERE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
iv
STATISTICAL SECTION (CONTINUED):

Principal Property Tax Payers - Last Fiscal Year and Nine Years Ago ........................................................ 100 Principal Sales Tax Producers - Last Fiscal Year and Nine Years Ago ........................................................ 101 Property Tax Levies and Collections - Last Ten Fiscal Years ...................................................................... 102 Debt Capacity:

Ratios of Outstanding Debt by Type ............................................................................................................. 103 Computation of Direct and Overlapping Debt .............................................................................................. 104 Demographic and Economic Information:

Demographic and Economic Statistics - Last Ten Fiscal Years ................................................................... 105 Principal Employers ....................................................................................................................................... 106 Full-time Equivalent City Government Employees
by Function/Program - Last Ten Fiscal Years ......................................................................................... 107 Operating Information:

Operating Indicators by Function/Program ................................................................................................... 108 Capital Asset Statistics by Function/Program ............................................................................................... 109 v
CITY of BELVEDERE
450 San Rafael Avenue  Belvedere CA 94920-2399
Tel: 415/435-3838  Fax: 415/435-0430
November 10, 2022
Honorable Mayor, Members of the City Council
and Citizens of the City of Belvedere
The City, consistent with its responsibility to fully disclose its financial information and to ensure compliance with all state and federal regulations, publishes a complete set of audited financial statements within six months after the close of each fiscal year. The Annual Comprehensive Financial Report of the City of Belvedere fulfills that requirement for the fiscal year ended June 30, 2022. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. City management assumes full responsibility for the accuracy, completeness and reliability of the information contained in this report.

The City’s financial statements have been audited by Maze & Associates Accountancy Corporation, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with generally accepted accounting principles (“GAAP”). The independent auditors’ report is presented as the first component of the financial section of this report.

Generally accepted accounting principles (“GAAP”) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

Government Profile
The City of Belvedere is a residential community located on the Tiburon Peninsula in Marin County, California. Belvedere is 2.4 square miles in size and is surrounded on three sides by the waters of the San Francisco Bay. The town is situated on two “islands” (Belvedere Island and Corinthian Island) and a lagoon area with adjacent residential properties. Belvedere affords its residents with amazing views in every direction. San Francisco, the Golden Gate Bridge, Sausalito, Angel Island and Mt. Tamalpais can be seen from Belvedere. The population of Belvedere is just under 2,100. A small fraction of the land area in Belvedere is devoted to commercial uses, including offices, services and retail establishments. vi
Incorporated in 1896, Belvedere has a Council/Manager form of government. Policy-making and legislative authority are vested in the governing city council, which consists of a mayor, vicemayor and three council members. Council members are elected on a non-partisan basis to overlapping four-year terms. The council members select the Mayor and Vice Mayor each year.

The Council is responsible for passing ordinances, adopting the budget, appointing commission and board members, and hiring the City Manager and City Attorney. The City Manager is responsible for assuring compliance with all ordinances, implementing the policies and direction of the City Council, appointing department heads, hiring employees, and managing the daily operations of the City.

The City provides a range of municipal services including law enforcement, planning, building code compliance, construction and maintenance of city infrastructure and park maintenance.

Contract fire services are provided by the Tiburon Fire Protection District. Library and Recreation services are provided through joint powers agreements with the Town of Tiburon.

The annual budget serves as the foundation for the City of Belvedere’s financial planning and control system. The City’s departments are required to submit requests for appropriation to the City Manager each year. The City Manager uses these requests as the starting point for developing the proposed budget. In May of each year, the City Manager submits to the City Council a proposed operating budget for review. The Council holds a public hearing, and a final budget is adopted by June 30th each year.

The budget is adopted by fund, department and account classification. The City Manager may transfer budgeted amounts within any fund. Only the City Council can approve additional appropriations. The City Council is given a financial report and a comprehensive budget review at mid-year.

Economic Outlook
The City is primarily residential, and the majority of general fund revenue received (79%) is from local property taxes. Current Secured Property Tax revenue increased 4.6% (or $232,874) in fiscal year 2022 and is estimated to increase 6.7% (or $359,000) in fiscal year 2022. At the end of October 2022, there were 17 homes for sale in Belvedere with sale prices ranging from $4.5 to $39.5 million with an average list price of $16.5 million, and a median list price of $13.9 million.

Belvedere’s revenues are somewhat insulated from economic downturns because only a small percentage of revenue received is from sales tax and there are no hotels in the city. In the ten years ranging from fiscal year 2013 through fiscal year 2022, overall property tax revenues increased an average of 5.8% per year.

Long-Term Financial Planning
Cities across the nation began reopening and loosening their restrictions related to COVID-19 virus in Spring of 2022. Belvedere’s unique reliance on property tax revenue places Belvedere in a relatively positive economic outlook compared to the beginning and middle stages of the pandemic. The City did see an increase in the second half of the fiscal year in both planning and building related workloads which were close to pre-pandemic levels. vii
The five-year forecast assumes increases in property tax revenue from 4.5% to 5% over the time period, and continued contributions to the new Section 115 Pension Trust Fund to hedge against rising pension liabilities. Operating and capital expenditures have been forecasted just below prepandemic levels.

The City has identified $3.74 million in capital projects to be completed over the next five fiscal years. Capital projects included are:
 $1,960,000 for street improvements,
 $609,000 for infrastructure improvements – including the continuation of the seawall stabilization project,
 $380,000 for improvements to Belvedere’s lanes,
 $74,000 for parks and open space projects,
 $274,000 for community building upgrades, and
 $446,000 for miscellaneous uncategorized projects.

Funding for street-related projects will come from various sources, including Road Impact Fee revenue; which is collected at the time a construction permit is issued; State Gas Tax revenue; and Marin County Measure A sales tax revenue.

On November 3, 2021, the Council considered updated project designs for a project that has been under serious consideration for several years. The project, the “Critical Infrastructure Project,” is a comprehensive approach to protecting the City from current and future threats. By strengthening key access routes and utility arteries and providing additional protections against storm surges and waves, the project would not only ensure resilience of public assets but would also add value to every property in Belvedere. The project has been divided into two phases with an estimated cost of the entire project of $28 million and will likely be funded through a combination of grant funding and a potential voter-approved tax initiative.

The City’s General Fund Reserve Policy was revised at its meeting on December 13, 2021, to require that the City maintain an end-of-year General Fund Reserve that totals one half of the projected fiscal year’s General Fund expenditures, plus one half of the General Fund transfer to the Fire Fund, plus one half of annual debt service payments. The projected expenditures from the 2nd year of the 5-year budget are used for this calculation. The General Fund reserve was fully funded at the end of fiscal year 2022 and is anticipated to be fully funded in each of the next five fiscal years.

Also, as part of the updates to the Reserve Policy, at the end of each fiscal year, any unassigned funds that remain in the City’s General Fund after all other funds have been classified in accordance with GAAP and City Policy, will be transferred to the Critical Infrastructure Reserve and classified as assigned.

viii
Financial Information
The City’s management is responsible for establishing and maintaining internal controls to ensure that the City’s assets are adequately protected from loss, theft or misuse. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. It is management’s belief that the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.

This report was completed with contributions from Robert Zadnik, City Manager and Bob McCaskill, Finance Committee Chair.

The Government Finance Officers Association of the United States and Canada (“GFOA”) award for Certificate of Achievement for Excellence in Financial Reporting to the City of Belvedere for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021 has been applied for, but not yet received. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility.

Sincerely,

Robert Zadnik Helga Cotter
City Manager Administrative Services Director

PRINCIPAL OFFICERS

CITY OF BELVEDERE
JUNE 30, 2022

CITY COUNCIL
Mayor Sally Wilkinson
Vice Mayor Jim Lynch
Councilmember James Campbell
Councilmember Nancy Kemnitzer
Councilmember Peter Mark

COUNCIL APPOINTEES
City Manager Robert Zadnik
City Attorney Amy Ackerman

DEPARTMENT MANAGERS
City Clerk Beth Haener
Admin Services Director Helga Cotter
City Planner Irene Borba
Police Chief Jason Wu
Director of Public Works Vacant
Building Official Brian Van Son

ix
Tiburon Fire
Protection District
Contract for Services
Administrative
Services Director
Helga Cotter
Police Officers
Jeremy Clark, Brandon Novotny,
Caitlin Cullen
(1 deferred vacancy)
Building & Planning
Technician
Nancy Miller
Senior
Planner
Vacant
Director of
Planning & Building
Irene Borba
Police Chief
Jason Wu
Building Official
Brian Van Son
Building
Inspector II
Genaro Muniz
Mgmt Analyst/
City Clerk
Beth Haener
IT Coordinator
SPTJ Consulting
Contract for
Services
Police Sergeants
Tom Sabido
Andrew Rosas
City Engineer
Moe Engineering
Contract for Services
Director of Public
Works/Emergency
Services Manager
Vacant
Maintenance
Supervisor
Gerhard Laufer
Maintenance
Workers II
Alberto Carranza
Roy DeMartini
Public Safety Planning & Building Administration Public Works City Attorney
Renne Public Law Group
Contract for Services City Manager
Robert Zadnik
Belvedere Residents
City Council
Sally Wilkinson, Mayor
City Councilors: James Campbell, Nancy Kemnitzer, James Lynch, Peter Mark Office Coordinator
Christina Cook
Associate
Engineer
Chris Barry
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xi
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FINANCIAL

SECTION
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
of the City of Belvedere, California
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Belvedere, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental 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 for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.

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.

Responsibilities of Management’s for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of 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 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.

1 In performing an audit in accordance with generally accepted 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.

Report on Summarized Comparative Information
We have previously audited the City’s June 30, 2021 financial statements and we expressed unmodified audit opinions on those audited financial statements in our report dated December 1, 2021. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2021 is consistent, in all material respects, with the audited financial statements from which it has been derived.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the 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 and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

2 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.

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.

Pleasant Hill, California
November 10, 2022
3 This Page Left Intentionally Blank

CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS

INTRODUCTION
As management of the City of Belvedere (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with the City’s financial statements, which follow this discussion and analysis.

FINANCIAL HIGHLIGHTS
- The City’s total assets plus deferred outflows on a Government-wide basis exceeded its liabilities plus deferred inflows at the close of the most recent fiscal year for a net position of $15.82 million.
- The City’s Government-wide net position increased by $7.17 million at the close of FY 2021-22 as compared to FY2020-21, primarily due to revenues in excess of expenditures, plus favorable changes to the City’s long-term inflows and outflows of resources. - At the close of the current fiscal year, the City’s Governmental funds, on a current financial resource basis, reported a combined ending fund balance of $8.07 million. This represents an increase of $.53 million over the prior fiscal year. - The General Fund balance is $5.24 million, of which $3.57 million is assigned to the General Fund Reserve in compliance with City policy, $1.59 million is restricted for the City’s pension liabilities, $.06 million is assigned for the Insurance and Legal Reserve and $.02 million is nonspendable.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other required and non-required supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference between the four components reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position and condition of the City is improving or deteriorating.

The statement of activities presents information showing 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. 5 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g., earned but unused vacation leave).

The governmental activities of the City include general government, public safety, planning and development, public works, recreation, and non-departmental. The City does not conduct any business-type activities (such as water or sewer).

The government-wide financial statements include only the City because the City has no component unit relationships with any other agency. The government-wide financial statements can be found on pages 16 and 17 of this report.

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, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Funds of governmental entities are divided into three categories: governmental funds, proprietary funds, and fiduciary funds. The City does not have any proprietary 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 (1) shortterm inflows and outflows of spendable resources and (2) the remaining year-end balances available for spending. This information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental fund financial statements is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist the reader with this comparison between governmental funds and governmental activities.

The City maintains 7 individual governmental funds. In the governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances, information is presented separately for the following funds considered to be major funds:
o General Fund
o Fire Protection Fund
o General Capital Improvements
o Critical Infrastructure Fund

6 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because those resources are not available to support the City’s own programs. The City uses fiduciary funds to account for the undergrounding assessment district funds and the Library fund.

The basic fiduciary fund financial statements can be found on page 28 of this report.

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 are part of the basic financial statements and can be found on pages 31 to 67 of this report.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. One section includes budgetary comparison statements for the major funds (general, fire protection, and general capital improvements). The other section is a schedule of funding progress for PERS and OPEB. Required supplementary information can be found on pages 73 to 78 of this report. Other supplementary information as noted in the table of contents can be found on pages 80 to 88 of this report.

7 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s overall financial condition and position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $15.82 million at the close of the most recent fiscal year. The following table summarizes the net position for governmental activities as of June 30, 2022, 2021 and 2020:
2022 2021 2020 2022 2021 2020
Current and other assets $ 11,838 $ 7,168 8,843 $ $ 11,838 8,843$ $ 2,995 $ 7,168 $ 1,675 Capital assets 7,931 7,078 7,122 7,931 7,122 809 7,078 45 Total assets 19,769 14,246 15,965 19,769 15,965 3,804 14,246 1,719 Deferred outflows related to OPEB & Pension 2,773 961 1,070 2,773 1,070 1,703 961 109 Total deferred outflows 2,773 961 1,070 2,773 1,070 1,703 961 109 Current liabilities 1,750 1,194 1,369 1,750 1,369 380 1,194 174 Noncurrent liabilities 3,668 5,285 4,771 3,668 5,285 (1,616) 4,771 514 Total liabilities 5,418 5,965 6,653 5,418 6,653 (1,236) 5,965 688 Deferred inflows related to OPEB & Pension 1,594 2,443 1,731 1,594 1,731 (137) 2,443 (712) Total deferred inflows 1,594 2,443 1,731 1,594 1,731 (137) 2,443 (712) Net position:

Net investment in
capital assets 7,931 7,078 7,122 7,931 7,122 809 7,078 45 Restricted 1,787 1,261 592 1,787 592 1,194 1,261 (670)
Unrestricted 6,102 (1,539) 937 6,102 937 5,165 (1,539) 2,476 Total net position $ 15,819 $ 6,800 8,651 $ $ 15,819 8,651$ $ 7,168 $ 6,800 $ 1,851 Net Position
June 30, 2022, 2021 and 2020
Governmental
(thousands)
2022-2021
Increase
(Decrease)
2021-2020
Increase
(Decrease)
Government
Total Primary
Activities
 Current assets increased by $3.0 million, attributable to total revenues in excess of program expenses in the reported year, net pension asset for the fiscal year and increase in restricted investments due to contributions made to the Section 115 trust.  Capital assets increased by $.81 million, net of accumulated depreciation, largely due to additions of various infrastructure projects in progress during the year.  Liabilities related to short term obligations increased by $.38 million, due to modest increases in accounts payable, refundable deposits, and bonds payable within one year.  Liabilities related to long term obligations decreased by $1.62 million but were offset by an increase to deferred outflows of $1.70 million, and a decrease to deferred inflows of $.14 million mostly attributable to the change in net pension for the fiscal year.

8 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
Statement of Activities and Changes in Net Position
The Statement of Activities and Changes in Net Position provides information regarding the City’s revenue and expenses. The following table summarizes the revenues, expenditures and changes in net position as of June 30, 2022, 2021 and 2020:
2022 2021 2020 2022 2021 2020
Revenues:

Program revenues:

Charges for services $ 1,210 $ 1,167 979 $ $ 1,210 $ 979 $ 230 $ 1,167 $ (188) Operating grants and contributions 412 - 57 412 57 355 - 57 Capital grants 266 137 229 266 229 37 137 92
General revenues:

Taxes 7,701 6,961 7,280 7,701 7,280 421 6,961 319
Franchise and other taxes 389 190 345 389 345 45 190 155 Earnings on investment (127) 135 104 (127) 104 (231) 135 (31) Revenues from other agencies 403 402 577 403 577 (174) 402 175 Other revenue 61 35 45 61 45 16 35 10
Total revenues 10,313 9,027 9,615 10,313 9,615 697 9,027 588 Program expenses:

General government 760 1,011 1,025 760 1,025 (264) 1,011 14 Police (936) 1,387 1,481 (936) 1,481 (2,417) 1,387 93
Fire 1,855 1,690 1,749 1,855 1,749 106 1,690 59
Planning and development (176) 1,146 883 (176) 1,146 (1,323) 883 262 Public works 834 1,576 1,760 834 1,760 (926) 1,576 185
Non Departmental 698 452 389 698 389 310 452 (63)
Community services 53 75 66 53 66 (12) 75 (9)
Interest on long-term debt 56 108 150 56 150 (93) 108 40 Unallocated depreciation expense - - - - - - - -
Total program expenses 3,144 7,182 7,764 3,145 7,764 (4,618) 7,182 579 Transfers: - - - - - - - -
Change in net position 7,168 1,845 1,852 7,167 1,852 5,317 1,845 7 Net position, as previously reported - - - - - - - -
Restatement for GASB 75 - - - - - - - -
Net position, beginning of year 8,651 4,954 6,800 8,651 6,800 1,852 4,954 1,847 Net position, end of year $ 15,819 $ 6,800 8,651 $ $ 15,819 $ 8,651 $ 7,168 $ 6,800 $ 1,851 Statement of Activities and Changes in Net Position
For the Fiscal Years Ended June 30, 2022, 2021, and 2020 (thousands)
2022-2021
Increase
(Decrease)
2021-2020
Increase
(Decrease)
Governmental Total Primary
Activities Government

9 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
Governmental activities net position increased by $7.17 million. Key elements of the change in net position are as follows:
 Program revenue, charges for services reflected an increase of $.23 million over the prior year, primarily due to the easing of COVID-related restrictions mid-year and an increase in building and planning activity in the last half of the fiscal year.  Operating grants reflect an increase of $.36 million, primarily due to the ARPA funds the City received during the fiscal year.
 Overall property taxes (including current secured property taxes) reflected an increase of $.42 million over the prior year.
 Program expenses reflected a decrease of $4.62 million over the prior year. This significant change is mostly due to the investment rate of return for CalPERS for the period ending 6/30/21 of 21.3% which resulted in a negative mark-to-market pension expense of $5.37M that is allocated across the City’s departments. This change also incorporates modest changes to both compensated absences and depreciable assets expense.

FUND FINANCIAL STATEMENTS
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balances may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Activity of the Governmental Funds is summarized in the following table:
2021 2020
Other Total Total Total
General Major Other Gov. Gov. Gov.

