6 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Executive Summary
(g) For monies expended for other administrative costs, an identification of each of these costs. (h) The annual report shall contain references to the relevant sections of the resolution of formation of the district so that interested persons may confirm that bond proceeds and special taxes are being used for authorized purposes. The annual report shall be made available to the public upon request.
A summary of the revenues and expenditures for each of the four CFDs is presented below with detailed information presented in each of the CFD sections beginning on page 8. Maps showing the combined CFD boundaries as well as individual CFD boundary maps can be found beginning on page 28.
CFD No. 2 CFD No. 3 CFD No. 4 CFD No. 5 Total
Fund Balance July 1, 2022 $ 578,903 37,725 $ 752,072 $ 643,224 $ 2,011,924 $ Revenues
Annual CFD Special Tax 694,606 $ 1,745,029 $ 2,971,450 $ 2,522,935 $ 7,934,020 $ Interest 2,856 232 4,329 3,609 11,026
Other - 395,463 94,879 29,039 519,381
Total Revenues 694,838 $ 2,143,348 $ 3,070,658 $ 2,555,583 $ 8,464,427 $ Expenditures
Facilities $ - - $ - $ - $ - $
Services
Reimburse City for Public Safety Services 679,520 1,421,380 2,882,193 2,484,523 7,467,616 Costs of Bonded Indebtedness
Debt Service Obligations - 699,961 167,933 51,398 919,292 Costs of Collecting the Special Tax
Contra Costa County Property Tax Administration 2,042 1,659 2,800 2,127 8,628 Administration
CFD Special Tax Administration 4,734 8,049 5,755 5,725 24,263 Investment Administration 25 263 439 372 1,099
Administration Subtotal 4,759 8,312 6,194 6,097 25,362
Total Expenditures 686,321 $ 2,131,312 $ 3,059,120 $ 2,544,145 $ 8,420,898 $ Fund Balance June 30, 2023 $ 590,939 46,242 $ 763,610 $ 654,662 $ 2,055,453 $ Revenues and Expenditures Summary
7 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied COMMUNITY FACILITIES DISTRICT NO. 2
8 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Community Facilities District No. 2
On May 14, 2002 the City Council of the City of Brentwood, through Resolution No. 2544, established Community Facilities District No. 2 (CFD No. 2). A notice of special tax lien has been recorded at the County Recorder’s office identifying a continuing lien in force and effect until the special tax obligation is either permanently satisfied on June 30, 2053 or is cancelled by the City Council at an earlier date. In compliance with the proceedings governing the formation of CFD No. 2, the special tax has been levied on each taxable parcel within the District according to the provisions of the Rate and Method of Apportionment of Special Taxes. The Rate and Method of Apportionment of Special Taxes is available from the City Clerk.
As of June 30, 2023, CFD No. 2 consisted of 1,931 taxable single-family residential parcels, 120 taxable residential condominium parcels and 108.36 acres of taxable non-residential property. Parcels became taxable if a building permit was issued prior to January 1, 2022.
A. BOUNDARY MAP
A map showing the boundary diagram of CFD No. 2 can be found on page 29.
B. FACILITIES AND SERVICES FINANCED BY THE DISTRICT
The public facilities and services which may be financed by CFD No. 2 are described within the applicable exhibits attached to the formation resolution which can be found beginning on page 34.
C. REVENUES AND EXPENDITURES
CFD No. 2 – Table 1 shows the Fiscal Year (FY) 2022/23 revenues and expenditures of special tax funds for CFD No. 2. Per Section 53343.1 of the California Government Code, monies expended for facilities and/or services shall include an identification of the categories of each type of facility/service funded, and the total percentage of the cost of each type of facility/service funded with either bond proceeds or special taxes. For monies expended for other administrative costs, each of the costs is identified.
Fund Balance July 1, 2022 $ 37,725
Revenues
Annual CFD Special Tax 694,606 $
Interest 232
Total Revenues 694,838 $
Expenditures Comments
Facilities $ -
Services
Reimburse City for Public Safety Services 679,520 100% from Special Taxes Costs of Collecting the Special Tax
Contra Costa County Property Tax Administration 2,042 100% from Special Taxes Administration
CFD Special Tax Administration 4,734
Investment Administration 25
Administration Subtotal 4,759
Total Expenditures 686,321 $
Fund Balance June 30, 2023 $ 46,242
CFD No. 2 – TABLE 1
Revenues and Expenditures
9 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Community Facilities District No. 2
i. Revenues
a. Special Tax Levy
The maximum special tax rate has been levied each year since FY 2002/03 per the Rate and Method Apportionment of Special Taxes. CFD No. 2 – Table 2 outlines the FY 2022/23 tax rates and the revenue by parcel classification.
ii. Expenditures
Aside from the minor expenditures associated with the costs of collecting the special tax and the administration of the CFD, the funds in CFD No. 2 were expended on Public Safety Services incrementally required by development of properties within the CFD.
D. SPECIAL TAX ROLL
A list of each parcel within the boundaries of CFD No. 2, upon which the special tax has been levied for FY 2022/23, may be requested through the City Clerk.
E. DELINQUENCY RATES
Each year the special taxes are levied and due concurrently with general ad-valorem property taxes (December and April respectively). If the special taxes are not paid by these deadlines, they are considered delinquent. CFD No. 2 – Table 3, on the following page, shows the last ten years delinquency rates by fiscal year.
Parcel
Classification
Levied
Rate
Number of Taxable
Residences/Units
Number of
Taxable Acres
Single-Family $260/residence $260/residence 1,931 - 502,137 $ Condominium $195/residence $195/residence 120 - 23,402
Multi-Family $130/unit $130/unit - - -
Commercial $1,560/acre $1,560/acre - 69.64 108,656
Industrial $1,560/acre $1,560/acre - 32.39 50,528
Rural $260/residence $260/residence - - -
Institutional $1,560/acre $1,560/acre - 6.33 9,883
Total 108.36 2,051 694,606 $
Total
Revenue
CFD No. 2 – TABLE 2
Special Tax Revenue Summary for FY 2022/23
(1) Maximum rates are increased annually by 2%.
Maximum
Rate (1)
10 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Community Facilities District No. 2
CFD No. 2 – TABLE 3
Delinquency History
Fiscal Amount Delinquent Delinquency
Year Levied Amount As of June 30
13/14 570,209 $ 13,385 $ 2.35%
14/15 583,573 $ 13,538 $ 2.32%
15/16 595,246 $ 11,970 $ 2.01%
16/17 596,105 $ 6,436 $ 1.08%
17/18 608,031 $ 11,305 $ 1.86%
18/19 620,211 $ 5,105 $ 0.82%
19/20 634,755 $ 10,152 $ 1.60%
20/21 661,180 $ 9,883 $ 1.49%
21/22 677,236 $ 9,720 $ 1.44%
22/23 694,606 $ 4,226 $ 0.61%
22 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Community Facilities District No. 5
CFD No. 5 – TABLE 3
Delinquency History
Fiscal Amount Delinquent Delinquency
Year Levied Amount As of June 30
13/14 339,646 $ 40,018 $ 11.78%
14/15 420,015 $ 8,447 $ 2.01%
15/16 488,117 $ 17,243 $ 3.53%
16/17 644,000 $ 24,795 $ 3.85%
17/18 923,419 $ 17,214 $ 1.86%
18/19 1,195,477 $ 22,893 $ 1.91%
19/20 1,425,381 $ 13,608 $ 0.95%
20/21 1,721,402 $ 29,767 $ 1.73%
21/22 1,994,900 $ 32,723 $ 1.64%
22/23 2,522,935 $ 24,443 $ 0.97%
23 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied
BONDED INDEBTEDNESS
24 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Bonded Indebtedness
The Mello-Roos Community Facilities Act of 1982 allows local governments to establish Community Facilities Districts, which encompass areas to be served by proposed facilities or services. The CFDs have bonding and taxing authority, so bonds can be issued to finance public facilities or services and the bonds will be repaid by a special tax levied by the CFD. Therefore, in a Mello-Roos bond financing, users of financed facilities pay for those facilities through the payment of a special tax. Mello-Roos bond financing provides some unique advantages to local government. Mello-Roos bond projects are initiated, approved and operated for and by the local community, so that only projects which are truly positive additions to the area will be financed. Mello-Roos bond financing gives local governments a tool with which to promote appropriate development and to provide the infrastructure needed in developing areas.
On October 16, 2009, the Brentwood Infrastructure Financing Authority (“Authority”) issued $48,000,000 in Civic Center Project Lease Revenue Bonds, Series 2009A $4,055,000 and Taxable Series 2009B $43,945,000 (“2009 Civic Center Bonds”), to finance the construction of a new City Hall, new Community Center and a new Senior Center, plus library improvements and other public capital improvements of which $20,210,526 is the CFDs portion. Total annual debt service payments from the CFDs, including interest at
3.00% to 7.647%, range from $1,318,306 to $1,831,665. These debt service amounts are prior to Federal interest rebates relating to the 2009B portion of the bonds as described below.
The taxable portion of the 2009B bonds were sold as “Build America Bonds” (BABs) pursuant to the American Recovery and Reinvestment Act of 2009. The interest on BABs was not tax-exempt and therefore the bonds carried a higher interest rate. However, this higher interest rate was offset by a subsidy payable by the United States Treasury to the Authority, or its designee, equal to 35% of the interest payable on the bonds. The subsidy was payable on or about the date the City made its debt service payments. Due to the Federal sequestration, certain local government refundable credits, including the BABs rebate, were reduced beginning with refunds processed on or after March 1, 2013.
On April 2, 2019, the Authority issued $32,210,000 in Civic Center Project Lease Revenue Refunding Bonds, Series 2019 (“2019 Civic Center Bonds”), to refinance the 2009 Civic Center Bonds. The refunding resulted in overall debt service savings of $17,856,031, of which $10,655,412 has been allocated to the CFDs in part to replace the prior bonds’ BABs subsidy. Beginning in FY 2019/20, the new debt service savings exceed the prior projected total BABs subsidy by approximately $840,000, and are reflected in the debt service tables on page 26.
The 2019 Civic Center Bonds are secured, as were the 2009 Civic Center Bonds, by a lien on and pledge of revenues under the Trust Agreement. “Revenues” means all amounts received by the Trustee as payment on principal and interest. The City’s revenue sources are from the Successor Agency to the Brentwood Redevelopment Agency which has pledged future tax revenues for the repayment of a portion of the bonds, pledged payments from the CFD local obligations and pledged payments from the Civic Center Capital Improvement Financing Program revenues. However, should these revenue sources not be sufficient to cover the principal and interest payments due in any year, the City is obligated under the Facilities Lease to pay such shortfall from the General Fund.
A. FACILITIES FINANCED BY THE DISTRICTS
i. Brentwood Senior Activity Center
The development and construction of the Brentwood Senior Activity Center, an approximately 8,375 sq. ft. facility which is located directly south of the Aquatic Center, was completed in January 2009. This facility provides three meeting/classroom spaces, a large kitchen, a multi-purpose
25 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Bonded Indebtedness
space of approximately 3,400 sq. ft., parking, a bus turnout, including a bus shelter on Balfour Road, landscaping, lighting and an art element.
ii. Brentwood Community Center
Construction of a 32,000 sq. ft., two story Community Center was completed in January 2012. The Community Center includes expanded services and offerings including space for art, multipurpose rooms, banquet facilities, catering kitchen, activity rooms, exercise rooms and exterior event spaces. All new structures were designed to meet the Leadership in Energy and Environmental Design (LEED) Certified-level standard of the U.S. Green Building Council (USGBC). iii. Library Relocation and New Construction
In order to construct the Civic Center, the existing library was relocated. Phase I of the project consisted of building an interim library in the 104 Oak Street portion of the City Hall annex building and consolidating staff in the remaining portion of the building. Phase I was completed in June 2009. Phase II began in 2013 with the preparation of a needs assessment and development alternatives which were presented to and reviewed by City Council. City Council agreed on the development alternative to tear down the three Oak Street buildings (104, 118 and 120 Oak Street).
In October 2015, City Council approved the Library – New Construction Capital Improvement Program (CIP) project which accounted for the tear down of the Oak Street buildings on the Cityowned parcels and the construction of a new, approximately 20,275 sq. ft. library that is two stories tall with a partial upper story. The new library, which was completed in September 2018, also includes an outdoor space for library patrons and an entrance courtyard.
B. BOND PROCEEDS AND STATUS OF CONSTRUCTION
As of September 2018, all of the facilities funded all, or in part, by CFD cash or CFD bond proceeds from the 2009 Civic Center Bonds have been constructed.
C. DEBT SERVICE
The debt service obligations for each CFD are shown on the following page.
26 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Bonded Indebtedness
Year Ending
June 30
2024 460,053 $ 865,929 $ (444,990) $ 880,992 $
2025 480,892 833,655 (428,404) 886,143
2026 501,731 798,353 (410,263) 889,821
2027 525,775 759,837 (390,471) 895,141
2028 551,423 719,458 (369,720) 901,161
2029-2033 3,189,917 2,916,756 (1,498,885) 4,607,788
2034-2038 4,061,934 1,541,436 (792,124) 4,811,246
2039-2040 1,921,965 148,749 (1,078,960) 991,754
Total 11,693,690 $ 8,584,173 $ (5,413,817) $ 14,864,046 $ Year Ending
June 30
2024 110,375 $ 207,753 $ (106,761) $ 211,367 $
2025 115,375 200,009 (102,782) 212,602
2026 120,375 191,540 (98,430) 213,485
2027 126,143 182,299 (93,681) 214,761
2028 132,297 172,611 (88,703) 216,205
2029-2033 765,320 699,784 (359,610) 1,105,494
2034-2038 974,534 369,819 (190,045) 1,154,308
2039-2040 461,115 35,688 (258,863) 237,940
Total 2,805,534 $ 2,059,503 $ (1,298,875) $ 3,566,162 $ Year Ending
June 30
2024 33,782 $ 63,585 $ (32,676) $ 64,691 $
2025 35,312 61,215 (31,458) 65,069
2026 36,842 58,623 (30,126) 65,339
2027 38,608 55,795 (28,672) 65,731
2028 40,491 52,830 (27,149) 66,172
2029-2033 234,236 214,178 (110,063) 338,351
2034-2038 298,269 113,188 (58,166) 353,291
2039-2040 141,131 10,924 (79,228) 72,827
Total 858,671 $ 630,338 $ (397,538) $ 1,091,471 $
Total
CFD No. 3
Debt Service Obligations
Principal Interest 2019
Bond Savings Total
CFD No. 5
Debt Service Obligations
Principal Interest 2019
Bond Savings
Total
CFD No. 4
Debt Service Obligations
Principal Interest 2019
Bond Savings
27 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied
BOUNDARY DIAGRAMS
28 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Boundary Diagrams
29 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Boundary Diagrams
30 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Boundary Diagrams
31 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Boundary Diagrams
32 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Boundary Diagrams
33 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied
FORMATION RESOLUTIONS
34 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
CFD NO. 2 FORMATION CITY COUNCIL RESOLUTION NO. 2544
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AN AMENDED BOUNDARY MAP AND ESTABLISHING THE CITY OF BRENTWOOD COMMUNITY FACILITIES DISTRICT NO. 2, AND PROVIDING FOR THE
LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN PUBLIC FACILITIES AND SERVICES IN AND FOR SUCH
COMMUNITY FACILITIES DISTRICT AND CALLING A SPECIAL ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS
WITHIN SUCH COMMUNITY FACILITIES DISTRICT THE QUESTION OF LEVYING SUCH SPECIAL TAX AND
ESTABLISHING AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council (the "Council") of the City of Brentwood (the "City") has duly adopted Resolution No. 2503 (the "Resolution") on March 26, 2002, wherein the Council declared its intention to and proposed to establish a community facilities district under and pursuant to the terms and provisions of the Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, as amended (the "Act"), to be known and designated as "Community Facilities District No. 2, City of Brentwood, County of Contra Costa, State of California" (the "Community Facilities District"), to finance public facilities and services in and for the Community Facilities District under and pursuant to the Act (which are public facilities that the City is authorized by law to construct, own or operate and public services that the City is authorized to provide, and that said public facilities and services are necessary to meet increased demands placed upon the City as a result of development occurring and anticipated to occur in the Community Facilities District), and which public facilities (the "Facilities")and public services (the "Services") are listed in Exhibit A and Exhibit B, respectively, attached hereto and incorporated herein and made a part hereof. The costs of financing the acquisition and construction of the Facilities and providing for the Services include incidental expenses as listed in Exhibit C attached hereto and incorporated herein and made a part hereof; and WHEREAS, the Resolution fixed a time and place for a public hearing to be held by the Council to consider the establishment of the Community Facilities District, the proposed rate and method of apportionment of a special tax to finance the Facilities and the Services in and for the Community Facilities District and all other matters set forth in the Resolution; and WHEREAS, the proposed boundary map for the Community Facilities District was filed for recorded in the office of the County Recorder of the County of Contra Costa on April 4, 2002, in Book 71 of Maps of Assessment and Community Facilities Districts at page
8. WHEREAS, the City Council has determined that it is in the best interests of the City and the property owners within the Community Facilities District to amend the boundary map to remove certain property from the Community Facilities District and to provide that the boundaries of the Community Facilities District are as shown on the Amended Boundary Map, a copy of which is on file with the City Clerk; and
WHEREAS, the Director of Finance and Information Systems of the City has caused a report to be prepared on such proposal in accordance with the Resolution, which such report was submitted to the Council for review and has been reviewed by the Council, and which such report is incorporated herein and made a part of the record of the hearing hereinafter referred to on the Resolution; and WHEREAS, pursuant to the Resolution, a public hearing was set by the Council for Tuesday, May 14, 2002, at 7:30p.m., or as soon thereafter as the City may reach the matter, at the regular meeting place of the Council at the City Council Chambers at 734 Third Street, Brentwood, California 94513, at which hearing the Council considered the establishment of the Community Facilities District, the proposed rate and method of apportionment of such special tax, and all other matters set forth in the Resolution, and at such public hearing all persons interested, including all taxpayers, property owners and registered voters within the Community Facilities District, were given an opportunity 'to appear and be heard, and the testimony of all interested persons and all taxpayers, property owners and registered voters for or against the establishment of the Community Facilities District and the levy of such special tax, or the extent of the, Community Facilities District, or any of the Facilities and Services proposed therefor, or on any other matters set forth in the Resolution, was heard and considered, and such special tax has not been precluded by a majority protest pursuant to Section 53324 of the Government Code of the State of California, and the Council at the conclusion of said hearing was fully advised in the premises, and was authorized to proceed as hereinafter provided; and WHEREAS, one hundred percent (100%) of the qualified electors within the Community Facilities District have filed with the City Clerk waivers of certain time requirements for the conduct of the election in the Community Facilities District and therefore, pursuant to the Act, tile Council is authorized to form the Community Facilities District and conduct the election as provided herein; and WHEREAS, on the basis of the foregoing, the Council has determined at this time to call an election in the Community Facilities District to authorize the levy of a special tax therein (as the rate and method of apportionment of such tax, is more particularly set forth in Exhibit D, attached hereto and incorporated herein and made a part hereof) to pay for the Facilities and the Services proposed to be provided in and for the Community Facilities District, and to establish an appropriations limit for the Community Facilities District;
35 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
NOW, THEREFORE BE IT RESOLVED by the Council of the City of Brentwood, as follows:
Section 1. The above recitals are true and correct, and the Council so finds and determines.
Section 2. The Council hereby reapproves and readopts the Resolution, and reconfirms all of its findings and determinations contained therein.
Section 3. The Council hereby approves the Amended Boundary Map on file with the City Clerk and directs the City Clerk to have the Amended Boundary Map recorded in the office of the County Recorder of the County of Contra Costa no later than fifteen (15) days after the adoption of this resolution.
Section 3. The Council hereby approves the Amended Boundary Map on file with the City Clerk and directs the City Clerk to have the Amended Boundary Map recorded in the office of the County Recorder of the County of Contra Costa no later than fifteen (15) days after the adoption of this resolution.
Section 4. The Council hereby approves the rate and method of apportionment of the special tax in and for the Community Facilities District as set forth in Exhibit D attached hereto and incorporated herein and made a part hereof, and upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District, which lien shall continue in force and effect until the lien is cancelled in accordance with law, or until collection of the special tax by the City ceases or until June 30, 2053, whichever is earlier. In the case of any special tax to pay for the public facilities and services and to be levied against any parcel used for private residential purposes, under no circumstances will the special tax levied against any parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District by more than 10 percent.
Section 5. The Council finds and determines that written protests to the establishment of the Community Facilities District and the levy of such special tax, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or the provision of any of the Services proposed therefor, are insufficient in number and in amount under the Act, and the Council hereby further orders and determines that all protests to the establishment of the Community Facilities District therefor, or the levy of the special tax proposed to be levied therein, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or provision of any of the Services therefor, or the establishment of an appropriations limit for the Community Facilities District, are hereby overruled.
Section 6. The Council finds and determines that all prior proceedings had and taken by the Council with respect to the establishment of the Community Facilities District are valid and in conformity with the requirements of the Act; and accordingly, the Council finds, determines and orders that, consistent with the Resolution, the Community Facilities District is hereby established under and pursuant to the terms and provisions of the Act, the boundaries of which, as amended, are as set forth in the Amended Boundary Map on file with the City Clerk.
Section 7. Except where funds are otherwise available, a special tax sufficient to pay for the Facilities and the Services, including the payment of interest on and principal of bonds to be issued to finance the acquisition and construction of the Facilities and including the repayment of funds advanced by the City for the Community Facilities District and including the repayment under any agreement (which shall not constitute a debt or liability of the City) of advances of funds or the reimbursement for the lesser of the value or cost of work in-kind provided by any person for the Community Facilities District, which tax shall be secured by recordation of a continuing lien against all nonexempt property in the Community Facilities District, will be annually levied within the boundaries of the Community Facilities District, and for particulars as to the rate and method of apportionment of such special tax reference is made to Exhibit D, attached hereto and incorporated herein and made a part hereof, which sets forth the rate and method of apportionment of such special tax in sufficient detail to allow each landowner or resident within the Community Facilities District to estimate the maximum amount that such person will have to pay for the Facilities and the Services.
Section 8. It is the intention of the Council, pursuant to Section 53317.3 of the Government Code of the State of California, to levy the special tax on property that is not otherwise exempt from the special tax and that is acquired by a public entity through a negotiated transaction, or by gift or devise.
Section 9. It is the intention of the Council, pursuant to Section 53317.5 of the Government Code of the State of California, to treat the special tax levied against property that is acquired by a public entity through eminent domain proceedings as if it were a special annual assessment.
Section 11. A special mailed-ballot election shall be and is hereby called and ordered to be held in the Community Facilities District on Tuesday, May 14, 2002, in accordance with and subject to the Act and applicable law and the terms hereof, at which special
36 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
election there shall be submitted to the landowners within the Community Facilities District (which landowners are the electors and persons qualified to vote at said special election) the question of levying such special tax and the establishment of an appropriations limit in the amount of five million dollars ($5,000,000) per fiscal year in connection therewith for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California, and the Council hereby directs that the election at which the question of levying such special tax and establishing such appropriations limit is submitted to the landowners within the Community Facilities District shall be consolidated with the election at which the question of incurring a bonded indebtedness in the amount of fifteen million dollars ($15,000,000) for the Facilities is submitted to the landowners within the Community Facilities District, and the question of levying such special tax and establishing such appropriations limit shall be combined in one ballot proposition with the question of incurring such bonded indebtedness to finance the acquisition and construction of the Facilities and to be secured by a special tax to be levied within the Community Facilities District, all as provided by the Act.
Section 12. The City Clerk of the City is hereby designated as the official to conduct said special election, in accordance with and subject to the Act and applicable law and the following provisions:
(a) Said special election shall be held and conducted, and the votes thereat canvassed and the returns thereof made, and the results thereof ascertained and determined, as provided herein; and in all particulars not prescribed by this resolution said special election shall be held and conducted and the votes received and canvassed in the manner provided by law for the holding of special elections in the City and consistent with the Act. (b) All landowners within the Community Facilities District upon the date of the special election herein provided for shall be qualified to vote upon the proposition to be submitted at said special election. (c) Said special election shall be conducted as a mailed-ballot election, in accordance with the provisions of Sections 1340 et seq. and Section 23511.1 of the Elections Code of the State of California and the prior proceedings of the City taken thereunder, and there shall be no polling places for said special election. All ballots shall be delivered by the City Clerk of the City to such landowners, and all voted ballots are required to be received at the office of the City Clerk of the City not later than 10:00 o'clock P.M. on the day of the election in order to be counted, except that if all qualified electors have voted on the proposition hereby submitted, the election shall be closed.
