11. Utility Coordination Plan: Prior to issuance of building permits for the site, the applicant shall submit a utility coordination plan and schedule for approval by the City Engineer for installation and/or abandonment of all utilities. The plan shall clearly show the location and size of all existing utilities and the associated main lines; indicate which utilities and services are to remain; which utilities and services are to be abandoned, and where new utilities and services will be installed. Joint trenc hes for new utilities shall be used whenever possible.
12. Pavement Restoration: The applicant shall restore the pavement in compliance with City standard requirements. In the event that the roadway has recently received a pavement treatment or reconstruction, the project will be subject to the City’s Street Cut Moratorium. The applic ant will be required to perform enhanced pavement restoration consistent with the restoration requirements associated with the Street Cut Moratorium. The City’s Pavement Maintenance Program website (https://www.ci.campbell.ca.us/219) has detailed information on the streets currently under moratorium and the enhanced restoration requirements.
13. Utility Encroachment Permit: Separate encroachment permits for the installation of utilities to serve the development will be required (including water, sewer, gas, electric, etc.). Applicant shall apply for and pay all necessary fees for utility permits for sanitary sewer, gas, water, electric and all other utility work.
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Attachment: Resolution - 189 Sunnyside Ave. (PD, T-Map) (CC Report - 189 Sunnyside Avenue) City Council Resolution – T-Map & Planned Development Permit Page 3 of 4 189 Sunnyside Avenue
14. Additional Street Improvements: Should it be discovered after the approval process that new utility main lines, extra utility work or other work is required to service the development, and should those facilities or other work affect any public improvements, the City may add conditions to the development/project/permit, at the discretion of the City Engineer, to restore pavement or other public improvements to the satisfaction of the City.
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Attachment: Resolution - 189 Sunnyside Ave. (PD, T-Map) (CC Report - 189 Sunnyside Avenue)
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Attachment: Project Plans (CC Report - 189 Sunnyside Avenue) Campbell Planning Commission Meeting Minutes – January 9, 2024 Page 2 of 5
• Recognized Senior Civil Engineer for Public Works, Roger Storz, as a resource present at the meeting.
• Stated that Campbell’s first Housing Manager, Eloiza Murillo-Garcia, would begin work for the City on January 14, 2024.
AGENDA MODIFICATIONS OR POSTPONEMENTS
None
ORAL COMMUNICATIONS
This portion of the meeting is reserved for individuals wishing to address the Planning Commission on matters of community concern that are not listed on the agenda. In the interest of time, the Chair may limit speakers to five minutes. Please be aware that State law prohibits the Commission from acting on non-agendized items, however, the Chair may refer matters to staff for follow-up.
Opened Public Comment
Public comments were received from Angela Adams.
Closed Public Comment
PUBLIC HEARING
Note: Members of the public may be allotted up to two (2) minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Planning Commission’s consent at the meeting.
Chair Zisser asked for any disclosures from members of the Commission.
Commissioner Krey disclosed he had visited the site but spoke with no one.
Chair Zisser read Agenda Item No. 2 into the record as follows:
2. PLN-2023-136 – 189 Sunnyside Avenue
Public Hearing to consider the request of Mike Amini behalf of Don Barnetson to allow a subdivision for one lot to two lots and construction of an approximately 2,032 square foot new two-story single-family residence on the newly created lot on property located at 189 Sunnyside Avenue. The application under consideration is a Planned Development Permit and Tentative Map submitted under an SB -330 preliminary application filed in compliance with Government Code § 65941.1. File No.: PLN-2023-136. Staff is recommending that this item be deemed Categorically Exempt under CEQA. Tentative City Council Date: February 20, 2024. Project Planner: Tracy Tam, Associate Planner.
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Attachment: 01-09-24 PC Minutes (CC Report - 189 Sunnyside Avenue) Campbell Planning Commission Meeting Minutes – January 9, 2024 Page 3 of 5
Recommended Action : Adopt a Resolution (reference Attachment A), recommending approval of a Planned Development Permit and Tentative Map.
Chair Zisser opened the Public Hearing for Agenda Item No. 2.
Ms. Tracy Tam, Associate Planner, provided the staff report.
Chair Zisser asked for Commission questions for staff.
Chair Zisser and Commissioners Krey, Kamkar, and Majewski had questions related to the location of the easement and the driveway, the accessory dwelling unit, and the location of the utilities, and Planner Tam responded.
Commissioner Kamkar had questions and Director Eastwood e laborated regarding challenges with the use of PDs in Campbell being in conflict with the State housing standards that call for very clear objective standards.
Chair Zisser opened Public Comment.
Don Barnetson, Property Owner, made a presentation.
Chair Zisser asked for Commission questions for the property owner.
Chair Zisser and Commissioner Kamkar had questions and Mr. Barnetson responded.
Chair Zisser asked for members of the public wishing to speak. There were no public comments.
Chair Zisser closed Public Comment.
Chair Zisser asked for Commission discussion.
Commissioner Majewski did not make comments.
Commissioner Krey spoke of the PD process in Campbell and said the project was fine and Campbell would benefit from it.
Commissioner Kamkar said this would be a great project and spoke about PDs and the State’s objective plans.
Chair Zisser said Sunnyside Avenue is a great location three blocks from downtown, and this would be a great project in a nice neighborhood.
Motion: Upon motion by Commissioner Krey, seconded by Commissioner Kamkar, the Planning Commission m otioned to adopt a Resolution recommending City Council approval of a Planned Development Permit and Tentative Map to allow a
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subdivision for one lot to two lots and construction of an approximately 2,032 square foot new two -story single -family residence on the newly created lot on property located at 189 Sunnyside Avenue. File No.: PLN -2023-136, by the following roll call:
AYES: Majewski, Krey, Kamkar, Zisser
NOES: None
ABSENT: Buchbinder, Fields, Ostrowski,
ABSTAIN: None
Chair Zisser closed the Public Hearing for Agenda Item No. 2.
Chair Zisser read Agenda Item No. 3 into the record as follows:
3. PLN-2021-215 – 946 S. McGlincy Lane
Public Hea ring to consider the request of Denny Kobza on behalf of Terra Firma Development & Holdings LLC to allow construction of an approximately 10,250 square foot industrial/warehouse building, with an exception to the side setback requirement , on property located at 940/946 S. McGlincy Lane . The application under consideration is a Site and Architecture Review Permit. File No.: PLN -2021-215. Staff is recommending that this item be deemed Categorically Exempt under CEQA. Planning Commission action is final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner:
Daniel Fama, Senior Planner.
Recommended Action : Make a motion to continue consideration of this item to the regular Planning Commission meeting of January 23, 2024.
Chair Zisser opened the Public Hearing for Agenda Item No. 3.
Motion: Upon motion by Commissioner Krey, seconded by Commissioner Majewski , the Planning Commission motioned to continue consideration of this item to the date certain of the next regular Planning Commission meeting of January 23, 2024 for property located at 946 S. McGlincy Lane. File No.: PLN-2021-215, by the following roll call:
AYES: Majewski, Krey, Kamkar, Zisser
NOES: None
ABSENT: Buchbinder, Fields, Ostrowski,
ABSTAIN: None
Chair Zisser closed the Public Hearing for Agenda Item No. 3.
REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR
Director Eastwood reported that:
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Attachment: 01-09-24 PC Minutes (CC Report - 189 Sunnyside Avenue) City
Council
Report
TITLE: Acceptance of Fiscal Year 22/23 Annual Comprehensive Financial Report and Auditor's Written Communication on Internal Controls
RECOMMENDED ACTION
That the City Council accept the Fiscal Year 22/23 Annual Comprehensive Financial Report and Auditor’s written communication on internal control structure and the audit process as submitted with this report.
BACKGROUND
The Finance Department prepares an Annual Comprehensive Financial Report (ACFR) to report the City’s financial results for the fiscal year. The financial statements, and the accounts comprising them, are subjected to an independent audit as required by Campbell Municipal Code Section 2.08.080. The City’s audit firm, Eide Bailly LLP, issued their report (opinion) on these financial statements which is contained within the ACFR document that is available to you as Attachment A of this report.
At the conclusion of the audit process, the auditor also issues its communication to the City Council, in the form of various letters, regarding the audit process and the City’s internal control structure and reports its findings and/or recommendations for improvement (Attachments B and C).
DISCUSSION
Annual Comprehensive Financial Report for Fiscal Year Ending June 30, 2023 The ACFR is divided into three basic parts: 1) Introductory Section 2) Financial Section and 3) Statistical Section. The Introductory Section includes a letter of transmittal, award certificate and a listing of City officials, staff, Board and Commissions. The Financial Section includes the auditors’ report, management discussion and analysis, basic financial statements, fund financial statements, notes to the financial statements, required supplementary information and other supplementary information. The Statistical Section contains various schedules of trend information that provides useful information for analytical purposes.
The ACFR document is submitted annually to the Government Finance Officers Association (GFOA) award program which grants a certificate of achievement for Item: 14
Category: NEW BUSINESS
Meeting Date: February 20, 2024
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excellence in financial reporting to qualifying ACFRs. The City has received this award for the past 35 consecutive years and has again submitted this year’s document for consideration.
The “Independent Auditor’s Report” reflects an unmodified, “clean opinion” on the financial statements, meaning that it meets the standards of generally accepted accounting principles.
Next is the “Management’s Discussion and Analysis,” or MD&A which begins on page 5 of the ACFR, and contains significant financial highlights for the fiscal year ending June 30, 2023, as well as an explanation of the different types of financial statements and other information found in the ACFR. Included in the discussion are tables which compare the audit year financial results to the prior year, and an explanation of the significant changes between years.
Fiscal Year 2023 highlights from the ACFR are as follows:
As shown in the MD&A on page 9 of the ACFR, City -wide, the City ended its fiscal year with total revenues of $78.3 million, an increase of $5.7 million from the previous year of $72.6 million, and total expenses of $69.7 million, an increase of $8.9 million compared to the previous year of $60.8 million. Excluding property taxes, general revenues; comprised of sales tax, transient occupancy tax and other revenues, increased $6.0 million. Other financial highlights of the past year are as follows:
City-wide (All Funds):
• As shown in the Statement of Net Position on page 17 of the ACFR, total City assets and deferred outflows of resources of $231.9 million exceeded its liabilities and deferred inflows of resources of $173.0; resulting in a total net position of $58.8 million. Of this amount, $69.5 million represents the net investment in capital assets while $19.3 million is restricted for various purposes including affordable housing, streets and roads, community development and debt service. The negative $29.9 million in unrestricted net position decreased by $2.2 million since last year. Unrestricted net position is the net amount of city - wide assets, deferred outflow of resources, liabilities, and deferred inflow of resources that are not included in neither the net investment in capital assets nor restricted net position.
• As shown in the Statement of Activities on page 18 of the ACFR, total net position increased from the previous year by $8.6 million primarily attributable to an increase in cash and investments and a decrease in short -term liabilities such as accounts payables.
Fund level:
• As shown in the Statement of Revenues, Expenditures, and Changes in Fund Balance on page 23 of the ACFR, total governmental fund balances were $97.7 14 Packet Pg. 284
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million at fiscal year -end, an increase of $2.8 million from the previous year balance of $94.9 million.
• As shown on page 22 of the ACFR, the General Fund revenues, excluding transfers, increased $5.8 million to $62.2 million from the previous year of $56.4 million. As shown on page 23 of the ACFR, related expenditures of $60.0 million increased by $8.0 million from the previous year of $52.0 million.
• As shown on page 23 of the ACFR, the General Fund’s fund balance increased $0.2 million to $22.1 million at fiscal year -end. The previous year balance was $21.9 million.
• As shown in Note 8 on page 57 of the ACFR, total Committed General Fund balance of $3.1 million is for future contingencies and capital improvement projects. Total Assigned General Fund balance of $4.0 million is for CalPERS retirement costs and other post -employment benefits, and the remaining $14.9 million for general government.
General Fund Highlights
As shown on pages 22 and 23 of the ACFR, the General Fund realized an excess of revenues over expenditures of $2.2 million, excluding transfers. However, when transfers out and in are accounted for, which had a combined negative total of $2.0 million, the General Fund balance only increased $0.2 million. Transfers out to other funds are normally to support capital projects or partially support operations that may be primarily supported by outside restricted funds such as grants. General Fund revenues, excluding transfers, increased $5.8 million from the previous year to $62.2 million. The City’s three largest revenue sources each realized higher revenues than budgeted.
Property Tax is the General Fund’s largest revenue source. As shown in the MD&A on page 13 of the ACFR, while budgeted at $20.5 million, actual property tax revenue received was $20.9 million. That represents $0.4 million or 1.9% greater than budgeted. The positive variance is primarily attributed to current secured property taxes and the Education Revenue Augmentation Fund (ERAF) from which the City received $0.2 million and $0.1 million higher than budgeted, respectively.
Sales and Use Tax is the General Fund’s second largest revenue source, budgeted at $18.2 million. The City received $18.8 million or $0.6 million (3.2%) over the final budget. The largest categories of sales tax producers comprise of restaurants and hotels, building and construction, business and industry, and general consumer goods.
Charges for services amounted to $5.3 million, which is comprised largely of fees for services provided by the Recreation, Community Development, and Public Works departments. The City received $0.3 million or 6.2% greater than the budgeted amount of $5.0 million. The positive variance is attributed to increased participation within Recreation programs.
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General Fund expenditures, excluding transfers, were $60.0 million, an increase of $8.0 million from the previous year. When compared to the final budget, general fund expenditures were $0.3 million or 0.5% over the budget of $59.7 million.