Fund Funds Funds Funds Funds Funds
Revenues $ 8,490 $ 1,469 $ 93 $ 10,052 $ 9,458 $ 594 $ 9,027 $ 431 Current expenditures 5,989 1,855 250 8,094 7,425 669 6,894 531 Capital outlay 1,418 - 14 1,432 706 725 1,043 (337)
5,989 3,272 264 9,526 8,131 1,393 7,937 194
Capital Lease, net of repayment 3,082 - 250 3,332 73 3,259 - 73 Net transfers (3,239) - (93) (3,332) - (3,332) - -
(3,239) 3,082 157 73 0 (73) - 73
Net change in fund balances (738) 1,278 (14) 1,399 527 (872) 1,090 310 Fund balances, beginning of year 5,978 1,519 43 7,540 6,141 1,399 5,050 1,091 Fund balances, end of year $ 5,240 $ 2,797 $ 8,067 29 $ $ 7,540 $ 527 $ 6,141 $ 1,399 2022-2021
Increase
(Decrease)
2021-2020
Increase
(Decrease)
Governmental Funds
Revenues, Expenditures and Other Changes in Fund Balances For the Fiscal Years Ended June 30, 2022, 2021 and 2020 (thousands) 2022
10 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
General Fund
 General fund revenues of $8.49 million reflected an increase of approximately $.62 million when compared to the prior year.
 General fund expenditures of $5.99 million increased by $.63 million over the previous fiscal year.
 Net transfers out of $3.24 million consist of transfers out for capital improvement, critical infrastructure, equipment replacement, fire protection, and debt service.  The General Fund balance at fiscal year-end was $5.24 million.

Other Major Funds - Fire Protection Fund
 Revenues in the Fire Protection Fund, which were generated from a Citywide Parcel Tax, were $.99 million an increase of $.50 million over the previous fiscal year. Expenses were $1.85 million, an increase of $.11 million over the previous year.

General Fund Budgetary Highlights
In the General Fund, there were no significant changes to appropriations as a result of amending the original budget.

Also in the General Fund, differences between the adopted budget and the actual amounts for revenues, expenditures, and other financing source and uses resulted in a positive net variance of just over $1.00 million. General fund revenues accounted for a positive variance of $.87 million, resulting primarily from a positive variance of $.43 million in property taxes and $.29 million in intergovernmental revenues. General fund expenditures were under budget by $.13 million (or 2% of the budgeted expenditures), which is considered a reasonable fluctuation and not due to any one particular cause.

11 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s net investment in capital assets for its governmental activities as of June 30, 2022, was $7.93 million. This investment in capital assets includes: infrastructure, construction-in-progress, buildings and improvements, equipment, vehicles, streets and roads, storm drains, and parks.

Infrastructure assets are items that are normally immovable and of value to the City, such as roads, levees, streets and sidewalks, drainage systems, and similar items (Note 5).

Net investment in capital assets is presented below to illustrate changes from the prior year:
2022 2021 Net Change
Construction-in-progress $ 1,238,639 $ 344,746 $ 893,893 Buildings & Improvments 3,994,410 3,979,129 15,281
Equipment 298,702 298,702 -
Vehicles 672,922 662,801 10,121
Infrastructure 9,564,070 9,057,479 506,591
Less accumulated depreciation (7,838,191) (7,220,677) (617,514) $ 7,930,552 $ 7,122,180 $ 808,372
Capital Assets at Year-end
Debt Administration
The City’s sole debt issuance is discussed in detail in Note 6 to the financial statements. On June 30, 2022, the City’s long-term debt is comprised of a Lease Revenue bond bearing an interest rate of 2.55%, as follows:

Governmental Activity Debt
Balance
June 30, 2022
Balance
June 30, 2021 Net Change
Lease Revenue Bonds 2,034,000 $ 2,228,000 $ (194,000) $ Total Debt 2,034,000 $ 2,228,000 $ (194,000) $
Outstanding Debt

12 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS

PENSION AND OTHER POST EMPLOYMENT BENEFITS
The City offers pension and Other Post-Employment Benefits (OPEB) to its employees. The primary pension plan is administered by the California Public Employees’ Retirement System (CalPERS). Council has continued to be concerned about the impacts of rising pension cost on the City’s budgets, and its potential for creating shortfalls in budgetary resources needed to fund city services and important capital projects. Recognizing that Belvedere needed a more comprehensive proactive strategy for dealing with the pension challenge, the City created in 2020 an ad hoc Taskforce on Pensions and OPEB. The Taskforce developed and proposed a strategy that would establish a City commitment to plan for and fund pension costs based on realistic assumptions, and to develop a mechanism by which future adjustments to the funding formula could be made in 3–5-year increments. The City Council approved this strategy at its April 2021 meeting, and staff implemented the strategy right away.

As a result, the City has begun accumulating restricted funds that can only be used for pension liabilities and is well positioned to meet its pension commitments to past, present, and future City employees (Note 8D).

The City previously offered an additional defined benefit plan to long-time employees; it does not offer this plan to employees hired after January 1, 2012. The plan is administered by the Public Agency Retirement System (PARS). It is a supplement to the CalPERS plan and has more stringent qualification requirements than the CalPERS plan.

The City also offers OPEB health benefits to employees who meet CalPERS vesting requirements.

The benefit provided to City retirees is the minimum amount allowable under the CalPERS health plan, with the exception of certain City Manager retirees, who receive a more generous benefit.

ECONOMIC OUTLOOK AND NEXT YEAR’S BUDGET
- Property tax revenue is the primary source of revenue for the City, and continues to show steady growth, thanks to a stable real estate market and the City’s favorable inventory of homes.
- The City has been insulated from dramatic economic impacts thus far as a result of the COVID-19 pandemic and continues to proceed reasonably conservatively with regards to revenue projections and expenditure plans.
- Creation of a Section 115 pension trust and continual funding towards the trust means the City is well positioned for inevitable volatility in its future pension liabilities. - Prudent fiscal management has resulted in a strong general fund reserve balance of 50% of projected General Fund expenditures plus Fire Fund transfer, plus the debt-service payments. Consequently, the City is well positioned to face unanticipated fiscal emergencies, such as catastrophic events or budget stabilization.

13 CITY OF BELVEDERE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS

REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, creditors and government regulators with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. Below is the contact address for questions about this report or requests for additional financial information.

City of Belvedere
Finance Department
450 San Rafael Ave.

Belvedere, CA 94920
Ph: 415-435-3838
14 STATEMENT OF NET POSITION

AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire 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, all its deferred inflows/outflows of resources and all its liabilities, 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 Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position presents information in a way that focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources.

The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column. The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds that present the financial position of the primary government. This column is followed by a column that displays the discretely presented component unit.

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, available revenues and measurable expenditures.

The Statement of Activities presents the City’s expenses first, listed by program. 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 program. The City’s general revenues are then listed in the Governmental Activities or discretely presented component unit 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 and the Belvedere Public Financing Authority.
15 CITY OF BELVEDERE

STATEMENT OF NET POSITION
JUNE 30, 2022
WITH SUMMARIZED INFORMATION AS OF JUNE 30, 2021
ASSETS 2022 2021
Cash and cash equivalents (Note 3) $7,543,548 $7,845,530 Restricted cash and investments (Note 3) 1,597,000 201,913 Accounts and interest receivable 860,522 586,530
Prepaids and deposits 17,692 208,972
Net pension asset (Note 8) 1,819,655
Capital assets (Note 5):

Non-depreciable capital assets 1,238,639 344,746
Depreciable, net of accumulated depreciation 6,691,913 6,777,434 Total Assets 19,768,969 15,965,125

DEFERRED OUTFLOWS OF RESOURCES
Pension-related (Note 8) 2,773,236 776,019
Other Post Employment Benefits-related (Note 9) 288,969 294,286 Total Deferred Outflows of Resources 3,062,205 1,070,305

LIABILITIES
Accounts payable and other liabilities 658,080 409,231
Refundable deposits 876,193 736,137
Compensated absences (Note 1K):

Due within one year 23,517 29,195
Due in more than one year 211,653 262,754
Bonds payable (Note 6):

Due within one year 192,000 194,000
Due in more than one year 1,842,000 2,034,000
Collective net pension liability, due in more than one year (Note 8) 1,378,273 Net Other Post Employment Benefits liability,
due in more than one year (Note 9) 1,614,197 1,609,699
Total Liabilities 5,417,640 6,653,289

DEFERRED INFLOWS OF RESOURCES
Pension-related (Note 8) 1,491,291 1,674,614
Other Post Employment Benefits-related (Note 9) 102,813 56,286 Total Deferred Inflows of Resources 1,594,104 1,730,900 NET POSITION (Note 7)
Net investment in capital assets 7,930,552 7,122,180
Restricted for pension funding 1,597,000 201,913
Restricted for road projects 189,654 390,351
Unrestricted 6,102,224 936,797
Total Net Position $15,819,430 $8,651,241
See accompanying notes to basic financial statements
Governmental
Activities
16 CITY OF BELVEDERE

STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
WITH SUMMARIZED INFORMATION FOR THE YEAR ENDED JUNE 30, 2021 Program Revenues Net (Expense) Revenue and
Operating
Charges for Grants and Capital
Functions/Programs Expenses Services Contributions Grants 2022 2021 Primary Government:

Governmental Activities:

General government $760,337 $66,435 $251,661 ($442,241) ($939,879) Public safety:

Police services (936,072) 5,342 941,414 (1,469,840)
Fire services 1,854,651 (1,854,651) (1,748,530)
Planning and development (176,464) 814,648 160,000 1,151,112 (469,314) Public works 833,901 323,206 $265,538 (245,157) (1,267,429) Recreation 53,468 (53,468) (65,740)
Non-departmental 698,372 (698,372) (388,591)
Interest on long-term debt 56,169 (56,169) (149,521)
Total Governmental Activities $3,144,362 $1,209,631 $411,661 $265,538 (1,257,532) (6,498,844) General revenues:

Taxes:

Property taxes 7,700,541 7,279,753
Other taxes 190,124 159,401
Use of money and property (127,405) 104,067
Intergovernmental 402,966 576,865
Franchise taxes 198,901 185,776
Miscellaneous 60,594 44,804
Total General Revenues 8,425,721 8,350,666
Changes in Net Position 7,168,189 1,851,822
Net Position-Beginning 8,651,241 6,799,419
Net Position-Ending $15,819,430 $8,651,241
See accompanying notes to basic financial statements
Changes in in Net Position
17 This Page Left Intentionally Blank

FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.

The General Fund, Fire Protection Special Revenue Fund, General Capital Improvements Fund and Critical Infrastructure Capital Projects Fund were determined to be Major Funds by the City for fiscal 2022.

Individual non-major funds may be found in the Supplemental Section. 19 Fire General Other
General Protection Capital Critical Governmental
Fund Fund Improvements Infrastructure Funds
ASSETS
Cash and investments (Note 3) $4,620,221 $1,303,837 $1,590,057 $29,433 Restricted cash and investments (Note 3) 1,597,000
Accounts receivable, net 436,079 $5,989 413,954 4,500
Due from other funds (Note 4A) 10,489
Prepaid items and other current assets 17,692
Total Assets $6,681,481 $5,989 $1,717,791 $1,590,057 $33,933

LIABILITIES
Accounts payable and other liabilities $385,504 $272,576 Due to other funds (Note 4A) $5,989 $4,500
Refundable deposits 876,193
Total Liabilities 1,261,697 5,989 272,576 4,500

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - grants 179,913 238,044
Total Deferred Inflows of
Resources 179,913 238,044
FUND BALANCES (Note 7)
Nonspendable 17,692
Restricted 1,597,000 189,654
Committed
Assigned 3,625,179 1,017,517 $1,590,057 29,433
Unassigned
Total Fund Balances 5,239,871 1,207,171 1,590,057 29,433 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $6,681,481 $5,989 $1,717,791 $1,590,057 $33,933

CITY OF BELVEDERE

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2022
WITH SUMMARIZED AMOUNTS AS OF JUNE 30, 2021
See accompanying notes to basic financial statements
20 2022 2021
$7,543,548 $7,845,530
1,597,000 201,913
860,522 586,530
10,489 164,073
17,692 208,972
$10,029,251 $9,007,018
$658,080 $409,231
10,489 164,073
876,193 736,137
1,544,762 1,309,441
417,957 157,567
417,957 157,567
17,692 54,621
1,786,654 592,264
1,300,000
6,262,186 4,431,341
1,161,784
8,066,532 7,540,010
$10,029,251 $9,007,018
Totals
21 CITY OF BELVEDERE

RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET

TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
JUNE 30, 2022
WITH COMPARATIVE AMOUNTS AS OF JUNE 30, 2021
2022 2021
Total Fund Balances - Governmental Funds Balance Sheet $8,066,532 $7,540,010 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. Therefore, they are not reported in the Governmental Funds Balance Sheet. 7,930,552 7,122,180

DEFERRED INFLOWS AND OUTFLOWS
Unavailable revenues - grants 417,957 157,567
Deferred outflows related to pension 2,773,236 776,019
Deferred outflows related to OPEB 288,969 294,286
Deferred inflows related to pension (1,491,291) (1,674,614) Deferred inflows related to OPEB (102,813) (56,286)

LONG-TERM LIABILITIES
Long-term liabilities are not due and payable in the current period and, therefore are not reported in the Governmental Funds Balance Sheet.

Compensated absences (235,170) (291,949)
Bonds payable (2,034,000) (2,228,000)
Net OPEB liability (1,614,197) (1,609,699)
Net pension asset (liability) 1,819,655 (1,378,273)
Net Position of Governmental Activities $15,819,430 $8,651,241 See accompanying notes to basic financial statements.
22 This Page Left Intentionally Blank

CITY OF BELVEDERE

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022
WITH SUMMARIZED AMOUNTS FOR THE YEAR ENDED JUNE 30, 2021 Fire General Other
Protection Capital Critical Governmental
General Fund Fund Improvements Infrastructure Funds

REVENUES
Property taxes $6,704,180 $996,361
Other taxes 190,124
Licenses and permits 571,146
Fines and forfeitures 2,663
Use of money and property (129,536) $1,828 $303
Intergovernmental revenues 459,662 93,007 267,106
Charges for services 432,336 203,486
Franchise fees 198,901
Other revenues 60,594
Total Revenues 8,490,070 996,361 472,420 93,310

EXPENDITURES
Current:

General government 1,269,828
Public safety:

Police 1,573,346
Fire 1,854,651
Planning and development 1,306,190
Public works 1,087,852
Recreation (The Ranch) 53,468
Non-Departmental 698,372
Debt service:

Principal 194,000
Interest and fiscal charges 56,169
Capital outlay 1,417,813 13,950
Total Expenditures 5,989,056 1,854,651 1,417,813 264,119

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 2,501,014 (858,290) (945,393) (170,809)

OTHER FINANCING SOURCES (USES)
Capital lease proceeds
Repayment of capital lease
Transfers in (Note 4B) 633,788 858,290 $1,590,057 250,170 Transfers (out) (Note 4B) (3,239,376) (92,929)
Total Other Financing Sources (Uses) (3,239,376) 858,290 633,788 1,590,057 157,241 NET CHANGES IN FUND BALANCES (738,362) (311,605) 1,590,057 (13,568) BEGINNING FUND BALANCES 5,978,233 1,518,776 43,001
ENDING FUND BALANCES $5,239,871 $1,207,171 $1,590,057 $29,433 See accompanying notes to basic financial statements
24 2022 2021
$7,700,541 $7,279,753
190,124 159,401
571,146 483,331
2,663 864
(127,405) 104,067
819,775 715,613
635,822 495,006
198,901 185,776
60,594 33,997
10,052,161 9,457,808
1,269,828 934,099
1,573,346 1,583,418
1,854,651 1,748,530
1,306,190 1,173,665
1,087,852 1,211,592
53,468 65,740
698,372 388,591
194,000 170,000
56,169 149,521
1,431,763 706,330
9,525,639 8,131,486
526,522 1,326,322
2,323,000
(2,250,000)
3,332,305 1,476,394
(3,332,305) (1,476,394)
73,000
1,399,322 526,522
7,540,010 6,140,688
$8,066,532 $7,540,010
Totals
25 CITY OF BELVEDERE

RECONCILIATION OF THE GOVERNMENTAL FUNDS - STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES TO THE GOVERNMENT-WIDE

STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
WITH COMPARATIVE AMOUNTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 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. 2022 2021
Net changes in fund balances - total governmental funds $526,522 $1,399,322 Amounts reported for Governmental Activities in the Statement of Activities and Changes in Net Position are different because:

CAPITAL ASSETS TRANSACTIONS
Governmental funds report capital outlays as expenditures.

However, the Statement of Activities and Changes in Net Position, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capitalized expenditures are therefore added back to fund balance 1,425,886 638,195 Depreciation expense is deducted from fund balance (617,514) (593,552)

LONG-TERM DEBT TRANSACTIONS
Repayment of capital lease principal is added back to fund balance 194,000 170,000 Net refinancing of capital lease (73,000)

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):

Compensated absences 56,779 (75,034)
Unavailable grant revenues 260,390 157,567
Net OPEB liability and deferred outflows/inflows related to OPEB (56,342) (45,391) Net pension liability and deferred outflows/inflows related to pension 5,378,468 273,715 Total Changes in Net Position of Governmental Activities $7,168,189 $1,851,822 See accompanying notes to basic financial statements.
26 FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements. 27 Custodial Funds
ASSETS:

Cash and investments (Note 3) $568,468
Accounts receivable 26,949
Total Assets 595,417
LIABILITIES:

Accounts payable 47,067
Total Liabilities 47,067

NET POSITION
Restricted for Bondholders 530,016
Restricted for Other Agency 18,334
Total Net Position $548,350

CITY OF BELVEDERE

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2022
See accompanying notes to basic financial statements
28 Custodial Funds
ADDITIONS:

Property taxes $927,154
Intergovernmental revenues 826,109
Investment income 1,528
Total Additions 1,754,791
DEDUCTIONS:

Distributions to Library 908,820
Payments to bondholders 418,594
Interest and fiscal charges 441,911
Total Deductions 1,769,325
Change in net position (14,534)
Net Position - Beginning 562,884
Net Position - Ending $548,350

CITY OF BELVEDERE

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
See accompanying notes to basic financial statements
29 This Page Left Intentionally Blank

CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Belvedere (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Boards (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting principles are described below.

A. Reporting Entity
The City is a municipal corporation governed by an elected five-member Council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and so data from these units are combined with data of the primary government. At June 30, 2022, the City did not have any component units that met this criterion.

B. Description of Funds
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows/outflows of resources, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The minimum number of funds is maintained consistent with legal and managerial expectations.

C. Government–Wide Financial Statements
The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of Governmental Activities for the City. These financial 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. Governmental activities are financed generally through taxes, intergovernmental revenues, and other nonexchange transactions.

The Statement of Activities and Changes in Net Position presents a comparison between direct expenses and program revenues 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 three categories: (1) charges for services, (2) operating grants and contributions and (3) capital grants and contributions. Revenues that are not classified as program revenues, including all taxes are presented as general revenues.

Certain eliminations have been made as prescribed by Governmental Accounting Standards Board No. 34, Basic Financial Statements-and Management’s Discussion and Analysis-for State and Local Governments (“GASB 34”) in regard to interfund activities, payables and receivables. 31 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. Accompanying schedules are presented to reconcile and explain the differences in net fund balance as presented in these fund statements to the net position presented in the government-wide financial statements.

GASB 34 defines major funds and requires that the City’s major governmental funds be identified and presented separately in the Fund financial statements. All other governmental funds, called non-major funds, are combined and reported in a single column, regardless of their fund-type.

Major funds are defined as governmental funds which have either assets, liabilities, revenues or expenditures equal to ten percent of their fund-type total or five percent of the grand total. The General Fund is always a major fund. The City may select other governmental funds it believes should be presented as major funds. No such funds were selected in fiscal 2022.