(d) Each voter to vote for the proposition to be submitted at said special election and for levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "YES" on the ballot to the right of said proposition, and to vote against said proposition and against levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "NO" on the ballot to the right of said proposition, which cross (+) may be marked with either pen or pencil. (e) The City Clerk of the City shall commence the canvass of the returns of said special election at 10:00 P.M. on Tuesday, May 14, 2002, at the City Council Chambers at 734 Third Street, Brentwood, California 94513, and at the conclusion thereof shall determine the results of said special election; provided, that if all the qualified voters have voted prior to such date and time, the City Clerk of the City shall close said special election and thereupon shall proceed to canvass the returns of said special election and to determine the results thereof.
(f) The Council shall meet at its regular meeting on Tuesday, May 14, 2002, at its usual meeting place and declare the results of said special election, and shall cause to be spread upon its minutes a statement of the results of said special election as ascertained by said canvass.
Section 13. The Council hereby approves the form of Waiver and Consent Shortening Time Periods and Waiving Various Requirements for Conducting Mailed-Ballot Election in the Community Facilities District, a copy of which is attached hereto as Exhibit E.
The Council hereby finds that the rights, procedures and time periods therein waived are solely for the protection of the voters, may be waived under Government Code Section 53326(a), and that the waiver constitutes a full and knowing waiver, by any voter who has executed the form, of those rights, procedures and time periods.
Section 14. The Council hereby accepts the Certificate of the City Clerk certifying that 100% of the voters eligible to vote in this election have delivered to the City Clerk properly executed waivers in the form of Exhibit E.
Section 15. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing such appropriations limit are cast in favor of levying such special tax and establishing such appropriations limit, as determined by the Council after reviewing the canvass of the returns of such consolidated election, the Council may levy such special tax within the territory of the Community Facilities District under the Act in the amount and for the purposes specified in this resolution, and such appropriations limit shall be established for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this resolution,
37 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
subject to the Act, except that such special tax may be levied at a rate lower than that specified herein. Such special tax may be levied only so long as it is needed to pay for the Facilities and the Services referred to in Section 4 of this resolution, or so long as it is needed to pay the principal of and interest on the bonded indebtedness incurred in order to finance the acquisition and construction of the Facilities (including the repayment of funds advanced for the Community Facilities District).
Section 16. The Director of Finance and Information Systems of the City at 708 Third Street, Brentwood, California 94513 (telephone (925)516-5400) will be responsible for preparing annually a current roll of special tax levy obligations by Contra Costa County Assessor's parcel numbers, and will be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 14th day of May, 2002 by the following vote:
AYES: Councilmembers: Beckstrand, Gomes, Petrovich, Mayor McPoland NOES: None
ABSENT: Councilmember Hill
APPROVED:
Michael A. McPoland, Sr.
Michael A. McPoland, Sr.
Mayor
ATTEST:
Karen Diaz
Karen Diaz, CMC
City Clerk
38 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
EXHIBIT A
AUTHORIZED FACILITIES
FACILITIES
I. Open Space Facilities.
a) Acquisition of open space lands, easements and rights-of-way and necessary incidental costs to acquire the land including title reports, appraisals, etc.
b) Construction of trails, drainage structures, fire breaks, etc. to allow for safe pedestrian access within and throughout the open space areas.
39 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
EXHIBIT B
AUTHORIZED SERVICES
SERVICES
I. Fire Suppression, Emergency Medical and Public Safety Services. a) Fire fighting, emergency medical and public safety personnel salaries, benefits and other associated costs which may include uniforms, safety equipment, etc. which is needed for the daily activities and normal employment of these types of personnel.
II. Open Space Services.
Maintenance and operation of open space and natural wildlands owned or otherwise controlled by the City of Brentwood.
Maintenance and operation may include, but is not limited to:
a) Maintenance workers and patrol guard salaries, benefits and other associated costs which may include uniforms, safety equipment, etc. which is needed for the daily activities and normal employment of these types of personnel.
III. Flood and Storm Drainage Services.
Maintenance and operation of flood and storm drainage improvements owned or otherwise controlled by the City of Brentwood. Maintenance and operation may include, but is not limited to:
a) Maintenance workers salaries, benefits and other associated costs which may include uniforms, maintenance equipment, etc. which is needed for the daily activities and normal employment of these types of personnel.
40 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
CFD NO. 3 FORMATION CITY COUNCIL RESOLUTION NO. 2907
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AN AMENDED BOUNDARY MAP AND ESTABLISHING THE CITY OF BRENTWOOD COMMUNITY FACILITIES DISTRICT NO.3, AND PROVIDING FOR THE
LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN PUBLIC FACILITIES AND SERVICES IN AND FOR SUCH
COMMUNITY FACILITIES DISTRICT AND CALLING A SPECIAL ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS
WITHIN SUCH COMMUNITY FACILITIES DISTRICT THE QUESTION OF LEVYING SUCH SPECIAL TAX AND
ESTABLISHING AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council (the "Council") of the City of Brentwood (the "City") has duly adopted Resolution No. 2844 (the "Resolution") on May 13, 2003, wherein the Council declared its intention to and proposed to establish a community facilities district under and pursuant to the terms and provisions of the Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, as amended (the "Act"), to be known and designated as "Community Facilities District No. 3, City of Brentwood, County of Contra Costa, State of California" (the "Community Facilities District"), to finance public facilities and services in and for the Community Facilities District under and pursuant to the Act (which are public facilities that the City is authorized by law to construct, own or operate and public services that the City is authorized to provide, and that said public facilities and services are necessary to meet increased demands placed upon the City as a result of development occurring and anticipated to occur in the Community Facilities District), and which public facilities (the "Facilities") and public services (the "Services") are listed in Exhibit A and Exhibit B, respectively, attached hereto and incorporated herein and made a part hereof. The costs of financing the acquisition and construction of the Facilities and providing for the Services include incidental expenses as listed in Exhibit C attached hereto and incorporated herein and made a part hereof; and WHEREAS, the Resolution fixed a time and place for a public hearing to be held by the Council to consider the establishment of the Community Facilities District, the proposed rate and method of apportionment of a special tax to finance the Facilities and the Services in and for the Community Facilities District and all other matters set forth in the Resolution; and WHEREAS, the proposed boundary map for the Community Facilities District was filed for recorded in the office of the County Recorder of the County of Contra Costa on May 20, 2003, in Book 73 of Maps of Assessment and Community Facilities Districts at page
11. WHEREAS, the City Council has determined that it is in the best interests of the City and the property owners within the Community Facilities District to amend the boundary map to remove certain property from the Community Facilities District and to provide that the boundaries of the Community Facilities District are as shown on the Amended Boundary Map, a copy of which is on file with the City Clerk; and
WHEREAS, the Director of Finance and Information Systems of the City has caused a report to be prepared on such proposal in accordance with the Resolution, which such report was submitted to the Council for review and has been reviewed by the Council, and which such report is incorporated herein and made a part of the record of the hearing hereinafter referred to on the Resolution; and WHEREAS, pursuant to the Resolution, a public hearing was set by the Council for Tuesday, June 24, 2003, at 7:00p.m., or as soon thereafter as the City may reach the matter, at the regular meeting place of the Council at the City Council Chambers at 734 Third Street, Brentwood, California 94513, at which hearing the Council considered the establishment of the Community Facilities District, the proposed rate and method of apportionment of such special tax, and all other matters set forth in the Resolution, and at such public hearing all persons interested, including all taxpayers, property owners and registered voters within the Community Facilities District, were given an opportunity to appear and be heard, and the testimony of all interested persons and all taxpayers, property owners and registered voters for or against the establishment of the Community Facilities District and the levy of such special tax, or the extent of the Community Facilities District, or any of the Facilities and Services proposed therefore, or on any other matters set forth in the Resolution, was heard and considered, and such special tax has not been precluded by a majority protest pursuant to Section 53324 of the Government Code of the State of California, and the Council at the conclusion of said hearing was fully advised in the premises, and was authorized to proceed as hereinafter provided; and WHEREAS, pursuant to Section 53325 of the Government Code of the State of California, the Council has modified the rate and method of apportionment of the special tax as attached to the Resolution of Intention to increase the rates of the special tax to be paid by the owner of any lot or parcel as described in the Formation Hearing Report on file with the City Clerk and as shown in the Rate and Method of Apportionment of Special Taxes, a copy of which is attached hereto as Exhibit D; and WHEREAS, one hundred percent (100%) of the qualified electors within the Community Facilities District have filed with the City Clerk waivers of certain time requirements for the conduct of the election in the Community Facilities District and consented to the
41 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
increase in the maximum special tax rates, therefore, pursuant to the Act, the Council is authorized to form the Community Facilities District and conduct the election as provided herein; and WHEREAS, on the basis of the foregoing, the Council has determined at this time to call an election in the Community Facilities District to authorize the levy of a special tax therein (as the rate and method of apportionment of such tax, is more particularly set forth in Exhibit D, attached hereto and incorporated herein and made a part hereof) to pay for the Facilities and the Services proposed to be provided in and for the Community Facilities District, and to establish an appropriations limit for the Community Facilities District; NOW, THEREFORE BE IT RESOLVED by the Council of the City of Brentwood, as follows:
Section 1. The above recitals are true and correct, and the Council so finds and determines.
Section 2. The Council hereby re-approves and readopts the Resolution (except as to the amendment of the Rate and Method of Apportionment of Special Taxes provided for herein), and reconfirms all of its findings and determinations contained therein.
Section 3. The Council hereby approves the Amended Boundary Map on file with the City Clerk and directs the City Clerk to have the Amended Boundary Map recorded in the office of the County Recorder of the County of Contra Costa no later than fifteen (15) days after the adoption of this resolution.
Section 4. The Council hereby approves the rate and method of apportionment of the special tax in and for the Community Facilities District as set forth in Exhibit D attached hereto and incorporated herein and made a part hereof, and upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District, which lien shall continue in force and effect until (as to the public facilities portion of the special tax) the special tax obligation (or any portion thereof) is paid or prepaid and permanently satisfied and the public facilities portion of the special tax lien is cancelled in accordance with law, or until (as to the services portion of the special tax) collection of the special tax by the City ceases. The rate and method of apportionment of the special tax is set forth in Exhibit D attached to this resolution. The special tax with respect to the construction of facilities shall not be levied after Fiscal Year 2098-2099. The special tax with respect to the authorized services shall not be levied after Fiscal Year 2103-04. In the case of any special tax to pay for public facilities and to be levied against any parcel used for private residential purposes, under no circumstances will the special tax levied against any parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 3 by more than 10 percent.
Section 5. The Council finds and determines that written protests to the establishment of the Community Facilities District and the levy of such special tax, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or the provision of any of the Services proposed therefore, are insufficient in number and in amount under the Act, and the Council hereby further orders and determines that all protests to the establishment of the Community Facilities District therefore, or the levy of the special tax proposed to be levied therein, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or provision of any of the Services therefore, or the establishment of an appropriations limit for the Community Facilities District, are hereby overruled.
Section 6. The Council finds and determines that all prior proceedings had and taken by the Council with respect to the establishment of the Community Facilities District are valid and in conformity with the requirements of the Act; and accordingly, the Council finds, determines and orders that, consistent with the Resolution, the Community Facilities District is hereby established under and pursuant to the terms and provisions of the Act, the boundaries of which, as amended, are as set forth in the Amended Boundary Map on file with the City Clerk.
Section 7. Except where funds are otherwise available, a special tax sufficient to pay for the Facilities and the Services, including the payment of interest on and principal of bonds to be issued to finance the acquisition and construction of the Facilities and including the repayment of funds advanced by the City for the Community Facilities District and including the repayment under any agreement (which shall not constitute a debt or liability of the City) of advances of funds or the reimbursement for the lesser of the value or cost of work in-kind provided by any person for the Community Facilities District, which tax shall be secured by recordation of a continuing lien against all nonexempt property in the Community Facilities District, will be annually levied within the boundaries of the Community Facilities District, and for particulars as to the rate and method of apportionment of such special tax reference is made to Exhibit D, attached hereto and incorporated herein and made a part hereof, which sets forth the rate and method of apportionment of such special tax in sufficient detail to allow each landowner or resident within the Community Facilities District to estimate the maximum amount that such person will have to pay for the Facilities and the Services.
Section 8. It is the intention of the Council, pursuant to Section 53317.3 of the Government Code of the State of California, to levy the special tax on property that is not otherwise exempt from the special tax and that is acquired by a public entity through a negotiated transaction, or by gift or devise.
42 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
Section 9. It is the intention of the Council, pursuant to Section 53317.5 of the Government Code of the State of California, to treat the special tax levied against property that is acquired by a public entity through eminent domain proceedings as if it were a special annual assessment.
Section 10. It is the intention of the Council, pursuant to Section 53340.1 of the Government Code of the State of California, to levy the special tax on the leasehold or possessory interests in property owned by a public agency {which property is otherwise exempt from the special tax) to be payable by the owner of the leasehold or possessory interests in such property.
Section 11. A special mailed-ballot election shall be and is hereby called and ordered to be held in the Community Facilities District on Tuesday, June 24, 2003, in accordance with and subject to the Act and applicable law and the terms hereof, at which special election there shall be submitted to the landowners within the Community Facilities District (which landowners are the electors and persons qualified to vote at said special election) the question of levying such special tax and the establishment of an appropriations limit in the amount of five million dollars ($5,000,000) for Fiscal Year 2003-04 in connection therewith for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California, and the Council hereby directs that the election at which the question of levying such special tax and establishing such appropriations limit is submitted to the landowners within the Community Facilities District shall be consolidated with the election at which the question of incurring a bonded indebtedness in the amount of thirty million dollars ($30,000,000) for the Facilities is submitted to the landowners within the Community Facilities District, and the question of levying such special tax and establishing such appropriations limit shall be combined in one ballot proposition with the question of incurring such bonded indebtedness to finance the acquisition and construction of the Facilities and to be secured by a special tax to be levied within the Community Facilities District, all as provided by the Act.
Section 12. The City Clerk of the City is hereby designated as the official to conduct said special election, in accordance with and subject to the Act and applicable law and the following provisions:
(a) Said special election shall be held and conducted, and the votes thereat canvassed and the returns thereof made, and the results thereof ascertained and determined, as provided herein; and in all particulars not prescribed by this resolution said special election shall be held and conducted and the votes received and canvassed in the manner provided by law for the holding of special elections in the City and consistent with the Act. (b) All landowners within the Community Facilities District upon the date of the special election herein provided for shall be qualified to vote upon the proposition to be submitted at said special election. (c) Said special election shall be conducted as a mailed-ballot election, in accordance with the provisions of Sections 1340 et seq. and Section 23511.1 of the Elections Code of the State of California and the prior proceedings of the City taken there under, and there shall be no polling places for said special election. All ballots shall be delivered by the City Clerk of the City to such landowners, and all voted ballots are required to be received at the office of the City Clerk of the City not later than 7:00 o'clock P.M. on the day of the election in order to be counted, except that if all qualified electors have voted on the proposition hereby submitted, the election shall be closed.
(d) Each voter to vote for the proposition to be submitted at said special election and for levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "YES" on the ballot to the right of said proposition, and to vote against said proposition and against levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "NO" on the ballot to the right of said proposition, which cross (+) may be marked with either pen or pencil. (e) The City Clerk of the City shall commence the canvass of the returns of said special election immediately upon adoption of this resolution at the City Council Chambers at 734 Third Street, Brentwood, California 94513, and at the conclusion thereof shall determine the results of said special election; provided, that if all the qualified voters have voted prior to such date and time, the City Clerk of the City shall close said special election and thereupon shall proceed to canvass the returns of said special election and to determine the results thereof.
(f) The Council shall meet at its regular meeting on Tuesday, June 24, 2003, at its usual meeting place and declare the results of said special election, and shall cause to be spread upon its minutes a statement of the results of said special election as ascertained by said canvass.
Section 13. The Council hereby approves the form of Waiver and Consent Shortening Time Periods and Waiving Various Requirements for Conducting Mailed-Ballot Election and Waiving Notice and Hearing with Respect to Changes to the Special Tax in the Community Facilities District, a copy of which is attached hereto as Exhibit E. The Council hereby finds that the rights, procedures and time periods therein waived are solely for the protection of the voters, may be waived under Government Code Section 53326(a), and
43 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
that the waiver constitutes a full and knowing waiver, by any voter who has executed the form, of those rights, procedures and time periods.
Section 14. The Council hereby accepts the Certificate of the City Clerk certifying that 100% of the voters eligible to vote in this election have delivered to the City Clerk properly executed waivers in the form of Exhibit E.
Section 15. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing such appropriations limit are cast in favor of levying such special tax and establishing such appropriations limit, as determined by the Council after reviewing the canvass of the returns of such consolidated election, the Council may levy such special tax within the territory of the Community Facilities District under the Act in the amount and for the purposes specified in this resolution, and such appropriations limit shall be established for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this resolution, subject to the Act, except that such special tax may be levied at a rate lower than that specified herein. Such special tax may be levied only so long as it is needed to pay for the Facilities and the Services referred to in Section 4 of this resolution, or so long as it is needed to pay the principal of and interest on the bonded (including the repayment of funds advanced for the Community Facilities District).
Section 16. The Director of Finance and Information Systems of the City at 708 Third Street, Brentwood, California 94513 (telephone (925)516-5400) will be responsible for preparing annually a current roll of special tax levy obligations by Contra Costa County Assessor's parcel numbers, and will be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 24th day of June 2003 by the following vote:
AYES: Councilmembers: Beckstrand, Gutierrez, Hill, Petrovich, Mayor Swisher NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
Annette Beckstrand
Annette Beckstrand
Vice Mayor
ATTEST:
Karen Diaz
Karen Diaz, CMC
City Clerk/Director of Administrative Services
44 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
EXHIBIT A
AUTHORIZED FACILITIES
FACILITIES
I. Open Space Facilities.
a) Acquisition of open space lands, easements and rights-of-ways including all necessary incidental costs needed to acquire the lands including title reports, appraisals, etc. b) Construction of trails, bridge structures, drainage structures, fire breaks, necessary appurtenances, etc. to allow for safe pedestrian access within and throughout the open space areas.
II. Police Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of police facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc. b) Construction and/or acquisition of police facilities, including equipment, furnishings and all incidental costs needed to conduct police services throughout the City.
III. Flood & Storm Drainage Facilities
a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of flood & storm drainage facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc. b) Construction and/or acquisition of flood & storm drainage facilities, including design, construction, administrative, etc. and all other miscellaneous costs needed to comply with local and state regulations.
IV. Joint Use School Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of school site joint use facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc. b) Construction and/or acquisition of school site joint use facilities, including equipment, furnishings and all incidental costs needed to conduct joint use programs and services throughout the City.
45 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
EXHIBIT B
AUTHORIZED SERVICES
SERVICES
The following services to be provided in the CFD are in addition to those presently provided in the territory of the CFD:
I. Fire Suppression and Emergency Medical Services.
a) Fire fighting and emergency medical service personnel salaries, benefits and other associated operations and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
II. Police Protection and Public Safety Services
a) Police and public safety personnel salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
III. Open Space Services.
Maintenance and operation of open space and natural wild lands owned or otherwise controlled by the City of Brentwood including State Park Lands adjacent to the City of Brentwood subject to Joint Use or a Memorandum of Understanding between the City and the State of California. Maintenance and operation may include, but is not limited to:
a) Maintenance workers, volunteers and patrol guard salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
IV. Flood and Storm Drainage Services.
Maintenance and operation of flood and storm drainage improvements owned or otherwise controlled by the City of Brentwood. Maintenance and operation may include but is not limited to:
a) Maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
V. Joint Use School Site Services.
a) Maintenance of joint use school park facilities between the City and the School Districts within the City of Brentwood which includes, but is not limited to, elementary and secondary school park sites and structures servicing the residents of the City of Brentwood. Staff and maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel are also included. Such services shall only be those necessary for the general public use of the joint use school park facilities and shall not include any costs associated with school use or maintenance.
46 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
CFD NO. 4 FORMATION CITY COUNCIL RESOLUTION NO. 2004-263
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AN AMENDED BOUNDARY MAP AND ESTABLISHING THE CITY OF BRENTWOOD COMMUNITY FACILITIES DISTRICT NO. 4, AND PROVIDING FOR THE
LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN PUBLIC FACILITIES AND SERVICES IN AND FOR SUCH
COMMUNITY FACILITIES DISTRICT AND CALLING A SPECIAL ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS
WITHIN SUCH COMMUNITY FACILITIES DISTRICT THE QUESTION OF LEVYING SUCH SPECIAL TAX AND
ESTABLISHING AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council (the "Council") of the City of Brentwood (the "City") has duly adopted Resolution No. 2004-215 (the "Resolution") on September 14, 2004, wherein the Council declared its intention to and proposed to establish a community facilities district under and pursuant to the terms and provisions of the Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, as amended (the "Act"), to be known and designated as "Community Facilities District No.4, City of Brentwood, County of Contra Costa, State of California" (the "Community Facilities District"), to finance public facilities and services in and for the Community Facilities District under and pursuant to the Act (which are public facilities that the City is authorized by law to construct, own or operate and public services that the City is authorized to provide, and that said public facilities and services are necessary to meet increased demands placed upon the City as a result of development occurring and anticipated to occur in the Community Facilities District), and which public facilities (the "Facilities") and public services (the "Services") are listed in Exhibit A and Exhibit B, respectively, attached hereto and incorporated herein and made a part hereof. The costs of financing the acquisition and construction of the Facilities and providing for the Services include incidental expenses as listed in Exhibit C attached hereto and incorporated herein and made a part hereof; and WHEREAS, the Resolution fixed a time and place for a public hearing to be held by the Council to consider the establishment of the Community Facilities District, the proposed rate and method of apportionment of a special tax to finance the Facilities and the Services in and for the Community Facilities District and all other matters set forth in the Resolution; and WHEREAS, the proposed boundary map for the Community Facilities District was recorded in the office of the County Recorder of the County of Contra Costa on September 21, 2004, in Book 76 of Maps of Assessment and Community Facilities Districts at page 44; and
WHEREAS, the City Council has determined that it is in the best interest of the City and the property owners within the Community Facilities District to amend the boundary map to remove certain property from the Community Facilities District and to provide that the boundaries of the Community Facilities District are as shown on the Amended Boundary Map, a copy of which is on file with the City Clerk; and
WHEREAS, the Director of Finance and Information Systems of the City has caused a report to be prepared on such proposal in accordance with the Resolution, which such report was submitted to the Council for review and has been reviewed by the Council, and which such report is incorporated herein and made a part of the record of the hearing hereinafter referred to on the Resolution; and WHEREAS, pursuant to the Resolution, a public hearing was set by the Council for Tuesday, November 9, 2004, at 7:00 p.m., or as soon thereafter as the City may reach the matter, at the regular meeting place of the Council at the City Council Chambers at 734 Third Street, Brentwood, California 94513, at which hearing the Council considered the establishment of the Community Facilities District, the proposed rate and method of apportionment of such special tax, and all other matters set forth in the Resolution, and at such public hearing all persons interested, including all taxpayers, property owners and registered voters within the Community Facilities District, were given an opportunity to appear and be heard, and the testimony of all interested persons and all taxpayers, property owners and registered voters for or against the establishment of the Community Facilities District and the levy of such special tax, or the extent of the Community Facilities District, or any of the Facilities and Services proposed therefore, or on any other matters set forth in the Resolution, was heard and considered, and such special tax has not been precluded by a majority protest pursuant to Section 53324 of the Government Code of the State of California, and the Council at the conclusion of said hearing was fully advised in the premises, and was authorized to proceed as hereinafter provided; and WHEREAS, one hundred percent (100%) of the qualified electors within the Community Facilities District have filed with the City Clerk waivers of certain time requirements for the conduct of the election in the Community Facilities District and consented to the increase in the maximum special tax rates, therefore, pursuant to the Act, the Council is authorized to form the Community Facilities District and conduct the election as provided herein; and WHEREAS, on the basis of the foregoing, the Council has determined at this time to call an election in the Community Facilities District to authorize the levy of a special tax therein (as the rate and method of apportionment of such tax, is more particularly set forth
47 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
in Exhibit D, attached hereto and incorporated herein and made a part hereof) to pay for the Facilities and the Services proposed to be provided in and for the Community Facilities District, and to establish an appropriations limit for the Community Facilities District.
NOW, THEREFORE BE IT RESOLVED by the Council of the City of Brentwood, as follows:
Section 1. The above recitals are true and correct, and the Council so finds and determines.
Section 2. The Council hereby reapproves and readopts the Resolution, and reconfirms all of its findings and determinations contained therein.
Section 3. The Council hereby approves the Amended Boundary Map on file with the City Clerk and directs the City Clerk to have the Amended Boundary Map recorded in the office of the County Recorder of the County of Contra Costa no later than fifteen (15) days after the adoption of this resolution.