The General Fund’s fund balance at fiscal year -end was $22.1 million, an increase of $0.2 million from the previous year. As again shown on page 57 of the ACFR, Committed and Assigned fund balances at year end were $3.1 million and $4.0 million, respectively. These balances are utilized to fund operational costs such as capital projects, compensated absences, and to maintain a reserve for PERS and OPEB related costs. Unassigned fund balance of $14.9 million serves as an additional reserve for unanticipated needs that may arise including a $10.0 million reserve for economic fluctuations and $3.2 million for emergencies. A detailed listing of each reserve account, its balances, and its description can be found in Attachment D.
Per City Administrative Financial Policies, the economic fluctuations reserve target is set at 16.67% of operating expenditures for use during economic downturns. Due to an increase in the City’s Fiscal Year 2024 Adopted General Fund expenditures, the economic fluctuation reserve target also increased from $9.9 million to $11.1 million, resulting in a FY 2023 balance of $10.0 million that is $1.1 million below this new targeted level. Furthermore, the emergency reserve is to be set at 10% of revenue and used for unexpected physical or fiscal emergency. For fiscal year ending June 30, 2023, the emergency reserve balance remained at $3.2 million, which is $3.4 million below its targeted level of $6.6 million.
For Fiscal Year 2023, the City did not need to draw upon its economic fluctuation or emergency reserve. Although both the economic fluctuation and emergency reserves are below targeted levels, the City continues to maintain strong General Fund reserve balances. The GFOA recommends, at a minimum, a General Fund unrestricted fund balance of no less than two months (or 16.67%) of general fund operating expenditures.
At fiscal year -end, the City maintained an unassigned reserve ratio of 22.32%. This increases to 25.70% if the General Fund PERS reserve is also taken into account. The PERS reserve is intended to either pay down unfunded pension liabilities or mitigate pension premium increases from year to year. Thus, an appropriate use of the PERS reserve, pending Council discussion and authorization, could be to fund annual ongoing pension premium costs in any given year.
Auditor’s Written Communications
The auditor, as required by auditing standards, issues several letters regarding the audit process and results (Attachments B and C) as well as any observations and/or findings related to the internal control structure as noted during their audit. There were no findings considered to be a “material weakness” or “significant deficiency.”
Finance Sub-Committee Meeting
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The results of the audit and written communications were presented by City staff and Eide Bailly LLP and discussed with the City’s Finance Sub -Committee on February 9, 2024. The Sub -Committee reviewed and asked questions of staff regarding internal controls related to invoices and the purchasing card program. Furthermore, the Sub - Committee also inquired about the prior year findings, which have since been cleared as confirmed by the City’s auditors.
The Sub -Committee was satisfied with the presentation and the answers provided by the auditor and staff, and recommended the FY 202 2-23 ACFR and auditor’s written communication be accepted by the City Council on February 20, 2024.
FISCAL IMPACT
There is no fiscal impact as a result of accepting the ACFR and the auditor’s written communications.
ALTERNATIVES
1. Do not accept the ACFR and/or written communications as submitted.
2. Provide other direction to staff.
Prepared by:
Norite Vong, Finance Manager
Approved by:
Brian Loventhal, City Manager
Attachment:
a. ACFR - FY2022-23
b. AU-C 260 Governance Letter
c. GAGAS Letter
d. General Fund Comparison FYE 06-30-22 to 06-30-23
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control) Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023
City of Campbell,
California
Prepared by:
F
inance Department
Will Fuentes, Finance Director
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City of Campbell
Table of Contents
June 30, 2023
Introductory Section
Letter of Transmittal ............................................................................................................................................... i Certificate of Achievement .................................................................................................................................. vii Organizational Chart ........................................................................................................................................... viii City Officials .......................................................................................................................................................... ix Commissions, Committees and Advisory Boards .................................................................................................. ix Financial Section
Independent Auditor’s Report ............................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position ................................................................................................................................... 17 Statement of Activities ......................................................................................................................................... 18 Government Fund Financial Statements
Balance Sheet – Governmental Funds ................................................................................................................. 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ............................ 21 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................ 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................... 24 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds ................................................................................................... 26 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds .............................. 27 Statement of Cash Flows – Proprietary Funds ..................................................................................................... 28 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position – Fiduciary Funds ....................................................................................... 30 Statement of Changes in Net Position – Fiduciary Funds .................................................................................... 31 Notes to Financial Statements ................................................................................................................................. 32 Required Supplementary Information
Schedule of Changes in the Pension Liability and Related Ratios – CalPERS Miscellaneous Plan ....................... 76 Schedule of Pension Contributions – CalPERS Miscellaneous Plan ..................................................................... 77 Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans ....................................... 78 Schedule of Pension Contributions – CalPERS Safety Plan .................................................................................. 79 Schedule of Changes in the Net OPEB Liability and Related Ratios ..................................................................... 80 Schedule of OPEB Contributions .......................................................................................................................... 81 B
udgetary Comparison Schedule – General Fund ............................................................................................... 82 Budgetary Comparison Schedule – Housing Assets Special Revenue Fund ........................................................ 84 Budgetary Comparison Schedule – ARPA Special Revenue Fund ........................................................................ 85 Notes to Required Supplementary Information .................................................................................................. 86
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Supplementary Information
Description of Other Governmental Funds .......................................................................................................... 87 Combining Balance Sheet – Other Governmental Fund ...................................................................................... 89 Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds ............................................................................................................................................ 91 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget Actual – Gas Tax Special Revenue Fund ............................................................................................................................. 93 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Vehicle Impact Fees Special Revenue Fund ......................................................................................................... 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Other Grants Special Revenue Fund .................................................................................................................... 95 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund ................................................................................................ 96 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Lighting and Landscaping District Special Revenue Fund .................................................................................... 97 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund ............................................................................................ 98 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund ................................................................................................... 99 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund.................................................................................... 100 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Restitution Fund Special Revenue Fund ......................................................................................... 101 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #1 Special Revenue Fund .................................................................................... 102 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #2 Special Revenue Fund .................................................................................... 103 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund ......................................................................................................................................... 104 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Capital Projects Fund ...................................................................................................................... 105 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund .............................................................................................................................. 106 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund ........................................................................................................................... 107 Internal Service Funds ........................................................................................................................................ 108 Combining Statement of Net Position – Internal Service Funds ........................................................................ 109 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds ............ 110 Combining Statement of Cash Flows – Internal Service Funds .......................................................................... 111 Custodial Funds .................................................................................................................................................. 112 Combining Statement of Fiduciary Net Position – Custodial Funds .................................................................. 113 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ................................................ 114 Statistical Section
Description of Statistical Section Contents ........................................................................................................ 115 Net Position by Component ............................................................................................................................... 116 Changes in Net Position ..................................................................................................................................... 118 Fund Balances of Governmental Funds ............................................................................................................. 119 Changes in Fund Balances of Governmental Fund ............................................................................................ 121 Assessed and Estimated Actual – Value of Taxable Property ............................................................................ 122 Property Tax Rates – All Overlapping Governments ......................................................................................... 123
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Principal Property Taxpayers ............................................................................................................................. 124 Property Tax Levies and Collections .................................................................................................................. 125 Ratio of Outstanding Debt by Type .................................................................................................................... 126 Ratio of Net General Bonded Debt Outstanding ............................................................................................... 127 Computation of Direct and Overlapping Debt ................................................................................................... 128 Computation of Legal Bonded Debt Margin ...................................................................................................... 129 Bonded Debt Pledged Revenue Coverage – Redevelopment/Successor Agency Tax Allocation Bonds ........... 130 Demographic and Economic Statics ................................................................................................................... 131 Top Ten Principal Employers .............................................................................................................................. 132 Full-Time Equivalent City Government Employees by Function ........................................................................ 133 Operating Indicators by Function/Program ....................................................................................................... 134 Capital Assets Statistics by Function/Program .................................................................................................. 135
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Introductory Section
June 30, 2023
City of Campbell,
California
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i
70 North First Street· Campbell, California 95008-1423 · TEL 408.866.2111 · FAX 408.379.2572 · TDD 408.866.2790
CITY OF CAMPBELL
Finance Department
December 29, 2023
Honorable Mayor, City Council, and Citizens of Campbell
It my pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Campbell for the fiscal year ended June 30, 2023. The report and accompanying independent audit are published pursuant to State law and the requirements of Section 2.08.080 of the Campbell Municipal Code. The financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with Generally Auditing Standards by an independent auditing firm of licensed certified public accountants.
While traditionally addressed to the governing legislative body of the City, this report is also intended to provide relevant financial information to the citizens of the City of Campbell, City staff, creditors, investors and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.
Purpose and Management Responsibility
The report consists of management’s representations concerning the finances of the City of Campbell.
Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As the City’s Chief Executive Officer, I assert that, to the best of my knowledge and belief, this financial report is complete and reliable in all material respects.
Further, every attempt has been made to conform to the highest standards of public financial reporting as set forth by the following organizations:
• Governmental Accounting Standards Board (GASB);
• American Institute of Certified Public Accountants (AICPA) and its Committee on Governmental Accounting and Auditing;
• Government Finance Officers Association (GFOA) of the United States and Canada; and • California Society of Municipal Finance Officers (CSMFO).
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ii
City of Campbell
Letter of Transmittal
June 30, 2023
Audited Financial Statements
Eide Bailly LLP, a firm of licensed certified public accountants, has audited the City of Campbell financial statements. The City’s independent audit was meant to provide reasonable assurance that its financial statements are free of material misstatement. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Campbell for the fiscal year ended June 30, 2023, are presented fairly in all material respects. After a thorough evaluation of the City’s internal controls and all required financial documents, the independent auditors rendered an unmodified (“clean”) opinion that the City of Campbell’s financial statements contained herewith are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial Section of this report.
Organization of Report
The Management’s Discussion and Analysis (MD&A) provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Campbell’s MD&A can be found immediately following the report of the independent auditors.
In addition to meeting the requirements set forth by State law, the audit was also designed to meet the requirement of the Single Audit Act of 1984 as amended in 1996 and the U.S. Office of Management and the Uniform Guidance. The standards governing Single Audit engagements require the auditor to report on the City’s internal controls and compliance with certain legal requirements with special emphasis on the administration of federal awards. For the year ended June 30, 2023, the City did expend over $750,000 on Federal financial assistance programs; and therefore, a Single Audit will be required by March 31, 2024. The Single Audit will be prepared and presented separately from the ACFR and by the required deadline.
City of Campbell Profile
The City of Campbell is located in the heart of Silicon Valley contiguous with the City of San Jose and 50 miles south of San Francisco. The City encompasses 6.7 square miles, is substantially built out, and serves a population of approximately 42,713 as of January 1, 2023. The City is comprised of a mix of residential, office and commercial retail businesses. The City is also home to a number of community festivals and celebrations throughout the year, and it prides itself on fostering a “small town” feel despite being located in the midst of a major metropolitan region. The City’s central geographic setting within Silicon Valley makes it a desirable place to live and work.
The City was incorporated March 28, 1952, as a General Law city and operates under a Council-Manager form of government that includes five council members elected by district for a term of four years. The Mayor is selected each year by majority vote of the other Council members. The Council appoints the City Manager, City Attorney, and City Clerk. The City Council members also serve as the governing board members of the Successor Agency to the dissolved City of Campbell Redevelopment Agency and the Campbell Lighting and Landscape District, which are both included in the accompanying financial reports.
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City of Campbell
Letter of Transmittal
June 30, 2023
City Services
The City provides the following services to its residents: police and contract fire protection; park and street lighting maintenance; recreational classes, services, and cultural events; planning, zoning and building review and inspections; construction and maintenance of streets and roads; and leadership provided through general administrative services. Water, sewage, garbage, and electric utilities are provided directly through joint powers authorities for which the City participates.
Budgetary Policy and Control
The annual budget serves as the foundation for the City of Campbell’s financial planning and control. The budget process begins in December with each City department receiving preliminary financial information. Initial appropriation requests are made in February and study sessions are held with the City Council between February and May to discuss department goals and work plans as well as to obtain Council’s input on special priorities or concerns that should be considered in developing the budget. Subsequently, the City Manager meets with each department director to discuss the budget requests and make changes where necessary. The City Manager then prepares and presents the recommended budget in late May or early June for Council’s preliminary consideration. Adoption of the operating and capital budget document takes place in June.
Requests for increases in appropriations or adjustments to capital projects require approval by the City Council.
Changes in appropriations during the year must be submitted by the City Manager to the City Council for review and approval and must be accompanied by appropriate fiscal impact analysis.
Economic Condition and Outlook
National, State and Local Economies—While Silicon Valley is best known for its significant concentration of high technology and electronics research, development and manufacturing, the area also supports a wide variety of retail, office and personal services industries. Historically, this region has experienced cycles of expansion and contraction and has led the nation in productivity, innovation, and economic growth for much of the past two plus decades. The region is home to numerous institutions of higher learning and education that support a broad base of research and development in advanced technology and design.
Similar to other areas of the world though, the United States, California, and the San Francisco Bay Area faced inflationary pressures due to supply chain backlogs, the war in Ukraine, and other factors during the last fiscal year. Nevertheless, the nation’s economy saw GDP growth equaling 5.2% in the third quarter of 2023; following an increase equaling 2.1% in the second quarter of 2023. Such an increase in the third quarter of 2023 was driven by business investment and government spending, but also continued inflation driving higher overall prices for goods and services. While economic factors were mixed, stock market prices within the Dow Jones Industrial Average increased by 10.7% over the course of fiscal year. As inflationary concerns lesson, the Federal Reserve loosens its monetary policy in response, and economic uncertainty subsides, the economy and the stock market should grow, but such growth is also not guaranteed and may be uneven.