The major governmental funds of the City are:
 General Fund – The General Fund is used to account for the resources to carry out basic governmental activities of the City such as general government, public safety, public works, and parks and recreation, which are not required to be accounted for in another fund.  Fire Protection Fund – This fund was established to receive and expend revenue from Measure C, the fire and emergency services special tax levy. This revenue, along with transfers from other funds, funds the cost of services provided by the Tiburon Fire Protection District.  General Capital Improvements Fund – This fund accounts for most capital improvement projects in the City that have various funding sources. Revenues received from various sources are used for related project costs.
 Critical Infrastructure Fund – This fund accounts for funds set aside for potential future critical infrastructure capital projects, both planned and emergency repair.

E. Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds. Custodial funds report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.

Custodial Funds – These funds were created to account for all of the Assessment District Bonds, which includes the 2016 Avenue Assessment District, the Acacia/Laurel Undergrounding Utility District and the Golden Gate Undergrounding Utility District, as well as property taxes received on behalf of the Belvedere-Tiburon Library Agency. Special assessments received are used to meet the debt service requirements and to pay for the administrative costs.

32 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Basis of Accounting
The City-wide and Fiduciary Fund financial statements required by GASB 34 are reported using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets and long-term liabilities, if any, are included in the accompanying Statement of Net Position. The Statement of Activities and Changes in Net Position presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

The Governmental Fund financial statements are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and liabilities (except for long-term advances from the City) are included in the Balance Sheet, and the Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after fiscal year end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales taxes, intergovernmental revenues, other taxes and investment earnings. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of costreimbursement grants, categorical block grants and general revenues. Thus both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving 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.

The City applies all Government Accounting Standards Board (GASB) pronouncements (including all NCGA Statements and Interpretations in effect).

The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach of GASB No. 34.

G. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net positions are available, the City’s policy is to apply restricted net position first.

33 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Interfund Balances
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds” (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans).

Long-term advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not in a spendable form and are not expendable available financial resources. The City does not have any long-term advances between funds.

I. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items using the purchases method in both the Government-Wide and Fund Financial statements.

Inventories and prepaid items, as reported in the Fund Financial Statements, are offset by a nonspendable fund balance for noncurrent assets in governmental funds to indicate that these resources are not in spendable form.

J. Capital Assets
The City’s assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting capital assets at $5,000. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. Depreciation of capital assets is charged as an expense each year and the total amount of depreciation taken over the years, accumulated depreciation, is reported on the Statement of Net Position as a reduction in the book value of capital assets. The City has assigned the useful lives listed below to capital assets: Buildings and improvements (20-30 years); Transportation equipment (10-15 years); Furniture and Equipment (3-20 years); and Infrastructure (20 years).

K. Compensated Absences
City employees accrue vacation, sick, holiday, executive leave and compensatory time off benefits.

Vacation may not accrue beyond 320 hours or as provided in the employee’s memorandum of understanding (“MOU”) and the current Salary and Benefits Resolution. Cash compensation is payable for accrued vacation upon separation of service and also payable each year when the accrual balance exceeds the maximum allowed on December 31. No cash payment is made for accrued sick leave upon separation of service. Upon retirement, eligible employees may convert sick leave to years of service credit as provided for in the City’s contract with PERS. In lieu of overtime, it is the City’s policy to allow employees to accumulate compensatory time to limits provided for in the MOU. This accumulation may subsequently be converted to cash up to limits provided for in their MOU or converted to cash upon separation of service.

All vacation pay is accrued when incurred in the Government-Wide financial statements. A liability for these amounts is reported in the governmental funds financial statements only when they have matured (such as vacation time, estimated to be paid upon retirement in the next fiscal year with expendable available financial resources).
34 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Compensated absences for governmental activities are primarily liquidated by the General Fund.

The change in compensated absences was as follows:

Beginning Balance $291,949
Additions 37,678
Payments (94,457)
Ending Balance $235,170
Current Portion $23,517
L. Unearned Revenue
Government-Wide Financial Statements – Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the Government-Wide Financial Statements are unearned grants and prepaid charges for services.

Fund Financial Statements – Unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which funds are not available to meet current financial obligations. Typical transactions for which unavailable revenue is recorded are grants received but not yet earned or available, interest on interfund advances receivable and long-term loans receivable.

M. Property Tax Revenues
State Constitution Article 13 provides for a maximum general property tax rate statewide of $1.00 per $100 of assessed value. Assessed value is calculated at 100% of market value as defined by the abovereferenced Article 13. The State Legislature has determined the method of distribution of receipts from the $1.00 tax levy among the counties, cities, school districts and other districts. Counties, cities and school districts may levy such additional tax rate as is necessary to provide for voter approved debt service. The County of Marin assesses properties and bills for and collects property taxes according to the schedules that follow:

Secured Unsecured
Valuation dates March 1 March 1
Lien/levy dates July 1 July 1
Due dates 50% on November 1 July 1
50% on February 1
Delinquent as of December 10 and April 10 August 31
The term “Unsecured” refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized in the fiscal year for which the taxes have been levied.

35 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and governmental funds balance sheet sometimes reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category related to pensions and OPEB as discussed in Notes 8 and 9.

In addition to liabilities, the statement of net position and governmental funds balance sheet report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has deferred inflows of resources related to pensions and OPEB on the statement of net position as discussed in Notes 8 and

9. The City also has deferred inflows related to unavailable grant revenues reported in the governmental fund balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

O. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses/expenditures. Actual results could differ from those estimates.

P. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market 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.

36 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements GASB 87 – Leases - In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The Statement is effective for the reporting periods beginning after June 15, 2021, or fiscal year 2021-22. As part of the implementation of this Statement, the City established a threshold for reporting leases of $100,000 and determined than none of its leases were required to be recorded.

R. New Fund
During fiscal year ended June 30, 2022, the City established the Critical Infrastructure Capital Projects Fund.

S. Prior Fiscal Year Summarized Comparative Information The basic financial statements include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the government’s financial statements for the year ended June 30, 2021, from which summarized information was derived.

NOTE 2 – BUDGETS
A. Budget Policy
The City operates under the general laws of the State of California ("State") and annually adopts a budget to be effective July 1 of the ensuing fiscal year. The City adopts an annual budget for General, Special Revenue and Capital Projects Funds, except for the Gas Tax Special Revenue Fund. The legal level of budgetary control has been established at the fund level. Budgets are subject to a public hearing before they are adopted by the City Council. Budgets are prepared on the cash basis and are not materially different from budgets prepared under accounting principles generally accepted in the United States of America.

With the exception of Capital and Equipment budget which are budgeted by project, all annual appropriations lapse at fiscal year-end. Budgets submitted to the City Council include both proposed appropriations and the means of financing them. The City Council approves total appropriations on a fund-by-fund basis.

37 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 2 – BUDGETS (Continued)
The City Manager is authorized to transfer budget appropriations within the same fund in conformance with the adopted policies set by the City Council. Additional appropriations or interfund transfers not included in the original budget resolutions require approval by the City Council. Budgeted amounts shown reflect the annual operating budget as originally passed. Encumbrance accounting, a method of recording purchase commitments, is not used by the City.

For the year ended June 30, 2022, the Fire Protection Fund had expenditures that exceeded budget by $2,197.

NOTE 3 – CASH AND INVESTMENTS
The City pools cash from all sources and all funds so that it can be invested at the maximum yield consistent with 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 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 and its fiscal agents invest 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.

On April 12, 2021, the City Council adopted a resolution approving the adoption of the California Employers’ Pension Prefunding Trust (CEPPT) Fund administered by CalPERS. The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. This trust will assist the City in mitigating the CalPERS contribution rate volatility. Investments of funds held in Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with CalPERS, rather than the general provisions of the California Government Code or the City’s investment policy. The City elected the CEPPT Strategy 1 option. The assets in the Trust will eventually be used to fund pension plan obligations.

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.

38 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
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 debt instruments or agency agreements.

Governmental Activities
Cash and investments $7,543,548
Restricted investments 1,597,000
Total Governmental Activities Cash and Investments 9,140,548 Fiduciary Funds
Cash and investments 568,468
Total Cash and Investments $9,709,016
C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy allows the City to invest in the Local Agency Investment Fund (LAIF), the CalPERS Section 115 California Employers’ Pension Prefunding Trust Fund or hold cash on deposit at FDIC insured banks. Investments of reserve funds in other instruments may be considered if recommended by the Finance Committee to the City Manager for action by the City Council and provided that any such investments should only be undertaken if the likelihood of the City needing to deploy these funds in the near term is low.

D. Interest Rate Risk
Interest rate risk is the risk that potential future changes in market interest rates will adversely affect the fair market value of an investment. Normally, 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 investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the investments by maturity or earliest call date:
12 Months
Investment Type or less Total
California Local Agency Investment Fund $7,513,524 $7,513,524 CalPERS Section 115 CEPPT 1,597,000 1,597,000
Total Investments $9,110,524 9,110,524
Cash in banks and on hand 598,492
Total Cash and Investments $9,709,016

39 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the authority of the Treasurer of the State of California and is not registered with the Securities and Exchange Commission as an investment company. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 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, the average maturity was 311 days.

E. 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 California Local Agency Investment Fund and the CalPERS Section 115 CEPPT are not rated.

F. Cash Deposits with Financial Institutions – Custodial Credit Risk on Deposits In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City does not have a deposit policy for custodial credit risk. As of June 30, 2022, the City’s bank balance was $655,186 and $405,186 of that amount was exposed to custodial credit risk because it was uninsured, however they are collateralized with securities held by the pledging or financial institution’s trust department or agent.

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.

The California Local Agency Investment Fund, reported at amortized cost, and the CalPERS Section 115 CEPPT, reported at Net Asset Value, are not subject to the fair value reporting requirements. Fair value is defined as the quoted market value on the last trading day of the period.

40 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 4 – INTERFUND TRANSACTIONS
A. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2022, current interfund balances are as follows:

Fund Making Loan Fund Receiving Loan Amount
General Fund Fire Protection Special Revenue Fund $5,989 Gas Tax Special Revenue Fund 4,500
Total $10,489
B. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. Transfers In/Out for the year ended June 30, 2022 were as follows:

Fund Making Transfer Fund Receiving Transfer Amount
General Fund Fire Protection Special Revenue Fund $858,290 (A) General Capital Improvements Capital Projects Fund (A) 540,859 Critical Infrastructure Capital Projects Fund (D) 1,590,057 Lease Revenue Bonds Debt Service Fund (B) 250,170
Gas Tax Special Revenue Fund General Capital Improvements Capital Projects Fund 92,929 (C) Total $3,332,305
(A) To cover fund deficits.
(B) To cover debt service payments.
(C) To fund eligible projects.
(D) To set aside funds for planned and emergency capital projects. 41 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 5 – CAPITAL ASSETS
All capital assets are valued at historical cost or estimated cost if actual historical cost is not available.

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value.

GASB 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives. The purpose of the depreciation is to spread the cost of the 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 the capital assets. Depreciation is provided using the straightline method over its expected useful life.

Governmental capital asset activity for the fiscal year was as follows:

Balance Balance
June 30, 2021 Additions Retirements June 30, 2022
Governmental Activities
Non-Depreciable Capital Assets:

Construction-in-progress $344,746 $893,893 $1,238,639
Total capital assets not being depreciated 344,746 893,893 1,238,639 Depreciable Capital Assets:

City Hall & Community Center
Buildings and building improvements 3,706,278 5,681 3,711,959 Corporation yard improvements 272,851 9,600 282,451
Office furniture & equipment 298,702 298,702
Transportation/other- Yard 413,128 10,121 423,249
Transportation/other- Police 249,673 249,673
Infrastructure 9,057,479 506,591 9,564,070
Total capital assets being depreciated 13,998,111 531,993 14,530,104 Less accumulated depreciation for:

City Hall & Community Center
Buildings and building improvements 2,392,038 77,029 2,469,067 Corporation yard improvements 200,786 10,014 210,800
Office furniture & equipment 163,145 30,283 193,428
Transportation/other- Yard 320,547 14,741 335,288
Transportation/other- Police 182,208 36,792 219,000
Infrastructure 3,961,953 448,655 4,410,608
Total accumulated depreciation 7,220,677 617,514 7,838,191 Net depreciable assets 6,777,434 (85,521) 6,691,913
Governmental activities capital assets, net $7,122,180 $808,372 $7,930,552

42 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 5 – CAPITAL ASSETS (Continued)
Construction in progress consisted of the following projects at June 30, 2022:

Project Amount
Lane Projects $40,911
Lagoon Road Repairs 29,085
Playground Study 315,799
Undergrounding Projects 122,193
City Hall Renovations 157,873
Seawall 508,821
Miscellaneous Improvements 63,957
Total $1,238,639
Depreciation expense for governmental activities was charged to each expense function as follows:

Governmental Activities
General Government $49,540
Police 56,050
Planning & Building 19,257
Public Works 24,755
Community Center (General Government) 19,257
Infrastructure (Public Works) 448,655
Total Governmental Activities $617,514
NOTE 6 – LONG-TERM DEBT
A. City Debt
The following is a summary of long-term debt transactions of the governmental activities for the year ended June 30, 2022:

Balance at Balance at
Direct Borrowings June 30, 2021 Retirements June 30, 2022 2020 Refunding Lease Bonds,
due 09/01/31 $2,228,000 ($194,000) $2,034,000
$2,228,000 ($194,000) 2,034,000
Amount due within one year (192,000)
Amount due in more than one year $1,842,000
43 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 6 – LONG-TERM DEBT (Continued)
Debt service requirements are shown below for the bonds:

Year ending June 30 Principal Interest Total
2023 $192,000 $50,668 $242,668
2024 195,000 45,722 240,722
2025 207,000 40,711 247,711
2026 205,000 35,445 240,445
2027 207,000 30,166 237,166
2028-2032 1,028,000 66,325 1,094,325
Total $2,034,000 $269,037 $2,303,037
Direct Borrowings
In August 2017, the City entered into a site and facility lease with the Belvedere Public Financing Authority (Authority) whereby the City leased its corporation yard and adjacent parking lot to the Authority, and the Authority, in turn, leased the property back to the City where the City agreed to make semi-annual lease payments to the Authority. The Authority subsequently assigned the lease to a third party financial institution, that paid the Authority $2,655,000, which the Authority remitted to the City as an advance rental on the lease agreement, for the City to use to refinance a portion of its unfunded actuarial accrued liability with respect to the City’s pension obligations, and to pay for costs related to the preparation, execution and delivery of the lease agreement, site and facility lease and the assignment agreement.

On October 1, 2020, the City entered into the 2020 Refunding Lease Agreement. The proceeds from the 2020 Refunding Lease Bonds (2020 Bonds) of $2,323,000 were used to refinance the remaining 2017 Lease Revenue Bonds, that were part of the agreement discussed above. As part of the new agreement, the Authority assigned certain of its rights under the Site Lease and Lease Agreement, including the right to receive and enforce payment of the Lease Payments, to Capital One Public Funding, LLC. The 2020 Bonds bear interest at 2.55% per annum, and principal and interest payments are due semi-annually on March 1 and September 1 through September 1, 2031. The lease payments are payable from general funds of the City.

B. Local Improvement District Debt with no City Commitment Local Improvement Districts (LID’s) are established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable over the term of the debt issued to finance the improvements and must be sufficient to repay this debt. The City acts solely as the collecting and paying agent for the Districts’ debt which is not included in the general debt of the City.

44 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 6 – LONG-TERM DEBT (Continued)
The following table summarizes the outstanding balance of the LID debt with no City commitment:

Balance at Balance at Due Within Due in More
June 30, 2021 Retirements June 30, 2022 One Year Than One Year 2016 Revenue Bonds,
due serially to 2043 $7,650,000 ($385,000) $7,265,000 $385,000 $6,880,000 2018 Revenue Bonds,
due serially to 2048 2,640,000 (60,000) 2,580,000 60,000 2,520,000 2019 Revenue Bonds,
due serially to 2050 650,000 (15,000) 635,000 15,000 620,000 $10,940,000 ($460,000) $10,480,000 $460,000 $10,020,000 2016 Underground Assessment District – 2016 Revenue Bonds: In August 2016, the City’s seven utility undergrounding assessment districts (Upper Beach Road; Madrona, Bella Vista and Oak; San Rafael; Lower Belvedere; Bayview/Bella Vista Avenues; Mid San Rafael Avenue; and Pine Avenue) were consolidated and refinanced with lower interest rates in order to reduce payments for participating property owners. This District was formed to finance certain public improvements, including the relocation of utility services (electricity, telephone and cable television) to underground locations and the elimination of all existing utility poles and overhead wires in the same area.

The Belvedere Public Financing Authority Revenue Bonds, 2016 Consolidated Utility Undergrounding Reassessment and Refunding District, were issued in the amount of $9,475,000, representing the unpaid assessments from the outstanding limited obligation bonds from the seven previous underground assessment districts of $9,011,209, plus fees pursuant to the provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds. The revenue bonds bear annual interest ranging from 0.75% to

3.05%, and are due semi-annually commencing March 2, 2017. Principal payments are due annually on September 2 until they mature on September 2, 2034.
2018 Acacia/Laurel Utility Undergrounding Assessment District – 2018 Revenue Bonds: This District was formed to finance certain public improvements, including the relocation of utility services (electricity, telephone and cable television) to underground locations and the elimination of all existing utility poles and overhead wires in the same area. The Belvedere Public Financing Authority Revenue Bonds, 2018 Acacia/Laurel Utility Undergrounding Assessment District, were issued in the amount of $2,810,000. Concurrently, the City issued one series of assessment bonds for the Acacia/Laurel Utility Undergrounding Assessment District in the amount of $2,673,056.80 pursuant to the Municipal Improvement Act of 1913. The assessment bonds were purchased by the Public Financing Authority, and secure and provide the stream of revenues to pay debt service on the Revenue Bonds. The assessment bonds are payable from the unpaid assessments levied and collected within the assessment district. The revenue bonds bear annual interest ranging from 2.10% to 4.30%, and are due semi-annually commencing March 2, 2019. Principal payments are due annually on September 2 until they mature on September 2, 2048.

45 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 6 – LONG-TERM DEBT (Continued)
2019 Golden Gate/Belvedere Utility Undergrounding Assessment District – 2019 Revenue Bonds:

This District was formed to finance certain public improvements, including the relocation of utility services (electricity, telephone and cable television) to underground locations and the elimination of all existing utility poles and overhead wires in the same area. The Belvedere Public Financing Authority Revenue Bonds, 2019 Golden Gate/Belvedere Utility Undergrounding Assessment District, were issued in the amount of $665,000. The assessment bonds were purchased by the Public Financing Authority, and secure and provide the stream of revenues to pay debt service on the Revenue Bonds. The assessment bonds are payable from the unpaid assessments levied and collected within the assessment district. The revenue bonds bear annual interest ranging from 2.65% to 5.00%, and are due semi-annually commencing March 2, 2020. Principal payments are due annually on September 2 until they mature on September 2, 2049.