Section 4. The Council hereby approves the rate and method of apportionment of the special tax in and for the Community Facilities District as set forth in Exhibit D attached hereto and incorporated herein and made a part hereof, and upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District, which lien shall continue in force and effect until (as to the public facilities portion of the special tax) the special tax obligation (or any portion thereof) is paid or prepaid and permanently satisfied and the public facilities portion of the special tax lien is cancelled in accordance with law, or until (as to the services portion of the special tax) collection of the special tax by the City ceases. The rate and method of apportionment of the special tax is set forth in Exhibit D attached to this resolution. The special tax with respect to the construction of facilities shall not be levied after Fiscal Year 2099-2100. The special tax with respect to the authorized services shall not be levied after Fiscal Year 2104-05. In the case of any special tax to pay for public facilities and to be levied against any parcel used for private residential purposes, under no circumstances will the special tax levied against any parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 4 by more than 10 percent.
Section 5. The Council finds and determines that written protests to the establishment of the Community Facilities District and the levy of such special tax, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or the provision of any of the Services proposed therefor, are insufficient in number and in amount under the Act, and the Council hereby further orders and determines that all protests to the establishment of the Community Facilities District therefor, or the levy of the special tax proposed to be levied therein, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or provision of any of the Services therefor, or the establishment of an appropriations limit for the Community Facilities District, are hereby overruled.
Section 6. The Council finds and determines that all prior proceedings had and taken by the Council with respect to the establishment of the Community Facilities District are valid and in conformity with the requirements of the Act; and accordingly, the Council finds, determines and orders that, consistent with the Resolution, the Community Facilities District is hereby established under and pursuant to the terms and provisions of the Act, the boundaries of which, as amended, are as set forth in the Amended Boundary Map on file with the City Clerk.
Section 7. Except where funds are otherwise available, a special tax sufficient to pay for the Facilities and the Services, including the payment of interest on and principal of bonds to be issued to finance the acquisition and construction of the Facilities and including the repayment of funds advanced by the City for the Community Facilities District and including the repayment under any agreement (which shall not constitute a debt or liability of the City) of advances of funds or the reimbursement for the lesser of the value or cost of work in-kind provided by any person for the Community Facilities District, which tax shall be secured by recordation of a continuing lien against all nonexempt property in the Community Facilities District, will be annually levied within the boundaries of the Community Facilities District, and for particulars as to the rate and method of apportionment of such special tax reference is made to Exhibit D, attached hereto and incorporated herein and made a part hereof, which sets forth the rate and method of apportionment of such special tax in sufficient detail to allow each landowner or resident within the Community Facilities District to estimate the maximum amount that such person will have to pay for the Facilities and the Services.
Section 8. It is the intention of the Council, pursuant to Section 53317.3 of the Government Code of the State of California, to levy the special tax on property that is not otherwise exempt from the special tax and that is acquired by a public entity through a negotiated transaction, or by gift or devise.
Section 9. It is the intention of the Council, pursuant to Section 53317.5 of the Government Code of the State of California, to treat the special tax levied against property that is acquired by a public entity through eminent domain proceedings as if it were a special annual assessment.
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Section 10. It is the intention of the Council, pursuant to Section 53340.1 of the Government Code of the State of California, to levy the special tax on the leasehold or possessory interests in property owned by a public agency (which property is otherwise exempt from the special tax) to be payable by the owner of the leasehold or possessory interests in such property.
Section 11. A special mailed-ballot election shall be and is hereby called and ordered to be held in the Community Facilities District on Tuesday, November 9, 2004, in accordance with and subject to the Act and applicable law and the terms hereof, at which special election there shall be submitted to the landowners within the Community Facilities District (which landowners are the electors and persons qualified to vote at said special election) the question of levying such special tax and the establishment of an appropriations limit in the amount of five million dollars ($5,000,000) for Fiscal Year 2004-05 in connection therewith for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California, and the Council hereby directs that the election at which the question of levying such special tax and establishing such appropriations limit is submitted to the landowners within the Community Facilities District shall be consolidated with the election at which the question of incurring a bonded indebtedness in the amount of fifty million dollars ($50,000,000} for the Facilities is submitted to the landowners within the Community Facilities District, and the question of levying such special tax and establishing such appropriations limit shall be combined in one ballot proposition with the question of incurring such bonded indebtedness to finance the acquisition and construction of the Facilities and to be secured by a special tax to be levied within the Community Facilities District, all as provided by the Act.
Section 12. The City Clerk of the City is hereby designated as the official to conduct said special election, in accordance with and subject to the Act and applicable law and the following provisions:
(a) Said special election shall be held and conducted, and the votes thereat canvassed and the returns thereof made, and the results thereof ascertained and determined, as provided herein; and in all particulars not prescribed by this resolution said special election shall be held and conducted and the votes received and canvassed in the manner provided by law for the holding of special elections in the City and consistent with the Act. (b) All landowners within the Community Facilities District upon the date of the special election herein provided for shall be qualified to vote upon the proposition to be submitted at said special election. (c) Said special election shall be conducted as a mailed-ballot election, in accordance with the provisions of Sections 1340 et seq. and Section 23511.1 of the Elections Code of the State of California and the prior proceedings of the City taken thereunder, and there shall be no polling places for said special election. All ballots shall be delivered by the City Clerk of the City to such landowners, and all voted ballots are required to be received at the office of the City Clerk of the City not later than 7:00 o'clock P.M. on the day of the election in order to be counted, except that if all qualified electors have voted on the proposition hereby submitted, the election shall be closed.
(d) Each voter to vote for the proposition to be submitted at said special election and for levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "YES" on the ballot to the right of said proposition, and to vote against said proposition and against levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "NO" on the ballot to the right of said proposition, which cross (+) may be marked with either pen or pencil. (e) The City Clerk of the City shall commence the canvass of the returns of said special election immediately upon adoption of this resolution at the City Council Chambers at 734 Third Street, Brentwood, California 94513, and at the conclusion thereof shall determine the results of said special election; provided, that if all the qualified voters have voted prior to such date and time, the City Clerk of the City shall close said special election and thereupon shall proceed to canvass the returns of said special election and to determine the results thereof.
(f) The Council shall meet at its regular meeting on Tuesday, November 9, 2004, at its usual meeting place and declare the results of said special election, and shall cause to be spread upon its minutes a statement of the results of said special election as ascertained by said canvass.
Section 13. The Council hereby approves the form of Waiver and Consent Shortening Time Periods and Waiving Various Requirements for Conducting Mailed-Ballot Election and Waiving Notice and Hearing with Respect to Changes to the Special Tax in the Community Facilities District, a copy of which is attached hereto as Exhibit E. The Council hereby finds that the rights, procedures and time periods therein waived are solely for the protection of the voters, may be waived under Government Code Section 53326(a), and that the waiver constitutes a full and knowing waiver, by any voter who has executed the form, of those rights, procedures and time periods.
Section 14. The Council hereby accepts the Certificate of the City Clerk certifying that 100% of the voters eligible to vote in this election have delivered to the City Clerk properly executed waivers in the form of Exhibit E.
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Section 15. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing such appropriations limit are cast in favor of levying such special tax and establishing such appropriations limit, as determined by the Council after reviewing the canvass of the returns of such consolidated election, the Council may levy such special tax within the territory of the Community Facilities District under the Act in the amount and for the purposes specified in this resolution, and such appropriations limit shall be established for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this resolution, subject to the Act, except that such special tax may be levied at a rate lower than that specified herein. Such special tax may be levied only so long as it is needed to pay for the Facilities and the Services referred to in Section 4 of this resolution, or so long as it is needed to pay the principal of and interest on the bonded indebtedness incurred in order to finance the acquisition and construction of the Facilities (including the repayment of funds advanced for the Community Facilities District).
Section 16. The Director of Finance and Information Systems of the City at 708 Third Street, Brentwood, California 94513 (telephone (925) 516-5400) will be responsible for preparing annually a current roll of special tax levy obligations by Contra Costa County Assessor's parcel numbers, and will be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 9th day of November 2004, by the following vote:
AYES: Councilmembers: Beckstrand, Gutierrez, Hill, Mayor Swisher NOES: None
ABSENT: Councilmember Petrovich
ABSTAIN: None
APPROVED:
Brian Swisher
Brian Swisher
Mayor
ATTEST:
Karen Diaz
Karen Diaz, CMC
City Clerk/Director of Administrative Services
50 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
EXHIBIT A
AUTHORIZED FACILITIES
FACILITIES
I. Flood and Storm Drainage Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of flood and storm drainage facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc. b) Construction and/or acquisition of flood and storm drainage facilities, including design, construction, administration etc. and all other miscellaneous costs needed to comply with local and state regulations.
II. Joint Use School Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of school site joint use facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc. b) Construction and/or acquisition of school site joint use facilities, including equipment, furnishings and all incidental costs needed to conduct joint use programs and services throughout the City.
III. Roadway Rehabilitation Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the purposes of roadway rehabilitation, including all necessary incidental costs including title reports, appraisals, etc. b) Rehabilitation of roadways, including but not limited to pavement, curb, gutter, sidewalk, pavement sealing, etc. to repair, improve and extend the life of the roadway.
IV. Library Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of library facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc. b) Construction and/or acquisition of library facilities, including equipment, furnishings and all incidental costs needed.
This may include the expansion or rehabilitation of existing libraries.
V. Undergrounding of Utility Transmission and Distribution Facilities a) Acquisition of lands, easements and rights-of-way needed for the undergrounding of utility transmission and distribution facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc. b) Undergrounding of utility transmission and distribution facilities, including construction, equipment, furnishings and all incidental costs related thereto.
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EXHIBIT B
AUTHORIZED SERVICES
SERVICES
I. Fire Suppression and Emergency Medical Services.
a) Fire fighting and emergency medical service personnel salaries, benefits and other associated operations and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
II. Police Protection and Public Safety Services.
a) Police and public safety personnel salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
III. Open Space Services.
Maintenance and operation of open space and natural wild lands owned or otherwise controlled by the City of Brentwood including State Park Lands adjacent to the City of Brentwood subject to Joint Use or a Memorandum of Understanding between the City and the State of California. Maintenance and operation may include, but is not limited to:
a) Maintenance workers, volunteers and patrol guard salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
IV. Flood and Storm Drainage Services.
Maintenance and operation of flood and storm drainage improvements owned or otherwise controlled by the City of Brentwood. Maintenance and operation may include but is not limited to:
a) Maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.
V. Joint Use School Site Services.
a) Maintenance of joint use school park facilities between the City and the School Districts within the City of Brentwood which includes, but is not limited to, elementary and secondary school park sites and structures servicing the residents of the City of Brentwood. Staff and maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel are also included. Such services shall only be those necessary for the general public use of the joint use school park facilities and shall not include any costs associated with school use or maintenance.
52 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
CFD NO. 5 FORMATION CITY COUNCIL RESOLUTION NO. 2007-152
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ESTABLISHING THE CITY OF BRENTWOOD COMMUNITY FACILITIES DISTRICT NO. 5, AND PROVIDING FOR THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE
CERTAIN PUBLIC FACILITIES AND SERVICES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT AND CALLING A
SPECIAL ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS WITHIN SUCH COMMUNITY FACILITIES DISTRICT THE
QUESTION OF LEVYING SUCH SPECIAL TAX AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT.
WHEREAS, the City Council (the "Council") of the City of Brentwood (the "City") has duly adopted Resolution No. 2007-76 (the "Resolution"), on April 24, 2007, wherein the Council declared its intention to and proposed to establish a community facilities district under and pursuant to the terms and provisions of the Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, as amended (the "Act"), to be known and designated as "Community Facilities District No. 5, City of Brentwood, County of Contra Costa, State of California" (the "Community Facilities District"), to finance public facilities and services in and for the Community Facilities District under and pursuant to the Act (which are public facilities that the City is authorized by law to construct, own or operate and public services that the City is authorized to provide, and that said public facilities and services are necessary to meet increased demands placed upon the City as a result of development occurring and anticipated to occur in the Community Facilities District), and which public facilities (the "Facilities") and public services (the "Services") are listed in Exhibit A-1, attached hereto and incorporated herein and made a part hereof. The costs of financing the acquisition and construction of the Facilities and providing for the Services include incidental expenses as listed in Exhibit C, attached hereto and incorporated herein and made a part hereof; and
WHEREAS, the Resolution fixed a time and place for a public hearing to be held by the Council to consider the establishment of the Community Facilities District, the proposed rate and method of apportionment of a special tax to finance the Facilities and the Services in and for the Community Facilities District and all other matters set forth in the Resolution; and WHEREAS, the proposed boundary map for the Community Facilities District was recorded in the office of the County Recorder of the County of Contra Costa on May 2, 2007, in Book 82 of Maps of Assessment and Community Facilities Districts at Page 7.
WHEREAS, the Director of Finance and Information Systems and the City Engineer of the City have caused a report to be prepared on such proposal in accordance with the Resolution, which such report (Exhibit A, attached hereto and incorporated herein and made a part hereof) was submitted to the Council for review and has been reviewed by the Council, and which such report is incorporated herein and made a part of the record of the hearing hereinafter referred to on the Resolution; and WHEREAS, pursuant to the Resolution, a public hearing was set by the Council for Tuesday, June 12, 2007, at 7:00p.m., or as soon thereafter as the City may reach the matter, at the regular meeting place of the Council at the City Council Chambers at 734 Third Street, Brentwood, California 94513, at which hearing the Council opened the Public Hearing at the time and place as scheduled and continued the Public Hearing to June 26, 2007. A Notice of Continuance was posted by the City Clerk within 24-hours at the usual place of the City Council agenda posting, notifying all interested parties of the continuance of the Public Hearing.
WHEREAS, on June 26, 2007, the City Council considered the establishment of the Community Facilities District, the proposed rate and method of apportionment of such special tax, and all other matters set forth in the Resolution, and at such public hearing all persons interested, including all taxpayers, property owners and registered voters within the Community Facilities District, were given an opportunity to appear and be heard, and the testimony of all interested persons and all taxpayers, property owners and registered voters for or against the establishment of the Community Facilities District and the levy of such special tax, or the extent of the Community Facilities District, or any of the Facilities and Services proposed therefore, or on any other matters set forth in the Resolution, was heard and considered, and such special tax has not been precluded by a majority protest pursuant to Section 53324 of the Government Code of the State of California, and the Council at the conclusion of said hearing was fully advised in the premises, and was authorized to proceed as hereinafter provided; and WHEREAS one hundred percent (100%) of the qualified electors within the Community Facilities District have filed with the City Clerk waivers of certain time requirements as set forth in Exhibit E, for the conduct of the election in the Community Facilities District, therefore, pursuant to the Act, the Council is authorized to form the Community Facilities District and conduct the election as provided herein; and
WHEREAS, on the basis of the foregoing, the Council has determined at this time to call an election in the Community Facilities District to authorize the levy of a special tax therein (as the rate and method of apportionment of such tax, is more particularly set forth in Exhibit D, attached hereto and incorporated herein and made a part hereof) to pay for the Facilities and the Services proposed to be provided in and for the Community Facilities District, and to establish an appropriations limit for the Community Facilities District.
53 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
NOW, THEREFORE BE IT RESOLVED by the Council of the City of Brentwood, as follows:
Section 1. The above recitals are true and correct, and the Council so finds and determines.
Section 2. The Council hereby reapproves and readopts the Resolution, and reconfirms all of its findings and determinations contained therein.
Section 3. The Council hereby approves the rate and method of apportionment of the special tax in and for the Community Facilities District as set forth in Exhibit D attached hereto and incorporated herein and made a part hereof, and upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District, which lien shall continue in force and effect until (as to the public facilities portion of the special tax) the special tax obligation (or any portion thereof) is paid or prepaid and permanently satisfied and the public facilities portion of the special tax lien is cancelled in accordance with law, or until (as to the services portion of the special tax) collection of the special tax by the City ceases. The rate and method of apportionment of the special tax is set forth in Exhibit D attached to this resolution. The special tax with respect to the construction of facilities shall not be levied after Fiscal Year 2102-2103. The special tax with respect to the authorized services shall not be levied after Fiscal Year 2106-2107. In the case of any special tax to pay for public facilities and to be levied against any parcel used for private residential purposes, under no circumstances will the special tax levied against any parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 5 by more than 10 percent.
Section 4. The Council finds and determines that written protests to the establishment of the Community Facilities District and the levy of such special tax, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or the provision of any of the Services proposed therefore, are insufficient in number and in amount under the Act, and the Council hereby further orders and determines that all protests to the establishment of the Community Facilities District therefore, or the levy of the special tax proposed to be levied therein, or the extent of the Community Facilities District, or the acquisition and construction of any of the Facilities or provision of any of the Services therefore, or the establishment of an appropriations limit for the Community Facilities District, are hereby overruled.
Section 5. The Council finds and determines that all prior proceedings had and taken by the Council with respect to the establishment of the Community Facilities District are valid and in conformity with the requirements of the Act; and accordingly, the Council finds, determines and orders that, consistent with the Resolution, the Community Facilities District is hereby established under and pursuant to the terms and provisions of the Act, the boundaries of which are as set forth in the Proposed Boundary Map on file with the City Clerk.
Section 6. Except where funds are otherwise available, a special tax sufficient to pay for the Facilities and the Services, including the payment of interest on and principal of bonds to be issued to finance the acquisition and construction of the Facilities and including the repayment of funds advanced by the City for the Community Facilities District and including the repayment under any agreement (which shall not constitute a debt or liability of the City) of advances of funds or the reimbursement for the lesser of the value or cost of work in-kind provided by any person for the Community Facilities District, which tax shall be secured by recordation of a continuing lien against all nonexempt property in the Community Facilities District, will be annually levied within the boundaries of the Community Facilities District, and for particulars as to the rate and method of apportionment of such special tax reference is made to Exhibit D, attached hereto and incorporated herein and made a part hereof, which sets forth the rate and method of apportionment of such special tax in sufficient detail to allow each landowner or resident within the Community Facilities District to estimate the maximum amount that such person will have to pay for the Facilities and the Services.
Section 7. It is the intention of the Council, pursuant to Section 53317.3 of the Government Code of the State of California, to levy the special tax on property that is not otherwise exempt from the special tax and that is acquired by a public entity through a negotiated transaction, or by gift or devise.
Section 8. It is the intention of the Council, pursuant to Section 53317.5 of the Government Code of the State of California, to treat the special tax levied against property that is acquired by a public entity through eminent domain proceedings as if it were a special annual assessment.
Section 9. It is the intention of the Council, pursuant to Section 53340.1 of the Government Code of the State of California, to levy the special tax on the leasehold or possessory interests in property owned by a public agency (which property is otherwise exempt from the special tax) to be payable by the owner of the leasehold or possessory interests in such property.
Section 10. A special mailed-ballot election shall be and is hereby called and ordered to be held in the Community Facilities District on Tuesday, June 26, 2007, in accordance with and subject to the Act and applicable law and the terms hereof, at which special election there shall be submitted to the landowners within the Community Facilities District (which landowners are the electors and
54 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
persons qualified to vote at said special election) the question of levying such special tax and the establishment of an appropriations limit in the amount of ten million dollars ($10,000,000) for Fiscal Year 2006-07 in connection therewith for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California, and the Council hereby directs that the election at which the question of levying such special tax and establishing such appropriations limit is submitted to the landowners within the Community Facilities District shall be consolidated with the election at which the question of incurring a bonded indebtedness in an amount not to exceed fifty million dollars ($50,000,000) for the Facilities is submitted to the landowners within the Community Facilities District, and the question of levying such special tax and establishing such appropriations limit shall be combined in one ballot proposition with the question of incurring such bonded indebtedness to finance the acquisition and construction of the Facilities and to be secured by a special tax to be levied within the Community Facilities District, all as provided by the Act.
Section 11. The City Clerk of the City is hereby designated as the official to conduct said special election, in accordance with and subject to the Act and applicable law and the following provisions:
(a) Said special election shall be held and conducted, and the votes thereat canvassed and the returns thereof made, and the results thereof ascertained and determined, as provided herein; and in all particulars not prescribed by this resolution said special election shall be held and conducted and the votes received and canvassed in the manner provided by law for the holding of special elections in the City and consistent with the Act. (b) All landowners within the Community Facilities District upon the date of the special election herein provided for shall be qualified to vote upon the proposition to be submitted at said special election. (c) Said special election shall be conducted as a mailed-ballot election, in accordance with the provisions of the Act and the prior proceedings of the City taken thereunder, and there shall be no polling places for said special election. All ballots shall be delivered by the City Clerk of the City to such landowners, and all voted ballots are required to be received at the office of the City Clerk of the City not later than 7:00 o'clock P.M. on the day of the election in order to be counted, except that if all qualified electors have voted on the proposition hereby submitted, the election shall be closed. (d) Each voter to vote for the proposition to be submitted at said special election and for levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "YES" on the ballot to the right of said proposition, and to vote against said proposition and against levying such special tax and establishing such appropriations limit and incurring such bonded indebtedness shall mark a cross (+) in the blank space opposite the word "NO" on the ballot to the right of said proposition, which cross (+) may be marked with either pen or pencil. (e) The City Clerk of the City shall commence the canvass of the returns of said special election immediately upon adoption of this resolution at the City Council Chambers at 734 Third Street, Brentwood, California 94513, and at the conclusion thereof shall determine the results of said special election; provided, that if all the qualified voters have voted prior to such date and time, the City Clerk of the City shall close said special election and thereupon shall proceed to canvass the returns of said special election and to determine the results thereof.
(f) The Council shall meet at its regular meeting on Tuesday, June 26, 2007, at its usual meeting place and declare the results of said special election, and shall cause to be spread upon its minutes a statement of the results of said special election as ascertained by said canvass.
Section 12. The Council hereby approves the form of Waiver and Consent Shortening Time Periods and Waiving Various Requirements for Conducting Mailed-Ballot Election in the Community Facilities District, a copy of which is attached hereto as Exhibit E.
The Council hereby finds that the rights, procedures and time periods therein waived are solely for the protection of the voters, may be waived under Government Code Section 53326(a), and that the waiver constitutes a full and knowing waiver, by any voter who has executed the form, of those rights, procedures and time periods.
Section 13. The Council hereby accepts the Certificate of the City Clerk certifying that 100% of the voters eligible to vote in this election have delivered to the City Clerk properly executed waivers in the form of Exhibit E.
Section 14. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing such appropriations limit are cast in favor of levying such special tax and establishing such appropriations limit, as determined by the Council after reviewing the canvass of the returns of such consolidated election, the Council may levy such special tax within the territory of the Community Facilities District under the Act in the amount and for the purposes specified in this resolution, and such appropriations limit shall be established for the Community Facilities District, as defined by Article XIIIB, Section 8(h) of the Constitution of the State of California. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this resolution, subject to the Act, except that such special tax may be levied at a rate lower than that specified herein. Such special tax may be levied
55 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
only so long as it is needed to pay for the Facilities and the Services referred to in Section 4 of this resolution, or so long as it is needed to pay the principal of and interest on the bonded indebtedness incurred in order to finance the acquisition and construction of the Facilities (including the repayment of funds advanced for the Community Facilities District).
Section 15. The Director of Finance and Information Systems of the City at 708 Third Street, Brentwood, California 94513 (telephone (925) 516-5400) will be responsible for preparing annually a current roll of special tax levy obligations by Contra Costa County Assessor's parcel numbers, and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Government Code of the State of California.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 26th day of June 2007, by the following vote:
AYES: Becnel, Brockman, Richey, Stonebarger, Taylor
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
Robert Taylor
Robert Taylor
Mayor
ATTEST:
Margaret Wimberly
Margaret Wimberly, CMC
City Clerk
56 2022/23 Combined Community Facilities District Annual Report for Special Taxes Levied Formation Resolutions
EXHIBIT A-1
CITY OF BRENTWOOD Community
Facilities District No. 5
PUBLIC FACILITIES AND SERVICES TO BE PROVIDED
BY COMMUNITY FACILTIES DISTRICT NO. 5
The Facilities and Services shown below are proposed to be financed by Community Facilities District No. 5 (the "CFD") of the City of Brentwood (the "City'') and consist of the following:
FACILITIES
I. Public Protection and Safety Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of public protection and safety facilities, including but not limited to Emergency Operations Center, Dispatch Center and Mobile Command Center, together with all associated costs including, but not limited to, professional services, title reports and appraisals.
b) Construction and/or acquisition of public protection and safety facilities, including, but not limited to, design, construction, administration, equipment, furnishings, and all incidental costs necessary to provide said facilities and public protection and safety services and programs throughout the City.
II. Governmental and Community Facilities.
a) Governmental and Community Facilities which the City of Brentwood is authorized by law to contribute revenue to, construct, own or operate, including, but not limited to, Community and Cultural Centers, Libraries, Joint Use School Facilities and Downtown Brentwood Infrastructure. This may include the expansion, rehabilitation and/or upgrade of existing facilities.
b) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of governmental and community facilities, together with all associated costs including, but not limited to, professional services, title reports and appraisals.
c) Construction and/or acquisition of governmental and community facilities, including, but not limited to, design, construction, administration, equipment, furnishings, and all incidental costs necessary to provide said facilities for conducting community and/or joint use programs and services throughout the City.