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City of Campbell
Letter of Transmittal
June 30, 2023
As of the end of the fiscal year, per the California Employment Development Department (EDD) and the Bureau of Labor Statistics (BLS), the City of Campbell had an unemployment rate of 3.2%, Santa Clara County had an unemployment rate of 3.7%, California had an unemployment rate of 4.2%, and the United States had an unemployment rate of 4.6%. For comparison purposes, during the early stages of the COVID-19 pandemic, the national unemployment rate was 11.1% in June 2020. Overall, it appears the U.S. economy may be headed towards a soft landing in the coming fiscal year, but a recession is still possible.
Local Economy
While the Silicon Valley has seen significant economic recovery since the end of the pandemic, challenges still remain as the region recalibrates to a new normal, which includes a high rate of working from home, commercial and retail vacancies, and outflows of people to other regions of the State and other parts of the country. Having realized the pandemic was only a temporary spike in demand, the tech sector re -sized and re-calibrated over the last fiscal year. Innovation seems to be headed for a new, yet -to-be-determined place, fueled by artificial intelligence. The departing techies may still be working Silicon Valley jobs, but they are also giving rise to new centers of innovation and economic growth in places like Seattle, Austin, Denver and Salt Lake City. That’s all for the good, but it signals a new reality in which Silicon Valley becomes one node (albeit a major node) in a more dispersed innovation ecosystem. The term “Silicon Valley” may start to lose meaning. Nevertheless, despite these factors and high interest rates, which caused a significant slowdown in home sale activity, median home prices continued to rise due to the fact that housing supply remains low in the region and demand for the region still remains high.
Campbell is home to a diversified economic base of business segments located throughout the community.
There are over 5,000 businesses in the City that generated approximately $18.3 million in sales and use tax revenue, an increase of 11.6% from the previous fiscal year due to ong oing economic recovery from the COVID-19 pandemic. The largest categories of sales tax producers comprise business and industry, restaurants, and hotels, building and construction, and general consumer goods.
Relevant Financial Policies
Because of the many economic and fiscal uncertainties that constantly confront the City, and to address the financial impacts created by these issues, the City has taken necessary steps to preserve its fiscal health. The City incorporates long-term financial planning into its budget process. For example, it has established financial and budgetary policies monitored by the City Council that ensure operating revenues are available to fund operating expenditures resulting in a balanced budget. The City has also designated a Reserve for Economic Fluctuations; the purpose of which is to serve as a buffer for those revenue sources most significantly impacted by downturns in the economy and enable the City to better withstand an economic recession. The City’s financial policies specify target funding of two months of General Fund expenditures. Moreover, the City’s 7-year projections include anticipated increases in retirement costs over the next several years due to changes in actuarial assumptions and underperforming retirement po ol investment assets. In addition, there are other reserves set aside for both operating as well as emergency purposes to provide the City a financial “safety net” during the next economic slowdown.
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City of Campbell
Letter of Transmittal
June 30, 2023
Cash Management
The City manages a pooled investment program for all funds in which temporarily idle cash is invested in a variety of instruments. The investment program is managed in accordance with the Investment Policy approved by the City Council. Safety, liquidity, and yield in that order, are the objectives of the investment program. Investments are diversified among investment tools that include certificates of deposit, Federal agency securities and the State of California’s Local Agency Investment Fund (LAIF). Quarterly reports on investment status and activity are presented to the City Council.
Capital Improvement / Capital Asset
A five-year Capital Improvement Plan is approved on an annual basis with first year projects adopted in conjunction with the operating budget. Sufficient financial commitment is made to preserving the City’s investment in its public facilities (buildings, streets, parks, equipment, etc.) to assure preservation of these assets. Equipment replacement and maintenance is projected and funded throughout its useful life. The annual capital improvement budget includes projects which funding source is reasonably assured and can be started within the fiscal year.
Major Initiatives
The City of Campbell City Council and the City’s management team have dedicated significant attention and resources accomplishing the City’s goals and objectives. And for the upcoming fiscal year, Council priorities are to address Long-Term Land Use Planning and Housing, Measure O Implementation, Financial Stability, Sustainability, and Community Health and Safety.
A number of capital projects were completed over the course of the fiscal year 2022-23, including the renovation of the Campbell Park Playground and Restroom facilities, replacing HVAC units at several City facilities, Harriet Avenue Sidewalk Project, installation of several new solar powered LED flashing stop signs, installation of new battery backup systems at several signalized intersections throughout the City, final closeout of the Energy Conservation Upgrades and Infrastructure (ESCO) Project, and continued work on the two Measure O Projects – the Library Renovation and the construction of a new Police Building. It is also worth noting the completion of the Annual Street Maintenance project, street crack filling for 24 residential streets in support of the City’s Pavement Maintenance Program, as well as various traffic calming and bike/ped safety improvements throughout the City. Additionally, a number of notable capital projects were also started during fiscal year 2022-23, including the Campbell Safe Routes to School Maps Project, and the re-design of the John D.
Morgan Parking Lots.
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City of Campbell
Letter of Transmittal
June 30, 2023
Awards (Financial and Budgetary)
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Campbell for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. The Certificate of Achievement is a prestigious national award that recognizes conformity with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the past 34 consecutive fiscal years. We believe our current report continues to conform to the Certificate of Achievement Program’s requirements, and we are again submitting it to determine its eligibility for another certificate.
The City also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for the fiscal year 2022-23. This is the 30
th consecutive year of receiving this award. In order to receive this award, the budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device.
Acknowledgements
The preparation and publication of this report was made possible by the dedicated service of the entire Finance Department under the leadership of the Finance Director and the Assistant Finance Director. Each member of the Department has my sincere appreciation for the many contributions made in the preparation of this report.
In addition, I wish to extend a special thanks to the Finance Department Staff for their hard work in producing this document.
Appreciation is also extended to City departments for their support in planning and conducting the fiscal functions of the City, the commitment of all City employees, as well as the Mayor and City Council for their support and encouragement toward achieving and maintaining the highest standards for the management of the City of Campbell’s finances. Through continued partnership with the community that we serve, the City of Campbell will continue to be a leader in effective municipal governance and maintain high quality of life.
Respectfully submitted,
Will Fuentes
Finance Director
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City Officials
City Council
Mayor – Paul Resnikoff
Vice Mayor – Anne Bybee
Councilmember – Liz Gibbons
Councilmember – Susan Landry
Councilmember – Sergio Lopez
Note: Mayor serves an annual term from December to December.
Names and positions are as of July 1, 2022.
City Administrative Staff
City Manager – Brian Loventhal
Assistant City Manager – Angelique Gaeta
City Clerk – Dusty Christopherson
City Attorney – William Seligmann
Community Development Director – Rob Eastwood
Finance Director – Will Fuentes
Human Resources Manager – Jenny Le-Christensen
Information Technology Manager – Cecil Lawson
Police Chief – Gary Berg
Public Works Director – Todd Capurso
Recreation & Community Services Director – Natasha Bissell
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Commissions, Committees, and Advisory Boards
Bicycle/Pedestrian Committee Parks and Recreation Commission David Sausjord, Chairperson Robert Fidrych Jr., Chairperson Mark Nakamura Liraz Abraham, Vice Chairperson
Matt Schroeder Frank Beitz
Barton Smith Sherrie Doherty
Allen Ishibashi
Traci Mitchell
Building Board of Appeal Sharon Teeter
Bruno Marcelic
Jim Morelan Planning Commission
Jay Perrine Stuart Ching, Chairperson
Kevin Salazar Adam Buchbinder
Todd Zeman Matt Kamkar
Michael Krey
Andrew Rivlin
Citizen’s Bond Oversight Committee Maggie Ostrowski
For Measure O Alan Zisser
Al Bito, Chairperson
Terry Hines Youth Commission
Doris Quai Hoi Julie Pieracci, Staff Liaison
Paul Russel Amanda Lamorte
Thomas Russel Liam Hopkins
Steven Suanders Livia Biswell
Anne Souza Lisa Ido
Neel Handa
Civic Improvement Commission Raina Shah
Davis Fields, Chairperson Maddon Hoh-Choi
Chris Bracher Samantha Green
Jennifer Dooley Zahra Kizaraly
William Kaufman Pallas Lemarchand
Heather Malcom Ria Mukesh
Jenna Naylor Zoey Benedetti
Maryanne Yoshikawa Zubin Khera
Historic Preservation Board Rental Fact Finding Committee D. Michael Foulkes, Chairperson (Not currently active)
Susan Blake
Rob Corteway
Laura Taylor Moore
Todd Walter
Note: Names and Positions as of May 2022
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June 30, 2023
City of Campbell,
California
eidebailly.com
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Th
e Honorable City Council
City of Campbell, California
Re
port on the Audit of the Financial Statements
Opi
nions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Campbell, 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 accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 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 (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). 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 requirements 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.
What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE
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2 Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 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 GAAS 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 GAAS 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.
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3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedule of Changes in the Pension Liability and Related Ratios – CalPERS Miscellaneous Plan, the Schedule of Pension Contributions – CalPERS Miscellaneous Plan, the Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans, the Schedule of Pension Contributions – CalPERS Safety Plan, the Schedule of Changes in the Net OPEB Liability and Related Ratios, the Schedule of OPEB Contributions, the Budgetary Comparison Schedules for the General Fund and each Major Special Revenue Fund, 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining fund financial statements and individual schedules of revenues, expenditures, and changes in fund balance – budget and actual are presented for purposes of additional analysis and are 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 GAAS. In our opinion, the combining fund financial statements and individual schedules of revenues, expenditures, and changes in fund balance – budget and actual are 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 and statistical sections 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.
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4 Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 29, 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 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 City’s internal control over financial reporting and compliance.
Menlo Park, California
December 29, 2023
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5 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Management’s Discussion and Analysis
The management of the City of Campbell, California (City) presents this narrative overview and analysis of the financial activities of the City as of, and for the fiscal year ended June 30, 2023. Since Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes, and currently known facts, we encourage readers to consider the information presented herein in conjunction with additional information furnished in the Letter of Transmittal and the accompanying Basic Financial Statements.
Fiscal Year 2022-23 Financial Highlights
City-wide, the City ended its fiscal year with total revenues of $78.3 million, an increase of $5.7 million from the previous year, and total expenses of $69.7 million, an increase of $8.9 million compared to the previous year.
Excluding property taxes, general revenues; comprised of sales tax, transient occupancy tax and other revenues, increased $6.0 million.
Other financial highlights of the past year are as follows:
City-wide
• Total City assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $58.8 million. Of this amount, $69.5 million represents the net investment in capital assets while $22.1 million is restricted for various purposes including affordable housing, streets and roads, community development and debt service. The negative $29.9 million in unrestricted net position decreased by $2.2 million since last year.
• Total net position increased from the previous year by $8.6 million primarily attributable to an increase in cash and investments and a decrease in short-term liabilities such as accounts payables.
Fund level
• Total governmental fund balances were $97.7 million at fiscal year-end, an increase of $2.8 million from the previous year.
• The General Fund revenues, excluding transfers, increased $5.8 million to $62.2 million from the previous year. Related expenditure increased by $6.2 million from the previous year to $58.2 million. • The General Fund’s fund balance increased $0.2 million to $22.1 million at fiscal year-end. • Total Committed General Fund balance of $3.1 million is for future contingencies and capital improvement projects. Total Assigned General Fund balance of $4.0 million is for CalPERS retirement costs and other post-employment benefits, and the remaining $14.9 million for general government.
The total General Fund balance represents a 36.9% reserve ratio to General Fund expenditures excluding transfers out.
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6 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Overview of the Financial Statements
The City is required to present its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standard Board (GASB) pronouncements. The City of Campbell’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. This report also contains other supplementary information in addition to the Basic Financial Statements.
Government-wide Financial Statements - These statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. They consist of the statement of net position and statement of activities. The statements are reported on the full accrual basis of accounting and eliminate any duplicate activity between City funds.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources including capital assets and long-term debt, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. It encompasses all revenues and expenses and reports them based on when they are earned or incurred, respectively, rather than the timing of the related cash flows.
The City has only governmental activities that are primarily supported through taxes and intergovernmental revenues. The government-wide financial statements include Campbell Lighting and Landscape District, a legally separate entity that is under the control of the City and for which the City retains financial accountability.
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Campbell, like other state and local governments, uses fund accounting on a day-to-day basis to ensure and demonstrate compliance with finance- related legal requirements. These statements focus on more short-term reporting related to current revenues, expenditures and fund balances. They do not include capital assets or long-term liabilities. The City’s funds can be divided into two categories: governmental funds and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the City-wide financial statements. However, unlike the City-wide financial statements, governmental fund financial statements focus on inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near- term financing requirements.
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7 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Because the focus of governmental funds is narrower than that of the government-wide statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the City-wide financial statements. By doing so, a better understanding may result in the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Campbell maintains individual governmental funds. Information for the General Fund, Housing Assets Special Revenue Fund and Capital Projects Fund is presented separately in the fund statements as they are considered major funds of the City. The data for the remaining funds are shown in the aggregate in the financial statements. However, the individual fund data for each of these non-major funds is provided as supplemental information in the form of combining statements.
The City of Campbell adopts an annually appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.
Fiduciary funds are used to account for resources held for the benefit of parties outside of the City. Fiduciary funds are not reflected in the City-wide financial statements because the resources of those funds are not available to support the City’s own programs. Accordingly, only assets and liabilities are reported for these funds. The City reports three agency funds, representing a joint powers authority, a local improvement district, and a task force. It also reports on a Private Purpose Trust Fund which consists of the Successor Agency to the former Campbell Redevelopment Agency, which was dissolved by State legislation on February 1, 2012.
Notes to the Basic Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the City-wide and fund financial statements. They can be found immediately following the financial statements.
Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain supplemental information in the form of budget and actual schedules for major governmental funds other than the general fund; combining statements for non-major governmental funds and the City’s internal service funds; and a statement of changes in assets and liabilities for the City’s fiduciary funds.
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8 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Government-Wide Financial Analysis
These City-wide financial statements provide information about the City’s overall financial picture from the perspective of all the City’s governmental funds. The analysis focuses on the net position and changes in net position at the City-wide level as presented in the statement of net position and statement of activities. Net positions for the City are summarized below as of June 30 and an analysis follows (in millions):
2023 2022
Cash and Investments 104.2$ 98.3$
Capital Assets 77.7 76.0
Other Assets 19.5 21.8
Total assets 201.4 196.1
Deferred Outflows of Resources 30.5 15.1 Noncurrent Liabilities 72.3 74.2 Other Liabilities 16.3 18.7
Net OPEB Liability 6.0 4.7
Net Pension Liability 71.4 38.1
Total liabilities 166.0 135.7
Deferred Inflows of Resources 7.1 25.3 Net Position
Net investment in capital assets 69.5 60.3 Restricted 19.3 22.0
Unrestricted (29.9) (32.1)
Total net position 58.9$ 50.2$
Governmental Activities
The changes in net position were comprised of the following elements:
• Cash and investments increased by a net of $5.9 million, which is primarily due to the receipt of the second tranche of American Rescue Plan Act (ARPA) funds. • Net capital assets increased by $1.7 million. The increase is primarily due to $4.4 million in capital asset additions, specifically an increase to construction in progress for improvements to Campbell Park and Harriet Avenue sidewalks. The additions are offset by an additional $2.5 million in depreciation. • Other assets such as taxes, leases, and notes receivable decreased by a net of $2.3 million due to a decrease in Accounts Receivable upon the receipt of the second tranche of ARPA funds. • Deferred outflows of resources increased $15.4 million, of which is attributed to an increase of $14.9 million for amounts related to pensions and an increase of $0.4 for amounts related to other post- employment benefits (OPEB). These amounts include deferred contributions that will be recognized as a reduction to the net pension or OPEB liability next year, change in assumptions, and the net differences between projected and actual earnings on plan investments that is being amortized and recognized as a component of pension expense over future periods. • Noncurrent liabilities decreased $1.9 million, which is a largely a result of debt service payments towards Measure O General Obligation Bonds.
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Management’s Discussion and Analysis
June 30, 2023
• Other liabilities decreased by $2.4 million solely due to a $3.1 million decrease to accounts payable. • Net Pension Liability increased $33.3 million, mainly as a result of poor CalPERS investment returns of negative 6.1% from the 2021-22 fiscal year. The poor returns are also the primary reason for the increase to deferred inflow of resources.
• Net investment in capital assets increased by $9.2 million mainly due to ongoing capital projects and the issuance of Measure O bonds, which are to be used towards building a new Police Operations Building and renovation of the library.
• Restricted net position assets have external limitations placed upon them regarding how they may be spent. These assets, which increased by $0.1 million, may be restricted for debt service, capital projects, or housing programs.
On the following page is a summary of the components that resulted in the change to net position for the fiscal year ended June 30:
2023 2022
Revenues
Program revenues
Charges for services 13.9$ 12.9$
Operating grants and contributions 4.2 4.0 Capital grants and contributions 3.1 6.7 General revenues
Property taxes 25.6 23.5
Sales and use taxes 18.8 16.4
Other taxes 8.6 7.9
Investment Income 1.8 (1.1)
Miscellaneous 2.3 2.3
Total revenues 78.3 72.6
Expenses
General government 10.8 7.8
Recreation 6.6 4.9
Community development 4.8 2.9
Public safety 29.1 30.9
Public works 16.6 13.0
Interest on long term debt 1.8 1.3 Total expenses 69.7 60.8
Change in Net Position 8.6 11.8 Net Position at Beginning of Year 50.2 38.4 End of Year 58.8$ 50.2$
Governmental Activities
Changes in Governmental Net Position (in millions)
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10 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Government-wide net position increased $8.6 million from the prior year. Key elements of activity are as follows:
Revenues
• Within program revenues, charges for services increased $1.0 million reflecting increased service demands within the Recreation, Community Development, and Public Works departments. While operating grants and contributions had minimal change year over year, capital grants and contributions decreased $3.6 million. The decrease is attributable to the $3.9 million CalOES State Grant received in the prior fiscal year. • Within general revenues, property tax revenues increased $2.1 million reflecting continued strength in the real estate market fueled by improving housing prices and strong sales activity.
Furthermore, of the $25.6 million in Property Tax Revenues collected government-wide, $2.8 million is attributed to the levies as a result of the 2018 passage of Measure O. • General tax revenue, other than property tax, increased by $3.1 million. The increase is attributed to an increase to sales tax and transient occupancy tax by $2.4 million and $1.0 million, respectively.
• While miscellaneous revenues did not materially change, investment returns were strong and increased by $2.9 million year over year.
Expenses
• General Government increased by $3.0 million from the prior fiscal year mainly due to the allocation of lease expense from the implementation of lease accounting standards. • Recreation expenses increased $1.7 million largely due to increased temporary staffing costs for increased services and programs provided and Heritage Theatre management services. • Community Development expenses increased by $1.9 million due to personnel costs and consulting services related to the General Plan, Housing Element, and objective standards updates.
• Public Safety expenses decreased $1.8 million as a result of recognized pension expense related to the Safety Plan.
• Public Works expenses increased $3.6 million as a result of recognized pension expense related to the Miscellaneous Plan, increased personnel costs, increased maintenance costs. • Interest on long-term debt increased $0.5 million as a result of debt service payment for the Measure O general obligation bond.
Financial Analysis of Fund Financial Statements
Combined governmental fund balances at fiscal year-end were $97.7 million, an increase of $2.8 million from the previous year. The City has Nonspendable, Restricted, Committed, Assigned and Unassigned fund balances of $.2 million; $75.7 million; $3.1 million; $5.0 million and $14.9 million, respectively, at year end.
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11 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Governmental fund revenues, excluding transfers, were $78.0 million, an increase of $5.5 million from the previous year. Property taxes were higher by $2.1 million due to continued strength in the real estate market as well as levies from the 2018 passage of Measure O. Sales and use tax grew by $2.4 million as a result of continued consumer spending. Other taxes, including transient occupancy tax (TOT), increased by a combined $0.7 million, largely due to a $1.0 million increase in TOT offset by a $0.2 million decrease in Franchise Taxes.
Intergovernmental revenues decreased $3.6 million due to the receipt of the second tranche of American Rescue Plan Act (ARPA) funds in the prior year. Lastly, charges for services did not significantly change, increasing by $0.4 million. Governmental fund expenditures, excluding transfers, increased from the prior year by a net amount of $1.6 million to $74.7 million. The increase is attributed to a $2.2 million increase in debt service payments.
Analysis of Major Governmental Funds
General Fund
Property Tax is the General Fund’s largest revenue source. While budgeted at $20.5 million, actual property tax revenue received was $20.9 million. That represents $0.4 million or 1.9% greater than budgeted. The positive variance is attributed to current secured property taxes and the Education Revenue Augmentation Fund (ERAF) from which the City received $0.2 million and $0.1 million higher than budgeted, respectively.
Sales and Use Tax is the General Fund’s second largest revenue source, budgeted at $18.2 million. The City received $18.8 million or $0.6 million over the final budget. The largest categories of sales tax producers comprise of restaurants and hotels, building and construction, business and industry, and general consumer goods.
Charges for services amounted to $5.3 million, which is comprised largely of fees for services provided by the Recreation, Community Development, and Public Works departments. The City received $0.3 million or 6.2% greater than budgeted. The positive variance is attributed to increased participation within Recreation programs.
General Fund expenditures, excluding transfers, were $58.2 million, an increase of $6.2 million from the previous year. When compared to the final budget, general fund expenditures were $1.6 million or 2.7% under budget. The savings are mostly attributed to both the Recreation and Community Development departments, which came under budget by 7.1% and 12.1%, respectively. The positive variance is due to lower-than-expected incurred expenditures as it relates to personnel costs and professional services, more specifically for staffing support and updating of objective standards.
The General Fund’s fund balance at fiscal year-end was $22.1 million, an increase of $0.2 million from the previous year. Actual ending fund balance was greater than projected by $0.2 million or 0.1%. This is completely due to the General Fund’s higher than expected revenues and lower incurred expenditures.
Committed and Assigned fund balances at year end were $3.1 million and $4.0 million, respectively. These balances are utilized to fund operational costs such as capital projects, compensated absences, and to maintain a reserve for PERS and OPEB related costs. Unassigned fund balance of $14.9 million serves as an additional reserve for unanticipated needs that may arise including a $10.0 million reserve for economic fluctuations and $3.2 million for emergencies.
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Management’s Discussion and Analysis
June 30, 2023
Housing Assets Special Revenue Fund
The principal assets of this fund consist of long-term housing loans receivable from various housing programs which were formerly administered by the Campbell Redevelopment Agency. Limited funds are available for new homebuyers, consisting primarily of loan repayment proceeds and interest earnings. The Housing Assets fund balance did not significantly change from the prior year. Its fund balance decreased by $0.3 million from $8.8 million to $8.5 million.
ARPA Special Revenue Fund
The American Rescue Plan Act (ARPA) Special Revenue fund accounts for ARPA federal grant funds which are provided for specific purposes. The ARPA fund balance did not significantly change from the prior year. Its fund balance increased by $88,943 solely from investment earnings.
Capital Projects Fund
The Capital Projects Fund accounts for the expenditures and financing of the City’s capital projects. Year over year, the capital projects fund balance decreased by $18,111 or 1.9%. While the fund incurred over $3.7 million in capital outlay expenditures, those expenditures were financed primarily through the General Fund, various State and Local Grants, and park fees.
Measure O Capital Projects Fund
The Measure O Capital Projects Fund accounts for the expenditures and financing of the City’s capital projects related to the Measure O General Obligation Bond. In August 2020, the City issued $20 million of general obligation bonds in the first of two series of issuances. In May 2022, the City issued an additional $30 million of general obligation bonds to fund the construction of a police operations building as well as the renovation of the City library.
The Measure O Capital Projects fund balance increased by $2.4 million when compared to the prior year. This increase is due to receipt of the first of two tranches of a $4.7 million Building Forward Grant from the California State Library.
Other Governmental Funds
Other Governmental Funds are comprised of separate special revenue and debt service funds. These funds are not separately presented in the basic financial statements but are individually presented as supplemental information. Other Governmental Funds, as a whole, increased by $0.4 million for an ending balance of $13.2 million. This increase is entirely due to the Gas Tax Fund, whose fund balance increased by $1.7 million.
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13 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
General Fund Budgetary Highlights
The table below summarizes the General Fund Budgetary Highlights as follows:
Variance with
Final Budget
Original Final Actual Positive(Negative)
Revenues
Property taxes 20,654,400$ 20,526,000$ 20,907,124$ 381,124$ Sales and use taxes 15,903,012 18,221,459 18,832,569 611,110 Other taxes 8,622,400 8,602,100 8,605,379 3,279 Licenses and permits 3,894,820 4,173,500 3,387,574 (785,926) Fines and forfeitures 105,000 107,500 113,511 6,011 Investment income 310,900 610,900 413,171 (197,729) Rents and leases 2,933,200 2,965,800 3,223,340 257,540 Intergovernmental 999,100 1,226,598 1,146,995 (79,603) Charges for services 4,872,200 4,980,430 5,288,137 307,707 Miscellaneous 219,400 307,946 319,911 11,965 Total Revenues 58,514,432 61,722,233 62,237,711 515,478 Expenditures
General government 8,969,132 9,622,661 9,809,706 (187,045) Recreation 6,163,202 6,661,825 6,146,030 515,795 Community development 3,251,953 4,914,253 4,114,064 800,189 Public safety 31,364,570 31,615,857 31,445,372 170,485 Public works 6,429,772 6,856,436 6,526,178 330,258 Capital outlay - - 1,827,210 (1,827,210) Debt service - - 145,800 (145,800) Total expenditures 56,178,629 59,671,032 60,014,360 1,629,682 Excess (deficiency) of revenues
over (under) expenditures 2,335,803 2,051,201 2,223,351 172,150 Other financing sources (uses)
Leases issued - - 1,827,210 1,827,210 Transfers in 2,939,083 791,371 791,371 - Transfers out (5,274,886) (6,758,371) (4,625,452) 2,132,919 Total other
financing sources (uses) (2,335,803) (5,967,000) (2,006,871) 2,132,919 Net change in fund balance - (3,915,799) 216,480 4,132,279 Fund balance at beginning of year 21,926,791 21,926,791 21,926,791 - Fund balance at end of year 21,926,791$ 18,010,992$ 22,143,271$ 4,132,279$ Budgeted Amounts
The General Fund realized an excess of revenues over expenditures of $2.2 million, excluding transfers and other sources. General Fund revenues, excluding transfers, increased $5.8 million from the previous year to $62.2 million. When compared to the final budget, general fund revenues were $0.5 million or 0.8% greater than budgeted.
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
14 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Capital Assets
The City had net capital assets of $77.7 million as of June 30, 2023. The following is a summary of the City’s capital assets for the fiscal year ended June 30:
2023 2022
Land 9.1$ 9.1$
Construction in progress 7.3 17.5
Building & improvements 32.7 26.6
Right-of-Use intangible assets 2.1 0.3
Machinery & equipment 11.6 13.3
Infrastructure 67.9 60.2
Less: Accumulated depreciation (53.0) (51.0) Net capital assets 77.70$ 76.00$ Capital Assets (in millions)
Total additions to capital assets were $3.7 million during the year consisting primarily of infrastructure and improvements. The additions were partially offset by an increase of $2.0 million in depreciation. Additional details on capital assets can be found in Note 5 of the notes to the basic financial statements.