NOTE 7 – NET POSITION AND 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.

Net Position is measured on the full accrual basis while Fund Balance is measured on the modified accrual basis, as explained in Note 1.

A. Net Position
Government-Wide Net Position consists of the following:

Net investment in capital assets – This amount consists of capital assets, net of accumulated depreciation and reduced by outstanding debt that was attributed to the acquisition, construction or improvement of the assets.

Restricted net position – This amount is restricted by external creditors, grantors, contributors or laws or regulations of other governments.

Unrestricted net position – This amount consists of net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” B. Fund Balances
The City has adopted the provisions of GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions. GASB 54 establishes Fund Balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The Governmental Fund statements conform to this new classification.

The Fund Financial Statements consist of Nonspendable, Restricted, Committed, Assigned and Unassigned amounts as described below:

Nonspendable: Items that cannot be spent because they are not in spendable form, such as prepaid items, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan fund.
46 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 7 – NET POSITION AND FUND BALANCES (Continued)
Restricted: Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors (such as through debt covenants), grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed: Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making (normally the governing body) and that remain binding unless removed in the same manner.

The City Council is considered the highest authority for the City and can commit funds through resolutions.

Assigned: Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has the authority to assign funds in Belvedere and can assign funds through the budgetary process.

Unassigned: This category is for any balances that have no restrictions placed upon them. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

C. Governmental Fund Type Definitions
General Fund: The general fund is be used to account for and report all financial resources not accounted for and reported in another fund.

Special Revenue: Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term proceeds of specific revenue sources establishes that one or more specific restricted or committed revenues is the foundation for a special revenue fund. The description of each major special revenue fund is discussed in Note 1 - Summary of significant accounting policies.

Capital Projects Fund: Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments.

47 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 7 – NET POSITION AND FUND BALANCES (Continued)
D. Spending Policy
The City’s policy is to spend restricted fund balances first, before spending unrestricted fund balances, for expenditures incurred for purposes for which both restricted and unrestricted fund balances are available. The City does not have a formal policy for its use of unrestricted fund balance amounts. The City will reduce committed amounts first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. The City typically uses unassigned general funds to liquidate the liability for compensated absences and to liquidate the net pension liability or net postemployment benefit obligation when necessary.

E. Investment Earnings
Investment earnings follow the classification of the revenues invested.

F. Minimum Fund Balance Policy
The Council has established a policy to maintain a General Fund Reserve equal to half of the projected fiscal year’s General Fund expenditures, plus one half of the General Fund transfer to the Fire Protection Fund, plus one half of the annual debt service payments. The projected expenditures from the 2nd year of the 5-year budget are used for this calculation. Transfers to the City’s 115 Pension Trust and/or any additional discretionary payments made to CalPERS will not be included in this calculation because they are discretionary in nature. At June 30, 2022, the amount in reserve is $3.57 million, which complies with this policy.

G. Fund Balance Classifications
Fund balances classifications at June 30, 2022 were:

General Other
General Capital Critical Governmental
Fund Balance Classifications Fund Improvements Infrastructure Funds Total Nonspendable:

Items not in spendable form:

Prepaids and deposits $17,692 $17,692
Total Nonspendable Fund Balances 17,692 17,692
Restricted for:

Pension benefits 1,597,000 1,597,000
Street maintenance $189,654 189,654
Total Restricted Fund Balances 1,597,000 189,654 1,786,654 Assigned to:

General Fund Reserve 3,567,850 3,567,850
Insurance Reserve 57,329 57,329
Critical Infrastructure $1,590,057 1,590,057
Capital Projects 1,017,517 1,017,517
Equipment Replacement $29,433 29,433
Total Assigned Fund Balances 3,625,179 1,017,517 1,590,057 29,433 6,262,186

Total Fund Balances $5,239,871 $1,207,171 $1,590,057 $29,433 $8,066,532 48 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS
A. Plan Descriptions and Summary of Balances by Plan
Plan Descriptions – The City has three defined benefit pension plans, a Miscellaneous Plan, a Safety (Police) Plan, and a Retirement Enhancement Plan (REP). The Miscellaneous Plan and the Safety Plan are Cost-Sharing Multiple Employer Plans administered by the California Public Employees’ Retirement System (CalPERS). The Retirement Enhancement Plan is an Agent-Multiple Employer Plan administered by the Public Agency Retirement System (PARS). Benefit provisions under the Plans are established by State statute and City Ordinance. The PARS Plan is closed to new participants.

CalPERS Plans - All qualified employees are eligible to participate in the City’s following cost-sharing multiple employer defined benefit pension plans (“Plans”):
 City Miscellaneous (Classic) Plan
 City Miscellaneous (PEPRA) Plan
 City Safety (Classic) Plan
 City Safety (PEPRA) Plan
The Plans are administered by the California Public Employees’ Retirement System (“CalPERS”).

Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

PARS Retirement Enhancement Plan (“REP”) – This plan was implemented July 1, 2003 and closed to new participants hired after January 1, 2012. This plan is separate from CalPERS and is established as a 401(a) Defined Benefit Plan. The REP is administered by PARS, and is an Agent-Multiple Employer 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 Miscellaneous and Safety Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office or PARS. 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.

Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources by Plan:

Plan
Deferred Outflows of
Resources
Net Pension Liability
(Asset)/Proportionate
Share of Net Pension
Liability
Deferred Inflows of
Resources
CalPERS Plans:

Miscellaneous $1,639,675 ($1,133,591) $744,138
Safety - Police 1,062,455 (820,176) 743,503
PARS Retirement Enhancement Plan 71,106 134,112 3,650
$2,773,236 ($1,819,655) $1,491,291
49 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
Pension liabilities are liquidated by the funds that have recorded the liability. The long-term portion of the governmental activities pension liabilities are liquidated primarily by the General Fund. For the year ended June 30, 2022, the City recognized negative pension expense of $5,378,468 including amounts contributed to the CalPERS and PARS REP plans.

Each Plan is discussed in detail below.

B. CalPERS Plans (Miscellaneous and Safety)
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 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

Funding Policy – Active plan members in the Plan are required to contribute 6.75% or 7% of their covered salary for the miscellaneous plans and 11.5% or 9% for public safety members. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The contribution requirements of plan members are established by State statute and the employer contribution is established and may be amended by CalPERS.

50 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous
Classic PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-67 52 - 67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 7% 6.75%
Required employer contribution rates 10.880% 7.59%
Safety
Classic PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50 - 57
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 9% 13%
Required employer contribution rates 18.170% 13.13%
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 both Plans 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.

For the year ended June 30, 2022, the contributions recognized as part of pension expense for each Plan were as follows:

Employer
Contributions
CalPERS:

Miscellaneous $146,624
Safety 105,271
$251,895
51 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (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 (UAL). The dollar amounts are billed on a monthly basis. The City's required contributions for the unfunded liability in the Miscellaneous and Safety Plans were $64,913 and $51,865, respectively.

Pension Liabilities (Assets), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2022, the City reported net pension liabilities (assets) for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share
of Net Pension (Asset)
Miscellaneous ($1,133,591)
Safety (820,176)
Total Net Pension (Asset) ($1,953,767)
The City’s net pension liability (asset) for each Plan is measured as the proportionate share of the net pension liability. The net pension liability (asset) of each of the Plans is measured as of June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020. 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 plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2020 and 2021 was as follows:

Miscellaneous
Proportion - June 30, 2020 0.01832%
Proportion - June 30, 2021 -0.05970%
Change - Increase (Decrease) -0.07802%
Safety
Proportion - June 30, 2020 0.00948%
Proportion - June 30, 2021 -0.02337%
Change - Increase (Decrease) -0.03285%

52 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the Miscellaneous Plan from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $146,624 Differences between actual and expected experience ($127,120) Changes in assumptions
Net differences between projected and actual earnings on plan investments 989,565
Net difference in actual contribution and proportion contributions (617,018) Adjustment due to differences in proportions 503,486
Total $1,639,675 ($744,138)
Miscellaneous
$146,624 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2023 $88,798
2024 159,466
2025 227,184
2026 273,465
Total $748,913
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the Safety Plan from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $105,271 Differences between actual and expected experience ($140,126) Changes in assumptions
Net differences between projected and actual earnings on plan investments 488,162
Net difference in actual contribution and proportion contributions (603,377) Adjustment due to differences in proportions 469,022
Total $1,062,455 ($743,503)
Safety

53 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
$105,271 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 as follows:

Year Ended Annual
June 30 Amortization
2023 ($39,823)
2024 21,479
2025 97,690
2026 134,335
Total $213,681
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, 2020 total pension liabilities were based on the following actuarial methods and assumptions for all benefit tiers:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Mortality
Post Retirement Benefit Increase

2.50%
(1) The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 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.

Derived using CalPERS Membership Data for all Funds (1) Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies

3.00%
Varies by Entry Age and Service
CalPERS
Entry-Age Normal Cost in accordance with the requirements of GASB Statement No.68
June 30, 2020
June 30, 2021

7.15%
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.

54 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected rate of returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund (Public Employees' Retirement Fund) cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short- term and long-term, the present value of benefits was calculated. The expected nominal rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects the expected real rate of return by asset class.

Asset Class (a)
Assumed
Asset Allocation Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% -0.92%
Total 100%
(a) In the CalPERS ACFR, 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 Securities.
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period. 55 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
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 each Plan, calculated using the discount rate 7.15%, 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:

Miscellaneous Safety Total
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability (Asset) $803,827 $630,595 $1,434,422 Current Discount Rate 7.15% 7.15% 7.15%
Net Pension Liability (Asset) ($1,133,591) ($820,176) ($1,953,767) 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability (Asset) ($2,735,227) ($2,011,805) ($4,747,032) Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

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.

C. PARS Retirement Enhancement Plan (REP)
Benefits Provided – Effective July 1, 2003, the City contracted with the Public Agency Retirement System (PARS) to sponsor a supplemental Retirement Enhancement Plan created in accordance with IRC Section 401(a), which is a qualified defined benefit pension plan covering all eligible employees of the City. The Retirement Enhancement Plan is an Agent-Multiple Employer Plan administered by the PARS. Eligibility for the benefit is defined as reaching age 55, completing fifteen years of fulltime City service, and retiring concurrently from both the City and CalPERS after leaving City employment. The Plan was closed to new participants effective January 1, 2012. The REP provides a benefit equal to 0.5% of final average compensation for all service while employed at the City of Belvedere.
56 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
Contributions – The City makes all contributions necessary to fund the benefits available under the REP. Employees are not permitted to make any contributions. Contributions during the fiscal year ended June 30, 2022 totaled $71,106.

Net Pension Liability (Asset) – The City’s net pension liability (asset) for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability (asset) of the Plan is measured as of June 30, 2022 using an annual actuarial valuation. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – For the measurement period ended June 30, 2022, the total pension liability was determined using an actuarial valuation as of June 30, 2021. The June 30, 2022 total pension liability was based on the following actuarial methods and assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Cost of Living Adjustments
Projected Salary Increase
Mortality
Post Retirement Benefit Increase

2.75%
Consistent with the rates used to value Miscellaneous
Public Agency CalPERS Pension Plans for employees with
an entry age of 30 years.

Pre-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Public Agency CalPERS
Pension Plans.

Post-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Public Agency CalPERS
Pension Plans.

Tier I: The retirement rates are consistent with those used to value the Miscellaneous Public Agency CalPERS
Pension Plans "2.5% at age 55." The rates used are those for retirees with 20 years of service.

Tier II: The retirement rates are consistent with those used to value the Safety (Police) Public Agency CalPERS
Pension Plans "3.0% at age 50." The rates used are those for retirees with 25 years of service.

PARS REP
June 30, 2020
June 30, 2022
Entry-Age Normal

6.50%

2.50%

2.00%
57 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
Discount Rate - The discount rate used to measure the total pension liability for the Plan was 6.50%.

The Plan’s long-term expected rate of return was determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation based upon the investment of all assets in PARS’ diversified Moderately Conservative portfolio.

Changes in the Net Pension Liability - The changes in the Net Pension Liability for the Plan as of the June 30, 2021 Measurement Date follows:

Increase (Decrease)
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability/
(Asset)
Balance at June 30, 2021 $849,503 $876,083 ($26,580)
Changes in the year:

Service cost 7,398 7,398
Interest on the total pension liability 54,425 54,425
Effect of economic/demographic gains or losses
Effect of assumptions changes or inputs
Benefit payments (39,816) (39,816)
Contributions - employer 25,241 (25,241)
Member contributions
Net investment income (119,775) 119,775
Administrative expenses (4,335) 4,335
Net changes 22,007 (138,685) 160,692
Balance at June 30, 2022 $871,510 $737,398 $134,112
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s 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:

PARS REP
1% Decrease 5.50%
Net Pension Liability $237,994
Current Discount Rate 6.50%
Net Pension Liability $134,112
1% Increase 7.50%
Net Pension Liability $46,565

58 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued PARS financial report.

Asset Class Target Allocation
Long-Term
Expected
Arithmetic Real
Rate of Return
Long-Term
Expected
Geometric Real
Rate of Return
U.S. Cash 9.48% 0.21% 0.20%
U.S. Core Fixed Income 35.00% 1.95% 1.84%
U.S. Equity Market 44.50% 5.70% 4.10%
Foreign Developed Equity 5.43% 6.99% 5.25%
Emerging Markets Equity 3.64% 9.44% 5.97%
US REITs 1.95% 6.27% 4.11%
Total 100%
Deferred Outflows/Inflows of Resources Related to Pensions – At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for the Plan from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between actual and expected experience ($3,650) Changes in assumptions
Net differences between projected and actual earnings on plan investments $71,106 Total $71,106 ($3,650)

PARS REP
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2023 $10,451
2024 13,762
2025 7,991
2026 35,252
Total $67,456
59 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 8 – PENSION PLANS (Continued)
D. Section 115 Pension Trust Fund
In April 2021, the City established a Section 115 irrevocable trust with the California Employers’ Pension Prefunding Trust (CEPPT) fund. The Council approved an initial deposit of $1.5 million in level payments over a 15-month period in General Fund proceeds into the Strategy 1 sub-account of the City’s CEPPT account. The Trust Account allows more control and flexibility in investment allocations compared to the City’s portfolio, which is restricted by State regulations to fixed income instruments. Beginning July 1, 2021, the City will proactively contribute to the Section 115 irrevocable trust amounts reflective of what retirement costs would be if the normal cost of contributions were budgeted at a 6.0% discount rate. During the fiscal year ended June 30, 2022, the City contributed $1,600,000 to the CEPPT account. As of June 30, 2022, the City reported the account balance of $1,597,000 as restricted investments in the General Fund.

60 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 9 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plan Plan Description – The City’s Post Employment Benefit Plan is a single-employer plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Governmental Accounting Standards Board Statement No. 75.

Benefits Provided –The following is a summary of Plan benefits by employee group as of June 30, 2022:

Miscellaneous Safety City Manager
Eligibility:

Age & Service Retirement 50 & 5 years CalPERS
service
50 & 5 years CalPERS
service
50 & 5 years CalPERS
service; City Manager
employees only
Industrial Disability Retirement Yes Yes Yes
Duty Death Yes Yes Yes
Health Benefit Plan:

Employee only Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Amount not to exceed 60%
of Kaiser Basic rate for 2-
party coverage
Employee + one dependent Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Amount not to exceed 60%
of Kaiser Basic rate for 2-
party coverage
Employee + two or more dependents Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Amount not to exceed 60%
of Kaiser Basic rate for 2-
party coverage
Surviving Spouse of Retiree Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Premium for Kaiser
Permanente or Public
Employee's Medical Hospital
Care Act (PEMHCA)
minimum only
Amount not to exceed 60%
of Kaiser Basic rate for 2-
party coverage
Note: PEMHCA Minimum Rate: $143/month as of 2021 and $149/month as of 2022 Kaiser 2-party rate: up to $976.37/month as of 2021 and $1,028.47/month as of 2022 61 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 9 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2021:

Count
Inactive employees currently receiving benefits 14
Inactive employees entitled to benefit payments 6
Active employees 20
Total 40
B. Total OPEB Liability
Actuarial Methods and Assumptions – The City’s total OPEB liability was measured as of June 30, 2021, and the total OPEB liability was determined by an actuarial valuation dated June 30, 2020, to determine the $1,614,197 total OPEB liability as of June 30, 2022, based on the following actuarial methods and assumptions:

Actuarial Assumptions: Miscellaneous
Actuarial Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 2.16%
Inflation Rate 2.50%
Payroll Growth 2.75%
Mortality, Retirement, Disability &
Termination Rate CalPERS 2000-2019 Experience Study
Mortality Improvement
Mortality projected fully generational with Scale MP-2021 Healthcare Cost Trend Rate Non-Medicare: 6.50% for 2023, and trending down to an ultimate rate of 3.75% in 2076
Medicare (Non-Kaiser): 5.65% in 2023, trending down to 3.75% in 2076
Medicare (Kaiser): 4.6% for 2023, decreasing to an ultimate rate of 3.75% in 2076
PEMHCA minimum: increase by 4% annually after 2021
The discount rate was based on the Bond Buyer 20 Index.

The underlying mortality assumptions were based on the CalPERS 1997-2015 Experience Study and all other actuarial assumptions used in the June 30, 2021, valuation were based on the results of a June 30, 2021 actuarial experience study for the period July 1, 2021 to June 30, 2022.

62 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 9 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) C. Changes in Total OPEB Liability
The changes in the total OPEB liability follows:

Increase (Decrease)
Total OPEB Liability
Balance at June 30, 2021 $1,609,699
Changes for the year:

Service Cost 64,779
Interest on the Total OPEB Liability 36,318
Differences between Expected and Actual
Experience 69,315
Assumption changes (103,610)
Benefit payments (62,304)
Administrative Expense
Net changes 4,498
Balance at June 30, 2022 $1,614,197
The long-term portion of the Governmental Activities Net OPEB Liability is liquidated primarily by the General Fund.

D. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.16%) or 1- percentage-point higher (3.16%) than the current discount rate:
1% Decrease 1.16%
Net OPEB Liability $1,853,905
Current Discount Rate 2.16%
Net OPEB Liability $1,614,197
1% Increase 3.16%
Net OPEB Liability $1,421,673
63 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 9 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (7.0%) or 1-percentage-point higher (9%) than the current healthcare cost trend rates:
1% Decrease 7.00%
Net OPEB Liability $1,409,259
Trend Rate 8.00%
Net Pension Liability $1,614,197
1% Increase 9.00%
Net Pension Liability $1,869,812
E. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB expense of $56,342. At June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $54,567 $18,248
Changes of assumptions 163,002 84,565
Employer contributions made subsequent to
the measurement date 71,400
Total $288,969 $102,813
$71,400 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 Ended Annual
June 30 Amorization
2023 $44,336
2024 48,795
2025 26,732
2026 (5,107)
Total $114,756

64 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 10 – JOINT VENTURES AND POOLS
The City is involved in multiple joint ventures and pools. The following are cited as they are entities for which the City has a material ongoing financial interest and/or material ongoing financial responsibilities.