Ill. Flood and Storm Drainage Facilities.
a) Acquisition of lands, easements and rights-of-way needed for the construction, acquisition and/or modification of flood and storm drainage facilities, together with all associated costs including, but not limited to, professional services, title reports and appraisals.
b) Construction, acquisition and/or modification of flood and storm drainage facilities, including, but not limited to, design, construction, administration and equipment together with all other miscellaneous costs necessary for compliance with local, state and federal regulations.
IV. Roadway Construction and Rehabilitation of Facilities. a) Acquisition of lands, easements and rights-of-way needed for the purposes of roadway construction, modification, rehabilitation and/or widening, together with all associated costs including, but not limited to, professional services, title reports and appraisals.
b) Construction, modification, rehabilitation and/or widening of roadways, including, but not limited to pavement, curb, gutter, sidewalk and pavement sealing, necessary to repair, improve and extend the life of the roadway.
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V. Undergrounding of Utility Transmission and Distribution Facilities. a) Acquisition of lands, easements and rights-of-way needed for the undergrounding of utility transmission and distribution facilities, together with all associated costs including, but not limited to, professional services, title reports and appraisals.
b) Undergrounding of utility transmission and distribution facilities, including construction, equipment, furnishings and all incidental costs related thereto.
SERVICES
The following services to be provided by the Community Facilities District are in addition to those presently provided within the territory of the district.
I. Public Protection and Safety Services.
a) Public protection and safety personnel salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal operation of these types of services and the employment of the necessary personnel.
II. Joint Use School Site Services
a) Maintenance of joint use school park facilities and structures between the City and the School Districts within the City of Brentwood which includes, but is not limited to, elementary and secondary school park sites and structures servicing the residents of the City of Brentwood. Such services shall only be those necessary for the City's share of the general public use of the joint use school park facilities and structures, and shall not include any costs associated with school use or maintenance.
b) Personnel salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal operation of these types of services and programs and the employment of the necessary personnel.
III. Flood and Storm Drainage Services.
a) Maintenance, operation and inspection for regulatory compliance of flood and storm drainage improvements owned or otherwise controlled by the City of Brentwood.
b) Salaries, benefits and other associated operation, maintenance and regulatory compliance inspection costs which are needed for the daily activities and normal employment of these types of personnel.
CITY COUNCIL AGENDA ITEM NO. F.10
12/12/2023
SUBJECT: Contract Change Order No. 2 with B and D Excavation and Construction for the Sound Wall, CIP Project No. 337-37263 DEPARTMENT: Engineering
STAFF: Allen Baquilar, Director of Engineering/City Engineer Brant Wilson, Senior Associate Engineer
Renee Payette, Project Services Specialist
TITLE/RECOMMENDATION
The City Council may consider adopting a Resolution: 1) approving Contract Change Order No. 2 with B and D Excavation and Construction (“B and D”) for the Sound Wall, CIP Project No. 337-37263 (“Project”), in the amount of $15,211.63, bringing the Contract price to $393,811.62; and 2) increasing the funding authorization contingency amount for the Project by $5,000, for an overall total funding authorization not to exceed amount of $455,601.63 for the Project.
FISCAL IMPACT
Upon City Council approval, the revised Contract amount will be $393,811.63, which includes Contract Change Order No. 2 in the amount of $15,211.63, plus funding authorization for contingency of $61,790, for a total funding authorization not to exceed amount of $455,601.63. The funding authorization for contingency includes an increase of $5,000. Funding for this Project is from the General Fund and is included in the adopted 2023/24-2027/28 Capital Improvement Program (“CIP”).
BACKGROUND
On May 9, 2023, the City Council awarded the Contract for this Project to B and D in the amount of $378,600, plus funding authorization for a 15% contingency of $56,790, for a total funding authorization not to exceed amount of $435,390.
Construction of the Project started on September 19, 2023.
This Project replaced a section of the existing developer installed sound wall between State Route 4 (“SR 4”) and Livorno Street. The work performed included removing 202 linear feet of the existing sound wall and footing, and constructing a new sound wall.
CITY COUNCIL AGENDA ITEM NO. F.10
12/12/2023
For aesthetic reasons, the original design for the Project included incremental steps to taper down across 12 linear feet to meet the existing privately owned and maintained wall column on the southern end of the Project, which is typical for sound wall design.
At the request of the adjacent resident, a contract change order in the amount of $15,211.63 is requested to remove the steps from the sound wall, which will result in the wall being uniform across rather than tiered at the southern end. This will result in the southern abutment of the new sound wall to be higher than the adjacent sound wall as shown below. An additional contingency funding authorization of $5,000 is also being requested for the Project.
This change will not have an appreciable effect on sound attenuation, but may result in decreased aesthetics.
CITY COUNCIL STRATEGIC INITIATIVE
Focus Area 1: Public Works, Goal 1.d.: Explore State Route 4 sound study mitigation measures, including raising the lower portion of the existing sound wall adjacent to Livorno Street south of Carrara Street.
CITY COUNCIL AGENDA ITEM NO. F.10
12/12/2023
PREVIOUS ACTION
Previous Action by the City Council is included on Attachment 1.
DATE OF NOTICE
Not applicable.
ENVIRONMENTAL DETERMINATION
A Notice of Exemption was filed with the County Recorder on May 25, 2023.
ATTACHMENT(S)
1. Previous Action
2. Resolution
3. Contract Change Order No. 2
4. CIP Sheet
ATTACHMENT “1”
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.
On November 12, 2019, Council Member Rarey requested a future agenda item related to a sound study for the section of SR 4 between Balfour Road and Fairview Avenue, and the potential for sound remediation based on the results of the sound study.
On December 10, 2019, the City Council directed staff to look into costs for a sound study to be performed along the residential corridors of SR 4 from Lone Tree Way to Marsh Creek Road.
On November 16, 2021, the City Council received the results of the SR 4 Corridor Traffic Noise Analysis.
On April 12, 2022, at the Capital Improvement Program (“CIP”) Workshop, the City Council directed staff to add the Project to the CIP Budget.
On April 25, 2023, the City Council continued award of the contract to B and D to the May 9, 2023, City Council/Successor Agency meeting.
On May 9, 2023, by Resolution No. 2023-50, the City Council approved the contract documents, awarded the bid and authorized the City Manager or designee to execute a construction contract and necessary documents, including the use of contingency amounts, for the Sound Wall Project, CIP Project No. 337-37263, with B and D Excavation and Construction, as the lowest responsible and responsive bidder, in the amount of $378,600, plus funding authorization for a 15% contingency of $56,790, for a total funding authorization not to exceed amount of $435,390.
On June 13, 2023, by Resolution No. 2023-80, the City Council adopted the City’s 2023/24 – 2027/28 CIP, which included the Project.
RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BRENTWOOD: 1) APPROVING CONTRACT CHANGE ORDER NO. 2
WITH B AND D EXCAVATION AND CONSTRUCTION (“B AND D”)
FOR THE SOUND WALL, CIP PROJECT NO. 337-37263
(“PROJECT”), IN THE AMOUNT OF $15,211.63, BRINGING THE
CONTRACT PRICE TO $393,811.62; AND 2) INCREASING THE
FUNDING AUTHORIZATION CONTINGENCY AMOUNT FOR THE
PROJECT BY $5,000, FOR AN OVERALL TOTAL FUNDING
AUTHORIZATION NOT TO EXCEED AMOUNT OF $455,601.63 FOR
THE PROJECT.
WHEREAS, on May 9, 2023, the City Council awarded the Contract for this Project to B and D in the amount of $378,600, plus funding authorization for a 15% contingency of $56,790, for a total funding authorization not to exceed amount of $435,390; and
WHEREAS, construction of the Project started on September 19, 2023, and replaced a section of the existing developer installed sound wall between State Route 4 (“SR 4”) and Livorno Street; and
WHEREAS, the work performed included removing 202 linear feet of the existing sound wall and footing, and constructing a new sound wall; and WHEREAS, for aesthetic reasons, the original design for the Project included incremental steps to taper down across 12 linear feet to meet the existing privately owned and maintained wall column on the southern end of the Project, which is typical for sound wall design; and
WHEREAS, at the request of the adjacent resident, a contract change order is requested to remove the steps from the sound wall, which will result in the wall being uniform across rather than tiered at the southern end; and WHEREAS, this will result in the southern abutment of the new sound wall to be higher than the adjacent sound wall; and
WHEREAS, this change will not have an appreciable effect on sound attenuation for the resident.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby: 1) approve Contract Change Order No. 2 with B and D Excavation and Construction for the Sound Wall, CIP Project No. 337-37263, in the amount of $15,211.63, bringing the Contract price to $393,811.62; and 2) increase the funding authorization contingency amount for the Project by $5,000, for an
overall total funding authorization not to exceed amount of $455,601.63 for the Project.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 12th day of December 2023 by the following vote:
CONTRACT CHANGE ORDER NO:
PROJECT:
PROJECT NUMBER:
TO:
CHANGE REQUESTED BY:
ITEM
NO. UNIT UNITPRICE QUANTITY TOTALCOST
2.1 LS $15,211.63 1.00 $15,211.63
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
10 $15,211.63
ORIGINAL CONTRACT AMOUNT: $378,600.00 PREV. CHANGE ORDER AMOUNT: $56,464.20 INCREASE TO CONTRACT AMOUNT: $15,211.63 TOTAL CHANGE ORDERS TO DATE: $71,675.83 CONTINGENCY USED: $56,464.20
REVISED CONTRACT AMOUNT $450,601.63
ADDITIONAL CONTINGENCY $5,000.00
Approval Recommended: Date:
Approval Recommended: Date:
Approved: Date:
Date:
By: Title:
NOTE: This change order is not effective until approved by the City Engineer (up to $50,000) or City Manager (above $50,000).
ITEM
DESCRIPTION
Brant Wilson, Project Manager
We, the undersigned contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefor the prices shown above.
Accepted Contractor:
Tim Y. Ogden, City Manager
Allen Baquilar, Director of Engineering/City Engineer
CITY OF BRENTWOOD
ENGINEERING DEPARTMENT
337-37263
Sound Wall
City of Brentwood
2 B and D Excavation and Construction
Description of work to be done, estimate of quantities, and prices to be paid. Segregate between additional work at contract price and force account. Unless otherwise stated, rates for rental of equipment cover only such time as equipment is actually used and no allowance will be made for the idle time.
You are hereby directed to make the herein-described changes from the plans and specifications or do the following described work not included in the plans and specifications of this contract.
Adjust Sound Wall Height - Includes Labor, Equipment and Materials Extra working days allowed TOTAL FOR CHANGE ORDER NO. : 2
CITY COUNCIL AGENDA ITEM NO. G.1
12/12/2023
SUBJECT: Independent Auditors’ Report and Annual Comprehensive Financial Report for Fiscal Year 2022/23; and Report on the Financial Awards received by the City
DEPARTMENT: Finance & Information Systems
STAFF: Kerry Breen, Director of Finance & Information Systems Sonia Agostini, Accounting Manager
TITLE/RECOMMENDATION
Independent Auditors’ Report and Annual Comprehensive Financial Report for Fiscal Year 2022/23; and Report on the Financial Awards received by the City.
Staff recommends the City Council receive the Independent Auditors’ Report and Annual Comprehensive Financial Report for Fiscal Year 2022/23 and the report on the Financial Awards received by the City.
FISCAL IMPACT
There is no fiscal impact with receipt of the Independent Auditor’s Report and Annual Comprehensive Financial Report.
Recognition of the City’s adherence to the highest standards of Governmental Reporting continues to promote trust and transparency with the public and have a significant impact on our ability to obtain favorable financing through the credit market. This has proven to be historically beneficial to the City as refunding of bonds have resulted in the City reducing interest rates on certain debt and generating savings. The savings the City has been able to achieve would not have been possible without a strong reputation for strength, reliability, and transparency in financial management reporting.
BACKGROUND
The Annual Comprehensive Financial Report (ACFR) contains a comprehensive and complete report of financial information for the City for the fiscal year ended on June 30, 2023. A discussion of the key information about the financial statements can be found in the Management’s Discussion and Analysis starting on page 20 of the Annual Comprehensive Financial Report.
CITY COUNCIL AGENDA ITEM NO. G.1
12/12/2023
At year-end, the City’s General Fund had a year-end fund balance of $31.8 million.
Of this amount, $9.7 million has been set aside for specific use, such as the Successor Agency repayment plan, start-up costs associated with the Police Department 5th geographical beat, and other City Council Strategic Initiative costs. The remaining $22.1 million comprises the General Fund 30% reserve, pursuant to Budget and Fiscal Policy requirement. General Fund revenues exceeded expenses and amounts set aside for the 30% reserve by $1.0 million during the fiscal year. Pursuant to City Council policy, half of the surplus ($0.5 million) will be used to reduce unfunded pension obligations via a lump sum payment, while the other half was transferred to the Pension/Other-Post Employment Benefit Obligation Fund, also referred to as the Budget Stabilization Fund, which is projected to be used to offset rising pension and retiree medical costs in the intermediate-term.
Staff recognizes that the ACFR is a complex financial document. In an effort to provide more focused and timely information, the Finance Department also released a fiscal year-end report in October 2023 in the form of the Fiscal Year 2022/23 Financial Snapshot (“Snapshot”). The Snapshot summarizes the City’s major financial trends graphs in just eight pages, in an easy to understand format and includes key metrics. The Snapshot can be found on the City’s website at Financial Snapshots.
The Finance Department also provides other regular financial reports and updates including quarterly Financial Dashboard, Sales Tax and Investment reports; along with annual Budget in Brief, Development Impact Fee and the Combined Community Facilities District Annual Reports. All of these reports and updates can be found on the City’s website at Financial Documents.
Finally, a comprehensive budget update is provided to the City Council at least every six months, and more frequently as changing economic environments may require.
The next comprehensive budget update will be presented at the January 23, 2024 City Council meeting.
Audit and ACFR
The independent audit firm, Maze & Associates, has completed its review and examination of the City’s financial transactions and statements for the year ended June 30, 2023 and will be presenting the results of their audit during discussion of this agenda item. The audit was conducted in accordance with generally accepted auditing standards. It is the opinion of the auditors that the financial statements fairly represent the financial position of the City as of June 30, 2023 and that the statements were prepared in conformity with generally accepted accounting principles. The Finance Department was responsible for the coordination of the audit process, the completion of year-end closing, and the preparation of the ACFR.
CITY COUNCIL AGENDA ITEM NO. G.1
12/12/2023
Each fiscal year, the City is required to have an independent audit of its financial statements and the Finance Department consolidates the City’s financial statements into an ACFR. The purpose of the ACFR is to provide citizens, grantor agencies, and other interested parties with reliable financial information about the City. Since Fiscal Year 2000/01, the City has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the ACFR. The GFOA award is a prestigious national award recognizing the use of high standards in preparing state and local government financial reports. Participation in this program has a number of benefits. An award-winning ACFR shows dedication to fiscal responsibility and outstanding financial management and reporting. Producing an ACFR provides confirmation that the City operates at the highest level for financial reporting standards and has helped the City receive strong bond ratings and favorable interest rates from the debt investment community. As opposed to being prepared by the auditors as a separate contract for service, the ACFR was prepared and published in-house and reflects the work of the entire Finance Department staff.
The ACFR has three main components: the introductory section, the financial section, and the statistical section.
The Introductory section includes the Letter of Transmittal, which provides an analysis of the City’s economic condition and financial outlook, as well as information on the City’s long-term financial planning. Other information of general interest is included in this section, such as a listing of the City Council and Executive Team members, a Citywide Organizational Chart, City Maps, and awards received for achievements in quality.
The Financial Section includes the primary financial statements of the City and is organized into the following parts:
Independent Auditors’ Report regarding the financial statements Management’s Discussion and Analysis providing a narrative overview of the government-wide financial activities
Basic Financial Statements consisting of 1) the Government-Wide Financial Statements, which combine the activities of the major funds into governmental and business-type categories, 2) the Fund Financial Statements and 3) the Notes to the Basic Financial Statements, which is an addendum to the financials
Required Supplementary Information presenting General Fund and Landscape and Lighting Assessment Districts Fund actual results with both the original and final adjusted budgets, and schedules related to pension and Other PostEmployment Benefits (OPEB) plans Supplemental Information presenting combining financial statements for the Non-Major Governmental Funds, Internal Service Funds and Fiduciary Funds.
CITY COUNCIL AGENDA ITEM NO. G.1
12/12/2023
The Statistical Section provides current and historical trend information for the City in the following areas:
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
System of Internal Controls
In simple terms, internal controls are the methods and procedures designed by management to safeguard assets and to manage resources. They include how management "sets the tone", providing discipline and structure, and the means for communication up and down, as well as across, the City’s organizational structure in order to meet the City's stated goals and objectives. In the context most associated with the annual external financial audit, internal controls are the system of checks and balances designed to minimize the likelihood of errors in the accounting records and deter fraud, embezzlement and theft by employees, customers and vendors.
These goals are generally accomplished by incorporating control activities into the organization's operations. The most common activities include approvals and verifications, reconciliations, reviews and segregation of duties.
It is the City's obligation to establish the system of internal controls, not the City’s outside auditors, Maze & Associates.
When considering a system of internal controls, it is important to consider the risk a control activity proposes to reduce, against the cost of the activity itself. More controls may not always be better; both the law of diminishing returns and resource limitations can significantly affect the decision of which activities to employ in each situation. It is also important to carefully balance the need for adequate controls against the creation of unnecessary bureaucracy, as efficiency is also an important organizational objective.
In addition to performing the audit and offering an opinion on the City’s financial statements, the City's auditors perform an assessment of the City's internal controls as part of the audit each year. The independent auditors may note certain matters involving internal control and other operational concerns. These items are not considered “findings” but rather recommendations for improvement. In addition, the auditors are required to communicate specific information to the legislative body.
Attached is the Memorandum on Internal Control and the Required Communications.
CITY COUNCIL AGENDA ITEM NO. G.1
12/12/2023
Financial Awards
The Finance Department takes great pride in publishing documents which adhere to the highest standards of governmental budgeting and accounting excellence. Receipt of these awards is indicative of the high standards expected by the City Council and serve to reaffirm the validity and integrity of the City’s financial reporting and budgeting to the citizens, staff, and outside agencies. Furthermore, establishing and maintaining a reputation for high quality financial reporting within the credit markets has assisted the City in obtaining lower interest rates and payments for City debt.
Following are the awards which were received during the past year:
Excellence in Capital Budgeting from the California Society of Municipal Finance Officers (CSMFO) for the FY 2022/23 Capital Improvement Program.
This State Award was established by CSMFO to recognize those agencies whose capital improvement program documents meet certain state-wide standards and requirements considered to be of the highest quality. Excellence in Financial Reporting from the GFOA for the Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2022. This national award was established by GFOA to recognize individual governments that prepare annual financial reports that exemplify the spirit of transparency and full disclosure. The City’s ACFR is reviewed by selected members of the GFOA professional staff and the GFOA Special Review Committee, which comprises individuals with expertise in public-sector financial reporting and includes financial statement preparers, independent auditors, academics, and other financial professionals.
Distinguished Budget Presentation Award from the GFOA for the 2022/23 – 2023/24 Operating Budget, with special recognition in the category of Strategic Goals and Strategies. This national award was established by GFOA to recognize individual governments that prepare Operating Budgets of the very highest quality and reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s recommended practices on budgeting. The City’s Operating Budget is reviewed by selected members of the GFOA professional staff and by outside reviewers with experience in public sector budgeting.
Excellence in Operating Budgeting from CSMFO for the 2022/23 – 2023/24 Operating Budget. This State Award was established by CSMFO to recognize those agencies whose operating budget documents meet certain state-wide standards and requirements considered to be of the highest quality.
CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable
CITY COUNCIL AGENDA ITEM NO. G.1
12/12/2023
PREVIOUS ACTION
Attachment 1
DATE OF NOTICE
Not Applicable
ENVIRONMENTAL DETERMINATION
Not Applicable
ATTACHMENT(S)
1. Previous Action
2. 2022/23 ACFR
3. Memorandum on Internal Control
4. Required Communications
5. CSMFO Capital Budget Award
6. GFOA ACFR Award Certificate
7. GFOA Operating Budget Award
8. CSMFO Operating Budget Award
ATTACHMENT 1 – PREVIOUS ACTION
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.
On February 25, 2020, the City Council approved Resolution 2020-19, approving and authorizing the City Manager to execute a professional services agreement with Maze & Associates as the City’s independent external audit firm for the fiscal years ending June 30, 2020 and June 30, 2021, with an option to execute amendments for an additional three fiscal years.
Fiscal Year Ended
June 30, 2023
Annual
Comprehensive
Financial
Report
150 City Park Way
Brentwood,Page 369 of 614 CA 94513
2 2022/23 Annual Comprehensive Financial Report
Table of Contents
For Fiscal Year Ended June 30, 2023
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................................... 2 Letter of Transmittal ......................................................................................................................................................................... 5 Certificate of Achievement – Government Finance Officers Association ................................................................. 11 City Council and Executive Team ............................................................................................................................................. 12 City Organizational Chart ............................................................................................................................................................ 13 Community Services Location Map ........................................................................................................................................ 14 Mission Statement/Core Values/Vision and Culture ........................................................................................................ 15 Awards ................................................................................................................................................................................................ 16
FINANCIAL SECTION
INDEPENDENT AUDITORS REPORT ................................................................................................................................... 17 MANAGEMENT’S DISCUSSION AND ANALYSIS .......................................................................................................... 20
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position ............................................................................................................................................. 34 Statement of Activities and Changes in Net Position ......................................................................................... 35 Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet – Governmental Funds ....................................................................................................................... 36 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ............................................................................................................................................. 37 Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ...................................................................................................................... 38 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 ................................................................................................................................................. 39 Proprietary Fund Financial Statements
Statement of Net Position ............................................................................................................................................. 40 Statement of Revenues, Expenses and Changes in Fund Net Position ........................................................ 41 Statement of Cash Flows ................................................................................................................................................ 42 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position .......................................................................................................................... 43 Statement of Changes in Fiduciary Net Position ................................................................................................... 44 Notes to the Basic Financial Statements
Index of Notes to the Basic Financial Statements ................................................................................................ 45
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule, General Fund ........................................................................................................ 115 Budgetary Comparison Schedule, Landscape and Lighting Assessment Districts ......................................... 116
3 2022/23 Annual Comprehensive Financial Report
Table of Contents
Note to the Required Supplementary Information .................................................................................................... 117 Schedule of Changes in Net OPEB Liability/(Assets) and Related Ratios .......................................................... 118 Schedule of Employer OPEB Contributions ................................................................................................................... 119 Miscellaneous Plan Schedule of Changes in the Net Pension Liability and Related Ratios ....................... 120 Miscellaneous Plan Schedule of Contributions ............................................................................................................ 121 Safety Plan Schedule of Proportionate Share of the Net Pension Liability ...................................................... 123 Safety Plan Schedule of Contributions ........................................................................................................................... 123
SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Non-Major Governmental Funds
Combining Balance Sheet ............................................................................................................................................ 124 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................. 129 Budgeted Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ......................................................................................................................... 134 Internal Service Funds
Combining Statement of Net Position .................................................................................................................... 144 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .............................. 146 Combining Statement of Cash Flows ...................................................................................................................... 148 Fiduciary Funds
Combining Statement of Fiduciary Net Position ................................................................................................ 150 Combining Statement of Changes in Fiduciary Net Position ........................................................................ 151 STATISTICAL SECTION (Unaudited)
Statistical Section Contents ...................................................................................................................................................... 152 Net Position by Component - Schedule 1 ......................................................................................................................... 153 Changes in Net Position – Governmental Activities - Schedule 2a .......................................................................... 154 Changes in Net Position – Business-Type Activities - Schedule 2b ......................................................................... 155 Fund Balances – Governmental Funds - Schedule 3 ...................................................................................................... 156 Changes in Fund Balances – Governmental Funds - Schedule 4 .............................................................................. 157 Assessed Value and Estimated Actual Value of Taxable Property - Schedule 5 ................................................. 158 Direct and Overlapping Property Taxes - Schedule 6 ................................................................................................... 159 Principal Property Taxpayers - Schedule 7 ......................................................................................................................... 160 Property Tax Levies and Collections - Schedule 8 .......................................................................................................... 161 Taxable Sales by Category - Schedule 9 ............................................................................................................................. 162 Direct and Overlapping Sales Tax Rates - Schedule 10 ................................................................................................ 163 Top 25 Sales Tax Producers - Schedule 11 ........................................................................................................................ 164 Water Use Revenue by Customer Type - Schedule 12 .................................................................................................. 165 Water Rates - Schedule 13 ....................................................................................................................................................... 166 Ratios of Outstanding Debt by Type - Schedule 14 ....................................................................................................... 167 Ratios of General Bonded Debt Outstanding - Schedule 15 ...................................................................................... 168 Direct and Overlapping Governmental Activities Debt - Schedule 16 ................................................................... 169 Legal Debt Margin Information - Schedule 17 ................................................................................................................. 170 Pledged Revenue Coverage - Schedule 18 ........................................................................................................................ 171 Demographic and Economic Statistics - Schedule 19 ................................................................................................... 172
4 2022/23 Annual Comprehensive Financial Report
Table of Contents
Principal Employers - Schedule 20 ........................................................................................................................................ 173 Authorized Full-Time Equivalent City Government Employees by Function/Program - Schedule 21 .................................................................................................................................... 174 Operating Indicators by Function/Program - Schedule 22 ......................................................................................... 175 Capital Asset Statistics by Function/Program - Schedule 23 ...................................................................................... 176 General Information - Schedule 24 ....................................................................................................................................... 177
OTHER AUDIT REPORT
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements performed in Accordance with Government Auditing Standards ......................................................................................................................................................................................... 178
5 2022/23 Annual Comprehensive Financial Report
Letter of Transmittal
December 12, 2023
The Honorable Mayor, Members of the City Council and Citizens of Brentwood Brentwood, California 94513
Dear Mayor, Members of the City Council and Citizens of Brentwood:
We are pleased to submit the Annual Comprehensive Financial Report for the City of Brentwood, California (“the City”), for the fiscal year (FY) ended June 30, 2023. Each year, the City publishes a complete set of financial statements that are presented in conformity with Generally Accepted Accounting Principles (GAAP) and audited by an independent, certified public accounting firm.