Debt Administration
In August 2016, the City and its Successor Agency concurrently refinanced a combined four outstanding debt issues to achieve significant interest savings for the City and the Agency, given the low interest rate environment that existed at the time. In August 2020, the City issued $20 million of general obligation bonds followed by an additional $30 million issuance in May 2022 to fund a police emergency operations center and a renovated library. The City also financed energy conservation upgrades and infrastructure improvements through a $1.6 million loan from the California Energy Commission and a $2.2 million loan from Pacific Gas & Electric.
Additional details regarding the City’s long-term debt can be found in Note 6 in the notes to financial statements.
The City had $4.1 million in outstanding certificates of participation, $4.0 million in refunding lease revenue bonds, and $44.2 million of 2018 election general obligation bonds and $6.1 million in other debt outstanding as of June 30, 2023.
The Successor Agency debt is reported in a Private Purpose Trust separate from the City’s financial statement reporting entity. The debt obligations appear on the Fiduciary Funds Statement of Net Position of the ACFR.
Total outstanding debt of the Successor Agency for the refunding tax allocation bonds was $14.5 million as of June 30, 2023.
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15 City of Campbell
Management’s Discussion and Analysis
June 30, 2023
Economic Outlook and Next Year’s Budget
The nation’s economy saw GDP growth equaling 5.2% in the third quarter of 2023; following a GDP increase equaling 2.1% in the second quarter of 2023. The third quarter increase was a result of increased consumer spending, inventories, exports, residential investment and government spending. Despite continued inflationary pressures, the nation’s economy grew faster than expected. In the City of Campbell, the unemployment rate rose to 3.2% as of September 2023. Although the unemployment rate increased from 2.2% the prior year, it is far below the peak of the pandemic during which unemployment in Campbell reached 8.5%.
For the FY24 budget, as to ensure long-term fiscal stability, staff developed and Council approved several strategic and operational actions that would place the City in a more stable financial position progressing into FY24 and beyond. In developing the FY24 budget, the following information was used:
• Property tax revenues are expected to grow 5.89% compared to FY23 due to continued appreciation in the property tax base. Despite higher mortgage interest rates, the average home price in Campbell rose slightly from $1.83 million in the prior year to 1.84 million. • Sales tax revenue is projected to remain relatively flat in FY24 compared to FY23. Beyond FY24, staff conservatively estimate 2-3% growth per year, nothing that inflationary pressures and the possibility of a recession caused by rising interest rates provide headwinds to consumer and business spending and further economic growth.
• Charges for Service is historically the City’s third largest revenue source. It is estimated to increase by
18.6% in FY24 due to increased service demands. Furthermore, it is projected to meet or exceed pre- recessionary levels at $5.91 million.
• Transient Occupancy Tax is estimated to reach near pre-pandemic levels in FY24 and equal approximately $4.50 million. Thereafter, staff estimates conservative 3% growth per year. • Employee costs are expected to increase as a result of three-year labor agreements that run through 2025. Furthermore, an 8% increase for annual healthcare premium has been factored in. • Supplies and services are projected to increase 6.5% in FY24 when compared to FY23 in the General Fund.
Contacting the City
This financial report is designed to provide a general overview of the City of Campbell’s finances for residents, taxpayers, investors, creditors and any other interested parties. Questions about this report may be directed to the City’s Finance Department at 70 N. First St., Campbell, CA 95008 or by e-mail at [email protected].
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
16 City of Campbell
Government Wide Financial Statements
June 30, 2023
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis of accounting. The effect of all the City’s transactions is considered, regardless of whether or when cash changes hands.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. It focuses the reader on the composition of the City’s net position, by subtracting total liabilities and total deferred inflows of resources from total assets and total deferred outflows of resources. The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities in a single column.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Debt Service and Capital Projects Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis of accounting, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands.
The format of the Statement of Activities presents the City’s expenses first, which are listed by program.
Program revenues - that is, revenues which are generated directly by these programs - are then deducted from program expenses to arrive at the net expense of each governmental program. The City’s general revenues are then listed in the Governmental Activities column, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the City of Campbell Lighting and Landscape District, which is a legally separate but blended component unit of the City because it is controlled by the City, which is financially accountable for its activities.
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See Notes to Financial Statements 17
City of Campbell
Statement of Net Position
June 30, 2023
Governmental
Activities
Assets
Cash and investments 104,207,433$
Cash held with fiscal agent 19,414
Receivables
Taxes 4,435,788
Accounts 1,005,464
Interest 762,911
Notes and loans 7,676,126
Leases 5,557,810
Deposits 90,000
Capital assets, not depreciated or amortized 16,432,434 Capital assets, net depreciation and amortization 61,243,861 Total assets 201,431,241
Deferred outflows of resources
Amount related to pensions 27,834,229
Amount related to OPEB 2,634,714
Total deferred outflows of resources 30,468,943
Liabilities
Accounts payable 2,752,203
Accrued expenses 2,568,085
Interest payable 715,860
Deposits payable 2,480,724
Unearned revenues 7,783,104
Noncurrent liabilities
Due in less than one year
Bonds, leases, subscriptions, notes, loans, claims, compensated absences 6,614,089 Due in more than one year
Bonds, leases, subscriptions, notes, loans, claims, compensated absences 65,661,521 Net OPEB liability 5,988,978
Net pension liability 71,382,845
Total Liabilities 165,947,409
Deferred inflows of resources
Amount related to leases 5,384,629
Amount related to pensions 1,526,971
Amount related to OPEB 178,369
Total deferred inflows of resources 7,089,969
Net Position
Net investment in capital assets 69,455,950
Restricted for
Debt service 582,164
Streets and roads 6,184,741
Museum and adult center 22,706
Public safety 329,120
Low and moderate income housing 8,496,034
Community development 3,635,803
Unrestricted (29,843,712)
Total net position 58,862,806$
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 18
City of Campbell
Statement of Activities
Year Ended June 30, 2023
Net (Expenses)
Revenues and
Change in Net
Position
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Governmental Activities
General government 10,756,246$ 1,993,223$ 450,660$ -$ (8,312,363)$ Recreation 6,569,294 3,261,942 83,042 - (3,224,310) Community development 4,758,602 3,387,574 11,000 - (1,360,028) Public safety 29,060,937 235,043 651,650 - (28,174,244) Public works 16,603,696 5,014,492 2,962,268 3,060,743 (5,566,193) Interest expense and
other charges 1,794,044 - - - (1,794,044) Total governmental activities 69,542,819$ 13,892,274$ 4,158,620$ 3,060,743$ (48,431,182) General revenues
Taxes
Property 25,550,037
Sales and use 18,832,569
Transient occupancy 3,626,019
Franchise 3,924,558
Other 1,039,036
Payments in lieu of taxes 44,984
Investment income 1,754,835
Miscellaneous 2,334,522
Total general revenues 57,106,560
Change in net position 8,675,378
Net Position At Beginning of Year 50,187,428
Net Position At the End of Year 58,862,806$
Program Revenues
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19 City of Campbell
Government Fund Financial Statements
June 30, 2023
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal year 2023. Individual other governmental (nonmajor) funds may be found in the Supplemental Section.
General Fund
Accounts for activities traditionally associated with governments, such as administration, recreation, community development, engineering, and public safety, which are not required to be accounted for in another fund.
Housing Assets Special Revenue Fund
Accounts for assets of the City’s Successor Housing Agency, formed to take over certain housing assets from the former Redevelopment Agency Low-Moderate Income Housing Fund upon its dissolution by the State of California.
Other Grants Special Revenue Fund
Accounts for Federal, State and local grant funds which are provided for specific purposes.
ARPA Special Revenue Fund
Accounts for American Rescue Plan Act (ARPA) federal grant funds which are provided for specific purposes.
Capital Projects Fund
Accounts for the expenditures and financing of the City’s capital projects.
Measure O Capital Projects Fund
Accounts for the expenditures and financing of the City’s capital projects related to the Measure O bond.
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 20
City of Campbell
Balance Sheet – Governmental Funds
June 30, 2023
General Fund
Housing
Assets
ARPA
Fund
Capital Projects
Fund Measure O
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 21,966,157$ 1,012,337$ 7,767,912$ 1,119,203$ 52,532,658$ 14,656,043$ 99,054,310$ Cash held with fiscal agent - - - - - 19,414 19,414 Receivables
Accounts 807,532 - - 23,288 - 136,629 967,449 Taxes 4,151,679 - - - - 284,109 4,435,788 Interest 186,197 7,054 55,910 - 394,667 119,083 762,911 Notes and loans - 7,536,126 - - - 140,000 7,676,126 Leases receivable 5,557,810 - - - - - 5,557,810 Due from other funds 1,668,822 - - - - - 1,668,822 Total assets 34,338,197$ 8,555,517$ 7,823,822$ 1,142,491$ 52,927,325$ 15,355,278$ 120,142,630$ Liabilities
Accounts payable 2,024,675$ 54,797$ -$ 213,385$ 70,692$ 266,266$ 2,629,815$ Accrued payroll 2,304,898 5,032 - - 14,506 185,704 2,510,140 Deposits payable 2,480,724 - - - - - 2,480,724 Due to other funds - - - - - 1,668,822 1,668,822 Unearned revenue - - 7,783,104 - - - 7,783,104 Total liabilities 6,810,297 59,829 7,783,104 213,385 85,198 2,120,792 17,072,605 Deferred Inflows of Resources
Lease related 5,384,629 - - - - - 5,384,629 Fund balances (deficit)
Nonspendable 173,181 - - - - - 173,181 Restricted - 8,495,688 40,718 - 52,842,127 14,274,635 75,653,168 Committed 3,091,992 - - - - - 3,091,992 Assigned 4,013,616 - - 929,106 - - 4,942,722 Unassigned 14,864,482 - - - - (1,040,149) 13,824,333 Total fund balances (deficit) 22,143,271 8,495,688 40,718 929,106 52,842,127 13,234,486 97,685,396 Total liabilities, deferred inflows
of resources and fund balances 34,338,197$ 8,555,517$ 7, 823,822$ 1,142,491$ 52,927,325$ 15,355,278$ 120,142,630$ Capital Projects Funds Special Revenue Funds
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See Notes to Financial Statements 21
City of Campbell
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Year Ended June 30, 2023
Fund balances - total governmental funds 97,685,396$
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 and therefore are not reported in the governmental funds balance sheet:
Capital assets 123,420,050$
Accumulated depreciation (47,330,043)
76,090,007
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term liabilities is not accrued in governmental funds, but rather is recognized as an expenditures when due. All liabilities, both current and long-term, are reported in the Statement of Net Position.
Balances at year-end are:
Bonds and certificates of participation (58,036,671)
Loans (3,788,075)
Leases payable (1,631,067)
Compensated absences (3,852,532)
Claims payable (469,803)
Accrued interest (715,860)
(68,494,008)
OPEB related liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to OPEB are only reported in the Statement of Net Position as the changes in these amounts affects only the government-wide statements for governmental activities:
Deferred outflows of resources 2,549,580
Deferred inflows of resources (172,605)
Net OPEB liability (5,795,460)
(3,418,485)
Pension related liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts effects only the government-wide statements for governmental activities:
Deferred outflows of resources 27,090,680
Deferred inflows of resources (1,522,310)
Net pension liability (69,181,708)
(43,613,338)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, information technology, and workers' compensation self-insurance, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position.
613,234
Net Position of Govenmental Activities 58,862,806$
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 22
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended June 30, 2023
Other Total
General Housing ARPA Capital Projects Governmental Governmental Fund Assets Fund Fund Measure O Funds Funds
Revenues
Property taxes 20,907,124$ -$ -$ -$ -$ 4,642,913$ 25,550,037$ Sales and use taxes 18,832,569 - - - - - 18,832,569 Other Taxes 8,605,379 - - - - - 8,605,379 Special assessments - - - - - 1,406,520 1,406,520 Licenses and permits 3,387,574 - - - - - 3,387,574 Fines and forfeitures 113,511 - - - - 98,591 212,102 Investment income 413,171 108,075 91,397 - 698,902 341,295 1,652,840 Rents and leases 3,223,340 - - - - - 3,223,340 Intergovernmental 1,146,995 - - - 2,359,225 3,708,627 7,214,847 Charges for services 5,288,137 - - - - 771,501 6,059,638 Project revenues - - - 281,473 - - 281,473 Parkland dedication fees - - - - - 1,182,118 1,182,118 Miscellaneous revenues 319,911 47,741 - - - 65,743 433,395 Total revenues 62,237,711 155,816 91,397 281,473 3,058,127 12,217,308 78,041,832 Capital
Projects Fund
Special
Revenue Funds
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ee Notes to Financial Statements 23
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds, Continued Year Ended June 30, 2023
Other Total
General Housing ARPA Capital Projects Governmental Governmental Fund Assets Fund Fund Measure O Funds Funds
Expenditures
Current
9, 809,706 - 2,454 - 90,004 3,887 9,906,051
6, 146,030 - - - - - 6,146,030
4, 114,064 429,716 - - - 1,261 4,545,041
31, 445,372 - - - - 258,392 31,703,764
General government
Recreation
Community development
Public safety
Public works 6,526,178 - - 115,058 - 5,914,785 12,556,021 1, 827,210 - - 3,669,162 588,157 - 6,084,529 Capital outlay Debt service
115, 263 - - 90,178 - 3,585,000 3,790,441
30, 537 - - 7,938 - 1,724,497 1,762,972
60, 014,360 429,716 2,454 3,882,336 678,161 11,487,822 76,494,849 Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures 2,223,351 (273,900) 88,943 (3,600,863) 2,379,966 729,486 1,546,983 Other financing sources (uses)
Leases issued 1,827,210 - - - - - 1,827,210
Transfers in 791,371 - - 3,582,752 - 4,058,441 8,432,564 Transfers out (4,625,452) - - - - (4,358,692) (8,984,144) Total other financing
sources (uses) (2,006,871) - - 3,582,752 - (300,251) 1,275,630 Net change In fund balances 216,480 (273,900) 88,943 (18,111) 2,379,966 429,235 2,822,613 Fund balances (deficit) at beginning
of year
21,926,791 8,769,588 (48,225) 947,217 50,462,161 12,805,251 94,862,783 Fund balances at end of year 22,143,271$ 8,495,688$ 40,718$ 929,106$ 52,842,127$ 13,234,486$ 97,685,396$ Revenue Funds Projects Fund
Special Capital
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See Notes to Financial Statements 24
City of Campbell
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2023
Net change in fund balances - total governmental funds 2,822,613$ Amounts reported for governmental activities in the Statement of Activities are different because:
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives and reported as depreciation expense. As a result, fund balance decreases by the amount of financial resources expensed, whereas net position decreases by the amount of depreciation expense charged for the year.