A. Belvedere Parking Authority and Belvedere Public Financing Authority The Belvedere Parking Authority (“Parking Authority”) was established in May 2016 for the purpose of being the second entity in a joint powers authority with the City to establish a financing authority.

The Belvedere Public Financing Authority (the “Financing Authority”) was established in May 2016 as a joint powers authority between the City and the Financing Authority. The Financing Authority was established to execute refunding agreements for the outstanding limited obligation bonds of the underground assessment districts, fund the reserve fund, pay for the costs of issuance, and pay debt service payments.

B. Belvedere-Tiburon Library Agency
The Belvedere-Tiburon Library Agency (the “Agency”) was established in May 1995 to construct, own, operate, and maintain a new public library, servicing the residents of Belvedere and Tiburon. Each member of the Agency has three (3) representatives on the Library Board which governs the management and financing of its activities and an at large member appointed by the Reed School District. Participating agencies at June 30, 2020 were the Town of Tiburon and the City of Belvedere.

The City receives tax receipts, relating to the Belvedere-Tiburon Library, from the County of Marin.

The City disburses all of those receipts to the Library ($927,154 for fiscal 2022), which utilizes the funds for ordinary operations. The financial results of the Agency are not included in the accompanying financial statements because the City does not have oversight authority.

Financial statements for the Belvedere-Tiburon Library Agency can be obtained at 1501 Tiburon Blvd., Tiburon, CA 94920.

C. Belvedere-Tiburon Joint Recreation Committee
The Belvedere-Tiburon Joint Recreation Committee (the Committee, commonly referred to as “The Ranch”) was formed under a joint powers agreement between the City of Belvedere and the Town of Tiburon. The Town Council of the Town of Tiburon and City Council of the City of Belvedere each select and appoint three citizens and one Council Member to serve on The Ranch Board. The ninth member is designated an 'at-large' member and to the extent possible is appointed by the Reed Union School District. The purpose of the Committee is to formulate, administer and operate recreation and education programs and facilities for the residents of the Tiburon Peninsula. The Committee operates as a special district, a legal entity separate and distinct from the City of Belvedere. The Committee does not receive any ongoing funding from the City, however, the Committee does use City facilities for many of its recreational programs.

Financial statements for the Belvedere-Tiburon Joint Recreation Committee can be obtained at 600 Neds Way, Tiburon, CA 94920.

65 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 10 – JOINT VENTURES AND POOLS (Continued)
D. California Intergovernmental Risk Authority (CIRA)
The City of Belvedere is a member of the California Intergovernmental Risk Authority (CIRA), formerly known as the Public Agency Risk Sharing Authority of California (PARSAC), for liability and workers’ compensation risk coverage. Property insurance is covered through CIRA’s partner agency, Public Risk Innovation Solutions, and Management (PRISM). CIRA is a statewide joint powers authority providing risk sharing services to California public entities that provide a municipal service.

CIRA is governed by a Board of Directors and member agencies are entitled to representation on the board. Upon termination of the joint powers authority agreements, all property of CIRA would be returned to the respective parties that transferred the property to CIRA and any surplus of funds and assets would be returned to the parties in proportion to actual balances of each entity. Complete financial information for CIRA is available at 1525 Response Road, Sacramento, CA 95815.

Coverage Type Deductible Coverage Limits
General & Auto Liability $25,000 $40,000,000
Employment Practices Liability 25,000 40,000,000
Workers' Compensation 100,000 Statutory Limits
Pollution Insurance 250,000 10,000,000
Property Insurance 10,000 600,000,000
Employee Dishonesty 2,500 10,000,000
Forgery & Alteration 2,500 10,000,000
Theft, Disappearance, Destruction 2,500 10,000,000
Robbery & Safe Burglary 2,500 10,000,000
Computer Fraud 2,500 10,000,000
Money Orders and Counterfeit Paper Currency 2,500 10,000,000 Deadly Weapons Response 10,000 500,000
Liabilities of the City are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). There were no material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years.

Amounts of settlements did not exceed insurance coverage for the last three years.

E. Richardson Bay Regional Agency (RBRA)
The Richardson Bay Regional Agency (“RBRA”) was formed under a joint powers agreement between the County of Marin and the Cities of Belvedere, Mill Valley, Sausalito and Tiburon. The governing body of RBRA consists of five members, one appointee from each member entity. The purpose of the RBRA is to perform mutual exercise of certain functions within the waters of Richardson Bay to the benefit of all parties. The City contributes 7.5% of the operating costs of the RBRA each year.

Financial statements for the Richardson Bay Regional Agency can be obtained at 3501 Civic Center Drive, Room 308, San Rafael, CA 94903.

66 CITY OF BELVEDERE, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For The Year Ended June 30, 2022
NOTE 10 – JOINT VENTURES AND POOLS (Continued)
F. Marin Emergency Radio Authority (MERA)
The City participates in a joint powers agreement through the Marin Emergency Radio Authority (“MERA”) under an operating agreement dated February 1, 1999. MERA was created July 1, 1997 by an agreement between certain public agencies in Marin County to provide a public safety radio system to its members. The members have agreed to assign a portion of their property tax revenues and make annual payments, on a pro rata basis, to cover the costs of debt financing and operating the system.

G. County of Marin
The City along with certain other cities entered into joint venture and pooling contracts with the County of Marin to provide dispatch services and a 911 public safety answering point for member cities.

Financial information on the joint ventures and pools can be obtained from the City at:
450 San Rafael Avenue
Belvedere, California 94920
NOTE 11 – COMMITMENTS AND CONTINGENCIES
The City is subject to litigation arising in the normal course of business. In the opinion of the City's attorney, there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.
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REQUIRED SUPPLEMENTARY INFORMATION

SECTION

CITY OF BELVEDERE

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts Variance
Actual Positive
Original Final Amounts (Negative)
Revenues
Property taxes $6,272,254 $6,272,254 $6,704,180 $431,926 Other taxes 136,379 136,379 190,124 53,745
Licenses and permits 469,935 469,935 571,146 101,211
Fines and forfeitures 1,057 1,057 2,663 1,606
Use of money and property 70,171 70,171 (129,536) (199,707) Intergovernmental revenues 172,485 172,485 459,662 287,177 Charges for services 278,117 278,117 432,336 154,219
Franchise fees 182,500 182,500 198,901 16,401
Other revenues 37,000 37,000 60,594 23,594
Total Revenues 7,619,898 7,619,898 8,490,070 870,172
Expenditures
Current:

General government 1,055,484 1,055,484 1,269,828 (214,344) Public safety:

Police 1,706,704 1,706,704 1,573,346 133,358
Planning and development 1,150,330 1,410,330 1,306,190 104,140 Public works 1,267,467 1,307,467 1,087,852 219,615
Recreation (The Ranch) 63,450 63,450 53,468 9,982
Non-Departmental 577,499 577,499 698,372 (120,873)
Total Expenditures 5,820,934 6,120,934 5,989,056 131,878

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 1,573,633 1,498,964 2,501,014 1,002,050

OTHER FINANCING SOURCES (USES)
Transfers to other funds (2,481,862) (2,481,862) (3,239,376) (757,514) Total other financing sources (uses) (2,481,862) (2,481,862) (3,239,376) (757,514) NET CHANGE IN FUND BALANCE $1,573,633 ($982,898) (738,362) $244,536 FUND BALANCE AT BEGINNING OF YEAR 5,978,233
FUND BALANCE AT END OF YEAR $5,239,871
70 Variance
Actual Positive
Original Final Amount (Negative)
Revenues
Property taxes $997,888 $997,888 $996,361 ($1,527)
Total revenues 997,888 997,888 996,361 (1,527)
Expenditures
Current
Public safety:

Fire 1,852,454 1,852,454 1,854,651 (2,197)
Total expenditures 1,852,454 1,852,454 1,854,651 (2,197)

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (854,566) (854,566) (858,290) (3,724)

OTHER FINANCING SOURCES (USES)
Transfers from other funds 858,290 858,290
Total other financing sources (uses) 858,290 858,290
NET CHANGE IN FUND BALANCE ($854,566) ($854,566) $854,566

FUND BALANCE AT BEGINNING OF YEAR

FUND BALANCE AT END OF YEAR
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Budgeted Amounts

CITY OF BELVEDERE

FIRE PROTECTION SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
71 CITY OF BELVEDERE, CALIFORNIA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
NOTE 1 - Budgets and Budgetary Accounting
The City operates under the general laws of the State of California ("State") and annually adopts a budget to be effective July 1 of the ensuing fiscal year. The City adopts an annual budget for General, Special Revenue and Capital Projects Funds, except for the Gas Tax Special Revenue Fund. The legal level of budgetary control has been established at the fund level. Budgets are subject to a public hearing before they are adopted by the City Council. Budgets are prepared on the cash basis and are not materially different from budgets prepared under accounting principles generally accepted in the United States of America.

The Budgetary Comparison Schedule – General Fund does not include other funds combined with the General Fund for financial statement purposes. Budgetary comparison schedules for these funds have been included with the nonmajor budgetary comparison schedules as appropriate.

All annual appropriations lapse at fiscal year-end. Budgets submitted to the City Council include both proposed appropriations and the means of financing them. The City Council approves total appropriations on a fund-by-fund basis.

The City Manager is authorized to transfer budget appropriations within the same fund in conformance with the adopted policies set by the City Council. Additional appropriations or interfund transfers not included in the original budget resolutions require approval by the City Council. Budgeted amounts shown reflect the annual operating budget as originally passed and include an additional appropriation for equipment replacement made in mid-year. Encumbrance accounting, a method of recording purchase commitments, is not used by the City.
72 CITY OF BELVEDERE

REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous and Safety Cost-Sharing Multiple-Employer Defined Benefit Pension Plans Last 10 Years*

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

AND RELATED RATIOS AS OF THE MEASUREMENT DATE
Miscellaneous Plan
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Plan's proportion of the Net Pension Liability
(Asset) 0.02786% 0.06454% 0.07071% 0.06844% 0.00851% 0.01253% 0.01832% -0.02337% Plan's proportion share of the Net Pension
Liability (Asset) $1,733,750 $1,770,555 $2,456,235 $2,698,048 $320,725 $501,791 $772,929 ($1,133,591) Plan's Covered Payroll $1,394,430 $1,413,982 $1,479,351 $1,370,946 $1,405,882 $1,459,265 $1,523,406 $1,664,549 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered
Payroll 124.33% 125.22% 166.03% 196.80% 22.81% 34.39% 50.74% -68.10% 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% Safety Plan
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Plan's proportion of the Net Pension Liability
(Asset) 0.01748% 0.02760% 0.03112% 0.02967% 0.00448% 0.00612% 0.00948% -0.05970% Plan's proportion share of the Net Pension
Liability (Asset) $1,087,923 $1,137,147 $1,611,595 $1,772,636 $262,953 $382,318 $631,924 ($820,176) Plan's Covered Payroll $700,977 $645,791 $842,368 $708,177 $802,683 $683,660 $575,460 $759,119 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered
Payroll 155.20% 176.09% 191.32% 250.31% 32.76% 55.92% 109.81% -108.04% 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, therefore only eight years are shown. 73 CITY OF BELVEDERE

REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous and Safety Cost-Sharing Multiple-Employer Defined Benefit Pension Plans Last 10 Years*

SCHEDULE OF CONTRIBUTIONS AND NOTES TO SCHEDULE
Miscellaneous Plan
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 Contractually required contribution
(actuarially determined) $149,613 $180,795 $162,841 $110,838 $180,028 $173,606 $154,767 $146,624 Contributions in relation to the
actuarily determined contributions (149,613) (180,795) (162,841) (110,838) (180,028) (173,606) (154,767) (146,624) Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0 $0 Covered payroll $1,413,982 $1,479,351 $1,370,946 $1,405,882 $1,459,265 $1,523,406 $1,664,549 $1,600,385 Contributions as a percentage of
covered payroll 10.58% 12.22% 11.88% 7.88% 12.34% 11.40% 9.30% 9.16% Safety Plan
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 Contractually required contribution
(actuarially determined) $131,200 $147,021 $190,912 $114,373 $149,411 $120,306 $108,867 $105,271 Contributions in relation to the
actuarily determined contributions (131,200) (147,021) (190,912) (114,373) (149,411) (120,306) (108,867) (105,271) Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0 $0 Covered payroll $645,791 $842,368 $708,177 $802,683 $683,660 $575,460 $759,119 $753,732 Contributions as a percentage of
covered payroll 20.32% 17.45% 26.96% 14.25% 21.85% 20.91% 14.34% 13.97% Notes to Schedule Contributions
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry-Age Normal Cost in accordance with the requirements of GASB Statement No. 68
Actual Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 3.00%
Investment Rate of Return 7.15% (1)
Mortality Derived using CalPERS Membership Data for all Funds (2) (1) Net of pension plan investment expenses, including inflation (2) The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 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.
* Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. 74 CITY OF BELVEDERE

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Miscellaneous Plan - Agent Multiple-Employer Defined Pension Plan Last 10 Years*
Measurement Date 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Total Pension Liability
Service Cost $22,887 $13,075 $13,435 $7,200 $7,398
Interest 51,821 52,857 55,473 57,518 54,425
Effect of economic/ demographic gains or loses (13,640) (76,642) Changes in assumptions 42,116
Changes in benefits
Benefit payments, including refunds
of employee contributions (19,173) (21,829) (30,420) (32,019) (39,816) Net change in total pension liability 84,011 44,103 38,488 (43,943) 22,007 Total pension liability - beginning 726,844 810,855 854,958 893,446 849,503 Total pension liability - ending (a) $810,855 $854,958 $893,446 $849,503 $871,510 Plan fiduciary net position
Contributions - employer $30,305 $26,737 $36,042 $36,042 $25,241 Contributions - employee
Net investment income 43,289 39,677 15,207 181,819 (119,775) Benefit payments, including refunds
of employee contributions (19,173) (21,829) (30,420) (32,019) (39,816) Plan to Plan Resource Movement
Administrative Expense (3,120) (3,233) (3,457) (4,024) (4,335) Net change in plan fiduciary net position 51,301 41,352 17,372 181,818 (138,685) Plan fiduciary net position - beginning 584,240 635,541 676,893 694,265 876,083 Plan fiduciary net position - ending (b) $635,541 $676,893 $694,265 $876,083 $737,398 Net pension liability - ending (a)-(b) $175,314 $178,065 $199,181 ($26,580) $134,112 Plan fiduciary net position as a percentage of the
total pension liability 78.38% 79.17% 77.71% 103.13% 84.61% Covered payroll $921,592 $946,933 $972,977 $578,643 $389,989 Net pension liability as percentage of covered payroll 19.02% 18.80% 20.47% -4.59% 34.39% * Fiscal year 2015 was the first year of implementation, however, data for fiscal years 2015 thru 2017 are not currently available. 75 CITY OF BELVEDERE

REQUIRED SUPPLEMENTARY INFORMATION
PARS Retirement Enhance Plan (REP) Defined Benefit Pension Plan Last 10 Years*

SCHEDULE OF CONTRIBUTIONS

PARS REP
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution $44,240 $37,546 $32,350 $27,648 $27,648 $36,078 $21,456 $25,460 Contribution in relation to the actuarially
determined contributions (37,546) (44,240) (32,350) (30,305) (26,737) (36,042) (36,042) (25,241) Contribution deficiency (excess) $0 $0 $0 ($2,657) $911 $36 ($14,586) $219 Covered Payroll $1,436,349 $1,219,022 $1,078,340 $921,592 $946,936 $972,977 $578,643 $389,989 Contributions as a percentage of covered
payroll 3.08% 3.08% 3.00% 3.29% 2.82% 3.70% 6.23% 6.47% Notes to Schedule
Valuation date 6/30/2014 6/30/2015 6/30/2016 6/30/2018 6/30/2018 6/30/2018 6/30/2020 6/30/2020 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method Level dollar of payroll, closed
Remaining amortization period 12 years
Asset valuation method None
Inflation 2.50%
Salary increases Consistent with the rates used to value Miscellaneous Public Agency CalPERS Pension Plans for employees with an entry age of 30.

Investment rate of return 6.50%
Payroll growth 2.75%
Retirement Tier I: The retirement rates are consistent with those used to value the Miscellaneous Public Agency CalPERS Pension
Plans "2.5% at age 55." The rates used are those for retirees with 20 years of service.

Tier II: The retirement rates are consistent with those used to value Public Agency Police CalPERS Pension Plan
"3.0% at age 50." The rates used are those for retirees with 25 years of service.

Mortality Consistent with the Non-Industrial rates used to value the Miscellaneous Public Agency CalPERS Pension Plans
for both Pre-Retirement & Post-Retirement.
*Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. 76 CITY OF BELVEDERE

REQUIRED SUPPLEMENTARY INFORMATION
City of Belvedere Single-Employer OPEB Plan

SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS For the measurement year ending June 30
Last 10 Years*
Measurement Date- June 30 2017 2018 2019 2020 2021
Total OPEB Liability
Service Cost $72,000 $63,000 $61,217 $46,470 $64,779
Interest 38,000 45,000 50,048 46,568 36,318
Differences between actual and expected experience - (60,362) - - 69,315 Assumption Changes (126,000) (47,000) 51,401 260,897 (103,610) Benefit payments including refunds (29,000) (36,000) (44,000) (56,540) (62,304) Changes of benefit terms - - - - -
Net change in total OPEB liability (45,000) 25,000 58,304 297,395 4,498 Total OPEB liability - (beginning of year) 1,274,000 1,229,000 1,254,000 1,312,304 1,609,699 Total OPEB liability - (end of year) $1,229,000 $1,254,000 $1,312,304 $1,609,699 $1,614,197 Covered Payroll $2,263,000 $2,209,000 $2,032,500 $2,495,104 $2,498,209 Net OPEB liability as percentage of covered payroll 54.31% 56.77% 64.57% 64.51% 64.61% Notes to Schedule:
* Fiscal year 2018 was the 1st year of implementation, therefore, only five years are shown. 77 SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ending 2018 2019 2020 2021 2022
Employer required contributions $32,432 $42,658 $56,873 $62,613 $71,400 Contributions in relation to the actuarially
determined contributions (32,432) (42,658) (56,873) (62,613) (71,400) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $2,209,000 $2,032,500 $2,495,104 $2,498,209 $2,679,527 Contributions as a percentage of covered
payroll 1.47% 2.10% 2.28% 2.51% 2.66%
Notes to Schedule
Valuation date: 6/30/2017 6/30/2017 6/30/2019 6/30/2019 6/30/2021 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Inflation
Assumed Rate of Payroll Growth
Healthcare trend rates
PEMHCA trend rate
Retirement Age
Mortality rate
* Fiscal year 2018 was the 1st year of implementation, therefore, only five years are shown.

CITY OF BELVEDERE

REQUIRED SUPPLEMENTARY INFORMATION
City of Belvedere Single-Employer OPEB Plan
For the fiscal year ending June 30, 2022
Age 50 and 5 years of service
Last 10 Years*
CalPERS Rates (1)
(1) Mortality rate is based on assumption data of 20 years of projected on-going mortality improvement using Society of Actuaries Scale BB in June 30, 2016, CalPERS actuarial valuation.