The City’s Finance and Information Systems Department prepared this report. Responsibility for both the accuracy of the data and the completeness and fairness of the information, including all disclosures, rests with the City. To the best of the City staff’s knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner to fairly present the financial position and results of the operations of the various entities of the City. All disclosures necessary for the reader to understand the City’s financial activities have been included. GAAP requires that management provide a narrative introduction overview and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal complements the MD&A, which can be found immediately following the report of the independent auditors.
INTERNAL CONTROLS
The Finance and Information Systems Department accounts for the City’s programs and activities. In conjunction with the City’s management, the Finance and Information Systems Department is responsible for maintaining the integrity of the City’s recorded financial data and establishing and maintaining an internal control structure to ensure that the City’s assets are protected from loss, theft or misuse. The internal control structure is designed to provide reasonable assurance these objectives are met, while recognizing that this assurance is not absolute. The concept of reasonable assurance recognizes: 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. City management believes the existing internal control systems are adequate to provide reasonable assurance the City’s assets are safeguarded against loss and that the financial records are reliable for preparing financial statements and maintaining accountability for assets. This belief is supported by the “unmodified” audit opinion issued by the City’s independent external auditors for the fiscal year ended June 30, 2023.
6 2022/23 Annual Comprehensive Financial Report
Letter of Transmittal
INDEPENDENT AUDIT
The City Council is responsible for: 1) assuring the City’s management fulfills its responsibilities in the preparation of the financial statements and 2) engaging certified public accountants with whom the City Council reviews the scope of the audit and the accounting principles to be applied in financial reporting.
The Government Code of the State of California requires general law cities, such as the City, to have its financial statements audited by an independent certified public accountant. Accordingly, this year’s audit was completed by the accounting firm of Maze & Associates. The firm was engaged by the City Council to render an opinion on the City’s financial statements in accordance with auditing standards generally accepted in the United States of America. To ensure complete independence, Maze & Associates presents the results of their assessment of the adequacy of internal accounting controls and the quality of financial reporting directly to the City Council. The auditor’s report on the basic financial statements is the first item in the accompanying Financial Section.
In addition to meeting the requirements set forth in state statutes, the audit meets the requirements of the Federal Single Audit Act, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). The standards governing Single Audit engagements require the independent auditor to report both on the fair presentation of the financial statements and on the audited government’s internal controls and compliance with legal requirements.
PROFILE OF BRENTWOOD
The City was founded in 1878 and incorporated in 1948 as a general law city under the laws of the State of California. Brentwood encompasses approximately 14.83 square miles and is located in eastern Contra Costa County, 55 miles east of San Francisco and 62 miles south of Sacramento. The City is governed by a five-member City Council, under the Council-Manager form of government. As of January 1, 2023, the City had an estimated population of 64,513.
The City provides a full range of services including: Police, Public Works, Economic Development, Planning, Building, Community Enrichment, Engineering and Inspection, Parks and Recreation, Housing and General Administrative services. The City also operates public water and wastewater utilities, as well as solid waste collection and disposal services and a recycling program. All of these services are accounted for in the City’s financial statements.
The City was financially accountable for the Brentwood Redevelopment Agency prior to its dissolution, effective February 1, 2012 as a matter of State law. At that time, the City opted to become the Successor Agency to the Brentwood Redevelopment Agency (“Successor Agency”). Financial data of the Successor Agency has been segregated in a private-purpose trust fund. In addition, the City is financially accountable for the Brentwood Infrastructure Financing Authority (the “Authority”), a component unit of the City. Although a legally separate entity, this blended component unit is also substantively part of the government’s operations. Financial data for the Authority is combined with the data of the primary government. For accounting purposes, the Authority, the Successor Agency and the City all have a June 30 year-end date. See Note #1A for a more detailed discussion of the reporting entity.
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Letter of Transmittal
The City’s annual budget serves as the foundation for planning and controlling the City’s finances. As such, the City maintains extensive budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. For additional budgetary information, see Note #2A. The City operates on a two-year budget cycle with the budget process beginning in November and culminating with final Council approval in June. The adopted two-year budget is then formally reviewed by the City Council at a public meeting every six months for adjustments. The City’s adopted budget includes legally required budgets for the activities of the General Fund, Special Revenue Funds, Fiduciary Funds, Internal Service Funds and certain Capital Project Funds. Additionally, although not legally required, Debt Service budget information is also included.
ECONOMIC CONDITION AND FINANCIAL OUTLOOK
The economy remained resilient throughout FY 2022/23 despite significant geopolitical and inflation concerns. In 2020, the City experienced a sharp but brief financial downturn at the onset of the pandemic. This downturn was quickly alleviated through significant stimulus actions taken by the federal government. This provided an economic boost which in retrospect may have overheated the economy, resulting in rapidly increasing consumer activity, home values and finally, inflation.
While the stimulus programs served to provide the public with a financial buffer as the economy reopened, consumers have largely exhausted the increased savings accumulated during the pandemic, and spending activity is unlikely to remain strong. Rapid interest rate increases by the Federal Reserve have effectively doubled mortgage interest rates, impacting demand for housing as mortgage payments became less affordable. Meanwhile, inflation has remained elevated and is increasing the cost of providing governmental services and constructing infrastructure.
The General Fund provides funding for the majority of City services, including street maintenance, parks and police. General Fund operations for FY 2022/23 resulted in a surplus, with revenues exceeding expenses and amounts set aside for reserves by slightly under $1 million. Pursuant to City Council policy and as a part of the City’s long-term fiscal sustainability strategy, half of the surplus will be used to reduce unfunded pension obligations.
Property taxes, the General Fund’s top revenue source, has risen by an average of approximately 7% per year over the past five years, providing the City with a means to offset inflationary cost pressures.
Property tax revenue growth rates are projected to slow to the 3%-4% range over the next few fiscal years due to higher mortgage rates and declining housing affordability. A sign of the weakness in the real estate market is evident in declining property turnover rates, which are at historically low levels. Sales tax, the General Fund’s second largest revenue source, initially suffered declines during the brief pandemic induced slowdown in 2020. By FY 2021/22, accumulated consumer stimulus balances, combined with the return to in-person shopping and dining activities, along with price inflation contributed to an annual increase of 18% in sales tax revenue. This spike in revenue contrasts with a FY 2022/23 growth rate of just 1%, as spending patterns normalized. Conditions will likely remain challenging for consumers as long as inflation remains at persistently high levels.
On the expenditure side, City operational and infrastructure costs continue to increase due to persistently high inflation levels. In addition, significant intermediate-term pension cost increases are expected as CalPERS looks to shore up their pension funds following investment losses. These cost increases would
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have a greater impact on the fiscal health of the City, if not for the current and historical proactive approach to actively paying down unfunded pension and retiree medical liabilities. During FY 2018/19, the City Council approved a policy providing for annual pay downs of pension or retiree medical unfunded liabilities when certain levels of excess reserves are available. In the last five fiscal years, the City has made pension prepayments of $20.7 million against the City’s net pension liability, which will help mitigate the impacts of increases in funding requirements following CalPERS investment losses.
Additionally, the City has taken steps to address funding required for retiree medical liabilities by making significant pre-funding contributions on an annual basis. The City is also facing longer-term labor cost uncertainty due to the June 30, 2024 expiration of Memoranda of Understanding with all of the City’s labor bargaining units. Negotiations for successor contracts will begin in early 2024.
The City’s Water, Wastewater and Solid Waste Enterprise Funds were impacted by significant account delinquencies resulting from restrictions on collection-related service interruptions during the pandemic.
In FY 2021/22, past due balances declined substantially through the successful efforts of Utility Billing staff to secure direct State funding and grants for City residents. In FY 2022/23, all three of the City’s enterprise funds met the 30% cash reserve policy goal.
During FY 2022/23, a five-year rate study was approved by City Council that set rates for Water, Wastewater and Solid Waste services through FY 2027/28. The rate studies incorporated updated assumptions to account for new organics regulations affecting both the Solid Waste and Wastewater Enterprises. All three studies included updated assumptions to account for changes in operating costs and capital outlay requirements. The new rates took effect July 1, 2023.
The City has also been a direct recipient of federal government stimulus funds. During FY 2022/23 the City Council approved the utilization of $6.9 million in American Rescue Plan Act Funds for General Government Revenue Replacement. These funds were initially allocated to fund the Sand Creek Sports Complex project over the next several years. However, the funds were reassigned in order to better protect them following proposed claw back legislation initiated during Federal debt ceiling negotiations in 2023. The General Fund will instead provide $6.9 million in funding for the Sand Creek Sports Complex.
The City’s Strategic Plan continues to focus on economic development strategies to attract future sources of sales tax revenue and employment opportunities for the community. The Innovation Center @ Brentwood Infrastructure project will construct various infrastructure improvements within the project area including roadways, wet utilities and land acquisition, in order to ready this area for development.
The City envisions this location emerging as one of the primary future employment centers, offering individuals and businesses access and opportunities to create high-quality jobs across a diverse array of industries.
Although the City’s forecasts indicate that it can maintain its strong financial position, caution is warranted as fiscal conditions are evolving and more challenging conditions could be experienced in the future. The City continues to remain vigilant in maintaining its fiscal strength. As required by policy, the City has maintained an unassigned General Fund balance of at least 30% of the annual operating expenditures as a hedge against this economic uncertainty.
Balanced Budget
The City’s Budget and Fiscal Policy requires the City to maintain a balanced General Fund budget over the two-year Operating Budget period. Each fiscal year, current revenues must meet or exceed operating
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Letter of Transmittal
expenditures, including debt service. Use of fund balance commitments to offset non-operating expenditures may allow for current expenditures to exceed current revenues in a fiscal year. Pursuant to Council policy, City staff will present a General Fund budget for City Council consideration that maintains 30% of the annual operating appropriations and transfers in the unassigned fund balance. The City will also strive to maintain cash reserves in the Enterprise Funds of 30% of annual operating appropriations and transfers.
Long-Term Financial Planning
To help ensure the City remains financially healthy in the future, a General Fund Fiscal Model (“Fiscal Model”) is prepared as part of the Operating Budget process. The Fiscal Model provides detailed analysis and projections of the next ten years of revenues, expenses and fund balance of the General Fund. The Fiscal Model provides the City Council with a tool to help determine the financial feasibility of priorities and goals they may wish to adopt through the Strategic Planning process. The Fiscal Model can also alert management and the City Council of potential future financial changes and affords the time to develop practical solutions with minimal impacts to the services provided to the residents of Brentwood.
The Fiscal Model projects the City will achieve a balanced General Fund budget for each year of the model, including transfers in from the Pension/Other Post-Employment Benefits (OPEB) Obligation Fund where necessary. The Pension/OPEB Obligation Fund is comprised of accumulated General Fund savings from previous fiscal years and can be used for budget stabilization purposes, offsetting increasing pension and retiree medical costs in future years, and for Pension/OPEB prefunding purposes. Use of the fund allows the City to meet the goal of maintaining 30% of the annual operating appropriations and transfers in the General Fund’s unassigned fund balance throughout the ten-year period. Over the longer-term, the City is projecting pension and retiree medical costs to ease, reducing or eliminating the need for Pension/OPEB Obligation Fund transfers to balance the budget.
Along with the Fiscal Model, the City internally prepares ten-year projections for the Solid Waste, Water and Wastewater Enterprises. These projections serve a similar purpose as the Fiscal Model in providing tools for City staff to analyze the health of the Enterprises and identify potential future economic changes allowing sufficient time to develop solutions. Rate studies are conducted periodically to ensure the Enterprise rates are sufficient to cover: operating expenses; capital improvements; upgrades and costs associated with meeting both State and Federal guidelines and regulations. The ten-year projections provide the essential support needed to complete these rate studies.
Strategic Planning
In February of 2022, the City Council adopted the City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24 (“Strategic Plan”), and reconsidered for approval with the newly seated City Council in January 2023. Highlights of the Strategic Plan include the development of both phases of the Sand Creek Sports Complex which will include sports fields and related amenities; preparation of various land use policy plans affecting housing and open space; continued development of the Vineyards at Marsh Creek - Event Center/Amphitheater; and continued construction of the Innovation Center @ Brentwood Infrastructure project.
The Strategic Plan focuses on the City’s economic development, land use, infrastructure and parks and recreation programs and facilities. Through strong business growth and thoughtful land use and planning, the City will ensure that the quality of life enjoyed by Brentwood residents today will be enjoyed by future generations.
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Mission Statement
Bringing Brentwood’s Vision to Reality
Vision and Culture
We are an organization of dedicated professionals working together to make Brentwood the very best, preserving its rich heritage and keeping Brentwood in the hearts of the people.
CORE VALUES
Integrity
Passion
Accountability
Respect
Quality
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Awards
The City prides itself on providing quality services to the community. Following is a list of awards acknowledging these achievements in quality.
The City was recognized by the Arbor Day Foundation as a “Tree City USA Community” for 2022.
The City received the following 2022 Best of Brentwood Awards from ThePress.net:
Family Recreation – Brentwood Family Aquatic Complex (Silver) Event Center – Brentwood Community Center (Gold)
Family Community Event – Concerts in the Park (Silver) Place for Live Music – Concerts in the Park (Bronze)
Family Recreation – Veterans Park (Silver)
Favorite Park – Creekside Park (Gold) and Veterans Park (Silver) The City received the GFOA award for the following:
“Certificate of Achievement for Excellence in Financial Reporting Fiscal Year 2021/22”
“Distinguished Budget Presentation Award” for the two-year Operating Budget beginning July 1, 2022
The City received the CSMFO award for the following:
“Capital Budget Excellence Award Fiscal Year 2022/23” “Operating Budget Excellence Award Fiscal Years 2022/23 & 2023/24”
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and City Council
City of Brentwood, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Brentwood, California (City), as of and for the year ended June 30, 2023, 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, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our 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 for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is 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.
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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 opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
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. 18 Page 386 of 614
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 exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 22, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
November 22, 2023
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Management’s Discussion and Analysis
This discussion and analysis of the City of Brentwood’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2023. Please read it in conjunction with the Letter of Transmittal, the Basic Financial Statements and the accompanying Notes to the Basic Financial Statements.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $985.0 million. Of this amount, $129.5 million may be used to meet the City’s ongoing obligations to citizens and creditors. The City’s total net position increased by $21.8 million in FY 2022/23, with an increase of $10.7 million attributable to governmental activities and an increase of $11.1 million attributable to business-type activities.
The change in net position from governmental activities was due mainly to the following:
o An increase in net position of $6.9 million from the recognition of American Rescue Plan Act of 2021 (ARPA) Fund revenue recorded as unearned revenue in the prior fiscal year and utilized in support of public safety salaries.
o An increase in net investment in capital assets of $4.9 million comprised of additions of $14.7 million, offset by depreciation, amortization and disposals of $13.7 million and payments made on related long-term liabilities related to capital assets of $3.9 million.
Total asset additions of $14.7 million included $7.3 million of development contributions. o An increase in net position of $1.5 million in the Landscape and Lighting Assessment Districts Special Revenue Fund from the accumulation of funds in support of future operational costs.
o An increase in net position of $1.2 million in the accounts associated with OPEB obligations, comprised of a decrease in Deferred Inflows Related to OPEB of $3.1 million and an increase in Deferred Outflows Related to OPEB of $1.2 million, offset by an increase in Net OPEB Liability of $3.1 million. This reflects the City’s continued efforts to prefund OPEB benefits and reduce the outstanding obligation.
o A decrease in net position of $4.2 million in the accounts associated with pension obligations, comprised of an increase in Net Pension Liability of $27.7 million, offset by an increase in Deferred Outflows Related to Pensions of $10.1 million and a decrease in Deferred Inflows Related to Pensions of $13.4 million. This reflects investment losses suffered by the pension plan operated by CalPERS.
The increase in net position for business-type activities was entirely attributable to an increase in net investment in capital assets of $11.7 million. The increase in net investment was inclusive of asset additions of $22.0 million from large capital projects and asset contributions from development. The $22.0 million increase was partially offset by a net increase in long-term liabilities related to capital assets of $3.9 million. The increase in long-term liabilities included an increase of $13.5 million in State Water Resources (SWR) Loans for Wastewater Fund capital projects; offset by the combination of an increase of $7.6 million in SWR loan disbursements receivable and $2.0 million in principal payments on Water Fund debt. The net investment in capital assets was further reduced by $6.4 million in depreciation, amortization and disposal of capital assets.
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Management’s Discussion and Analysis
At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $140.9 million, an increase of $7.0 million, or 5.2%, in comparison to the prior year balance.
Enterprise Funds reported a net position of $369.9 million, an increase of $11.1 million, or 3.1%, from the prior fiscal year ending balance. The increase was primarily attributable to the Wastewater Fund ($4.7 million), Solid Waste Fund ($3.6 million) and Water Fund ($3.1 million) net position increases. Both the Water and Wastewater Funds had net position increases due to capital asset contributions from development and all three Enterprise Funds had increases in operational income from rate adjustments.
The City’s total long-term obligations increased by $44.2 million from the prior fiscal year-end, mainly due to an increase in Net Pension Liability ($34.8 million), an increase in Net OPEB Liability ($4.1 million) and an increase in SWR loans for Wastewater Fund capital projects ($16.1 million) which were offset by reductions for annual debt principal payments. Internal Service Funds reported a net position of $71.5 million at year-end, which is an increase of $1.9 million from the prior year. This increase was attributable to amounts set aside for future replacement costs, which increased the net position in the following funds: Vehicle and Equipment Replacement Fund, $0.6 million; Facilities Replacement Fund, $1.1 million; and Parks and Landscape and Lighting Assessment District (LLAD) Replacement Fund, $0.7 million. These net position increases were offset by a decrease in the Pension/OPEB Obligation Fund net position of $1.0 million due to activities related to the funding and paydown of long-term liabilities associated with Pension and OPEB benefits, including a $2.6 million discretionary pension liability payment.
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial statements presented herein include all of the activities of the City and its component units using the blended approach as prescribed by government accounting standards. The City’s basic financial statements are comprised of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Basic Financial Statements.
The Government-Wide Financial Statements present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. These statements include all assets of the City, including infrastructure, as well as all liabilities, including long-term debt. Additionally, certain eliminations have occurred in regards to interfund activity, payables and receivables.
Most of the City’s basic services are reported in the Governmental Activities category including the General Government, Public Safety, Community Development, Engineering, Public Works, Community Services and Parks and Recreation. Property and sales taxes, user fees, interest income, franchise fees and state and federal grants finance these activities.
The City charges a fee to customers to cover all or most of the costs of certain services it provides. The City’s Wastewater, Solid Waste, Water, City Rentals and Housing activities are reported in the BusinessType Activities category.
The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about the City as a whole. All of the current year’s revenues and expenses are taken into
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account, regardless of when cash is received or paid. In addition, these two statements report the City’s net position and changes in them. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. Other factors to consider are changes in the City’s property tax base and the condition of the City’s roads. The Government-Wide Financial Statements can be found on pages 34 – 35 of this report.
The Fund Financial Statements provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants or other money.
The City’s Fund Financial Statements are divided into three categories – Governmental Funds, Proprietary Funds and Fiduciary Funds. The Governmental Fund financials are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The Proprietary Fund financials are prepared using the economic resources measurement focus and the accrual basis of accounting. The City’s Fiduciary Funds include Custodial Funds, which have a measurement focus of operational results, Private-Purpose Trust Funds which, in addition to being custodial in nature, also include operational activities under which the principal and income benefit several specific local taxing entities, and an Other Employee Benefit Trust Fund - Variable Annuity Life Insurance Company (VALIC), which includes assets and activities of the City’s single-employer deferred compensation plan held by a third-party administrator. The Fund Financial Statements can be found on pages 36 – 44 of this report.
Most of the City’s basic services are reported in Governmental Funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. The Governmental Fund statements provide a detailed, short-term view of the City’s general government operations and the basic services it provides. Governmental Fund information helps determine whether there are more or fewer financial resources, which can be spent in the near future, to finance the City’s programs. The differences of results in the Governmental Fund Financial Statements, to those in the Government-Wide Financial Statements, are explained in a reconciliation following each Governmental Fund Financial Statement. The Governmental Fund Financial Statements can be found on pages 36 – 39 of this report.
When the City charges customers for services it provides, whether to outside customers or other units of the City, these monies are generally reported in Proprietary Funds. The City maintains two different types of Proprietary Funds – Enterprise Funds and Internal Service Funds. Enterprise Funds are used to report the same functions presented as business-type activities in the Government-Wide Financial Statements.
Examples of Enterprise Funds include the Water and Solid Waste Funds. Internal Service Funds are used to report activities, which provide supplies and services for the City’s other programs, and activities. Two examples are the Information Systems Replacement Fund and the Fleet Maintenance Services Fund. Internal Service Funds are reported with governmental activities in the Government-Wide Financial Statements, found on pages 34 – 35 of this report.
Proprietary Fund Financial Statements provide a more detailed version of the information provided in the Government-Wide Financial Statements. Cash flows for the Enterprise Funds and the Internal Service Funds are provided, as well as combining statements for the individual Internal Service Funds. The Proprietary Fund Financial Statements can be found on pages 40 – 42 of this report.
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Management’s Discussion and Analysis
The City has monies held by trustees for certain amounts held on behalf of developers, property owners, governmental agencies, City employees and others. The City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. These activities are excluded from the Government-Wide Financial Statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in the Fiduciary Funds are used for their intended purposes. The Fiduciary Fund Financial Statements can be found on pages 43 – 44 of this report.
The Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The Notes to the Basic Financial Statements can be found on pages 48 – 114 of this report.
In addition to the basic financial statements, and accompanying notes, this report also presents certain Required Supplementary Information concerning budgetary comparison schedules for the General Fund and other Major Funds and schedules related to the City’s net pension liability, net OPEB liability and contributions. Required Supplementary Information can be found on pages 115 – 123 of this report.
Combining and Individual Fund Statements and Schedules for the Non-Major Governmental Funds and Internal Service Funds can be found on pages 124 – 151 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The net position for the City as a whole increased by $21.8 million or 2.3%, from $963.2 million at June 30, 2022 to $985.0 million at June 30, 2023. The increase is summarized by the change in net position as recorded in the Statement of Activities, which flows through the Statement of Net Position. Net investment in capital assets and capacity rights increased $16.5 million to a balance of $707.1 million as of June 30, 2023. Although the City’s investment in capital assets and capacity rights is reported net of related debt, the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Restricted net position increased by $3.1 million due to increases in amounts restricted for capital projects. The increase in the balance restricted for capital projects was $28.8 million. Offsetting this increase was the reduction in development-related restricted net position balances of $26.1 million, which was the source of the majority of the funding for the projects.
These resources are subject to external restrictions on how they may be used. The restricted net position is $148.4 million as of June 30, 2023. The unrestricted net position balance of $129.5 million may be used to meet the City’s ongoing obligations to citizens and creditors.
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Governmental Activities
The City’s net position from governmental activities increased by $10.7 million, or 1.8%, from $604.4 million to $615.1 million. As discussed above, the increase in net position from governmental activities was due mainly to recognition of ARPA revenue, an increase in net investment in capital assets from developer contributions, an increase in balances in the LLAD Special Revenue Fund for the accumulation of funds in support of future operating costs funds, and an increase in net position from the balances associated with OPEB liabilities. These increases were offset by a decrease in net position from the balances associated with Pension liabilities.
The City issued 76 single-family building permits during the fiscal year. In comparing results to the prior year, the City received $2.0 million, or 11.2%, more in property taxes, reflective of taxable value increases primarily resulting from the transfer of ownership of properties. Property valuation increases were driven by historically low supply levels. Sales tax income had a minor increase of $0.2 million, or 1.4%, from the prior year. The sales tax growth rate was significantly lower than the prior fiscal year as consumer spending patterns returned to a normalized rate, after a spike in the previous year from pandemic pent-up demand and government economic stimulus. Investment income was $8.1 million more than the prior year due to income from higher interest rates and in comparison to the prior year’s historically large unfavorable fair market value adjustment. Capital Grants and Contributions decreased by $16.9 million due to reduced development contributions and reduced Parks and Trails Development Impact Fees revenues.