Capital outlay 6,084,529
Depreciation expense (3,801,000)
2,283,529
The net effect of a loss on the disposal of capital assets is to decrease net position. (759,694) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Principal payments on bonds and loans 3,950,628
Accrued interest expense related to the long-term liabilities. This amount is the difference between the amount of interest paid and the amount of interest incurred on long-term liabilities.
(191,257)
Lease proceeds provide current financial sources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. (1,827,210)
Some expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in the governmental funds.
Payments on leases payable 217,507
Net change in compensated absences 57,242
Net change in claims payable (144,193)
130,556
Pension expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. 1,998,584
OPEB expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, OPEB expense includes the change in the net OPEB liability, and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources. (44,140)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, information technology, and workers' compensation self-insurance, to individual funds. The net revenue (expense) of these internal service funds are included in the governmental activities in the Statement of Net Position.
311,769
Change in net position of governmental activities 8,675,378$
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
25 City of Campbell
Proprietary Fund Financial Statements
June 30, 2023
Internal Service Funds
Account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services to other City funds be financed through user charges to those funds.
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 26
City of Campbell
Statement of Net Position – Proprietary Funds
June 30, 2023
Governmental
Activities
Internal
Service Funds
Assets
Current assets
Cash and investments $ 5,153,123
Accounts receivable 38,015
Deposits 90,000
Total current assets 5,281,138
Noncurrent assets
Capital assets, net of accumulated depreciation and amortization 1,586,288 Total assets 6,867,426
Deferred outflows of resources
Amount related to pensions 743,549
Amount related to OPEB 85,134
Total deferred outflows of resources 828,683 Liabilities
Current liabilities
Accounts payable 122,388
Accrued payroll 57,945
Compensated absences, current portion 53,914 Lease payable 362,170
Subscription payable 89,102
Claims and judgments payable, current portion 557,568 Total current liabilities 1,243,087
Noncurrent liabilities
Compensated absences 80,569
Claims payable and judgments 3,354,139
Net OPEB liability 193,518
Net pension liability 2,201,137
Total noncurrent liabilities 5,829,363
Total liabilities 7,072,450
Deferred inflows of resources
Amount related to pensions 4,661
Amount related to OPEB 5,764
Total deferred inflows of resources 10,425 Net position
Net investment in capital assets 1,135,016 Unrestricted (521,782)
Total net position 613,234$
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 27
City of Campbell
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds Year Ended June 30, 2023
Governmental
Activities
Internal
Service Funds
Operating revenues
Investment income 101,995$
Charges for services 2,931,841
Other 74,369
Total operating revenues 3,108,205
Operating expenses
Personnel services 1,082,177
Services and supplies 1,821,638
Depreciation 431,807
Total operating expenses 3,335,622
OPERATING LOSS (227,417)
NONOPERATING INCOME (EXPENSES):
Loss on disposal of capital assets (12,394)
Operating loss (239,811)
Transfers
Transfers in 651,180
Transfers out (99,600)
Total transfers 551,580
Change in net position 311,769
Net position at beginning of year 301,465
Net position at end of year 613,234$
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 28
City of Campbell
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2023
Governmental
Activities
Internal
Service Funds
Cash flows from operating activities
Cash received from department users 3,083,975$
Cash payments to suppliers of goods and services (1,682,890) Cash payments to employees for services (1,026,341)
Net cash provided by operating activities 374,744
Cash flows from noncapital financing activities:
Cash received from other funds 651,180
Cash paid to other funds (99,600)
Net cash provided by noncapital financing activities 551,580 Cash flows from capital and related financing activities Acquisition of capital assets (497,344)
Net cash used by capital and related financing activities (497,344) Net increase in cash and cash equivalents 428,980
Cash and cash equivalents at beginning of year 4,724,143 Cash and cash equivalents at end of year 5,153,123$
Reconciliation of operating loss to
Net cash provided by operating activities
Operating loss (227,417)$
Adjustments to reconcile operating loss to net
cash provided by operating activities
Depreciation and amortization 431,807
Changes in operating assets and liabilities
(Increase) decrease in accounts receivable (24,230)
Increase (decrease) in accounts payable 4,641
Increase (decrease) in accrued payroll 4,704
Increase (decrease) in compensated absences 5,247
Increase (decrease) in subscription liabilities 89,102
Increase (decrease) in claims and judgments payable 134,107 Increase (decrease) in net OPEB and related deferrals 75,653 Increase (decrease) in net pension liability and related deferrals (118,870) Net cash provided by operating activities 374,744$
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29 City of Campbell
Fiduciary Fund Financial Statements
June 30, 2023
Private-Purpose Trust Fund
The private-purpose trust fund was created to account for the assets and liabilities of the Campbell Successor Agency, effective February 1, 2012. These amounts represent the assets and liabilities of the former Campbell Redevelopment Agency.
Custodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the government-wide financial statements but are presented in separate Fiduciary Fund financial statements.
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 30
City of Campbell
Statement of Fiduciary Net Position – Fiduciary Funds
June 30, 2023
Private-
Purpose Custodial
Trust Fund Funds
Assets
Cash and investments 967,374$ 2,026,967$
Cash held with fiscal agent 1,127 -
Accounts receivable 2,553 17,597
971,054 2,044,564
Capital assets, not being depreciated 7,123,531 - Capital assets, net of accumulated depreciation 7,637,492 - 14,761,023 -
Total assets 15,732,077 2,044,564
Liabilities
Accounts payable - 131,739
Accrued interest payable 77,345 -
77,345 131,739
Long-term liabilities
Due within one year 1,595,000 -
Due in more than one year 12,900,000 -
14,495,000 -
Total liabilities 14,572,345 131,739
Net Position
Restricted for individuals and organizations 1,159,732$ 1,912,825$
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Financial Statements 31
City of Campbell
Statement of Changes in Net Position – Fiduciary Funds
Year Ended June 30, 2023
Private-
Purpose Custodial
Trust Fund Funds
Additions
Local government-administered contributions 1,908,245$ 1,143,958$ Other income - 754,752
Investment income 12,718 6,656
Total additions 1,920,963 1,905,366
Deductions
Professional and special services - 732,720 Administrative - 1,149,524
Depreciation 697,519 -
Interest and fiscal agent costs 344,810 -
Total deductions 1,042,329 1,882,244
Change in net position 878,634 23,122
Net position at beginning of year 281,098 1,889,703 Net position at end of year 1,159,732$ 1,912,825$
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32 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 1 - Summary of Significant Accounting Policies
The financial statements of the City of Campbell, California (the City), have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the government’s accounting policies are described below.
Reporting Entity
The City of Campbell was incorporated March 28, 1952, under the general laws of the State of California. The City operates under a Council Manager form of government providing such services as public safety (police, contracted fire services, and building inspection), street and sidewalk maintenance, recreation, planning and zoning, and general administrative services. The accompanying financial statements present the activities of the City of Campbell (the primary government) and its blended component units, entities for which the City is financially accountable.
City of Campbell Lighting and Landscape District (the District) is a City-wide assessment District established in 1980 to provide lighting and landscape services and a funding source for these services. The District is governed by a Board composed of City Council members and lighting services are provided by City employees.
Although legally separate, this District is so intertwined with the City that it is, in substance, one and the same.
Accordingly, it is blended with the City in these financial statements. No separate financial statements are prepared for the District.
Measurement Focus and Basis of Accounting
The basic financial statements of the City are composed of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government-Wide Financial Statements:
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include a column for the governmental activities of the primary government (including its blended component units). Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, interfund services provided and used are not eliminated in the process of consolidation.
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33 City of Campbell
Notes to Financial Statements
June 30, 2023
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Government-wide financial statements are presented using the economic resources measurement focus and accrual basis of accounting, as are the proprietary fund financial statements and the fiduciary private-purpose trust fund financial statements. Under the economic resources’ measurement focus, all (both current and long- term) economic resources and obligations are reported. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of resources, resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government- wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate.
Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and proprietary funds. Fiduciary statements include financial information for the private-purpose trust fund, and custodial funds. Custodial funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
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34 City of Campbell
Notes to Financial Statements
June 30, 2023
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets.
Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 365 days, except property taxes which are considered to be available if collected within 60 days.
Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so they have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.
Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first.
Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Due to the nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
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35 City of Campbell
Notes to Financial Statements
June 30, 2023
Proprietary and Fiduciary Funds
The City’s internal service funds are proprietary funds. In the fund financial statements, proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds and the fiduciary funds, are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their statements of net position. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary funds operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. In addition, Proprietary funds defines investment earnings as operating income.
Nonoperating revenues, such as subsidies, and taxes result from nonexchange transactions or ancillary activities.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements. Amounts paid to reduce long- term indebtedness of the proprietary funds are reported as a reduction of the related liability.
Fund Classifications
The City reports the following major governmental funds:
The General Fund is used to account for resources traditionally associated with governments, such as administration, engineering and public safety, which are not required to be accounted for in another fund.
The Housing Assets Special Revenue Fund is used to account for resources received from the dissolution of the former Campbell Redevelopment Agency dedicated to low- and moderate-income housing activities pursuant to the California Health and Safety Code.
The Other Grants Special Revenue Fund is used to account for Federal, State and local grant funds which are provided for specific purposes.
The ARPA Special Revenue Fund is used to account for American Rescue Plan Act (ARPA) federal grant funds which are provided for specific purposes.
The Capital Projects Fund is used to account for the expenditures and financing of the City’s capital projects.
The Measure O Capital Projects Fund is used to accounts for the expenditures and financing of the City’s capital projects related to the Measure O bond.
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36 City of Campbell
Notes to Financial Statements
June 30, 2023
Additionally, the City reports the following fund types:
Special Revenue Funds - These funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose.
Debt Service Fund - These funds are used to account for the activity related to the City’s share of proceeds from the 2016 Refunding Lease Revenue Bonds and 2018 election General Obligation Bonds, which were utilized chiefly to fund capital projects and refund debt related to the Police Station, City’s Community Center and deferred street maintenance projects.
Internal Service Funds - These funds are used to account for the City’s motor vehicle pool, workers’ compensation self-funded insurance program and information technology services. Departments of the City are charged for the services provided or benefits received from these funds.
Fiduciary Funds - The City maintains two types of Fiduciary Funds - a Private-Purpose Trust Fund and Custodial Funds. The Private-Purpose Trust Fund accounts for activities of the Successor Agency to the Campbell Redevelopment Agency. Custodial Funds are used to account for monies held for the West Valley Solid Waste Management Authority, 1915 Act Bonds, and the Santa Clara County Specialized Enforcement Task Fund (SCCET).
Change in Accounting Principles
GASB Statement No. 91 – In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. GASB Statement No. 91 clarifies the definition of conduit debt and establishes new recognition, measurement, and disclosure requirements. There is no material effect of the implementation of this standard on the financial statements.
GASB Statement No. 93 – In May 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates.
The objectives of this Statement is to address those and other accounting and reporting implications resulting from the replacement of an IBOR by providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced and providing clarification to the hedge accounting termination provisions, removing LIBOR as a benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap, identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap and providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend. There is no material effect of the implementation of this standard on the financial statements.
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37 City of Campbell
Notes to Financial Statements
June 30, 2023
GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objectives of this Statement improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs).
There is no material effect of the implementation of this standard on the financial statements.
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. There was no effect of the implementation of this standard on beginning net position the additional disclosures required by this standard are included in Notes 5 and 6.
New Accounting Pronouncements
GASB Statement No. 99 – In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023. The SBITA requirement related to this pronouncement has been implemented. The City is evaluating the impact of this Statement on the financial statements.
GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023. The City is evaluating the impact of this Statement on the financial statements.
GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement updates the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023. The City is evaluating the impact of this Statement on the financial statements.
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38 City of Campbell
Notes to Financial Statements
June 30, 2023
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
• Deferred outflows of resources related to OPEB and pension plans equal to employer contributions made after the measurement date of the net OPEB liability and the net pension liability.
• Deferred outflows of resources related to OPEB and pensions for differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred outflows of resources related to OPEB and pensions resulting from changes in assumptions.
These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred outflows of resources related to pension plans for the changes in the employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred outflows of resources related to OPEB and pensions resulting from the net differences between projected and actual earnings on plan investments of the pension plans fiduciary net position. These amounts are amortized over five years.