Entry age normal, level percent of pay

2.50%

2.75%
Non-Medicare: 6.50% for 2023, and trending down to
an ultimate rate of 3.75% in 2076 and beyond
Medicare: 5.65% in 2023, trending down to 3.75% in
2076 and beyond
4% annually after 2019
78 SUPPLEMENTARY INFORMATION
Variance
Actual Positive
Original Final Amount (Negative)
Revenues
Use of money and property $1,828 $1,828
Intergovernmental revenues $287,250 $589,100 267,106 (321,994) Charges for services 175,750 175,750 203,486 27,736
Total Revenues 463,000 764,850 472,420 (292,430)
Expenditures
Capital outlay 2,552,831 1,417,813 805,750 1,135,018
Total Expenditures 805,750 2,552,831 1,417,813 1,135,018

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (342,750) (1,787,981) (945,393) 842,588

OTHER FINANCING SOURCES (USES)
Transfers from other funds 633,788 633,788
Total other financing sources (uses) 633,788 633,788
NET CHANGE IN FUND BALANCE ($342,750) ($1,787,981) (311,605) $1,476,376 FUND BALANCE AT BEGINNING OF YEAR 1,518,776
FUND BALANCE AT END OF YEAR $1,207,171

CITY OF BELVEDERE

BUDGETARY COMPARISON SCHEDULE

GENERAL CAPITAL IMPROVEMENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Budgeted Amounts
80 Insurance Pension Total
General SLESF Reserve Trust General
Fund Fund Fund Fund Fund
ASSETS
Cash and investments $4,563,153 ($261) $57,329 $4,620,221 Restricted cash and investments $1,597,000 1,597,000
Accounts receivable, net 435,818 261 436,079
Due from other funds 10,489 10,489
Prepaid items and other current assets 17,692 17,692
Total Assets $5,027,152 $57,329 $1,597,000 $6,681,481

LIABILITIES
Accounts payable and other liabilities $385,504 $385,504 Refundable deposits 876,193 876,193
Total Liabilities 1,261,697 1,261,697

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - grants 179,913 179,913
Total Deferred Inflows of Resources 179,913 179,913

FUND BALANCES
Nonspendable 17,692 17,692
Restricted $1,597,000 1,597,000
Assigned 3,567,850 $57,329 3,625,179
Unassigned
Total Fund Balances 3,585,542 57,329 1,597,000 5,239,871 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $5,027,152 $57,329 $1,597,000 $6,681,481 JUNE 30, 2022

CITY OF BELVEDERE

GENERAL FUND

COMBINING BALANCE SHEET
81 Insurance Pension Total
General SLESF Reserve Trust General
Fund Fund Fund Fund Fund

REVENUES
Property taxes $6,704,180 $6,704,180
Other taxes 190,124 190,124
Licenses and permits 571,146 571,146
Fines and forfeitures 2,663 2,663
Use of money & property 72,267 $611 ($202,414) (129,536) Intergovernmental revenues 290,564 169,098 459,662
Charges for services 432,336 432,336
Franchise fees 198,901 198,901
Other revenues 60,594 60,594
Total Revenues 8,522,775 169,709 (202,414) 8,490,070

EXPENDITURES
Current:

General government 1,267,329 2,499 1,269,828
Public safety:

Police 1,573,346 1,573,346
Planning & development 1,306,190 1,306,190
Public works 1,087,852 1,087,852
Recreation (The Ranch) 53,468 53,468
Non-departmental 698,372 698,372
Total Expenditures 5,986,557 2,499 5,989,056

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,536,218 169,709 (204,913) 2,501,014

OTHER FINANCING SOURCES (USES)
Transfers in 169,709 1,600,000 1,769,709
Transfers out (4,839,376) (169,709) (5,009,085)
Total other financing sources (uses) (4,669,667) (169,709) 1,600,000 (3,239,376) NET CHANGE IN FUND BALANCES (2,133,449) 1,395,087 (738,362) BEGINNING FUND BALANCES 5,718,991 $57,329 201,913 5,978,233 ENDING FUND BALANCES $3,585,542 $57,329 $1,597,000 $5,239,871

CITY OF BELVEDERE

COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022

GENERAL FUND
82 NON-MAJOR GOVERNMENTAL FUNDS
83 Lease Revenue Total
Equipment Bonds Nonmajor
Replacement Debt Service Governmental
Gas Tax Fund Fund Funds
ASSETS
Cash and cash equivalents $29,432 $1 $29,433
Accounts receivable, net $4,500 4,500
Total Assets $4,500 $29,432 $1 $33,933

LIABILITIES
Accounts payable
Due to other funds $4,500 $4,500
Total Liabilities 4,500 4,500

FUND BALANCES
Assigned $29,432 $1 29,433
Total Fund Balances 29,432 1 29,433
Total Liabilities and Fund Balances $4,500 $29,432 $1 $33,933

CITY OF BELVEDERE

COMBINING BALANCE SHEETS

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
84 2017
Gas Tax Lease Revenue Total
Special Equipment Bonds Nonmajor
Revenue Replacement Debt Service Governmental
Fund Fund Fund Funds

REVENUES
Use of money and property $303 $303
Intergovernmental revenues 92,626 $381 93,007
Total Revenues 92,929 381 93,310

EXPENDITURES
Debt service:

Principal $194,000 194,000
Interest and fiscal charges 56,169 56,169
Capital outlay 13,950 13,950
Total Expenditures 13,950 250,169 264,119

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 92,929 (13,569) (250,169) (170,809)

OTHER FINANCING SOURCES (USES)
Transfers from other funds 250,170 250,170
Transfers to other funds (92,929) (92,929)
Total other financing sources (uses) (92,929) 250,170 157,241 NET CHANGE IN FUND BALANCES (13,569) 1 (13,568)
BEGINNING FUND BALANCES 43,001 43,001
ENDING FUND BALANCES $29,432 $1 $29,433

CITY OF BELVEDERE

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
85 Variance with
Final-Positive
Budget Actual (Negative)
Revenues
Use of money and property
Intergovernmental revenues $1,000 $381 $619
Total Revenues 1,000 381 619
Expenditures
Capital outlay 80,000 13,950 66,050
Total Expenditures 80,000 13,950 66,050

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (79,000) (13,569) 65,431

OTHER FINANCING SOURCES (USES)
Transfers from other funds
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($79,000) (13,569) ($65,431) FUND BALANCE AT BEGINNING OF YEAR 43,001
FUND BALANCE AT END OF YEAR $29,432

CITY OF BELVEDERE

BUDGETARY COMPARISON SCHEDULE

EQUIPMENT REPLACEMENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
86 BelvedereAssessment Tiburon Library
Districts Agency Total
Assets:

Cash and investments $531,444 $37,024 $568,468
Accounts receivable 5,778 21,171 26,949
Total Assets 537,222 58,195 595,417
Liabilities:

Accounts payable 7,206 39,861 47,067
Total Liabilities 7,206 39,861 47,067
Net Position:

Restricted for:

Bondholders 530,016 530,016
Other Agency 18,334 18,334
Total Net Position $530,016 $18,334 $548,350

CITY OF BELVEDERE

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022

CUSTODIAL FUNDS
87 BelvedereAssessment Tiburon Library
Districts Agency Total
Additions
Property taxes $927,154 $927,154
Intergovernmental revenues $826,109 826,109
Investment income 1,528 1,528
Total Additions 827,637 927,154 1,754,791
Deductions
Distributions to Library 908,820 908,820
Payments to bondholders 418,594 418,594
Interest and fiscal charges 441,911 441,911
Total Deductions 860,505 908,820 1,769,325
Change in net position (32,868) 18,334 (14,534)
Net Position - Beginning 562,884 562,884
Total Net Position $530,016 $18,334 $548,350

CITY OF BELVEDERE

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2022

CUSTODIAL FUND
88 STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the 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.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property and sales taxes.

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.

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 and to help make comparisons over time and with other governments.

Operating Information
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the activities it performs.

Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year.
89 This Page Left Intentionally Blank
City of Belvedere
Net Position by Component, Last Ten Fiscal Years(accrual basis of accounting) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Governmental activities
Net investment in capital assets 7,930,552 $ 7,122,180 $ 7,077,537 $ 6,639,246 $ 6,069,846 $ 6,157,925 $ 6,338,137 $ 6,423,791 $ 6,290,687 $ 6,391,231 $ Restricted 1,786,654 592,264 324,857 941,270 395,508 - - - - - Unrestricted 6,102,224 936,797 (602,975) (2,626,949) (3,231,241) (708,477) (660,496) (1,082,881) 2,228,375 2,748,028 Total governmental activities net position 15,819,430 $ 8,651,241 $ 6,799,419 $ 4,953,567 $ 3,234,113 $ 5,449,448 $ 5,677,641 $ 5,340,910 $ 8,519,062 $ 9,139,259 $ Business-type activities
Net investment in capital assets - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Restricted - - - - - - - - - -
Unrestricted - - - - - - - - - -
Total business-type activities net position - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Primary government
Net investment in capital assets 7,930,552 $ 7,122,180 $ 7,077,537 $ 6,639,246 $ 6,069,846 $ 6,157,925 $ 6,338,137 $ 6,423,791 $ 6,290,687 $ 6,391,231 $ Restricted 1,786,654 592,264 324,857 941,270 395,508 - - - - - Unrestricted 6,102,224 936,797 (602,975) (2,626,949) (3,231,241) (708,477) (660,496) (1,082,881) 2,228,375 2,748,028 Total primary government net position 15,819,430 $ 8,651,241 $ 6,799,419 $ 4,953,567 $ 3,234,113 $ 5,449,448 $ 5,677,641 $ 5,340,910 $ 8,519,062 $ 9,139,259 $ Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2004.Source: City Finance Department Fiscal Year
91 City of Belvedere
Changes in Net Position, Last Ten Fiscal Years(accrual basis of accounting) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
ExpensesGovernmental activities:

General government 760,337 $ 1,024,585 $ 1,010,668 $ 846,917 $ 676,830 $ 984,634 $ 681,073 $ 839,551 $ 1,028,858 $ 1,238,851 $ Public safety 918,579 3,229,244 3,076,802 3,054,707 3,121,632 3,412,474 3,245,388 2,957,115 3,148,198 2,934,211 Planning and development (176,464) 1,145,680 883,231 932,726 1,047,057 1,155,093 1,122,216 1,082,995 1,565,998 1,578,591 Public works 833,901 1,760,192 1,575,517 1,347,896 1,498,256 879,207 960,194 916,263 1,083,090 873,506 Recreation (The Ranch) 53,468 65,740 75,107 53,902 52,364 82,528 81,833 99,253 74,807 346,405 Library* - - - - 737,549 706,667 631,726 600,217 596,645 545,294 Non-departmental 698,372 388,591 451,929 472,211 3,946,407 637,224 371,348 401,903 - 261,670 Interest on long-term debt 56,169 149,521 108,044 114,176 114,535 - - - - - Unallocated depreciation expense - - - - - 380,138 310,089 294,135 273,435 - Total governmental activities expenses 3,144,362 $ 7,763,553 $ 7,181,298 $ 6,822,535 $ 11,194,630 $ 8,237,965 $ 7,403,867 $ 7,191,432 $ 7,771,031 $ 7,778,528 $ Program RevenuesGovernmental activities:

Charges for services:

General government 66,435 $ 27,983 $ 25,602 $ 22,388 $ 22,246 $ 18,106 $ 15,058 $ 12,523 $ 28,748 $ 23,101 $ Public safety 5,342 10,874 16,676 15,259 124,752 120,445 112,626 53,245 19,933 11,822 Planning and development 814,648 676,366 793,681 764,018 1,024,348 717,054 726,619 981,766 572,953 725,821 Public works 323,206 263,978 331,384 267,460 322,032 274,710 262,117 160,412 234,795 269,865 Community Center - - - - - - - - - -
Library - - - - - - - - - -
Non-departmental - - - - - - - - - -
Operating grants and contributions 411,661 56,723 - 27,329 10,143 - - - - - Capital grants and contributions 265,538 228,785 137,110 20,259 131,058 - - - - - Total governmental activities program revenues 1,886,830 1,264,709 1,304,453 1,116,713 1,634,579 1,130,315 1,116,420 1,207,946 856,429 1,030,609 Total primary government program revenues 1,886,830 $ 1,264,709 $ 1,304,453 $ 1,116,713 $ 1,634,579 $ 1,130,315 $ 1,116,420 $ 1,207,946 $ 856,429 $ 1,030,609 $ Fiscal Year
92 City of Belvedere
Changes in Net Position, Last Ten Fiscal Years(accrual basis of accounting) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Net (Expense)/RevenueGovernmental activities (1,257,532) $ (6,498,844) $ (5,876,845) $ (5,705,822) $ (9,560,051) $ (7,107,650) $ (6,287,447) $ (5,983,486) $ (6,914,602) $ (6,747,919) $ Total primary government net expense (1,257,532) $ (6,498,844) $ (5,876,845) $ (5,705,822) $ (9,560,051) $ (7,107,650) $ (6,287,447) $ (5,983,486) $ (6,914,602) $ (6,747,919) $ General Revenues and Other Changes in Net PositionGovernmental activities:

Taxes
Property taxes 7,700,541 $ 7,279,753 $ 6,798,394 $ 6,600,347 $ 6,129,401 $ 5,888,358 $ 5,350,001 $ 4,993,837 $ 4,858,173 $ 4,501,805 $ Other taxes 190,124 159,401 162,236 194,637 200,676 161,677 142,479 115,208 199,457 247,757 Use of money/property (127,405) 104,067 135,333 113,366 84,183 62,463 49,006 44,630 42,091 54,201Intergovernmental revenues 402,966 576,865 402,096 309,413 1,030,510 1,011,073 872,228 841,403 885,324 825,388Franchise fees 198,901 185,776 189,601 171,312 188,760 163,322 170,673 152,253 158,671 169,881Other 60,594 44,804 35,038 36,201 80,777 36,245 153,889 119,985 150,689 68,561Transfers - - - - - - - - - 107,224 Total governmental activities 8,425,721 8,350,666 7,722,698 7,425,276 7,714,307 7,323,138 6,738,276 6,267,316 6,294,405 5,974,817 Total primary government 8,425,721 $ 8,350,666 $ 7,722,698 $ 7,425,276 $ 7,714,307 $ 7,323,138 $ 6,738,276 $ 6,267,316 $ 6,294,405 $ 5,974,817 $ Change in Net PositionGovernmental activities 7,168,189 $ 1,851,822 $ 1,845,853 $ 1,719,454 $ (1,845,744) $ 215,488 $ 450,829 $ 283,830 $ (620,197) $ (773,102) $ Total primary government 7,168,189 $ 1,851,822 $ 1,845,853 $ 1,719,454 $ (1,845,744) $ 215,488 $ 450,829 $ 283,830 $ (620,197) $ (773,102) $ Source: City Finance Department Fiscal Year
93 City of Belvedere
Program Revenues by Function/Program,Last Ten Fiscal Years(accrual basis of accounting) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/ProgramGovernmental activities:

General government 66,435 $ 27,983 $ 25,602 $ 22,388 $ 22,246 $ 18,106 $ 15,058 $ 12,523 $ 28,748 $ 23,101 $ Public safety 5,342 10,874 16,676 15,259 124,752 120,445 112,626 53,245 19,933 11,822 Planning and development 814,648 676,366 793,681 764,018 1,024,348 717,054 726,619 981,766 572,953 725,821 Public works 323,206 263,978 331,384 267,460 322,032 274,710 262,117 160,412 234,795 269,865 Other - - - - - - - - - -
Total governmental activities 1,209,631 979,201 1,167,343 1,069,125 1,493,378 1,130,315 1,116,420 1,207,946 856,429 1,030,609 Total primary government 1,209,631 $ 979,201 $ 1,167,343 $ 1,069,125 $ 1,493,378 $ 1,130,315 $ 1,116,420 $ 1,207,946 $ 856,429 $ 1,030,609 $ Source: City Finance Department
Program Revenues
94 City of Belvedere
Fund Balances, Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting) Fiscal Year
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
General Fund
Nonspendable 17,692 $ 54,621 $ 320,788 $ 304,711 $ 293,304 $ 26,910 $ 31,422 $ 16,150 $ 10,476 $ 9,923 $ Restricted 1,597,000 201,913 - - - 101,510 98,995 77,808 61,322 53,831 Committed - 1,300,000 - - - - - - - -
Assigned* 3,625,179 3,259,915 3,238,517 3,042,646 2,771,480 56,279 257,592 157,592 58,839 - Unassigned - 1,161,784 1,295,513 737,254 778,944 3,464,347 2,535,633 2,120,184 2,047,647 2,438,174 Total general fund 5,239,871 $ 5,978,233 $ 4,854,818 $ 4,084,611 $ 3,843,728 $ 3,649,046 $ 2,923,642 $ 2,371,734 $ 2,178,284 $ 2,501,928 $ All Other Governmental Funds
Nonspendable - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
Restricted 189,654 390,351 1,260,870 941,270 395,508 150,000 314,064 307,737 402,903 414,209 Committed - - - - - - - - - -
Assigned 2,637,007 1,171,426 25,000 25,000 469,184 346,696 202,340 223,100 49,790 170,271 Unassigned - - - - - - - - - -
Total all other governmental funds 2,826,661 $ 1,561,777 $ 1,285,870 $ 966,270 $ 864,692 $ 496,696 $ 516,404 $ 530,837 $ 452,693 $ 584,480 $ * In 2018, the City implemented a new policy to classify the General Fund reserve as assigned.