Expenses increased by $14.8 million or 18.6% from the prior fiscal year. There was an anomalous expenditure in the prior fiscal year, the transfer of $7.0 million from the Fire Development Impact Fee Fund to the East Contra Costa Fire Protection District (ECCFPD). After the transfer, the Fire Development Impact Fee Fund was closed. Excluding this anomalous expenditure, expenditures increased $21.8 million or 29.6% from the prior fiscal year. This increase was primarily due to an increase in the recognition of pension expense of $17.4 million reflecting investment losses suffered by the pension plan operated by CalPERS. In addition, expenditures increased for pavement management program costs and for public safety services as Police Department vacancies were filled.
2023 2022 2023 2022 2023 2022
Current Assets 199,409,399 $ 198,358,620 $ 141,460,743 $ 133,659,771 $ 340,870,142 $ 332,018,391 $ Capital Assets 508,198,493 507,292,391 334,705,440 319,048,671 842,903,933 826,341,062 Other Non-Current Assets 19,393,684 20,600,526 771,314 705,367 20,164,998 21,305,893 Total Assets 726,251,537 727,001,576 476,937,497 453,413,809 1,203,939,073 1,179,665,346 Deferred Outflows of Resources 28,380,713 17,095,624 12,228,019 9,476,054 40,608,732 26,571,678 Total Deferred Outflows of Resources 17,095,624 28,380,713 12,228,019 9,476,054 40,608,732 26,571,678 Current Liabilities 15,040,318 21,805,337 10,050,754 10,312,183 25,091,072 32,117,520 Long-Term Liabilities Outstanding 115,878,342 91,058,788 107,044,208 86,013,792 222,922,550 177,072,580 Total Liabilities 112,864,125 130,918,660 117,094,962 96,325,975 248,013,622 209,190,100 Deferred Inflows of Resources 9,299,004 26,008,808 2,193,759 7,800,023 11,492,763 33,808,831 Total Deferred Inflows of Resources 26,008,808 9,299,004 2,193,759 7,800,023 11,492,763 33,808,831 Net Investment in Capital Assets
and Capacity Rights 450,695,117 445,827,339 256,399,994 244,726,467 707,095,111 690,553,806 Restricted 104,306,441 98,666,260 44,156,526 46,692,198 148,462,967 145,358,458 Unrestricted 60,163,067 59,980,629 69,320,275 67,345,200 129,483,342 127,325,829 Total Net Position $ 604,474,228 615,164,625 $ 369,876,795 $ 358,763,865 $ 985,041,420 $ 963,238,093 $ Governmental Activities Business-Type Activities Totals
25 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
Business-Type Activities
The City’s net position from Business-Type activities increased $11.1 million, or 3.1%. As discussed above, net investment in capital assets increased for capital asset additions from large capital projects and development contributions. This was offset by increases in related long-term liabilities, for SWR loans used to fund major capital projects, net of payments on other related long-term debt, depreciation, amortizations and disposals. Revenue from charges for services increased $0.4 million, or 0.6%, over the prior year, mainly due to annual utility rate increases in the Enterprise Funds, offset by decreased water usage by customers during an unseasonably wet winter. Investment income was $5.2 million more than the prior year from higher interest rates and in comparison to the prior year’s unfavorable fair market value adjustment.
Expenses increased by $5.5 million, or 11.0%, from the prior fiscal year due to personnel cost increases, an increase in recognized pension and OPEB expense, and increased materials, supplies and services costs due to inflation. Overall, the unrestricted net position was $69.3 million at the fiscal year-end.
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for Services 16,649,594 $ 17,353,018 $ 61,433,270 $ 61,057,275 $ 78,082,864 $ 78,410,293 $ Operating Grants and Contributions 34,425,385 25,304,745 239,312 1,417,564 34,664,697 26,722,309 Capital Grants and Contributions 11,875,300 28,780,866 3,609,350 14,422,134 15,484,650 43,203,000 General Revenues:
Taxes:
Property Taxes 19,631,984 17,662,589 - - 19,631,984 17,662,589 Sales Tax 11,191,139 11,033,446 - - 11,191,139 11,033,446 Franchise Fees 1,649,986 1,581,396 - - 1,649,986 1,581,396 Real Property Transfer Tax 464,723 794,244 - - 464,723 794,244 Transient Occupancy Tax 688,606 657,874 - - 688,606 657,874 Motor Vehicle Taxes 5,969,216 5,480,504 - - 5,969,216 5,480,504 Investment Earnings 1,887,705 (6,200,352) 1,174,233 (3,977,615) 3,061,938 (10,177,967) Gain/Loss on Disposal of Real Property 267,927 - - - 267,927 - Miscellaneous 417,729 458,050 - - 417,729 458,050
Total Revenues 102,906,380 105,119,294 66,456,165 72,919,358 171,575,459 175,825,738 Expenses:
General Government 16,811,978 12,640,259 - - 16,811,978 12,640,259 Public Safety 31,823,344 23,093,796 - - 31,823,344 23,093,796 Community Development 6,142,789 4,652,217 - - 6,142,789 4,652,217 Engineering 3,314,324 2,764,684 - - 3,314,324 2,764,684 Public Works 8,734,183 7,369,216 - - 8,734,183 7,369,216 Parks and Recreation 17,326,837 19,241,106 - - 17,326,837 19,241,106 Community Services 8,161,482 7,862,198 - - 8,161,482 7,862,198 Interest on Long-Term Debt 1,828,523 1,745,437 - - 1,828,523 1,745,437 Wastewater - - 13,800,911 11,516,452 13,800,911 11,516,452 Solid Waste - - 14,670,911 13,547,713 14,670,911 13,547,713 Water - - 26,208,986 24,126,086 26,208,986 24,126,086
City Rentals - - 102,045 142,191 102,045 142,191
Housing - - 845,819 796,823 845,819 796,823
Total Expenses 79,368,913 94,143,460 55,628,672 50,129,265 149,772,132 129,498,178 Change in Net Position Before Transfers 10,975,834 23,537,467 10,827,493 22,790,093 21,803,327 46,327,560 Transfers (285,437) (1,225,585) 285,437 1,225,585 - -
Change in Net Position 10,690,397 22,311,882 11,112,930 24,015,678 21,803,327 46,327,560 Net Position 7/1 604,474,228 582,162,346 358,763,865 334,748,187 963,238,093 916,910,533 Net Position 6/30 615,164,625 $ 604,474,228 $ 369,876,795 $ 358,763,865 $ 985,041,420 $ 963,238,093 $ Governmental Activities Business-Type Activities Total Primary Government
26 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
Governmental Activities
The cost of all Governmental activities this year was $94.2 million. Net expenses, as shown in the Statement of Activities and Changes in Net Position found on page 35, were $31.2 million. A portion of the cost for these activities was paid either by those who directly benefited from the programs ($16.7 million), by other governments and organizations that subsidized certain programs with operating grants and contributions ($34.4 million), or capital grants and contributions ($11.9 million). Overall, the City’s governmental program revenues were $63.0 million.
Total resources available during the year to finance governmental operations were $709.3 million consisting of net position at July 1, 2022 of $604.4 million, program revenues of $63.0 million and general revenues and transfers of $41.9 million. Total governmental activities expenses during the year were $94.2 million, thus net position increased by $10.7 million to $615.1 million.
27 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
Business-Type Activities
The cost of all Business-Type activities this year was $55.6 million. As shown in the Statement of Activities and Changes in Net Position, found on page 35, the amounts paid by users of the services were $61.4 million. Capital grants and contributions totaled $3.6 million, operating grants and contributions were $0.2 million, and investment earnings were $1.2 million.
Total resources available during the year to finance Business-Type activities were $425.5 million, consisting of net position at July 1, 2022 of $358.8 million, charges for services of $61.4 million, contributions of $3.8 million, investment earnings of $1.2 million and other general revenues and net transfers of $0.3 million.
Total Business-Type activities during the year were $55.6 million, thus net position increased by $11.1 million to $369.9 million.
(1) Revenues include contributions from development impact fees and developer dedicated infrastructure. (2) Loan principal payments are excluded from Wastewater and Water. (3) City Rentals did not have program revenues in FY 2022/23, as the assets were sold. This fund is projected to be closed in FY 2023/24. (1) (1)
28 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City’s General Fund had a year-end fund balance of $31.8 million, an increase of $0.3 million compared to the prior year. The increase in fund balance is after the effect of transfers to the Pension/OPEB Obligation fund of $1.0 million, representing the unassigned General Fund balance in excess of the 30% of annual operating appropriations and transfers out set by budget policy. The City’s two largest revenue sources, Property Tax and Sales Tax, had 11.2% and 1.4% increases, respectively, over prior year. Property Tax revenues increased from a 2% CPI increase on all classes of property. This increase was combined with valuation increases from new development and the transfer of ownership of properties, both impacted by an increase in demand for housing and historically low supply levels. Fund balance increased by $6.9 million due to a transfer from the ARPA Fund used in support of safety salaries and decreased by $6.9 million due to a transfer out of funding for the Sand Creek Sports Complex project. The General Fund received onetime revenue in the amount of $1.6 million in proceeds from the sale of property, which were also transferred out to the Sand Creek Sports Complex project. General Fund expenditures were up 6.8% from prior year primarily due to inflationary increases mainly in supplies and services.
The LLAD Fund, which is reported as a Special Revenue Fund, had an increase in fund balance of $1.5 million.
This increase was due to planned accumulation of funds in support of future operational costs.
The Citywide Park Assessment District, which is reported as a Special Revenue Fund, had an increase in fund balance of $1.3 million. This increase was due to assessment revenue, and transfers in from LLADs, exceeding expenditures to increase the reserve balance in the district.
The Parks and Trails Development Impact Fee Fund, which is reported as a Special Revenue Fund, had a fund balance decrease of $6.2 million. This decrease was due to transfers out for funding of the Sand Creek Sports Complex project.
The Roadway Improvements Fund, which is reported as a Capital Project Fund, had a decrease in fund balance of $2.1 million. This decrease was primarily due to expenditures related to the Pavement Management Program, Sand Creek Road Extension and Brentwood Various Streets and Roads Preservation projects, partially offset by project funding transfers.
The Community Facilities Improvements Fund, which is reported as a Capital Project Fund, had an increase in fund balance of $2.4 million. This increase was primarily due to transfers in for funding the Citywide Access Control System Upgrade, Sound Wall, City Facility Audiovisual System Upgrade and Parking Garage Security and Safety Enhancements projects.
The Parks and Trails Improvements Fund, which is reported as a Capital Project Fund, had an increase in fund balance of $12.0 million. This increase was primarily due to transfers in funding the Sand Creek Sports Complex project.
The Capital Improvement Financing Program 2005-1 Fund, which is reported as a Capital Project Fund, had a decrease in fund balance of $1.1 million due to a payment of acquisition funds to a developer.
The Wastewater Fund, which is reported as an Enterprise Fund, had an increase in net position of $4.7 million. This increase was primarily due to increases in operational income from rate adjustments in
29 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
anticipation of increasing costs from expansion of the treatment plant along with contributions from acceptances of developer dedicated assets.
The Solid Waste Fund, which is reported as an Enterprise Fund, had an increase in net position of $3.6 million. This increase was primarily due to increases in operational income from rate adjustments in anticipation of increasing costs arising from new Organics waste laws and a significant planned capital project.
The Water Fund, which is reported as an Enterprise Fund, had an increase in net position of $3.1 million.
This increase was primarily due to contributions from acceptances of developer dedicated assets.
GENERAL FUND BUDGETARY HIGHLIGHTS
Comparing the FY 2022/23 original budget (adopted June 2022) General Fund expenditures and transfers out in the amount of $73,207,736, to the final budget amount of $80,445,047, there was an increase in budgeted expenditures and transfers out of $7,237,311. The causes for these increases are summarized below.
During the fiscal year, the total revenues and transfers in for the General Fund were $75,432,658, which was $5,607,068 more than budgeted. The total expenditures and transfers out for the General Fund were $75,184,202, which was $5,234,437 less than budgeted. The expenditures and transfer out figures include the year-end transfer of $970,582 to the Pension/OPEB Obligation Fund, which represented General Fund resources above the 30% appropriation reserve set by City Council Policy. From an operational standpoint, General Fund expenses and transfers out totaled $65,619,555, or $6,446,094 less than budgeted.
Revenues and transfers in were over budget due primarily to a transfer of $6.9 million from the ARPA Fund used in support of safety salaries. This positive budget variance was offset by a $1.1 million transfer in which was included in the original budget to balance General Fund revenues with expenditures but was not required. Actual property tax revenues were $0.5 million higher than budget due to property valuation increases driven by an increased demand for housing and historically low supply levels. Development revenue came in $0.5 million over budget, due primarily to improvements to existing development, such as accessory dwelling units and solar permitting. Offsetting these results, investment income posted a negative variance from budget of $0.1 million, after the impacts of the negative fair value adjustment. The fair value adjustment was due to the continuation of Federal Reserve increases in interest rates during the fiscal year to address high inflation. In addition, lingering impacts of the pandemic continued to affect activity-based revenues during the fiscal year, resulting in fees and other revenues being $0.2 million under budget.
On the expenditure side, operational costs were $6.5 million under budget, due mainly to personnel savings from increased vacancy rates. Supplies and services expenses were under budgetary pressure from supply chain issues and inflation, however the City continued to operate efficiently, reducing costs wherever possible resulting in some additional budget savings.
Supplemental changes to the FY 2022/23 General Fund expenditures and transfers out budget were:
Increase of $7,032,158 for project funding transfers to the Parks and Trails Improvements Capital Project Fund, primarily for the funding of the Sand Creek Sports Complex
30 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
Decrease of $479,711 for Strategic Initiative budgets not expended during the fiscal year to be carried over to FY 2023/24
Increase of $371,993 in Parks and Recreation expenditures for increases in program participation costs, tree chipper, utilities, fuel and legal costs
Increase of $169,845 in Police Department and Dispatch for increased utility and fuel costs Increase of $136,125 in Human Resources Department contractual services for increased costs of a Classification and Compensation Study
Increase of $130,042 in personnel costs due to negotiated labor cost increases and authorization of additional staff, offset by a reduction in personnel costs of $238,309 due to lower than planned annual pension and Workers Compensation payments
Increase of $46,491 in Community Services contributions Increase of $25,000 in City Manager Department costs for election ordinance enforcement Increase of $22,569 in Public Works for contractual services and increased fuel costs Increase of $12,000 in Non-Departmental costs for increased fuel costs Increase of $9,108 in Community Development for increased fuel costs
CAPITAL ASSETS AND LONG-TERM OBLIGATIONS
Capital Assets
The capital assets of the City are used in the performance of the City’s functions. At June 30, 2023, capital assets, net of accumulated amortization and depreciation, of the Governmental activities totaled $508.2 million. Capital assets, net of accumulated amortization and depreciation, of the Business-Type activities totaled $334.7 million. Depreciation and amortization on capital assets is recognized in the GovernmentWide financial statements. Refer to Note #5 of this report for detailed information regarding capital assets.
The City has elected to use the depreciation and amortization method for infrastructure reporting.
31 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
Long-Term Obligations
Debt, considered a liability of Governmental Activities, increased during the fiscal year by $25.0 million.
Included in this amount was an increase in net OPEB liability of $3.1 million and an increase in net pension liability of $27.7 million, offset by a $5.7 million decrease due to annual debt service payments on outstanding notes and bonds payable and a decrease in accumulated compensated absences of $0.1 million. The increase in pension and OPEB related liabilities was primarily due to significant investment losses. Debt, considered a liability of Business-Type Activities, increased by $19.3 million during the fiscal year. During the year, increases to notes payable totaled $16.1 million due to SWR draws for Wastewater projects. Additionally, net OPEB liability increased by $1.0 million and net pension liability increased by $7.1 million. This increase was offset by a $4.9 million decrease due to annual debt service payments on outstanding notes and bonds payable. Per capita debt outstanding (excluding pension, OPEB and accumulated compensated absences obligations) increased from $2,297 to $2,379 compared to the prior fiscal year.
Detailed information regarding long-term obligation activity can be found in Note #6 in this report.
Accumulated
Original Depreciation Book
Cost and Amortization Value
Capital Assets – Governmental:
Intangible Assets $ 1,747,764 6,258,156 $ 4,510,392 $
Land 38,801,779 - 38,801,779
Buildings 72,197,665 15,710,816 56,486,849
Infrastructure 504,464,160 142,548,453 361,915,707
Machinery and Equipment 13,915,104 7,486,235 6,428,869
Vehicles 19,635,043 12,171,754 7,463,289
Land Improvements 34,522,556 9,226,525 25,296,031
Work in Progress – CIP and Infrastructure 7,295,577 - 7,295,577 Total Capital Assets – Governmental $ 188,891,547 697,090,040 $ 508,198,493 $ Capital Assets – Business-Type:
Intangible Assets $ 5,861,763 18,950,632 $ 13,088,869 $ Land 2,661,597 - 2,661,597
Buildings 30,763,464 10,075,731 20,687,733
Infrastructure 302,688,444 73,374,861 229,313,583
Machinery and Equipment 8,774,148 2,901,561 5,872,587
Land Improvements 11,046,659 3,957,899 7,088,760
Work in Progress – CIP and Infrastructure 55,992,311 - 55,992,311 Total Capital Assets – Business-Type $ 96,171,815 430,877,255 $ 334,705,440 $
32 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The key assumptions in the General Fund revenue budget forecast for FY 2023/24 are as follows:
A continued slowdown in residential development activity was projected, with 50 new single-family and zero multi-family building permits included in the budget. Property tax assessed valuations were projected to increase by 5.4%. The recently announced assessed valuation for FY 2023/24 of 5.5% was slightly higher than the adopted budget assumption. Sales tax revenues were projected to increase by 3.5% for FY 2023/24 as consumer spending patterns return to historic norms and economic conditions remain challenging from persistently high inflation. This assumption is supported by the City’s sales tax consultant projections. Interest rates were expected to level off and result in continued moderate levels of investment income, however, since the budget development interest rates have continued to rise and are expected to remain elevated for several years.
Parks and Recreation program revenues have been budgeted at consistent levels with FY 2022/23 with minor increases for CPI and population increases.
Outside of declines during the COVID-19 pandemic, in recent years the City experienced increasing revenues as development activity regularly exceeded expectations. While pandemic-related government stimulus provided positive revenue growth, savings accumulated by consumers is being exhausted by inflationary increases in both goods and services and the cost of borrowing. Higher interest rates are having a cooling effect on the housing market and development, which cascading impacts resulting in slower growth in property related revenues in the upcoming fiscal years. Sales tax growth is also expected to be hampered by these same factors.
Balance Incurred or Satisfied or Balance
July 1, 2022 Issued Matured June 30, 2023
Governmental Activities:
Bonds Payable 61,465,052 $ 297,313 $ (1) $ 57,503,376 4,258,989 $ Notes Payable 6,063,014 - 1,731,800 4,331,214
Net OPEB Liability 16,933,404 5,854,083 2,770,593 20,016,894 (2) Net Pension Liability 11,466,587 37,696,891 9,991,463 39,172,015 Accumulated Compensated Absences 2,180,489 2,112,553 2,253,843 2,039,199 Total Governmental Activities $ 45,960,840 98,108,546 $ 21,006,688 $ 123,062,698 $ Business-Type Activities:
Bonds Payable 38,358,479 $ - $ 2,202,092 $ 36,156,387 $ Notes Payable and Other 41,624,435 16,148,774 2,683,151 55,090,058 Net OPEB Liability 6,999,660 1,980,613 969,455 8,010,818 Net Pension Liability 2,950,688 9,349,774 2,285,531 10,014,931 Accumulated Compensated Absences 678,439 705,423 753,381 630,481 Total Business-Type Activities $ 28,184,584 90,611,701 $ 8,893,610 $ 109,902,675 $ (1) Includes accreted interest
(2) OPEB Liability and Pension Liability are typically liquidated by the General Fund, Citywide Park Assessment District Fund, Fleet Maintenance Fund and Information Services Fund
33 2022/23 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
Population increases are expected to be less than 1% per year over the next several years with residential development expected to be at a slow pace as the City nears buildout and increasing mortgage interest rates slow demand for new homes.
The following key budget factors were included in the FY 2023/24 expenditure budget:
Continuation of the City’s pre-funding strategy for OPEB, in which the City is funding 85% of the Actuarial Determined Contribution (ADC) annually before converting to a level percentage of payroll funding to achieve 100% funding.
Expenditures levels are budgeted to accommodate inflationary increases for the next fiscal year. Expenditures were budgeted to achieve the objectives of the City’s 2022/23 – 2023/24 Strategic Plan and costs of authorized new positions.
The budget maintains the required General Fund reserve of 30% of operating expenditures and transfers.
In the long-term, expenditures are expected to increase for personnel-related costs. The City has taken several measures to help mitigate future personnel cost increases, including multiple tier levels for pension and retiree medical benefits, a pension pay down policy and a policy to prefund OPEB. However, additional pension and OPEB contributions will be required in the intermediate-term to offset significant investment losses experienced by CalPERS during FY 2021/22. Inflationary pressures in the labor market may impact the City’s expenditure growth when successor labor contracts are negotiated to replace the current contracts which expire on June 30, 2024. The City’s Ten-Year General Fund Fiscal Model (“Fiscal Model”) reflects increases in required funding for labor inflation and a portion of the additional pension and OPEB costs. Other future cost increases included in the City’s long-term forecast are higher short-term inflation impacts on supplies, services and capital outlay, increased replacement needs as the City’s facilities and infrastructure age and increased operational costs for planned future amenities.
Population growth in recent years combined with the potential for persistent inflation, places increasing pressure on the costs for service. The City has addressed demand for increased service levels by adding twenty-four new positions to the General Fund in the last five fiscal years. These new positions include three Community Service Officers, two Police Dispatchers, a Police Public Information Officer and five Police Officers for a new Police Department 5th Beat.
Although the long-term impacts of potential persistent high inflation and rising interest rates could create significant economic challenges, the City continues to budget conservatively, based on current economic information, in both the 2023/24 Operating Budget and Fiscal Model. The City will continue to update the Fiscal Model as new information becomes available and report the results on a regular basis to the City Council. The City is in position to meet future fiscal challenges because of strong fiscal policy and leadership by the City Council who have made fiscal sustainability a priority.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it manages. If you have questions about this report, or need any additional financial information, contact the Finance and Information Systems Department, located at 150 City Park Way, Brentwood, California 94513, either by phone, (925) 516-5460, or e-mail [email protected].