In addition to liabilities, the statement of net position and governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
• Deferred inflows of resources related to OPEB and pensions for differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred inflows of resources related to OPEB and pensions resulting from changes in assumptions.
These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans.
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39 City of Campbell
Notes to Financial Statements
June 30, 2023
• Deferred inflows of resources related to pensions for the changes in employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred inflows of resources related to OPEB and pension plans resulting from the net differences between projected and actual earnings on plan investments of the plan’s fiduciary net position.
These amounts are amortized over five years.
• Deferred inflows of resources related to unavailable revenues. These amounts will be recognized once cash is received in a fiscal year or with the availability period.
• Deferred inflows of resources related to leases. These amounts will be recognized once rental and lease payments are earned.
Net Position and Fund Balance Flow Assumptions
In the government-wide financial statements, when expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.
In the governmental fund financial statements, when expenditures are incurred for purposes for which all categories of fund balances are available, the City’s general policy is to apply the expenditures against fund balance in the following order: restricted, committed, assigned, and unassigned.
Property Taxes
All property taxes and special assessments are levied and collected by the County of Santa Clara (the County) and paid upon collection to the various taxing entities including the City, Successor Agency of the former Redevelopment Agency, and Lighting and Landscape District. Secured taxes are levied on July 1 and are due in two installments on November 1 and February 1 and become delinquent on December 10 and April 10, respectively. Unsecured taxes are due on July 1 and become delinquent on August 31. The lien date for secured and unsecured property taxes is January 1 of the preceding fiscal year.
The County is permitted by State law to levy taxes at 1% of full market value at time of purchase plus other increases approved by the voters and can increase the assessed value no more than 2% per year. The City receives its proportionate share of this levy.
The City has adopted an alternative method of property tax distribution called the Teeter Plan. Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County throughout the year. Secured property tax levy is recognized as revenue upon receipt, including the final payment, which generally is received within 60 days after the fiscal year end.
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40 City of Campbell
Notes to Financial Statements
June 30, 2023
The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. Property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above.
Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments in external investment pools are valued based on the stated fair value represented by the external investment pool.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s quarterly average cash and investment balance.
For purposes of the Statement of Cash Flows, cash equivalents are defined as short-term, highly liquid investments with maturities of three months or less at the time of purchase that they present insignificant risk of changes in value because of limited interest rate risk. Cash equivalents also represent the proprietary fund’s share in the cash and investment pool of the City.
Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their acquisition value at the date of the contribution. Generally, the City capitalizes all infrastructures with a value greater than $25,000. All other capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of more than one year. Capital assets include all public domain (infrastructure) assets consisting of certain improvements, including roads, streets, sidewalks, medians, and storm drains.
The following schedule summarizes capital asset useful lives:
Buildings and improvements 40 years
Other improvements 20 years
Right-to-use leased equipment 3 to 15 years
Machinery and equipment 3 to 20 years
Infrastructure 15 to 40 years
Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds.
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41 City of Campbell
Notes to Financial Statements
June 30, 2023
Compensated Absences
Accrued vacation and sick leave are accrued as earned by employees. City employees may accrue vacation up to certain maximums as of December 31 of each calendar year, which vary depending on classification and years of service. Upon termination, they may be compensated for their vacation balance at current hourly rates.
Similarly, sick leave may be accumulated without limit and employees may be compensated upon termination based on a vesting schedule determined by years of service, compensated at current hourly rates.
For all governmental funds, a liability of these amounts is reported only if they have matured, for example, as a result of employee resignations and retirements. The remaining portion is recorded as a liability in the Statement of Net Position. For Internal Service Funds, liabilities of these amounts are recorded liabilities of those funds.
Compensated absences are typically liquidated in the General Fund.
Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the City’s OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Leases and Subscription-Based Information Technology Arrangements (SBITA) Th
e City is a lessee for a noncancellable lease of equipment and subscription assets. The City recognizes a lease/SBITA liability and an intangible right-t
o-u
se lease asset (lease/SBITA asset) in the government
-wi
de
financial statements. The City recognizes lease/SBITA liabilities with an initial, individual value of $5,000 or more.
At the commencement of a lease or SBITA, the City initially measures the lease/SBITA liability at the present value of payments expected to be made during the lease term. Subsequently, the lease/SBITA liability is reduced by the principal portion of lease payments made.
Th
e lease/SBITA asset is initially measured as the initial amount of the lease/SBITA liability, adjusted for lease/SBITA payments made at or before the commencement date, plus certain initial direct costs.
Subsequently, the asset is amortized on a straight-lin
e basis over its useful life.
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42 City of Campbell
Notes to Financial Statements
June 30, 2023
The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources, at the date of the financial statements, as well as the reported amounts of revenue and expenses/expenditures during the reporting period. Actual results could differ from those estimates.
Note 2 - Cash and Investments
Cash and Investments
Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments 104,207,433$
Cash held with fiscal agent 19,414
Statement of Fiduciary Net Position
Cash and investments 2,994,341
Cash held with fiscal agent 1,127
Total Cash and Investments 107,222,315$
Cash and investments as of June 30, 2023 consisted of the following:
Cash on Hand 9,090$
Deposits with Financial Institutions 7,224,127
Investments 99,989,098
Total Cash and Investments 107,222,315$
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43 City of Campbell
Notes to Financial Statements
June 30, 2023
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Maximum Maximum
Maximum Minimum Percentage Investment in
Authorized Investment Types Maturity Credit Quality Allowed One Issuer U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years None 75% None
Federal Instrumentality
(government sponsored enterprise) 5 years None 75% None Repurchase Agreements 1 year A/A-1 10% None
Commercial Paper 270 days * 25% 5%
A-1 or P-1 or
Banker’s Acceptance 180 days F-1 30% 5%
Medium-Term Notes 5 years A-A-1 30% 5%
Non-negotiable Time
Certificates of Deposit 5 years None 25% $1 million
Negotiable Certificates
of Deposit 5 years None 30% None
California Local Agency $75 million
Investment Fund (LAIF) N/A None None per account
AAAm or Aaa
Mutual Funds N/A or AAA/V1+ 15% 10%
AAAm or Aaa
Money Market Mutual Funds N/A or AAA/V1+ 15% 10%
Municipal and State Obligations 5 years A-A-1 None 5%
* Issuer must be U.S. general corporation having assets in excess of $500,000,000 with debt other than commercial paper rated A or higher or U.S. special purpose corporation, trust or limited liability company having program-wide credit enhancements and commercial paper rated A-1 or higher.
N/A - Not Applicable
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44 City of Campbell
Notes to Financial Statements
June 30, 2023
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Maximum Minimum Percentage Investment in
Authorized Investment Types Maturity Credit Quality Allowed One Issuer U.S. Treasury Bonds, Notes and Bills 5-7 years None No Limit No Limit U.S. Government Sponsored Entities 5-7 years AAA No Limit No Limit Time Certificates of Deposit -
Banks or Savings and Loans 1 year None No Limit No Limit Banker’s Acceptance 360 days A-1/P-1 No Limit No Limit
Commercial Paper 270 days A No Limit No Limit
Repurchase Agreements 30 days - 7 Years A No Limit No Limit California Local Agency $75 million
Investment Fund (LAIF) N/A None No Limit per account
Money Market Funds N/A A No Limit 10%
Investment Agreements 5-7 years A No Limit No Limit
Other Tax Exempt Organizations 7 years A No Limit No Limit California Asset Management
Program (CAMP) N/A None No Limit No Limit
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
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45 City of Campbell
Notes to Financial Statements
June 30, 2023
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity. For purposes of the schedule shown below, any callable securities are assumed to be held to maturity.
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Total
U.S. Government Sponsored Entities 7,931,100$ 11,496,920$ 5,728,350$ 25,156,370$ California Local Agency Investment Fund 73,861,563 - - 73,861,563 Negotiable Certificates of Deposits 971,165 - - 971,165 Total Investments 82,763,828$ 11,496,920$ 5,728,350$ 99,989,098$ Remaining Maturity (in Months)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year-end for each investment type.
Minimum
Legal Total as of Not
Investment Type Rating June 30, 2023 AA+ Rated
U.S. Government Sponsored Entities None 25,156,370$ 25,156,370$ -$ California Local Agency Investment Fund None 73,861,563 - 73,861,563 Negotiable Certificates of Deposits None 971,165 - 971,165 Total Investments 99,989,098$ 25,156,370$ 74,832,728$
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. At June 30, 2023, the Federal Home Loan Banks securities represented more than 5% of total City investments at $18,285,050, which was approximately 18.29%.
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46 City of Campbell
Notes to Financial Statements
June 30, 2023
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:
the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2023, the City’s deposits were either federally insured or collateralized.
For investments identified herein as held with fiscal agent, the trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
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47 City of Campbell
Notes to Financial Statements
June 30, 2023
Fair Value Measurements
The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy. Level 1 inputs are quoted prices in active markets for identical investments, Level 2 inputs are observable inputs other than those in Level 1; and Level 3 inputs are unobservable inputs.
Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund.
Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs.
Uncategorized - Investments in the California Investment Pool are not measured using the input levels above because the City’s transactions are based on a stable net asset value per share. All contributions and redemptions are transacted at $1.00 net asset value per share.
The City has the following recurring fair value measurements as of June 30, 2023:
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
U.S. Government Sponsored Entities -$ 25,156,370$ -$ 25,156,370$ Negotiable Certificates of Deposits - 971,165 - 971,165 Total investments -$ 26,127,535$ -$ 26,127,535 Uncategorized
California local agency investment fund* 73,861,563
Total investment portfolio 99,989,098$
* uncategorized; not subject to fair value measurement tiers.
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48 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 3 - Interfund Transactions
Due To/From Other Funds
The current interfund outstanding balances result mainly from the time lag between the dates, that (1) interfund goods and services are provided (2) transactions are recorded in the accounting system, (3) payments between funds are made. These balances are normally repaid as they arise.
Current interfund balances are as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Other Governmental Funds 1,668,822$
1,668,822$
Transfers In/Out
Transfers between funds during the fiscal year ended June 30, 2023 were as follows:
Transfers Out Transfers In Amount
General Fund Other Governmental Funds (a) & (c) 3,292,141$ Capital Projects Fund (e) 682,131
Internal Service Funds (a) & (b) 651,180
Other Governmental Funds General Fund (a) 691,771
Capital Projects Fund (e) 2,900,621
Other Governmental Funds (a) 766,300
Internal Service Funds General Fund (a) 99,600
9,083,744$
Interfund transfers were principally used for the following purposes:
(a) To fund specific program expenditures
(b) To fund equipment and vehicle replacements
(c) To fund a portion of debt service payments
(d) Grant funded program expenditures
(e) Capital project expenditures
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49 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 4 - Notes and Loans Receivables
First-Time Homebuyer Loan Program
The City’s Housing Assets Special Revenue Fund engages in a first-time homebuyer down payment assistance program designed to encourage home ownership among low- and moderate-income households. Under this program, a loan up to $50,000 is provided to eligible households to be used as part of the down payment for the purchase of a home in the City of Campbell. These promissory notes are secured by second deeds of trust and are due thirty years from the date the property was purchased. The notes require a payback of principal plus an 8% fee or an equity share payment, whichever is lower. The balance of the notes’ receivable arising from this program at June 30, 2023 was $407,000.
Housing Rehabilitation and Affordable Housing Loans:
The City’s Housing Assets Special Revenue Fund engages in programs designed to encourage construction or improvement in low to moderate income housing or other projects. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. The balance of the loan receivable arising from these programs at June 30, 2023 was $1,357,868.
Maravilla Loans
The City’s Housing Assets Special Revenue Fund engages in programs designed to encourage home ownership among low- and moderate-income households in the Maravilla Community in the City of Campbell. Under this program, an interest free loan up to $200,274 is provided to eligible households to be used as part of the down payment for the purchase of a home in the Maravilla Community in the City of Campbell. These promissory notes are secured by second deeds of trust and are due forty-five years from the date the property was purchased. The balance of the note receivable arising from this program at June 30, 2023 was $3,515,258.
Additionally, under this program, a loan of $94,000 is provided to eligible households to be used as part of the down payment for the purchase of a home in the Maravilla Community in the City of Campbell. These promissory notes are secured by second deeds of trust, earn interest at a rate of 1% per annum, and are due thirty years from the date the property was purchased. The balance of the note receivable arising from this program at June 30, 2023 was $2,256,000.
Rehabilitation Loans
The City administers a housing rehabilitation program using Housing and Community Development Act funds.
Under the Program, individuals with incomes below a certain level are eligible to receive low or no interest loans, secured by deeds of trust, for construction work on their homes. Federal funds received by the City are deposited with a commercial bank. Upon approval of loans, the bank disburses the funds and arranges for and collects repayments.
At June 30, 2023, the City had outstanding rehabilitation loans of $140,000 in its Community Development Block Grant Special Revenue Fund.