Source: City Finance Department
95 City of Belvedere
Changes in Fund Balances, Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Revenues

7.42% 5.78% 7.08% 3.00% 7.68% 4.09% 10.06% 7.13% 2.79% 7.92% 22.31% Property taxes 7,700,541 $ 7,279,752 $ 6,798,394 $ 6,600,347 $ 6,129,401 $ 5,888,358 $ 5,350,001 $ 4,993,837 $ 4,858,173 $ 4,501,805 $ Other taxes 190,124 159,401 162,236 194,637 199,533 161,677 142,479 115,208 199,457 247,757 Licenses and permits 571,146 483,331 539,126 458,873 585,449 443,611 453,404 367,059 411,600 442,153 Fines and forfeitures 2,663 864 36,416 33,636 152,589 23,123 21,786 368,789 22,925 122,770 Use of money/property (127,405) 104,068 135,333 113,366 84,183 62,463 49,006 44,630 42,091 54,201 Intergovernmental 819,775 715,613 539,205 357,001 1,172,854 1,011,073 872,228 841,403 885,324 825,388 Charges for services 635,822 495,005 591,801 576,616 755,340 663,581 641,228 472,098 421,905 465,686 Franchise fees 198,901 185,776 189,601 171,312 188,760 163,322 170,673 152,253 158,671 169,881 Other revenues 33,997 60,594 35,038 36,201 80,777 36,245 153,889 119,985 150,689 68,561 Total revenues 10,052,161 9,457,807 9,027,150 8,541,989 9,348,886 8,453,453 7,854,694 7,475,262 7,150,835 6,898,202 ExpendituresGeneral government 1,269,828 934,099 972,064 807,507 764,731 1,400,066 1,094,516 1,155,569 967,926 1,182,562 Public safety 3,427,997 3,331,948 3,145,371 3,365,842 3,184,101 3,284,846 3,167,024 2,864,729 3,092,280 2,860,949 Planning and development 1,306,190 1,173,665 934,615 1,084,628 1,012,727 1,095,007 1,064,239 1,029,395 1,501,913 1,551,205 Public works 1,087,852 1,211,592 1,076,890 941,347 923,184 815,975 828,348 769,864 862,315 756,043 Community Center 53,468 65,740 75,107 53,902 52,364 53,682 53,019 70,380 46,141 317,976 Non Departmental 698,372 388,591 451,929 472,211 3,946,407 - - - - - Library - - - - 737,549 706,667 631,726 600,217 596,645 545,294 Capital outlay 706,330 1,431,763 1,043,323 1,219,915 645,610 391,514 478,347 713,514 539,046 418,652 Debt service
Interest 56,169 149,521 108,044 114,176 114,535 - - - - - Principal 194,000 170,000 130,000 140,000 60,000 - - - - - Total expenditures 9,525,639 8,131,486 7,937,343 8,199,528 11,441,208 7,747,757 7,317,219 7,203,668 7,606,266 7,632,681 Excess of revenues over (under) expenditures 526,522 1,326,321 1,089,807 342,461 (2,092,322) 705,696 537,475 271,594 (455,431) (734,479) Other Financing
Sources (Uses)Capital Lease - 2,323,000 - - 2,655,000 - - - - - Repayment of capital lease - (2,250,000) - - - - - - - - Transfers in 3,332,305 1,562,619 1,848,762 1,955,198 1,303,514 931,088 908,952 1,015,062 513,794 717,043 Transfers out (3,332,305) (1,562,619) (1,848,762) (1,955,198) (1,303,514) (931,088) (908,952) (1,015,062) (513,794) (609,819) Total other financing sources (uses) - 73,000 - - 2,655,000 - - - - 107,224 Net change in fund balances 526,522 $ 1,399,321 $ 1,089,807 $ 342,461 $ 562,678 $ 705,696 $ 537,475 $ 271,594 $ (455,431) $ (627,255) $ Debt service as a percentage of noncapital expenditures 3.1% 4.3% 3.5% 3.6% 1.6% 0.0% 0.0% 0.0% 0.0% 0.0%Source: City Finance Department Fiscal Year
96 City of Belvedere
City-Wide Assessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years Fiscal
Year
End
Residential
Property
Commercial
Property Other Property
Unsecured
Property
Less TaxExempt
Property
Taxable
Assessed Value
Total
Direct
Tax Rate
(1)
Estimated
Actual Taxable
Value (2)
Factor of
Taxable
Assessed
Value (2)
Value as a
Percentage
of Actual
Value
2012-13 1,539,081,839 $ 12,598,426 $ 38,553,566 $ 18,037,450 $ 11,197,876 $ 1,597,073,405 $ 1.1036 $ 2,161,323,521 $ 1.353303 73.89% 2013-14 1,612,430,131 12,807,652 40,962,436 16,706,550 10,871,256 1,672,035,513 1.1036 2,435,824,679 1.456802 68.64% 2014-15 1,685,572,954 12,888,797 41,655,695 16,933,816 11,124,656 1,745,926,606 1.0951 3,106,077,967 1.779043 56.21% 2015-16 1,823,642,530 13,182,251 31,296,908 18,944,702 10,787,692 1,876,278,699 1.1098 2,577,614,790 1.373791 72.79% 2016-17 2,011,175,049 13,498,200 41,850,052 17,940,291 10,858,866 2,073,604,726 1.0886 4,249,174,817 2.049173 48.80% 2017-18 2,107,497,991 16,613,844 45,023,147 18,413,219 10,965,406 2,176,582,795 1.1152 3,547,311,929 1.629762 61.36% 2018-19 2,239,363,669 16,947,764 52,590,698 15,721,130 11,026,344 2,313,596,917 1.1098 3,409,727,543 1.473778 67.85% 2019-20 2,361,648,965 16,313,202 62,462,936 21,593,854 11,197,170 2,450,821,787 1.0994 3,452,828,413 1.408845 70.98% 2020-21 2,451,925,084 24,287,069 64,460,594 25,837,056 11,047,106 2,555,462,697 1.1008 3,494,080,035 1.367298 73.14% 2021-22 2,559,026,083 23,532,156 60,889,746 25,970,421 11,108,954 2,658,309,452 1.0987 4,390,726,824 1.651699 60.54% Source: Marin County Assessor data, Avenu Insights & Analytics 1.) Total Direct Tax Rate is represented by TRA 001-000.2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values. 97 City of Belvedere
Taxable Property by Use Code, City-WideLast Ten Fiscal Years Category 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22Residential $1,539,081,839 $1,612,430,131 $1,685,572,954 $1,823,642,530 $2,011,175,049 $2,107,497,991 $2,239,363,669 $2,361,648,965 $2,451,925,084 $2,559,026,083Miscellaneous 7,603,569 7,751,260 7,504,772 7,540,624 19,758,398 23,607,696 30,973,539 31,376,677 37,297,111 31,928,659Vacant 12,192,997 12,979,676 13,033,407 13,431,328 22,089,668 21,413,425 21,617,159 31,086,259 27,163,483 28,961,087Commercial 12,598,426 12,807,652 12,888,797 13,182,251 13,498,200 16,613,844 16,947,764 16,313,202 24,287,069 23,532,156Unknown 18,757,000 20,231,500 21,117,416 10,324,956 1,986 2,026 - - - - Gross Secured Value 1,590,233,831 1,666,200,219 1,740,117,346 1,868,121,689 2,066,523,301 2,169,134,982 2,308,902,131 2,440,425,103 2,540,672,747 2,540,672,747 Unsecured 18,037,450 16,706,550 16,933,816 18,944,702 17,940,291 18,413,219 15,721,130 21,593,854 25,837,056 25,970,421 Less Exemptions 11,197,876 10,871,256 11,124,656 10,787,692 10,858,866 10,965,406 11,026,344 11,197,170 11,047,106 11,108,954 Net Taxable Value $1,597,073,405 $1,672,035,513 $1,745,926,506 $1,876,278,699 $2,073,604,726 $2,176,582,795 $2,313,596,917 $2,450,821,787 $2,555,462,697 $2,555,462,697 Source: Marin County Assessor data, Avenu Insights & AnalyticsUse code categories are based on Marin County Assessor's data. 98 City of Belvedere
Direct and Overlapping Property Tax RatesLast Ten Fiscal Years 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Basic City and County Levy COUNTY GENERAL FUND 0.185000 0.185000 0.185000 0.185000 0.185000 0.185000 0.185000 0.185000 0.185000 0.185000 CITY OF BELVEDERE 0.207000 0.207000 0.207000 0.207000 0.207000 0.207000 0.207000 0.207000 0.207000 0.207000 ALL OTHER COUNTY ENTITIES 0.608000 0.608000 0.608000 0.608000 0.608000 0.608000 0.608000 0.608000 0.608000 0.608000 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments TAM UNION HIGH SCH BONDS
2001 Series 0.005100 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.0000002006 Series 0.016700 0.016000 0.014800 0.006300 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 2010 Refunding bond 0.010200 0.012800 0.011700 0.010600 0.009900 0.009400 0.008800 0.008200 0.011600 0.000000 MARIN COM COLLEGE 0.017800 0.020400 0.018000 0.014700 0.010100 0.028800 0.027700 0.021800 0.000000 0.000000 REED SCHOOL BONDS 2002 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 REED UNION SCH BONDS 2004 0.007100 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 REED UNION SCH- 2011 REFUNDING 0.029200 0.034000 0.031200 0.029000 0.027200 0.022300 0.022400 0.020200 0.009300 0.009400 REED UNION SCH- 2012 REFUNDING 0.000000 0.006300 0.010700 0.009500 0.009100 0.008600 0.006800 0.007900 0.007600 0.007300 REED UNION SCH- 2016 REFUNDING 0.000000 0.000000 0.000000 0.000000 0.000000 0.003500 0.001900 0.003000 0.013000 0.011800 REED ELEM SCH BD'06 0.013400 0.004300 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 TAMALPAIS USHD GO BOND FUND 2011 0.005100 0.009800 0.008700 0.008000 0.007100 0.007100 0.006800 0.006200 0.004100 0.000000 TAMALPAIS UHSD 2014 REFUNDING 0.000000 0.000000 0.000000 0.006400 0.011800 0.010400 0.010200 0.009500 0.009400 0.005000 TAMALPAIS UHSD 2019 REFUNDING 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.009100 0.007900 TAMALPAIS UHSD 2021 REFUNDING 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.007700 MARIN COM COLLEGE 2004 REFUNDING 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.002100 MARIN COM COLLEGE 2015 REFUNDING 0.000000 0.000000 0.000000 0.001800 0.001800 0.001800 0.001700 0.003400 0.003300 0.002100 MARIN COM COLLEGE 2016 REFUNDING 0.000000 0.000000 0.000000 0.000000 0.002300 0.003200 0.001900 0.001700 0.001800 0.003000 MARIN COM COLLEGE 2017 REFUNDING 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.002600 0.001700 0.001000 0.002800 MARIN COM COLLEGE 2016 BOND SERIES B 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.009600 0.008800 0.011500 MARIN COM COLLEGE 2021 REFUNDING 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.006300 MARIN HEALTHCARE-MEASURE 0.000000 0.000000 0.000000 0.023500 0.009300 0.020100 0.019000 0.017500 0.021800 0.021800TOTAL 0.104600 0.103600 0.095100 0.109800 0.088600 0.115200 0.109800 0.099400 0.100800 0.098700 TOTAL TAX RATE 1.104600 1.103600 1.095100 1.109800 1.088600 1.115200 1.109800 1.099400 1.100800 1.098700 Source: Marin County Auditor data, Avenu Insights & AnalyticsTRA 001-000 is represented for this report. 99 City of Belvedere
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
Taxpayer Taxable Value ($)
Percent of
Total City
Taxable Value
(%)
Taxable Value
($)
Percent of
Total City
Taxable Value
(%)
Golden Gate Holdings LLC 51,947,425 1.95%
Belvedere Land Company Partner 42,008,709 1.58% 38,940,607 2.44% MWNNNWM 29,331,445 1.10%
Pampalone Trust 27,745,760 1.04%
Cliff Partners LLC 21,696,838 0.82%
Mallard Pointe 1951 LLC 20,644,200 0.78%
101 Belvedere LLC 16,951,265 0.64%
Winslow Clark & Sharon Living 16,013,000 0.60%
345 Golden Gate Ave Ca LLC 14,979,172 0.56%
INJ LLC 14,417,245 0.54%
Koogle/Scott Joint Trust 13,899,834 0.52%
Grand Stephen & Nancy J Joint 13,582,760 0.51%
Drebes Lawrence T Jr Tr 13,287,693 0.50% 11,451,225 0.72% Dillard Family Trust 2003 12,742,732 0.48%
Yen Hui-Hsien Bert 11,658,150 0.44%
Silberstein Stephen M Revoc Tr 11,651,150 0.44%
Kawishiwi Partners Revocable T 11,421,178 0.43% 7,898,000 0.49% San Francisco Yacht Club 11,172,399 0.42% 6,299,392 0.39% Golden Gate Belvedere LLC 10,948,349 0.41%
27 Bellevue LLC 10,807,390 0.41%
Allocca Steven M 10,758,322 0.40%
Burillo Javier Tr 10,568,910 0.40% 9,001,659 0.56%
39 Belvedere LLC 10,455,135 0.39%
Hyman Family Trust 10,175,000 0.38%
Cana Properties LLC 9,931,633 0.37%
425 Belvedere Associates LLC 21,512,536 1.35%
Koogle Timothy A 18,633,685 1.17%
Winslow Clark J 12,500,000 0.78%
Settling Ltd. 11,340,000 0.71%
Faithfort Entrps Inc. 10,307,000 0.65%
Murphy Glenn K 8,602,500 0.54%
Schneider James A 8,419,305 0.53%
Kahn Philippe R 8,298,946 0.52%
Syman Gary A 8,204,288 0.51%
Scully Irene S 8,065,224 0.51%
Dixon William R Jr 7,916,440 0.50%
Janney Daniel S 7,898,001 0.49%
Friedman Gerald L 7,282,800 0.46%
Hilpert Dale W 7,113,860 0.45%
De Somma Leonard B 6,797,000 0.43%
Mc Neil Robert A 6,399,573 0.40%
Du Molin James R 6,293,000 0.39%
Brown Janet 6,253,000 0.39%
Jacaell LLC 6,159,500 0.39%
Friedman Gary 6,036,465 0.38%
Total Top 25 Taxpayers 428,795,694 16.13% 257,624,006 16.13% Total Taxable Value 2,658,309,452 100.00% 1,597,073,405 100.00% 2021-22 2012-13
Source:  Marin County Assessor data, Avenu Insights & Analytics 100
City of Belvedere
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
Taxpayer Business Type Taxpayer Business Type
Arthur Leeper Asian Art Miscellaneous Retail Agins Interiors Miscellaneous Retail Collected Studio Miscellaneous Retail Audio & Video Consultants Office Equipment Corinne Matthews Wiley Furniture/Appliance Bayside Garden Center Miscellaneous Retail Corinthian Yacht Club Restaurants Beauvoir Interior Design Miscellaneous Retail Cuthrell & Daughter Miscellaneous Retail Christies Miscellaneous Other Deikel Design & Development Miscellaneous Retail Corinne Matthews Wiley Furniture/Appliance Ground Miscellaneous Retail Corinthian Yacht Club Miscellaneous Retail Hot Foot America Chemical Products Cottage Coastal Store Furniture/Appliance Katharine Whittaker Miscellaneous Retail Custom House Ii Miscellaneous Retail Katherine Hill Miscellaneous Retail Cuthrell & Daughter Miscellaneous Retail Kathy Best Design Furniture/Appliance Gwen Price Interiors Miscellaneous Retail Laura Smith Blair Business Services Hot Foot America Chemical Products Lynn Morgan Design Miscellaneous Retail Jm Interiors Miscellaneous Retail Mh Design Miscellaneous Retail Kara Warrin Design Miscellaneous Retail Michelle Friend Miscellaneous Retail Karen Johnson Designs Apparel Stores Mixxy Products Light Industry Katherine Ferguson Interior Design Miscellaneous Retail Nature'S Images Miscellaneous Retail Katherine Hill Miscellaneous Retail P.J.Svanfeldt Office Equipment Linda Applewhite & Associates Business Services Purple Monkey Hair Apparel Stores Ming'S Chinese Restaurant Restaurants Rustic Bakery Restaurants Nancy Freed Interiors Miscellaneous Retail S Federman Int. Design Miscellaneous Retail P.J.Svanfeldt Office Equipment Sharon D. Paster Miscellaneous Retail R & S Service Miscellaneous Retail Spindler Textiles Miscellaneous Other Smith Bio-Medical Office Equipment The San Francisco Yacht Club Miscellaneous Retail Spindler Textiles Miscellaneous Retail Wolkin & Blum Interiors Miscellaneous Retail The San Francisco Yacht Club Miscellaneous Retail Source: Avenu Insights & Analytics
2021-22 2012-13
101
City of Belvedere
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Taxes Levied Collections
Ended for the in Subsequent
June 30, Fiscal Year Amount Years Amount
2013 3,121,274 $ 3,121,274 $ 100 % - $ 3,121,274 $ % 100 2014 3,296,437 3,296,437 100 % - 3,296,437 100 %
2015 3,448,212 3,448,212 100 % - 3,448,212 100 %
2016 3,720,091 3,720,091 100 % - 3,720,091 100 %
2017 4,113,119 4,113,119 100 % - 4,113,119 100 %
2018 4,340,484 4,340,484 100 % - 4,340,484 100 %
2019 4,657,434 4,657,434 100 % - 4,657,434 100 %
2020 4,848,606 4,848,606 100 % - 4,848,606 100 %
2021 5,085,230 5,085,230 100 % - 5,085,230 100 %
2022 5,318,104 5,318,104 100 % - 5,318,104 100 %
Sources: City Finance Department
of Levy of Levy
Collected within the
Fiscal Year of the Levy Total Collections to Date
Percentage Percentage
102
City of Belvedere
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal
Year
Tax Allocation
Bonds
Certificates of Participation/
Lease Revenue Bonds
Assessment
Bonds
Total Primary
Government
Percentage of
Personal
Income
Debt Per
Capita
2013 - $ $ - $ - $ - 0.00% $ -
2014 - - - - 0.00% -
2015 - - - - 0.00% -
2016 - - - - 0.00% -
2017 - - - - 0.00% -
2018 - 2,595,000 - 2,595,000 0.89% 1,215
2019 - 2,455,000 - 2,455,000 0.80% 1,143
2020 - 2,325,000 - 2,325,000 0.73% 1,095
2021 - 2,228,000 - 2,228,000 0.67% 1,078
2022 - 2,034,000 - 2,034,000 0.53% 978
Source: City of Belvedere Finance Department, Avenu Insights & Analytics, U.S. Census Bureau, 2010 American Community Survey.

Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Governmental Activities
103
City of Belvedere
Computation of Direct and Overlapping Debt
June 30, 2022
2021-22 Assessed Valuation: $2,661,517,141
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/22 % Applicable (1) Debt 6/30/22 Marin Community College District $584,795,000 2.971% $17,374,259 Tamalpais Union High School District 84,535,000 4.972 4,203,080 Reed Union School District 17,470,000 25.599 4,472,145
Marin Healthcare District 365,425,000 3.557 12,998,167
Belvedere-Tiburon Library Community Facilities District No. 95-1 500,000 29.502 147,510 Marin County Open Space Community Facilities District No. 1993-1 1,108,160 35.193 389,995 Marin County Open Space Community Facilities District No. 1997-1 1,108,160 35.193 389,995 City of Belvedere 1915 Act Bonds 10,383,332 100. 10,383,332 Marin Emergency Radio Authority Parcel Tax Obligations 28,020,000 2.966 831,073 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $51,189,556
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Marin County General Fund Obligations $76,250,000 2.966% $2,261,575 Marin County Pension Obligation Bonds 61,840,000 2.966 1,834,174 Marin Community College District General Fund Obligations 11,913,179 2.971 353,941 City of Belvedere General Fund Obligations 2,034,000 100. 2,034,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $6,483,690 TOTAL DIRECT DEBT $2,034,000
TOTAL OVERLAPPING DEBT $55,639,246
COMBINED TOTAL DEBT $57,673,246 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to Assessed Valuation:

Total Overlapping Tax and Assessment Debt ............................. 1.92% Total Direct Debt ($2,034,000) ................................................ 0.08% Combined Total Debt ................................................................... 2.17% Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.
104
City of Belvedere
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal
Year Population (1)
Personal
Income (2)
Per Capita
Personal
Income (2)
Median Age
(5)
**Public School
Enrollment
County
Unemployment
Rate (%) (3)
City
Unemployment
Rate (%) (4)
County
Population (1)
2012-13 2,086 242,681,214 $ 116,338 $ 54.0 5,415 6.3% 6.9% 254,007 2013-14 2,094 264,608,310 126,365 55.2 5,616 5.0% 3.9% 255,846 2014-15 2,121 284,498,617 134,134 56.8 5,711 3.3% 3.9% 258,927 2015-16 2,162 263,709,928 121,975 56.1 6,023 3.5% 3.9% 262,274 2016-17 2,172 277,680,404 127,845 57.7 6,223 3.2% 3.5% 263,604 2017-18 2,135 290,334,145 135,988 56.7 6,272 2.3% 3.5% 263,886 2018-19 2,148 308,104,867 143,438 53.5 6,407 1.9% 2.3% 262,879 2019-20 2,124 316,867,644 149,184 52.6 6,431 10.3% 2.5% 260,831 2020-21 2,066 332,684,860 161,028 50.7 6,371 6.7% 4.8% 257,774 2021-22 2,080 384,717,216 184,960 49.3 6,082 1.8% 4.8% 257,135 Source: Avenu Insights & Analytics, U.S. Census Bureau, 2010 American Community Survey.