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:
Cash and Investments 187,792,511 $ 124,155,724 $ 311,948,235 $ Restricted Cash and Investments 3,966,600 1,923,649 5,890,249 Receivables, Net of Allowance for Doubtful Accounts 3,710,613 15,310,831 19,021,444 Leases Receivable 2,507,165 - 2,507,165
Inventories 96,267 - 96,267
Prepaids 823,893 70,539 894,432
Land Held for Resale 512,350 - 512,350
Total Current Assets 141,460,743 199,409,399 340,870,142 Non-Current Assets:
Long-Term Notes and Loans Receivable 19,393,684 771,314 20,164,998 Capital Assets:
Land and Work In Progress 46,097,356 58,653,908 104,751,264 Depreciable, Net of Accumulated
Depreciation and Amortization 462,101,137 276,051,532 738,152,669 Total Non-Current Assets 335,476,754 527,592,177 863,068,931 Total Assets 476,937,497 727,001,576 1,203,939,073
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 5,306,915 - 5,306,915
Related to OPEB 3,955,832 1,338,375 5,294,207
Related to Pensions 24,424,881 5,582,729 30,007,610
Total Deferred Outflows of Resources 12,228,019 28,380,713 40,608,732
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Liabilities 4,487,452 7,054,431 11,541,883 Unearned Revenue 477,038 - 477,038
Deposits Held 2,891,472 137,856 3,029,328
Long-Term Liabilities Due Within One Year 7,184,356 2,858,467 10,042,823 Total Current Liabilities 10,050,754 15,040,318 25,091,072 Non-Current Liabilities Due in More Than One Year:
Bonds Payable 53,369,477 34,106,387 87,475,864
Notes Payable and Other 2,504,276 54,659,880 57,164,156 Net OPEB Liability 8,010,818 20,016,894 28,027,712
Net Pension Liability 10,014,931 39,172,015 49,186,946
Compensated Absences Payable 815,680 252,192 1,067,872
Total Non-Current Liabilities 115,878,342 107,044,208 222,922,550 Total Liabilities 117,094,962 130,918,660 248,013,622
DEFERRED INFLOWS OF RESOURCES
Related to OPEB 4,865,700 1,727,976 6,593,676
Related to Pensions 2,066,373 465,783 2,532,156
Related to Leases 2,366,931 - 2,366,931
Total Deferred Inflows of Resources 2,193,759 9,299,004 11,492,763
NET POSITION
Net Investment in Capital Assets and Capacity Rights 450,695,117 256,399,994 707,095,111 Restricted for:
Nonexpendable - Riparian Site Mitigation Endowment 80,000 - 80,000 Expendable:
Capital Projects 44,413,856 34,300,244 78,714,100
Debt Service 21,164,576 4 21,164,580
Housing 527,800 6,360,174 6,887,974
Streets and Roadways 18,447,552 - 18,447,552
Landscape and Lighting Assessment Districts 8,749,925 - 8,749,925 Agricultural/Farmland Mitigation 3,425,107 - 3,425,107
Public Art 3,776,198 - 3,776,198
Development Impact Fee Program 1,020,065 3,476,553 4,496,618 Other Restricted Purposes 2,561,128 19,551 2,580,679
Unrestricted 60,303,301 69,320,275 129,623,576
Total Net Position $ 369,876,795 615,164,625 $ 985,041,420 $
PRIMARY GOVERNMENT
June 30, 2023
Statement of Net Position
City of Brentwood
34 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 402 of 614 Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions Total
Governmental
Activities
Business-Type
Activities Total
Primary Government:
Governmental Activities
General Government 16,811,978 $ 9,952,024 $ 4,000,314 $ 2,104,959 $ 16,057,297 $ (754,681) $ - $ (754,681) $ Public Safety 31,823,344 533,732 11,107,938 294,729 11,936,399 (19,886,945) - (19,886,945) Community Development 6,142,789 2,448,537 - - 2,448,537 (3,694,252) - (3,694,252) Engineering 3,314,324 1,987,664 - - 1,987,664 (1,326,660) - (1,326,660) Public Works 8,734,183 - 5,594,309 6,274,741 11,869,050 3,134,867 - 3,134,867 Parks and Recreation 17,326,837 1,727,637 3,602,489 3,200,871 8,530,997 (8,795,840) - (8,795,840) Community Services 8,161,482 - 10,120,335 - 10,120,335 1,958,853 - 1,958,853 Interest on Long-Term Debt 1,828,523 - - - - (1,828,523) - (1,828,523) Total Governmental Activities 16,649,594 94,143,460 34,425,385 11,875,300 62,950,279 (31,193,181) - (31,193,181) Business-Type Activities
Wastewater 16,241,628 13,800,911 - 1,128,901 17,370,529 - 3,569,618 3,569,618 Solid Waste 14,670,911 18,209,025 - - 18,209,025 - 3,538,114 3,538,114 Water 26,637,293 26,208,986 - 2,480,449 29,117,742 - 2,908,756 2,908,756 City Rentals 102,045 - - - - - (102,045) (102,045)
Housing 845,819 345,324 239,312 - 584,636 - (261,183) (261,183) Total Business-Type Activities 61,433,270 55,628,672 239,312 3,609,350 65,281,932 - 9,653,260 9,653,260 Total Primary Government $ 78,082,864 149,772,132 $ 34,664,697 $ 15,484,650 $ 128,232,211 $ (31,193,181) $ 9,653,260 $ (21,539,921) $ General Revenues:
Taxes:
Property Taxes 19,631,984 $ $ - $ 19,631,984
Sales Tax 11,191,139 - 11,191,139
Franchise Fees 1,649,986 - 1,649,986
Real Property Transfer Tax 464,723 - 464,723
Transient Occupancy Tax 688,606 - 688,606
Motor Vehicle Taxes, In-Lieu, Unrestricted 5,969,216 - 5,969,216 Gain on Sale of Real Property - 267,927 267,927
Investment Earnings 1,887,705 1,174,233 3,061,938
Miscellaneous 417,729 - 417,729
Transfers (285,437) 285,437 -
Total General Revenues and Transfers 1,459,670 41,883,578 43,343,248 Change in Net Position 11,112,930 10,690,397 21,803,327 Net Position - Beginning of Year 358,763,865 604,474,228 963,238,093 Net Position - End of Year $ 369,876,795 615,164,625 $ 985,041,420 $ For Year Ended June 30, 2023
Statement of Activities and Changes in Net Position
City of Brentwood
Primary Government
Program Revenues Net Revenues (Expenses) and Changes in Net Position
35 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 403 of 614 Special Revenue Funds
Landscape Other Total
General and Lighting Governmental Governmental
Fund Assessment Districts Funds Funds
ASSETS
Current Assets:
Cash and Investments 34,333,992 $ 9,924,277 $ 76,899,628 $ 121,157,897 $ Restricted Cash and Investments - - 3,966,600 3,966,600 Receivables 3,685,744 1,823 20,473,940 24,161,507
Prepaids 123,488 - 8,584 132,072
Leases Receivable 2,507,165 - - 2,507,165
Due from Other Funds - - 332,152 332,152
Land Held for Resale - - 512,350 512,350
Total Assets $ 9,926,100 40,650,389 $ 102,193,254 $ 152,769,743 $
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Liabilities 2, $ 525,947 051,763 $ 1,473,457 $ 4,051,167 $ Due to Other Funds - - 332,152 332,152
Unearned Revenue 477,038 - - 477,038
Deposits Held 2,891,472 - - 2,891,472
Interfund Advance Payable - 72,248 - 72,248
Total Current Liabilities 598,195 5,420,273 1,805,609 7,824,077 Non-Current Liabilities Due in More Than One Year:
Interfund Advance Payable - 577,980 - 577,980
Total Non-Current Liabilities - 577,980 - 577,980
Total Liabilities 1,176,175 5,420,273 1,805,609 8,402,057
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Accounts Receivable 1,077,265 - - 1,077,265 Related to Leases 2,366,931 - - 2,366,931
Total Deferred Inflows of Resources - 3,444,196 - 3,444,196
FUND BALANCES
Nonspendable 263,722 - 88,584 352,306
Restricted - 8,749,925 95,526,759 104,276,684
Committed 9,455,685 - 5,102,910 14,558,595
Unassigned 22,066,513 - (330,608) 21,735,905
Total Fund Balances 8,749,925 31,785,920 100,387,645 140,923,490 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 9,926,100 40,650,389 $ 102,193,254 $ 152,769,743 $ City of Brentwood
Balance Sheet
June 30, 2023
Governmental Funds
36 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 404 of 614 Total Fund Balances - Total Governmental Funds $ 140,923,490 Amounts reported for Governmental Activities in the Statement of Net Position are different because:
Capital assets used in Governmental Activities are not current financial resources; therefore, they are not reported in the Governmental Funds Balance Sheet. 500,218,811
Internal Service Funds are used by management to charge costs of certain activities, such as data processing and fleet management, to individual funds. The assets and liabilities of the Internal Service Funds are included in Governmental Activities in the Government-Wide Statement of Net Position. 71,468,242 Governmental Funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities and Changes in Net Position. (4,238,522) Long-term liabilities and deferred outflows/inflows of resources are not due and payable in the current period; therefore, they are not reported in the Governmental Funds Balance Sheet.
Bonds (53,264,854)
Notes Payable (4,331,214)
Net OPEB Liabilities (17,465,738)
Deferred Outflows of Resources Related to OPEB 3,584,708 Deferred Inflows of Resources Related to OPEB (4,374,871) Net Pension Liabilities (36,393,922)
Deferred Outflows of Resources Related to Pensions 22,857,494 Deferred Inflows of Resources Related to Pensions (1,937,167) Compensated Absences (1,845,462)
Accrued Liabilities (36,370)
Total Net Position of Governmental Activities $ 615,164,625 City of Brentwood
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
37 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 405 of 614 Special Revenue Fund
Landscape Other Total
General and Lighting Governmental Governmental
Fund Assessment Districts Funds Funds
REVENUES
Taxes 31,512,493 $ - $ 8,575,436 $ 40,087,929 $
Licenses 783,083 - 195,771 978,854
Permits and Fines 4,676,519 - - 4,676,519
Uses of Money and Property 767,865 82,806 733,559 1,584,230 Intergovernmental 6,040,426 - 13,497,792 19,538,218
Franchises 1,649,986 - - 1,649,986
Charges for Other Services 306,005 - - 306,005
Charges to Other Funds 8,689,235 - - 8,689,235
Fees and Other Revenues 1,981,097 10,120,335 7,210,442 19,311,874 Total Revenues 10,203,141 56,406,709 30,213,000 96,822,850
EXPENDITURES
Current:
General Government 8,895,392 - 5,047,120 13,942,512
Public Safety 28,746,187 - 152,528 28,898,715
Community Development 6,228,281 - 308,308 6,536,589
Engineering 3,593,515 - - 3,593,515
Public Works 4,106,366 - - 4,106,366
Parks and Recreation 7,857,283 - 7,013,839 14,871,122
Community Services 1,005,141 7,185,356 29,691 8,220,188 Capital Outlay 39,651 - 3,758,050 3,797,701
Debt Service:
Principal 1,731,800 - 4,009,665 5,741,465
Interest and Fiscal Charges - - 1,780,534 1,780,534
Total Expenditures 7,185,356 62,203,616 22,099,735 91,488,707 REVENUES OVER (UNDER) EXPENDITURES 3,017,785 (5,796,907) 8,113,265 5,334,143
OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Property - 1,600,000 - 1,600,000
Transfers In 17,425,949 2,204,177 28,772,057 48,402,183 Transfers Out (12,980,586) (3,693,758) (31,645,199) (48,319,543) Total Other Financing Sources (Uses) (1,489,581) 6,045,363 (2,873,142) 1,682,640 NET CHANGE IN FUND BALANCES 1,528,204 248,456 5,240,123 7,016,783 Fund Balance, Beginning of Year 7,221,721 31,537,464 95,147,522 133,906,707 Fund Balance, End of Year $ 8,749,925 31,785,920 $ 100,387,645 $ 140,923,490 $ City of Brentwood
For Year Ended June 30, 2023
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
38 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 406 of 614 Net Change in Fund Balances - Total Governmental Funds $ 7,016,783 Amounts reported for governmental activities in the Statement of Activities and Changes in Net Position are different because:
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position, the cost of those assets is allocated over their estimated useful lives as depreciation expense. The amount shown represents the capital assets recorded in the current period. 3,797,701 Depreciation expense on capital assets is reported in the Government-Wide Statement of Activities and Changes in Net Position, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in Governmental Funds. (10,565,557)
The net effect of various miscellaneous transactions involving Capital Assets (e.g. sales, trade-ins and contributions) is to increase net position. 6,009,222
To record the net change in compensated absences in the Statement of Activities and Changes in Net Position. 117,286 Bond proceeds provide current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond principal and other long-term liabilities is an expenditure in Governmental Funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.
This amount represents long-term debt principal repayments 5,741,465 This amount represents the increase in accrued liabilities (6,233) This amount represents the increase in Net OPEB Liability (2,791,510) This amount represents the increase in Deferred Outflows related to OPEB 1,071,346 This amount represents the decrease in Deferred Inflows related to OPEB 2,792,971 This amount represents the increase in Net Pension Liability (25,787,422) This amount represents the increase in Deferred Outflows related to Pensions 9,357,520 This amount represents the decrease in Deferred Inflows related to Pensions 12,116,882 This amount represents accreted interest (297,313)
This amount represents amortized bond premiums 249,324
Internal Service Funds are used by management to charge the costs of certain activities, such as data processing and fleet management, to individual funds. The net revenue of the Internal Service Funds is reported with Governmental Activities. 1,867,932 Change in Net Position of Governmental Activities $ 10,690,397 City of Brentwood
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities Changes in Net Position For Year Ended June 30, 2023
39 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 407 of 614 Governmental
Activities - Internal
Wastewater Solid Waste Water City Rentals Housing Totals Service Funds ASSETS
Current Assets:
Cash and Investments 55,459,043 $ 17,242,302 $ 43,910,202 $ 235,358 $ 7,308,819 $ 124,155,724 $ 66,634,614 $ Restricted Cash and Investments 1,873,474 - 50,175 - - 1,923,649 - Receivables, Net of Allowance for Doubtful Accounts 9,864,817 2,371,655 3,037,254 40 37,065 15,310,831 20,055 Inventories - - - - - - 96,267
Prepaids 16,388 17,357 36,598 - 196 70,539 691,821
Interfund Advance Receivable - - - - - - 72,248
Total Current Assets 67,213,722 19,631,314 47,034,229 235,398 7,346,080 141,460,743 67,515,005 Non-Current Assets:
Long-Term Notes Receivable - - - - 771,314 771,314 -
Interfund Advance Receivable - - - - - - 577,980
Capital Assets:
Land and Work In Progress 49,542,844 254,420 6,987,648 - 1,868,996 58,653,908 - Depreciable 132,654,977 15,664,487 221,552,211 - 2,351,671 372,223,346 22,788,487 Less: Accumulated Depreciation and Amortization (32,931,103) (2,994,210) (59,597,034) - (649,467) (96,171,814) (14,808,805) Total Capital Assets, Net of Accumulated
Depreciation and Amortization 12,924,697 149,266,718 168,942,825 - 3,571,200 334,705,440 7,979,682 Total Non-Current Assets 149,266,718 12,924,697 168,942,825 - 4,342,514 335,476,754 8,557,662 Total Assets 32,556,011 216,480,440 215,977,054 235,398 11,688,594 476,937,497 76,072,667
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding - - 5,306,915 - - 5,306,915 - Related to OPEB 391,242 457,419 459,537 - 30,177 1,338,375 371,124 Related to Pensions 1,712,472 1,778,281 1,898,154 - 193,822 5,582,729 1,567,387 Total Deferred Outflows of Resources 2,235,700 2,103,714 7,664,606 - 223,999 12,228,019 1,938,511
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Liabilities 3,429,397 899,462 2,716,595 113 8,864 7,054,431 399,915 Deposits Held - 19,551 82,500 - 35,805 137,856 -
Long-Term Debt Due Within One Year 430,178 - 2,050,000 - - 2,480,178 - Compensated Absences Payable 120,682 122,623 123,589 - 11,395 378,289 116,242 Total Current Liabilities 3,980,257 1,041,636 4,972,684 113 56,064 10,050,754 516,157 Non-Current Liabilities Due in More Than One Year:
Bonds Payable - - 34,106,387 - - 34,106,387 -
Notes Payable and Other 54,659,880 - - - - 54,659,880 - Net OPEB Liability 2,045,517 2,826,139 2,922,296 - 216,866 8,010,818 2,551,156 Net Pension Liability 3,079,105 3,185,714 3,398,931 - 351,181 10,014,931 2,778,093 Compensated Absences Payable 80,454 81,748 82,393 - 7,597 252,192 77,495 Total Non-Current Liabilities 59,864,956 6,093,601 40,510,007 - 575,644 107,044,208 5,406,744 Total Liabilities 7,135,237 63,845,213 45,482,691 113 631,708 117,094,962 5,922,901
DEFERRED INFLOWS OF RESOURCES
Related to OPEB 500,263 597,448 594,300 - 35,965 1,727,976 490,829 Related to Pensions 143,206 148,164 158,080 - 16,333 465,783 129,206 Total Deferred Inflows of Resources 745,612 643,469 752,380 - 52,298 2,193,759 620,035
NET POSITION
Net Investment in Capital Assets and Capacity Rights 101,810,744 12,924,697 138,093,353 - 3,571,200 256,399,994 7,979,682 Restricted for:
Capital Projects 16,995,081 - 17,305,163 - - 34,300,244 - Debt Service - - 4 - - 4 -
Special Projects and Programs 3,476,553 19,551 - - 6,360,174 9,856,278 - Unrestricted 31,813,094 13,966,614 22,008,069 235,285 1,297,213 69,320,275 63,488,560 Total Net Position $ 26,910,862 154,095,472 $ 177,406,589 $ 235,285 $ 11,228,587 $ 369,876,795 $ 71,468,242 $ Business-Type Activities - Enterprise Funds
City of Brentwood
Statement of Net Position
Proprietary Funds
June 30, 2023
40 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 408 of 614 Governmental
Activities - Internal
Wastewater Solid Waste Water City Rentals Housing Totals Service Funds Operating Revenues:
Charges for Services 16,057,591 $ 18,129,748 $ 26,491,553 $ - $ 345,324 $ 61,024,216 $ 20,246,858 $ Other Income 184,037 79,277 145,740 - - 409,054 62,038
Total Operating Revenues 18,209,025 16,241,628 26,637,293 - 345,324 61,433,270 20,308,896 Operating Expenses:
Personnel Services 4,462,169 4,874,525 4,862,031 - 466,216 14,664,941 9,186,762 Repairs and Maintenance 280,497 1,410,859 709,722 43,790 97,630 2,542,498 621,998 Materials, Supplies and Services 6,087,911 8,120,389 15,100,836 58,255 234,940 29,602,331 7,209,668 Depreciation and Amortization 2,175,728 265,138 3,979,047 - 47,033 6,466,946 1,679,643 Total Operating Expenses 14,670,911 13,006,305 24,651,636 102,045 845,819 53,276,716 18,698,071 Operating Income (Loss) 3,538,114 3,235,323 1,985,657 (102,045) (500,495) 8,156,554 1,610,825 Non-Operating Revenues (Expenses):
Interest Income 522,736 145,767 418,525 2,273 84,932 1,174,233 624,557 Developer Fees and Credits - - - - 239,312 239,312 -
Interest Expense (794,606) - (1,557,350) - - (2,351,956) - Gain or (Loss) on Disposal of Capital Assets - - - - - - 152,953 Total Non-Operating Revenues (Expenses) 145,767 (271,870) (1,138,825) 2,273 324,244 (938,411) 777,510 Income (Loss) Before Contributions and Transfers 3,683,881 2,963,453 846,832 (99,772) (176,251) 7,218,143 2,388,335 Contributions - Impact Fees and Credits 271,351 - 380,314 - - 651,665 - Capital Asset Contributions 857,550 - 2,100,135 - - 2,957,685 - Capital Assets Contributed from (to) Governmental Activities 3,146 3,145 8,388 - - 14,679 (167,005) Transfers In 1,245,358 24,235 645,877 206,937 - 2,122,407 2,224,345 Transfers Out (645,567) (104,558) (894,587) (206,937) - (1,851,649) (2,577,743) Change in Net Position 3,606,703 4,695,291 3,086,959 (99,772) (176,251) 11,112,930 1,867,932 Net Position, Beginning of Year 23,304,159 149,400,181 174,319,630 335,057 11,404,838 358,763,865 69,600,310 Net Position, End of Year $ 26,910,862 154,095,472 $ 177,406,589 $ 235,285 $ 11,228,587 $ 369,876,795 $ 71,468,242 $ Business-Type Activities - Enterprise Funds
City of Brentwood
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For Year Ended June 30, 2023
41 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 409 of 614 Governmental
Activities - Internal
Wastewater Solid Waste Water City Rentals Housing Totals Service Funds Cash Flows from Operating Activities
Cash Received from Customers/Other Funds 16,072,065 $ 17,946,079 $ 26,686,291 $ 7,956 $ 279,377 $ 60,991,768 $ 20,195,383 $ Cash Payments to Suppliers of Goods and Services (4,911,464) (6,559,723) (14,047,215) (61,162) (252,855) (25,832,419) (7,489,882) Cash Payments to Employees for Services (4,617,355) (5,134,169) (5,120,540) - (477,791) (15,349,855) (9,493,319) Cash Payments for Interfund Services (1,037,293) (2,513,060) (1,148,563) (41,409) (80,675) (4,821,000) (669,666) Other Receipts 184,037 79,277 145,740 - - 409,054 62,038 Net Cash Provided By (Used for) Operating Activities 3,818,404 5,689,990 6,515,713 (94,615) (531,944) 15,397,548 2,604,554 Cash Flows from Non-Capital Financing Activities
Transfers Received 1,245,358 24,235 645,877 206,937 - 2,122,407 2,224,345 Transfers Paid (645,567) (104,558) (894,587) (206,937) - (1,851,649) (2,577,743) Interfund Advance Receivable - - - - - - 72,248
Developer Fees and Credits - - - - 239,312 239,312 -
Net Cash Provided By (Used for) Non-Capital
Financing Activities (80,323) 599,791 (248,710) - 239,312 510,070 (281,150) Cash Flows from Capital and Related Financing Activities Proceeds from Notes Payable 28,360,268 - - - - 28,360,268 - Contributions - Impact Fees and Credits 271,351 - 380,314 - - 651,665 - Interest Paid on Debt (794,605) - (1,557,350) - - (2,351,955) - Principal Paid on Debt (2,683,151) - (1,950,000) - - (4,633,151) - Capital Assets Purchased and Contributed to Governmental Funds - - - - - - (167,005)
Proceeds from Sale of Capital Assets - - - - - - 155,456 Acquisition and Construction of Capital Assets (14,901,479) (234,935) (3,913,235) - - (19,049,649) (3,297,464) Net Cash Provided By (Used for) Capital and
Related Financing Activities (234,935) 10,252,384 (7,040,271) - - 2,977,178 (3,309,013) Cash Flows from Investing Activities
Interest on Investments 525,281 147,049 425,446 2,341 86,000 1,186,117 633,276 Net Cash Provided By Investing Activities 147,049 525,281 425,446 2,341 86,000 1,186,117 633,276
Net Increase (Decrease) in Cash and Cash Equivalents 17,067,446 3,650,195 (347,822) (92,274) (206,632) 20,070,913 (352,333) Cash and Cash Equivalents - Beginning of Year 40,265,071 13,592,107 44,308,199 327,632 7,515,451 106,008,460 66,986,947 Cash and Cash Equivalents - End of Year $ 17,242,302 57,332,517 $ 43,960,377 $ 235,358 $ 7,308,819 $ 126,079,373 $ 66,634,614 $ Reconciliation of Operating Income to Net Cash
Provided By (Used for) Operating Activities:
Operating Income (Loss) 3,235,323 $ 3,538,114 $ 1,985,657 $ (102,045) $ (500,495) $ 8,156,554 $ 1,610,825 $ Adjustments to Reconcile Operating Income to Net Cash
Provided By (Used for) Operating Activities:
Depreciation and Amortization 2,175,728 265,138 3,979,047 - 47,033 6,466,946 1,679,643 Change in Assets, Liabilities and Deferred
Outflows/Inflows of Resources:
Receivables 21,712 (175,827) 209,502 30 (65,947) (10,530) 27,146 Prepaid Items (7,238) (7,972) (14,211) 7,926 (5) (21,500) (89,021) Accounts Payable and Other Payables 419,914 459,162 627,281 (526) (1,972) 1,503,859 (327,882) Net OPEB Liability and Deferred
Outflows/Inflows of Resources related to OPEB (117,087) (136,893) (137,527) - (9,031) (400,538) (111,069) Net Pension Liability and Deferred
Outflows/Inflows of Resources related to Pensions (23,308) (117,962) (91,604) - (3,211) (236,085) (161,084) Compensated Absences Payable (15,054) (4,656) (29,932) - 1,684 (47,958) (24,004) Deposits - (700) (12,500) - - (13,200) -
Net Cash Provided By (Used for) Operating Activities $ 3,818,404 5,689,990 $ 6,515,713 $ (94,615) $ (531,944) $ 15,397,548 $ 2,604,554 $ Noncash Capital Activities:
Capital Asset Contributions 857,550 $ - $ 2,100,137 $ - $ - $ 2,957,687 $ - $ Capital Asset Contributions from Governmental Activities 3,146 3,145 8,388 - - 14,679 - Retirement of Capital Assets - - - - - - (2,503)
Business-Type Activities - Enterprise Funds
City of Brentwood
Statement of Cash Flows
Proprietary Funds
For Year Ended June 30, 2023
42 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 410 of 614 Other Employee
Benefit Trust Fund -
VALIC
Private-Purpose
Trust Fund -
Successor Agency Custodial Funds
ASSETS
Current Assets:
Cash and Investments - $ 2,278,29 $ 10,785,77 6 $ 6
Restricted Cash and Investments - - 3,525,305
Restricted Investments - Mutual Funds 8,811,965 - -
Interest Receivable - 684 1,691
Total Current Assets 8,811,965 2,278,98 14,312,772 0
Non-Current Assets:
Nondepreciable Capital Assets - 1,327,129 -
Total Non-Current Assets - 1,327,129 -
Total Assets 3,606,109 8,811,965 14,312,772
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Liabilities - - 4,180
Due to Local Governments - - 452,761
Long-Term Liabilities Due Within One Year 1,267,632 - - Total Current Liabilities - 1,267,632 456,941
Non-Current Liabilities Due in More Than One Year:
Long-Term Liabilities - 18,126,052 -
Total Non-Current Liabilities - 18,126,052 -
Total Liabilities 19,393,68 - 456,941 4
NET POSITION (DEFICIT)
Restricted for:
Employee Benefits 8,811,965 - -
Individuals and Organizations - - 13,854,403
Other Governments - (15,787,575) 1,428
Total Net Position (Deficit) $ (15,787,575) 8,811,965 $ 13,855,831 $ June 30, 2023
Fiduciary Funds
Statement of Fiduciary Net Position
City of Brentwood
43 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 411 of 614 Other Employee
Benefit Trust Fund -
VALIC
Private-Purpose
Trust Fund -
Successor Agency Custodial Funds
ADDITIONS
Contributions:
Property Taxes - $ 2,636,079 $ - $
Assessments - - 12,949,316
Private Contributions - - 2,065,619
Employer Contributions 41,553 - -
Employee Contributions 328,764 - -
Other 78,322 - -
Total Contributions 2,714,401 370,317 15,014,935
Investment earnings:
Interest 937,389 33,703 178,107
Less Investment Expense - - 4,567
Net Investment Earnings 937,389 33,703 173,540
Total Additions 2,748,104 1,307,706 15,188,475
DEDUCTIONS
Administrative Expenses 7,481 250,000 312,402
Payments to Bondholders - 1,247,031 12,664,588
Other Employee Benefit Payments 27,822 - -
Recipient Payments - - 2,463,435
Total Deductions 1,497,031 35,303 15,440,425
Net Increase (Decrease) in Fiduciary Net Position 1,272,403 1,251,073 (251,950)
NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION
Net Position (Deficit) - Beginning of Year (17,038,648) 7,539,562 14,107,781 Net Position (Deficit) - End of Year $ (15,787,575) 8,811,965 $ 13,855,831 $ For Year Ended June 30, 2023
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
City of Brentwood
44 See Accompanying Notes to the Basic Financial Statements 2022/23 Annual Comprehensive Financial Report Page 412 of 614
45 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
INDEX OF NOTES TO THE BASIC FINANCIAL STATEMENTS
Note #1 – Summary of Significant Accounting Policies ........................................................................................................ 48 A. Description of the Reporting Entity .......................................................................................................................... 48 B. Government-Wide and Fund Financial Statements ............................................................................................ 49 C. Measurement Focus/Basis of Accounting .............................................................................................................. 49 D. Assets, Liabilities, Deferred Inflows/Outflows and Net Position or Fund Balance .................................. 56 i. Use of Restricted/Unrestricted Net Position ............................................................................................. 56 ii. Cash and Investments ........................................................................................................................................ 56 iii. Cash and Cash Equivalents .............................................................................................................................. 56 iv. Prepaid Items and Land Held for Resale .................................................................................................... 56 v. Capital Assets ........................................................................................................................................................ 56 vi. Compensated Absences Payable ................................................................................................................... 57 vii. Property Tax ........................................................................................................................................................... 57 viii. Motor Vehicle Taxes ........................................................................................................................................... 58 ix. New Funds, Closed Funds and Renamed Funds ..................................................................................... 58 x. Deferred Outflows/Inflows of Resources .................................................................................................... 58 xi. OPEB and Pensions ............................................................................................................................................. 59 xii. Fair Value Measurements ................................................................................................................................. 59 xiii. Use of Estimates ................................................................................................................................................... 60 xiv. Leases ......................................................................................................................................................................... 60 xv. Subscription-Based Information Technology Arrangements (SBITAs) ........................................... 61 xvi. New Governmental Accounting Standards Board (GASB) Pronouncements ............................... 62 Note #2 – Stewardship, Compliance and Accountability ...................................................................................................... 64 A. Budgetary Information ................................................................................................................................................... 64 B. Deficit Fund Balance or Net Position ........................................................................................................................ 65 C. Interfund Receivables, Payables and Transfers ..................................................................................................... 65 D. Minimum Fund Balance Policies ................................................................................................................................. 67 E. Fund Balances .................................................................................................................................................................... 67 Note #3 – Cash and Investments .................................................................................................................................................... 69 A. Cash and Deposits ........................................................................................................................................................... 69 B. Investments ......................................................................................................................................................................... 69 C. Investment in Pools ......................................................................................................................................................... 73 D. Cash and Investments with Fiscal Agent ................................................................................................................. 74 Note #4 – Accounts, Lease, Notes and Loans Receivable ..................................................................................................... 75 Note #5 – Capital Assets .................................................................................................................................................................... 80 Note #6 – Long-Term Obligations ................................................................................................................................................. 82 A. Governmental Activities ................................................................................................................................................. 82 i. Bonds ........................................................................................................................................................................ 83 ii. Private Placement and Direct Purchase ...................................................................................................... 84 iii. Notes Payable ....................................................................................................................................................... 86 iv. Net OPEB Liability and Net Pension Liability ............................................................................................ 87 v. Accumulated Compensated Absences ........................................................................................................ 87 B. Business-Type Activities ................................................................................................................................................. 87 i. Bonds ........................................................................................................................................................................ 87 ii. Notes Payable (Direct Placement) and Other ........................................................................................... 88