The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.

3.) County Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.

4.) City Unemployment Data is provided by the Sperling's BestPlaces.

5.) Median Age reflects the U.S. Census data estimation table. **Student Enrollment reflects the total number of students enrolled in the Reed Union Elem & Tamalpais Union High School Districts. 105
City of Belvedere
Principal Employers
The City of Belvedere is primarily residential; this table is not applicable to our community. 106
City of Belvedere
Full-time-Equivalent City Government Employees by Function/ProgramLast Ten Fiscal Years 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/Program
General government
City Manager's Office 2 2 2 2 2 2 2 2 2 3 Finance 2 2 2 2 1 1 1 1 1 1 Planning 1.5 2.5 2.5 2.5 3 3 4 4 4 3
Public Safety
Officers 6 6 5 5 7 7 7 6 6 7 Civilians - - - - 1 1 1 1 1 1 Building Inspection 2.5 2.5 2.5 2.5 3 2 3 3 3 3
Public Works
Engineering 1 1 1 - - - - - - -
Public Works 3 4 4 4 4 4 4 4 4 4
Total 20 18 19 18 21 20 22 21 21 22
Source: City Finance Department
Full-time-Equivalent Employees as of June 30
107
City of Belvedere
Operating Indicators by Function/ProgramLast Ten Fiscal Years 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/Program
General government
Building permits issued 280 297 230 239 268 284 205 267 287 292 Building inspections conducted 2,573 2,375 1,946 2,325 2,607 2,320 2,551 2,568 2,196 1,869 Police
Physical arrests 5 1 7 4 8 10 15 10 10 18 Parking violations 20 23 113 200 270 386 571 427 232 236 Traffic violations 4 1 22 40 12 47 56 82 98 86 Public Works
Encroachment permits issued 692 608 486 334 534 606 560 528 584 651 Road closures 97 75 56 40 44 44 35 27 57 160 Planning Department
Applications received 333 316 436 377 537 460 264 433 420 470 Applications approved 297 271 389 313 428 455 230 339 425 334 Source: City Finance Department
Fiscal year
108
City of Belvedere
Capital Asset Statistics by Function/ProgramLast Ten Fiscal Years 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/Program
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol officers 6 6 6 7 7 7 7 7 7 7
Other public works
Streets (miles) 13 13 13 13 13 13 13 13 13 13
Lanes 17 17 17 17 17 17 17 17 17 17
Storm drain inlets 250 250 250 250 250 250 250 250 250 250 Parks and recreation
Acreage 2 2 2 2 2 2 2 2 2 2
Playgrounds 1 1 1 1 1 1 1 1 1 1
Tennis courts 1 1 1 1 1 1 1 1 1 1
Source: City Finance Department
Fiscal Year
109
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CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2022
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CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2022
Table of Contents
Page
Memorandum on Internal Control ............................................................................................................ 1 Schedule of Other Matters ................................................................................................................ 3 This Page Left Intentionally Blank

MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of Belvedere, California
In planning and performing our audit of the basic financial statements of the City of Belvedere (City) as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our 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 City’s financial statements will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. 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 may exist that have not been identified.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.

This communication is intended solely for the information and use of management, City Council, others within the organization, and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
November 10, 2022
1 This Page Left Intentionally Blank

CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS

NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:

EFFECTIVE FISCAL YEARS 2022, 2023 and 2024:

GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows:
 Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument  Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives  Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and public-public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset
 Clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short term SBITA, and recognition and measurement of a subscription liability
 Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt  Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP)
 Disclosures related to nonmonetary transactions
 Pledges of future revenues when resources are not received by the pledging government  Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements
 Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position 3 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 99 – Omnibus 2022 (Continued)
 Terminology used in Statement 53 to refer to resource flows statements.

The Requirements of this Statement are Effective as Follows:

The requirements in paragraphs 26–32 related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance.

The requirements in paragraphs 11–25 related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.

The requirements in paragraphs 4–10 related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.

Earlier application is encouraged and is permitted by individual topic.

How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. Consistent authoritative literature enables governments and other stakeholders to more easily locate and apply the correct accounting and financial reporting provisions, which improves the consistency with which such provisions are applied. The comparability of financial statements also will improve as a result of this Statement. Better consistency and comparability improve the usefulness of information for users of state and local government financial statements.
4 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2022/23:

GASB 91 – Conduit Debt Obligations
The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures.

A conduit debt obligation is defined as a debt instrument having all of the following characteristics:
 There are at least three parties involved:
(1) an issuer
(2) a third-party obligor, and
(3) a debt holder or a debt trustee.
 The issuer and the third-party obligor are not within the same financial reporting entity.  The debt obligation is not a parity bond of the issuer, nor is it cross-collateralized with other debt of the issuer.
 The third-party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt issuance.
 The third-party obligor, not the issuer, is primarily obligated for the payment of all amounts associated with the debt obligation (debt service payments).

All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so.

An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor’s debt service through a voluntary commitment.
5 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 91 – Conduit Debt Obligations (Continued)
This Statement also addresses arrangements—often characterized as leases—that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities. Payments from third-party obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements.

Issuers should not report those arrangements as leases, nor should they recognize a liability for the related conduit debt obligations or a receivable for the payments related to those arrangements. In addition, the following provisions apply:
 If the title passes to the third-party obligor at the end of the arrangement, an issuer should not recognize a capital asset.
 If the title does not pass to the third-party obligor and the third party has exclusive use of the entire capital asset during the arrangement, the issuer should not recognize a capital asset until the arrangement ends.
 If the title does not pass to the third-party obligor and the third party has exclusive use of only portions of the capital asset during the arrangement, the issuer, at the inception of the arrangement, should recognize the entire capital asset and a deferred inflow of resources. The deferred inflow of resources should be reduced, and an inflow recognized, in a systematic and rational manner over the term of the arrangement.

This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers’ conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period.

How the Changes in this Statement will Improve Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations.
6 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.

This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction.

PPPs – This Statement requires that PPPs that meet the definition of a lease apply the guidance in Statement No. 87, Leases, as amended, if existing assets of the transferor that are not required to be improved by the operator as part of the PPP arrangement are the only underlying PPP assets and the PPP does not meet the definition of an SCA. This Statement provides accounting and financial reporting requirements for all other PPPs: those that either (1) meet the definition of an SCA or (2) are not within the scope of Statement 87, as amended (as clarified by this Statement). The PPP term is defined as the period during which an operator has a noncancelable right to use an underlying PPP asset, plus, if applicable, certain periods if it is reasonably certain, based on all relevant factors, that the transferor or the operator either will exercise an option to extend the PPP or will not exercise an option to terminate the PPP.

A transferor generally should recognize an underlying PPP asset as an asset in financial statements prepared using the economic resources measurement focus. However, in the case of an underlying PPP asset that is not owned by the transferor or is not the underlying asset of an SCA, a transferor should recognize a receivable measured based on the operator’s estimated carrying value of the underlying PPP asset as of the expected date of the transfer in ownership. In addition, a transferor should recognize a receivable for installment payments, if any, to be received from the operator in relation to the PPP. Measurement of a receivable for installment payments should be at the present value of the payments expected to be received during the PPP term. A transferor also should recognize a deferred inflow of resources for the consideration received or to be received by the transferor as part of the PPP. Revenue should be recognized by a transferor in a systematic and rational manner over the PPP term.

This Statement requires a transferor to recognize a receivable for installment payments and a deferred inflow of resources to account for a PPP in financial statements prepared using the current financial resources measurement focus. Governmental fund revenue would be recognized in a systematic and rational manner over the PPP term.
7 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements (Continued)
This Statement also provides specific guidance in financial statements prepared using the economic resources measurement focus for a government that is an operator in a PPP that either (1) meets the definition of an SCA or (2) is not within the scope of Statement 87, as amended (as clarified in this Statement). An operator should report an intangible right-to-use asset related to an underlying PPP asset that either is owned by the transferor or is the underlying asset of an SCA. Measurement of the right-to-use asset should be the amount of consideration to be provided to the transferor, plus any payments made to the transferor at or before the commencement of the PPP term, and certain direct costs. For an underlying PPP asset that is not owned by the transferor and is not the underlying asset of an SCA, an operator should recognize a liability measured based on the estimated carrying value of the underlying PPP asset as of the expected date of the transfer in ownership. In addition, an operator should recognize a liability for installment payments, if any, to be made to the transferor in relation to the PPP. Measurement of a liability for installment payments should be at the present value of the payments expected to be made during the PPP term. An operator also should recognize a deferred outflow of resources for the consideration provided or to be provided to the transferor as part of the PPP. Expense should be recognized by an operator in a systematic and rational manner over the PPP term.

This Statement also requires a government to account for PPP and non-PPP components of a PPP as separate contracts. If a PPP involves multiple underlying assets, a transferor and an operator in certain cases should account for each underlying PPP asset as a separate PPP. To allocate the contract price to different components, a transferor and an operator should use contract prices for individual components as long as they do not appear to be unreasonable based on professional judgment or use professional judgment to determine their best estimate if there are no stated prices or if stated prices appear to be unreasonable. If determining the best estimate is not practicable, multiple components in a PPP should be accounted for as a single PPP.

This Statement also requires an amendment to a PPP to be considered a PPP modification, unless the operator’s right to use the underlying PPP asset decreases, in which case it should be considered a partial or full PPP termination. A PPP termination should be accounted for by a transferor by reducing, as applicable, any receivable for installment payments or any receivable related to the transfer of ownership of the underlying PPP asset and by reducing the related deferred inflow of resources. An operator should account for a termination by reducing the carrying value of the right-to-use asset and, as applicable, any liability for installment payments or liability to transfer ownership of the underlying PPP asset. A PPP modification that does not qualify as a separate PPP should be accounted for by remeasuring PPP assets and liabilities.

APAs – An APA that is related to designing, constructing, and financing a nonfinancial asset in which ownership of the asset transfers by the end of the contract should be accounted for by a government as a financed purchase of the underlying nonfinancial asset. This Statement requires a government that engaged in an APA that contains multiple components to recognize each component as a separate arrangement. An APA that is related to operating or maintaining a nonfinancial asset should be reported by a government as an outflow of resources in the period to which payments relate. 8 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 96 – Subscription-Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.

A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

The subscription term includes the period during which a government has a noncancelable right to use the underlying IT assets. The subscription term also includes periods covered by an option to extend (if it is reasonably certain that the government or SBITA vendor will exercise that option) or to terminate (if it is reasonably certain that the government or SBITA vendor will not exercise that option).

Under this Statement, a government generally should recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, —which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods.

The subscription asset should be initially measured as the sum of (1) the initial subscription liability amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and (3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before the commencement of the subscription term. A government should recognize amortization of the subscription asset as an outflow of resources over the subscription term.

Activities associated with a SBITA, other than making subscription payments, should be grouped into the following three stages, and their costs should be accounted for accordingly:
 Preliminary Project Stage, including activities such as evaluating alternatives, determining needed technology, and selecting a SBITA vendor. Outlays in this stage should be expensed as incurred.  Initial Implementation Stage, including all ancillary charges necessary to place the subscription asset into service. Outlays in this stage generally should be capitalized as an addition to the subscription asset.
 Operation and Additional Implementation Stage, including activities such as subsequent implementation activities, maintenance, and other activities for a government’s ongoing operations related to a SBITA. Outlays in this stage should be expensed as incurred unless they meet specific capitalization criteria.
9 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 96 – Subscription-Based Information Technology Arrangements (Continued) In classifying certain outlays into the appropriate stage, the nature of the activity should be the determining factor. Training costs should be expensed as incurred, regardless of the stage in which they are incurred.

If a SBITA contract contains multiple components, a government should account for each component as a separate SBITA or nonsubscription component and allocate the contract price to the different components.

If it is not practicable to determine a best estimate for price allocation for some or all components in the contract, a government should account for those components as a single SBITA.

This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources.

This Statement requires a government to disclose descriptive information about its SBITAs other than shortterm SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information.

How the Changes in this Statement will Improve Financial Reporting The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. 10 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2023/24:

GASB 100 – Accounting for Changes and Error Corrections The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements.

This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.

This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated.

Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles.
11 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2024/25:

GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.

This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.

With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources.

Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. 12 CITY OF BELVEDERE

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.

The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
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CITY OF BELVEDERE

REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED JUNE 30, 2022
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CITY OF BELVEDERE

REQUIRED COMMUNICATIONS
For The Year Ended June 30, 2022
Table of Contents
Page
Required Communications .................................................................................................................. 1 Significant Audit Matters ............................................................................................................... 1 Qualitative Aspects of Accounting Practices ........................................................................... 1 Difficulties Encountered in Performing the Audit ................................................................... 3 Corrected and Uncorrected Misstatements .............................................................................. 3 Disagreements with Management ............................................................................................ 3 Management Representations .................................................................................................... 4 Management Consultations with Other Independent Accountants ......................................... 4 Other Audit Findings or Issues .................................................................................................. 4 Other Matters ................................................................................................................................. 4 This Page Left Intentionally Blank

REQUIRED COMMUNICATIONS
To the City Council of
the City of Belvedere, California
We have audited the basic financial statements of the City of Belvedere, California, for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information via email to the Finance Committee members on September 15, 2022. Professional standards also require that we communicate to you the following information related to our audit:

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year, except as follows:

GASB 87 – Leases
The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

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. Any contract that meets this definition should be accounted for under the leases guidance, unless specifically excluded in this Statement.

The pronouncement became effective, and as disclosed in Note 1Q to the financial statements, the City established a threshold for reporting leases of $100,000 and determined that none of its leases were required to be recorded.
1 GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The Statement contains provisions that are to be implemented in phases over three fiscal years. The practice issues addressed by this Statement that are effective in fiscal year 2022 are as follows:
 Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt  Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP)
 Disclosures related to nonmonetary transactions
 Pledges of future revenues when resources are not received by the pledging government  Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements  Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position
 Terminology used in Statement 53 to refer to resource flows statements.

The requirements in paragraphs 26-32 of the pronouncement became effective, but did not have a material effect on the financial statements.

The following pronouncements became effective, but did not have a material effect on the financial statements:

GASB 89 – Accounting for Interest Cost Incurred before the End of a Construction Period GASB 90 – Majority Equity Interests (an amendment of GASB Statements No. 14 and No. 61) GASB 92 – Omnibus 2020
GASB 93 – Replacement of Interbank Offered Rates
GASB 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32
Unusual Transactions, Controversial or Emerging Areas – We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates – Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

2 Estimated Net Pension Liabilities (Assets) and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities (assets) and deferred outflows/inflows of resources are disclosed in Note 8 to the financial statements and are based on accounting valuations determined by the California Public Employees Retirement System and the PARS Retirement Enhancement Plan, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.

Estimated Net OPEB Liabilities and OPEB–Related Deferred Outflows and Inflows of Resources:

Management’s estimate of the net OPEB liabilities and deferred outflows/inflows of resources are disclosed in Note 9 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1J to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1K to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Disclosures – The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

3 Management Representations
We have requested certain representations from management that are included in a management representation letter dated November 10, 2022.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.

We were engaged to report on the supplementary information that accompanies the financial statements, but is not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and Statistical Sections included as part of the Annual Comprehensive Financial Report, but are not required supplementary information. We did not audit or perform other procedures on this other information, and we do not express an opinion or provide any assurance on them.
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This report is intended solely for the information and use of the Finance Committee, City Council, and management and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
November 10, 2022
4 INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2021-2022 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of Belvedere, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet) of the City of Belvedere, California, for the year ended June 30, 2022. The City’s management is responsible for the Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of these procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings were as follows:

A. We obtained the Appropriations Limit Worksheet (Worksheet) and determined that the 2021-2022 Appropriations Limit of $4,501,589 was adopted by Resolution 2021-23 of the City Council. We also determined that the population and inflation option were selected by a recorded vote of the City Council.

B. We computed the 2021-2022 Appropriations Limit by first reducing the 2020-2021 Prior Year Appropriations Limit by $997,888 of Fire Levy. We then multiplied the amount by the total growth factor. We recomputed the Total Growth Factor by multiplying the population option by the inflation option.

C. For the Worksheet, we agreed the Per Capita Income Factor, City Population Factor and County Population Factor to California State Department of Finance Worksheets.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those 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 10, 2022
AGENDA ITEM NO. : 10

CONSENT CALENDAR BELVEDERE CITY COUNCIL
DECEMBER 12, 2022
To: Mayor and City Council
From: Robert Zadnik, City Manager
Reviewed By: Amy Ackerman, City Attorney
Subject: Second Reading of Ordinance No. 2022-09 of the City of Belvedere amending Chapter 2.08 - City Council - of Title 2 of the Belvedere Municipal Code by amending sections 2.08.010 and 2.08, repealing sections 2.08.020 and 2.08.050, and renumbering existing sections consistent with the amendments.

Recommendation
Approve the second reading and adoption of Ordinance No. 2022-09.

Discussion
A public hearing was held on November 14, 2022, at which time no negative comments were received from the public, and members of the City Council present at the meeting voted unanimously to approve the first reading and introduction.

Background
Removing state law provision from Belvedere’s Municipal Code is necessary to improve the efficiency of City operations by ensuring City Council meetings operate according to the state law, as required, and alleviates the City’s need to amend its Municipal Code each time the Legislature amends the Brown Act. To accomplish this, the attached Ordinance amends certain parts of Title 2 Chapter 2.08 of the Belvedere Municipal Code, specifically:
• Section 2.08.010 - Time and Place of Meetings.
• Section 2.08.030 - Cancellation.
• Section 2.08.040 - Mayor.
• Section 2.08.040 - Conduct of Meetings.

Fiscal Impact
These revisions are procedural and will not generate an increase in the city’s long-term budget.

Environmental Review

BELVEDERE CITY COUNCIL
DECEMBER 12, 2022