46 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
Note #7 – Special Assessment Districts (No City Liability) ................................................................................................... 90 Note #8 – Classification of Net Position ...................................................................................................................................... 91 Note #9 – Post-Retirement Health Care Benefits ..................................................................................................................... 91 A. General Information About the City’s Retiree Healthcare Plan ...................................................................... 91 B. Net OPEB Liability ............................................................................................................................................................. 95 C. Changes in Net OPEB Liability ..................................................................................................................................... 95 D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates ...................................................................................................................................................................................... 95 E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ...................................... 96 Note #10 – Defined Benefit Pension Plans ................................................................................................................................. 97 A. Plan Descriptions .............................................................................................................................................................. 97 B. Miscellaneous Plan .......................................................................................................................................................... 97 i. General Information About the Miscellaneous Plan .............................................................................. 97 a. Benefits Provided ..................................................................................................................................... 97 b. Employees Covered ................................................................................................................................ 98 c. Contributions ............................................................................................................................................ 98 ii. Net Pension Liability ........................................................................................................................................... 98 iii. Changes in Net Pension Liability ................................................................................................................... 99 a. Sensitivity of the Net Pension Liability to Changes in the Discount Rate ......................... 99 b. Pension Plan Fiduciary Net Position ................................................................................................ 99 iv. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ......... 100 v. Payable to the Miscellaneous Plan ............................................................................................................ 100 C. Safety Plan ........................................................................................................................................................................ 101 i. General Information About the Safety Plan ........................................................................................... 101 a. Benefits Provided .................................................................................................................................. 101 b. Contributions ......................................................................................................................................... 102 ii. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ................................................................................................................................................................ 102 a. Sensitivity of the Net Pension Liability to Changes in the Discount Rate ...................... 103 b. Pension Plan Fiduciary Net Position ............................................................................................. 104 iii. Payable to the Safety Plan ............................................................................................................................. 104 D. Information Common to Both the Miscellaneous and Safety Plans ......................................................... 104 i. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ................................................................................................................................................................ 104 ii. Actuarial Assumptions .................................................................................................................................... 105 iii. Miscellaneous and Safety Plans Discount Rate ..................................................................................... 105 iv. Subsequent Event – CalPERS Pension Contribution Rates ............................................................... 107 Note #11 – Defined Contribution Pension and Other Post-Employment Benefit Plans ......................................... 107 Note #12 – Risk Management ...................................................................................................................................................... 108 Note #13 – Brentwood Redevelopment Agency Dissolution and Successor Agency Activities ......................... 109 A. Redevelopment Agency Dissolution ...................................................................................................................... 109 B. Capital Assets .................................................................................................................................................................. 110 C. Long-Term Obligations ............................................................................................................................................... 110 i. Bonds ..................................................................................................................................................................... 110 D. Pledged Revenues ......................................................................................................................................................... 111 E. Commitments and Contingencies .......................................................................................................................... 112 i. State Approval of Enforceable Obligations ............................................................................................ 112
47 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
ii. State Asset Transfer Review .......................................................................................................................... 112 Note #14 – Contingent Liabilities ................................................................................................................................................ 112 A. Litigation ........................................................................................................................................................................... 112 B. State and Federal Grants ............................................................................................................................................ 112 C. Developer Impact Fee Credits .................................................................................................................................. 113 D. Construction Commitments ....................................................................................................................................... 113 E. Solar Power Purchase Agreements ........................................................................................................................ 113
48 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. DESCRIPTION OF THE REPORTING ENTITY
The City of Brentwood is governed by a five member City Council, under the Council-Manager form of government. The accompanying financial statements present the City of Brentwood, the primary government, and its component units, entities for which the primary government is considered financially accountable. The City is considered to be financially accountable for an organization if: 1) the City appoints a voting majority of said organization or 2) there is a potential for the organization to either provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if the organization is fiscally dependent (i.e. unable to adopt a budget, levy taxes, set rates or charges or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.
In addition to reporting directly for the City’s operations, the Brentwood Infrastructure Financing Authority, a component unit, has been included in the primary reporting entity and is treated as a blended component unit. The City has also established two additional Financing Authorities that are included in the primary reporting entity.
Brentwood Infrastructure Financing Authority
The Brentwood Infrastructure Financing Authority (the “Authority”), formed on March 14, 1995, is a joint powers authority organized under Section 6500 et seq. of the California Government Code between the City and the Authority for the purpose of acting as a vehicle for various financing activities of the City and the Authority. The Board of Directors is the Brentwood City Council. The primary purpose of the Authority is to render financial assistance to the City and the Authority by issuing debt and financing the construction of public facilities. Separate financial statements are not required for the Authority and therefore, are not issued.
Public Financing Authorities
In September 2021, the City established the Public Financing Authority (PFA) of the Brentwood Innovation Center Enhanced Infrastructure Financing District (EIFD) and the PFA of the Brentwood Boulevard-Downtown EIFD under section 53398 et seq. of the California Government Code. The City adopted Resolutions of Intent to establish the two EIFDs, however, no additional actions have been taken to form the EIFD’s. The City anticipates that the EIFD’s will be established in FY 2023/24. Once formed, each PFA would serve as the governing board of the respective EIFDs. The PFAs’ Board of Directors will be comprised initially of three members of the City Council appointed by the City Council, and up to four members of the public selected by the City Council. In October 2021, the City Council appointed three City Council members to the PFAs’ Board of Directors, including two members and one alternate member. Subsequently in February of 2022, one of the four positions for members of the public on the PFAs’ Board of Directors was filled by the City Council. The PFAs will be responsible for implementing the Infrastructure Financing Plan (IFP) for each EIFD. Separate financial statements are not required for the PFAs and therefore are not issued. The PFAs did not undertake any transactions during FY 2022/23.
49 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. The Statement of Activities and Changes in Net Position demonstrates the degree to which direct and indirect expenses, for a given function or segment, are offset by program revenues. Direct expenses are clearly identifiable with a specific function or segment. Indirect expenses are expenses which are allocated based on the City’s annual Cost Allocation Plan and Schedule of City Fees. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, 2) operating grants and contributions, including special assessments and 3) capital grants and contributions. Taxes and other items not included among program revenue are reported as general revenues.
Summaries of governmental activities, which are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges. Fiduciary activities of the City are not included in these statements.
Separate financial statements are provided for Governmental Funds, Proprietary Funds and Fiduciary Funds even though the latter are excluded from the Government-Wide Financial Statements. Major individual Governmental Funds and major individual Enterprise Funds are reported as separate columns in the Fund Financial Statements section.
Certain eliminations have been made related to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities. These are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, Internal Service Fund transactions have been eliminated, except for interfund services provided and used. However, the transactions between governmental and business-type activities, which are presented as transfers, have not been eliminated from the Statement of Activities.
C. MEASUREMENT FOCUS/BASIS OF ACCOUNTING
The Government-Wide Financial Statements, Proprietary Fund Financial Statements and Fiduciary Fund Financial Statements are reported using an economic resources focus and the accrual basis of accounting. 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, regardless of the timing of the related cash flows.
The Governmental Fund Financial Statements are reported using a current financial resources measurement focus called the modified accrual basis of accounting. Accordingly, only current assets, current liabilities and current deferred inflows/outflows are included on the Balance Sheets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except for revenues subject to accrual (generally 60 days after year-end) which are recognized when due. Expenditures are recorded in the accounting period in
50 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) which the related fund liability is incurred. However, debt service expenditures, lease liabilities, as well as expenditures related to compensated absences and claims and judgments, are recorded only when the payment is due. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets and the right to use subscription assets, are reported as expenditures in governmental funds. Proceeds from long-term debt and financing through leases are reported as other financing sources. Taxes, including property and sales taxes, special assessments and intergovernmental revenue associated with the current fiscal period are all considered susceptible to accrual. Only the portion of the special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. All other revenue items are considered measurable and available only when cash is received by the City.
For Proprietary Funds, all assets, liabilities and deferred inflows/outflows, whether current or noncurrent, are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position present increases (revenues) and decreases (expenses) in total 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. Operating revenues in the Proprietary Funds are those revenues generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. Proprietary Fund types include Enterprise Funds and Internal Service Funds.
The City’s Fiduciary Funds include Other Employee Benefit Trust Funds, Private-Purpose Trust Funds and Custodial Funds. Custodial Funds are purely custodial in nature and do not involve a measurement of operational results. Other Employee Benefit Trust Funds and Private-Purpose Trust Funds, in addition to being custodial in nature, also include operational activities under which the principal and income benefit employees or retirees and specific local taxing entities, respectively.
Fund Types
A Major Fund is a fund whose revenues, expenditures/expenses, assets combined with deferred outflows of resources, or liabilities combined with deferred inflows of resources (excluding extraordinary items), are at least 10% of corresponding totals for all Governmental or Enterprise funds and at least 5% of the aggregate amount for all Governmental and Enterprise funds for the same item.
The General Fund is always considered a major fund. Any other Governmental or Enterprise fund may be reported as a major fund if the government’s officials believe the fund is particularly important to financial statement users.
In FY 2022/23, the General Fund and Landscape and Lighting Assessment Districts (LLAD), a Special Revenue fund, are major governmental funds. Specific descriptions of the City’s funds are as follows:
The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
51 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Special Revenue Funds account for specific revenues legally restricted to expenditures for particular purposes. Specific descriptions of the Special Revenue Funds are as follows:
Gas Tax – These funds account for monies received from the State of California under Street and Highways Code Sections 2103, 2105, 2106, 2107, 2107.5 and 2032. The allocations must be spent for street maintenance, construction and a limited amount for engineering. Disability Access and Education – This fund accounts for the monies received due to Senate Bill 1186 (SB1186), which requires cities to collect a $4 fee for new and renewed business licenses for purposes of increasing compliance with state disability laws. Police Grants – This fund accounts for all Police, Federal, State and County grants requiring segregated fund accounting.
Other Grants – This fund accounts for miscellaneous Federal, State and County grants requiring segregated fund accounting.
Economic Development Grant – This fund accounts for the set aside of 20% of business license tax collected. The monies are used to award grants to promote economic activity. American Rescue Plan Act of 2021 – This fund accounts for federal Coronavirus State and Local Fiscal Recovery Funds requiring segregated fund accounting. This fund was closed in FY 2022/23.
Citywide Park Assessment District – This fund accounts for special benefit assessments levied on property owners for citywide park maintenance.
Community Facilities Districts – These funds account for special taxes levied for a variety of allowable uses, including but not limited to public safety services, joint use school facilities and library facilities. The allowable uses of the funds are governed by the formation documents of each individual District.
Roadway Development Impact Fee – This fund accounts for development fees collected for the design and construction of roadways within the City.
Parks and Trails Development Impact Fee – This fund accounts for development fees collected for the design and construction of parks within the City. Community Facilities Development Impact Fee – This fund accounts for development fees collected for the design and construction of public facilities within the City. Development Impact Fee Administration – This fund accounts for development fees collected for the administration of the Development Impact Fee Program. Agriculture Land Administration – This fund accounts for 20% of the Agriculture Preservation fees collected from development. Monies are to be used for administrative purposes associated with establishing, monitoring and managing farmland conservation easements.
52 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Agriculture Land Acquisition – This fund accounts for 80% of the Agriculture Preservation fees collected from development. The monies are used for farmland mitigation purposes. Public Art Administration – This fund accounts for 20% of the Public Art fees collected from development for the administration of the Public Art Program. Public Art Acquisition – This fund accounts for 80% of the Public Art fees collected from development for the acquisition and construction of Public Art. Parking In-Lieu – This fund accounts for development fees collected for off-street parking facilities located within the Downtown area.
Asset Forfeiture – This fund accounts for property or funds seized by the Police Department.
After a case has been tried, and a guilty verdict is returned, the funds are considered forfeited.
Federal funds must be used for narcotic enforcement and crime suppression. State funds must be used for areas related to drug prevention.
Abandoned Vehicle Abatement – This fund accounts for monies, which can only be used for the abatement, removal and disposal, as public nuisances, of any abandoned, wrecked, dismantled or inoperative vehicles, or parts thereof, from private or public property. PEG Media – This fund accounts for public, educational and governmental access fees collected from cable operators established per the Municipal Code and franchise agreements. Parks Advertising – This fund accounts for Parks and Recreation advertising fees collected to publish and distribute the Parks and Recreation Activities guide, as well as, enhance the amenities at the Sunset Athletic Complex, the Brentwood Family Aquatic Complex and the Brentwood Skate Park. This fund was closed in FY 2022/23. Measure J – This fund accounts for the local jurisdiction portions of the Local Street Maintenance and Improvements Fund allocation. The monies can only be spent on local streets and roads, transit operations, growth management planning and compliance, bicycle and pedestrian trails and parking facilities.
City Low Income Housing – This fund accounts for the activities related to the assets assumed by the City of Brentwood as Housing Successor for the housing activities of the former Brentwood Redevelopment Agency.
Landscape and Lighting Assessment Districts – These funds account for special benefit assessments levied on property owners for landscape and street lighting maintenance. In FY 2022/23, the LLAD Fund is a major governmental fund.
Permanent Funds account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support City programs for the benefit of the City and its citizens. The City has one permanent fund, as follows:
Riparian Mitigation Site Maintenance – This fund accounts for a stewardship endowment for maintenance of a riparian mitigation site.
53 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Debt Service Funds account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs. Specific descriptions of the Debt Service Funds are as follows:
Capital Improvement Revenue Refunding Bonds Series 2021 A & B – This fund accounts for debt service transactions related to the refinance of the 2012 Capital Improvement Revenue Refunding Bonds, which were issued to: 1) finance the refunding of the 2001 Capital Improvement Bonds under a facilities lease and 2) refund a series of tax allocation bonds issued by the Brentwood Redevelopment Agency.
General Obligation Bonds Series 2002 – This fund accounts for tax levies from which general obligation debt service transactions are made on the General Obligation Bonds Series 2002.
This bond was used to finance the Police Station.
2019 Civic Center Project Lease Revenue Refunding Bonds – This fund accounts for debt service transactions relating to the refinance of the 2009 Civic Center Project Lease Revenue Bonds. 2015 Lease Financing – This fund accounts for debt service transactions relating to the 2015 Lease Financing. The bond proceeds were used mainly to finance construction of the new Library and Municipal Service Center.
Capital Project Funds account for the acquisition and construction of major capital facilities and infrastructure not financed by Proprietary Funds. Specific descriptions of the Capital Project Funds are as follows:
Roadway Improvements – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to acquire and construct certain roadway improvements.
Community Facilities Improvements – This fund accounts for various community facilities improvement projects associated with either the construction or improvement of the City’s community facilities.
Parks and Trails Improvements – This fund accounts for various park and trail improvement projects associated with either the construction or improvement of the City’s parks. Capital Improvement Financing Program 2006-1 – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to acquire and construct certain capital facilities and infrastructure. Capital Improvement Financing Program 2005-1 – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to acquire and construct certain capital facilities and infrastructure. 2015 Lease Financing Acquisition – This fund accounts for transactions related to proceeds from the 2015 Lease Financing and their use to acquire and construct certain capital facilities and infrastructure. This fund was closed in FY 2022/23.
54 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Civic Center Capital Improvement Financing Program – This fund accounts for savings from refinanced City Capital Improvement Financing Program (CIFP) bonds and their use to finance a portion of the Civic Center project.
City Capital Improvement Financing Program – This fund accounts for savings from refinanced bonds and their use to acquire and construct certain capital facilities and infrastructure. Capital Infrastructure – This fund accounts for funds to be used for non-residential development related infrastructure projects with a focus on projects that may promote economic development.
Vineyards Projects – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to finance infrastructure improvements within the Vineyards development area.
Enterprise Funds account for operations financed and operated in a manner similar to private business enterprises. The intent of the City Council is for the costs of providing certain goods or services to the public be financed or recovered primarily through user charges. The City reports the following Business-Type Activities - Enterprise Funds, all of which are reported as major funds:
Wastewater – Accounts for the operation, maintenance and capital improvement projects of the wastewater system. These activities are funded by user charges and impact fees. Solid Waste – Accounts for the operation, maintenance and capital improvement projects of the solid waste system. These activities are funded by user charges. Water – Accounts for the operation, maintenance and capital improvement projects of the water system. These activities are funded by user charges and impact fees. City Rentals – Accounts for all City facilities rented and maintained through this fund. Housing – Accounts for the administrative and operational expenses for the Housing programs which include the Housing rental units and the Affordable Housing and First-Time Homebuyer programs.
Additionally, the City reports for the following fund types:
Internal Service Funds account for the financing of either goods or services provided by one department to other departments of the City on a cost reimbursement basis. Specific descriptions of these funds are as follows:
Information Services – To provide a source of funding for the development and coordination of the City’s information systems’ needs.
Vehicle and Equipment Replacement – To provide a source of funding for vehicle and equipment replacement.
55 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Information Systems Replacement – To provide a source of funding for the replacement of information systems such as computers and the phone system. Facilities Replacement – To provide a source of funding for repairs or the replacement of City facilities.
Tuition – To provide a source of funding for expenditures related to continuing education. Fleet Maintenance Services – To provide a source of funding for the maintenance of all City vehicles, except for Police Department vehicles.
Facilities Maintenance Services – To provide a source of funding for maintenance and repairs of City facilities.
Parks and LLAD Replacement – To provide a source of funding for the replacement of landscaping, equipment and facilities in the citywide parks and LLAD. Insurance – To provide a source of funding for future insurance costs and unforeseen expenses due to legal matters or lawsuits.
Pension/Other Post-Employment Benefits (OPEB) Obligation – To provide an intermediateterm funding source for OPEB and pension expenses.
Fiduciary Funds account for Other Employee Benefit Trust Funds, Private-Purpose Trust Funds and Custodial Funds. The financial activities of these funds are excluded from the Government-Wide Financial Statements, but are presented in separate Fiduciary Fund Financial Statements. The Other Employee Benefit Trust Funds, Private-Purpose Trust Funds and Custodial Funds consist of:
Other Employee Benefit Trust Fund - VALIC – Fund used to report the activities of the City’s single-employer deferred compensation plan held by a third-party administrator. Private-Purpose Trust Fund - Successor Agency – Special funds used to report the activities and financial position of the Successor Agency to the Brentwood Redevelopment Agency. These funds are held in a trust arrangement for the benefit of local taxing entities, including the City of Brentwood.
Assessments – Special obligations payable from and secured by specific revenue sources. The City acts as custodian of these funds which are not for the benefit of the City. Asset Seizure – Special funds to be used exclusively to support law enforcement and prosecutorial efforts. The City acts as custodian of these funds which are not for the benefit of the City.
Pass-Through Funds – Special funds used for the collection and distribution of development fees collected on behalf of other agencies.
56 2022/23 Annual Comprehensive Financial Report
Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, DEFERRED INFLOWS/OUTFLOWS AND NET POSITION OR FUND BALANCE i. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. ii. Cash and Investments
The City pools idle cash from all funds with the purpose of increasing income through investment activities and the City’s investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. For additional information, refer to Note #1D xii. The City generally holds all investments until either maturity or fair value equals or exceeds cost. Therefore, the reported value of securities in the investment pool does not reflect unrealized gains or losses but rather the fair value of those investments as of June 30, 2023.
iii. Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the City considers all highly liquid investments with a maturity of three months or less, when purchased, to be cash equivalents. All cash and investments of the Proprietary Fund types are pooled with the City’s pooled cash and investments. iv. Prepaid Items and Land Held for Resale
Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items. In governmental funds, prepaid items are accounted for using the consumption method. A portion of fund balance equal to the prepaid items is reported as nonspendable to indicate that the funds are not available for appropriation. Land held for resale is valued at the lower of cost or estimated net realizable value.
v. Capital Assets
The City’s assets are capitalized using either historical cost or estimated historical cost, except for intangible right to use lease assets, the measurement of which is discussed in Note #1D xiv, and intangible right to use subscription assets, the measurement of which is discussed in Note #1D xv.
City policy has set the capitalization threshold for capital assets at $10,000 or more. Gifts or contributions of capital assets are valued at their estimated acquisition value and/or at the contracted developer rate on the date contributed. Depreciation is recorded on a straight-line basis over the useful lives of the assets, as follows:
Land Improvements 20 - 65 years
Buildings and Structures 50 years
Machinery and Equipment 3 - 20 years
Vehicles 4 - 12 years
Infrastructure 65 years
Intangible Assets 40 - 65 years