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50 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 5 - Capital Assets
Capital assets activity for the year ended June 30, 2023 is as follows:
Balance at Balance at
July 1, 2022, Additions Deletions Transfers June 30, 2023 Capital Assets, not Being Depreciated
Land 9,105,635$ -$ -$ -$ 9,105,635$ Construction in progress 17,527,608 4,372,377 (717,049) (13,856,137) 7,326,799 Total capital assets, not
being depreciated 26,633,243 4,372,377 (717,049) (13,856,137) 16,432,434 Capital Assets, Being Depreciated and Amortized
Buildings and improvements 26,572,040 - - 6,095,346 32,667,386 Right-to-use leased equipment
and subscriptions 340,832 1,777,166 - - 2,117,998 Machinery and equipment 13,283,523 701,257 (2,429,498) 82,826 11,638,108 Infrastructure 60,158,154 - - 7,677,965 67,836,119 Total capital assets,
being depreciated/amortized 100,354,549 2,478,423 (2,429,498) 13,856,137 114,259,611 Less Accumulated Depreciation and Amortization for
Buildings and improvements (17,418,947) (596,453) - - (18,015,400) Right-to-use leased equipment
and subscriptions (80,587) (419,443) - - (500,030) Machinery and equipment (9,926,030) (683,035) 2,252,501 - (8,356,564) Infrastructure (23,609,880) (2,533,876) - - (26,143,756) Total accumulated depreciation
and amortization (51,035,444) (4,232,807) 2,252,501 - (53,015,750) Total capital assets,
being depreciated/amortized, net 49,319,105 (1,754,384) (176,997) 13,856,137 61,243,861 Governmental Activities
capital assets, net 75,952,348$ 2,617,993$ (894,046)$ -$ 77,676,295$
Depreciation expense, including $431,806 relating to the internal service funds, was charged in the following functions in the Statement of Activities:
General government 177,573$
Recreation 230,895
Public safety 374,095
Public works 3,450,244
Total depreciation expense - governmental activities 4,232,807$
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51 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 6 - Long-Term Liabilities
The following is a summary of changes in the City’s long-term liabilities for the year ended June 30, 2023:
Balance Balance Due within
July 1, 2022, Additions Reductions June 30, 2023 O ne Year Other Debt
2002 refunding certificates of
participation - civic center project 3,862,436$ 228, 022$ -$ 4,090,458$ -$ 2016 refunding lease revenue bonds 4,605,000 - (585,000) 4,020,000 605,000 2016 refunding lease premium 545,417 - (90,903) 454,514 90,903 2018 general obligation bond,
series 2020 17,200,000 - (1,000,000) 16,200,000 780,000 2018 GOB, series 2020 premium 2,960,184 - (105,721) 2,854,463 105,721 2018 general obligation bond,
series 2022 30,000,000 - (2,000,000) 28,000,000 1,710,000 2018 GOB, series 2022 premium 2,506,763 - (89,527) 2,417,236 89,527 California Energy Commission Loan 1,638,168 - (78,138) 1,560,030 96,863 PG&E On-Bill Financing Loan 2,515,535 - (287,490) 2,228,045 287,490 Subscription payables - 106, 661 (17,559) 89,102 52,927 Leases payable 267,692 2, 121,148 (395,603) 1,993,237 333,818 Other Noncurrent Liabilities
Compensated absences 4,039,010 1, 834,027 (1,886,022) 3,987,015 1,904,272 Claims payable (Note 12) 4,103,210 760, 330 (482,030) 4,381,510 557,568 74,243,415$ 5,050,188$ (7,017,993)$ 72,275,610$ 6,614,089 $
Subscription-Based Information Technology Arrangements (SBITAs)
During the current year, the City entered into a SBITA contract for the use of Azure Office 365 software. As of June 30, 2023, the value of the subscription liability was $89,102. The City is required to make annual principal and interest payments of $54,876 through February 2025. The subscription has an interest rate of 3%.
Remaining principal and interest payments on subscriptions are as follows:
Fiscal
Year Ending Principal Interest Total
2024 52,927$ 1,949$ 54,876$ 2025 36,175 408 36,583 89,102$ 2,357$ 91,459$
Subscription-Based Information Technology Arrangements
2002 Refunding Certificates of Participation - Civic Center Project
Net proceeds of $9,678,751 from the City’s 2002 Refunding Certificates of Participation were used to prepay and refund the City’s 1993 Certificates of Participation. An additional $1,830,975 of proceeds was used to provide partial funding or renovation and expansion of the City’s Police Department and construction of an animal shelter. As of June 30, 2023, the defeased 1993 Certificates had been retired.
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
52 City of Campbell
Notes to Financial Statements
June 30, 2023
Capital Appreciation Certificates in the amount of $1,245,844 bear interest at rates ranging from 5.80% to
5.83%. Capital Appreciation Certificate maturities begin October 1, 2029 and continue annually through 2032.
The Capital Appreciation Certificates are subject to optional redemption in whole or in part any time after October 1, 2022. Each year the outstanding principal balance is increased for the accretion of interest associated with the Capital Appreciation Certificates. The accumulated accreted interest at June 30, 2023 is $2,844,613.
Principal and interest payments are guaranteed under an insurance policy issued by Ambac Assurance Corporation. The amount shown in the schedule of changes include the accreted value to date. The future debt service requirements on the 2002 Refunding Certificates of Participation outstanding at June 30, 2023 are as follows:
Fiscal
Year Ending Principal Interest Total
2029-2033 961,506 3,883,494 4,845,000 2034 284,339 1,330,663 1,615,002 1,245,845 5,214,157 6,460,002
Accumulated Accreted
Interest 2,844,613 (2,844,613) -
4,090,458$ 2,369,544$ 6,460,002$
2002 Refunding COP
2016 Refunding Lease Revenue Bonds
In August of 2016, the Campbell Joint Public Finance Authority issued 2016 Refunding Lease Revenue Bonds (the 2016 PFA Bonds), in the aggregate principal amount of $8,085,000. The bonds pay interest at a rate from 2.0% to 4.0% payable semiannually on April 1 and October 1, commencing on April 1, 2016. The bonds were issued to prepay a portion of the 1997 Refunding Certificates of Participation (Civic Center Project) (the 1997 Certificates) of the City of Campbell (the City), prepay a portion of the 2002 Refunding Certificates of Participation (Civic Center Project) (the 2002 Certificates) of the City, and pay the costs of bond issuance. There is no reserve requirement on bonds.
Fiscal
Year Ending Principal Interest Total
2024 605,000$ 148,700$ 753,700$ 2025 630,000 124,000 754,000 2026 655,000 98,300 753,300 2027 680,000 71,600 751,600 2028 710,000 43,800 753,800 2029-2030 740,000 14,800 754,800 Total 4,020,000$ 501,200$ 4,521,200$ 2016 Lease Revenue Bonds
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Packet Pg. 362
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
53 City of Campbell
Notes to Financial Statements
June 30, 2023
2018 Measure O General Obligation Bonds
On August 18, 2020, the City issued $20,000,000 of general obligation bonds to fund a police emergency operations center and innovative library. The interest rate on the bonds is 0.20% to 4% and the maturity date is September 1, 2038. Payments are made semiannually on April 1 and October 1, commencing on April 1, 2021.
There is no reserve requirement on bonds.
Fiscal
Year Ending Principal Interest Total
2024 780,000$ 565,500$ 1,345,500$ 2025 345,000 543,000 888,000 2026 360,000 528,900 888,900 2027 375,000 514,200 889,200 2028 390,000 498,900 888,900 2029-2033 2,190,000 2,243,500 4,433,500 2034-2038 2,655,000 1,771,375 4,426,375 2039-2043 3,075,000 1,365,375 4,440,375 2044-2048 3,545,000 862,500 4,407,500 2049-2051 2,485,000 151,700 2,636,700 Total 16,200,000$ 9,044,950$ 25,244,950$
2018 Measure O General Obligation Bond Series 2020
In May 2022, the City issued its second and final series of tax-exempt bonds for $30,000,000. The Series 2022 bonds, which were issued at a premium, have coupon interest rates ranging from 4% to 5% with an effective interest rate of 4.06% and maturing September 1, 2050.
Fiscal
Year Ending Principal Interest Total
2024 1,710,000$ 1,309,750$ 3,019,750$
2025 1,010,000 1,241,750 2,251,750 2026 495,000 1,204,125 1,699,125 2027 520,000 1,178,750 1,698,750 2028 545,000 1,152,125 1,697,125 2029-2033 3,180,000 5,310,500 8,490,500 2034-2038 4,045,000 4,411,875 8,456,875 2039-2043 5,160,000 3,266,250 8,426,250 2044-2048 6,585,000 1,805,625 8,390,625 2049-2051 4,750,000 290,000 5,040,000 Total 28,000,000$ 21,170,750$ 49,170,750$
2018 Measure O General Obligation Bond Series 2022
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Packet Pg. 363
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
54 City of Campbell
Notes to Financial Statements
June 30, 2023
California Energy Commission Loan
On February 18, 2020, City Council authorized staff to enter into an energy services contract agreement with an ESCO (energy services company) to provide turnkey services for energy conservation upgrades and infrastructure improvements. The total cost of the project was $4,177,660. The project was financed through the California Energy Commission and the PG&E On-Bill Financing Program for $1,638,168 and $2,539,492, respectively.
Through the Energy Conservation Assistant Act, the California Energy Commission (CEC) offered a 1% interest Energy Efficiency Loan program. The CEC loan will be paid in full by June 22, 2038.
Fiscal
Year Ending Principal Interest Total
2024 96,863$ 15,401$ 112,264$ 2025 97,875 14,389 112,264 2026 98,857 13,407 112,264 2027 99,848 12,416 112,264 2028 100,818 11,446 112,264 2029-2033 519,592 41,727 561,319 2034-2038 546,177 15,144 561,321 1,560,030$ 123,930$ 1,683,960$
California Energy Commission Loan
Pacific Gas & Electric Loan
The PG&E On-Bill Financing Program is a program that helps governmental agencies pay for energy efficient retrofit projects with no-interest loans that are repaid through monthly PG&E bills. The PG&E loan will be paid in full by March 2031 through 106 equal monthly installments.
Fiscal
Year Ending Principal Interest Total
2024 287,490$ -$ 287,490$ 2025 287,490 - 287,490 2026 287,490 - 287,490 2027 287,490 - 287,490 2028 287,490 - 287,490 2029-2031 790,595 - 790,595 2,228,045$ -$ 2,228,045$ Pacific Gas & Electric Loan
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Packet Pg. 364
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
55 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 7 - Construction and other Significant Commitments
In the regular course of business, the City enters into contracts for various services and construction projects. At June 30, 2023, the City had the following construction commitments:
Remaining
Project Commitment
Campbell Park Improvement 58,720$
Campbell PDA Enhancements 153,289
Civic Center Improvement (Measure O) 2,896,269
Harriet Avenue Sidewalks 455,251
Measure B Bike/Pedestrian Education & Encouragement 64,978 Annual Street Maintenance 147,513
All other capital projects commitments 91,467
3,867,487$
At June 30, 2023, the City had the following other significant commitments under various contracts:
Fund Amount
General Fund 976,258$
Capital Projects Fund 3,867,487
Nonmajor Governmental Funds 179,486
Proprietary Fund 38,715
Total commitments 5,061,946$
14.a
Packet Pg. 365
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
56 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 8 - Net Position and Fund Balances
Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.
Net Investment in Capital Assets groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.
Restricted Net Position reflects net position that is subject to constraints either (l) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (2) imposed by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. A legally enforceable enabling legislation restriction is one that a party external to a government - such as citizens, public interest groups, or the judiciary - can compel a government to honor.
Unrestricted Net Position represents net position of the City that is not restricted for any project or purpose.
Fund Balances
Governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for government funds are classified as follows:
Nonspendable Fund Balance - includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories and prepaid amounts.
Restricted Fund Balance - includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.
Committed Fund Balance - includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by a City Council resolution taking the same formal action that imposed the constraint originally. The decision-making authority is defined as City Council resolutions.
Assigned Fund Balance - includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as committed. City Council has by resolution authorized the City Manager to assign fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily.
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Packet Pg. 366
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
57 City of Campbell
Notes to Financial Statements
June 30, 2023
Unassigned Fund Balance - is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. In the event that funds other than the General Fund are included in the unassigned fund balance it would be a deficit.
Within this classification of fund balance, the City has established by City Council resolution, an Economic Fluctuations Reserve that is maintained at $9,955,452 to provide budget stabilization during economic downturn that could otherwise result in significant reductions in service levels and/or organizational staffing. The reserve shall not be less than $2,000,000. However, if the reserve balance falls below $4 million, or the City’s five-year financial projections indicate the reserve will fall below this minimum requirement at any time during this period, City staff shall present to Council, by the following year’s budget adoption, a plan to return to the target amount within five years. Further, within this classification of fund balance, the City has established by City Council resolution, a General Fund Emergency Reserve that shall be maintained at a level of 10% of General Fund revenues. To be used as determined by the City Council upon declaration of a physical or financial emergency.
Fund balances for all the major and other governmental funds as of June 30, 2023, were classified as follows:
Capital Other To tal
General Housing and A RPA Projects Measure O Governmental Governmental Fund Assets F und Fund Fund Funds Funds
Nonspendable
Leases 173,181$ -$ -$ -$ -$ -$ 173,181$ Restricted
Debt service - - - - - 4,142,637 4,142,637 Streets and roads - - - - - 6,184,741 6,184,741 Museum and adult center - - - - - 22,706 22,706 Public Safety - - 40,718 - - 288,402 329,120 Community development - - - - 52,842,127 3,635,803 56,477,930 Housing - 8,495,688 - - - 346 8,496,034 Total restricted - 8,495,688 40,718 - 52,842,127 14,274,635 75,653,168 Committed
General plan update 44,209 - - - - - 44,209 Historic preservation 5,000 - - - - - 5,000 Compensated absences 961,449 - - - - - 961,449 Liability insurance 136,473 - - - - - 136,473 Capital improvements Reserve 30,109 - - - - - 30,109 Committed Capital
improvements Reserve 1,569,671 - - - - - 1,569,671 Community Center 111,699 - - - - - 111,699 Heritage Theater 233,382 - - - - - 233,382 Total committed 3,091,992 - - - - - 3,091,992 Assigned
Capital projects
(Construction Tax) 325,256 - - 929,106 - - 1,254,362 Unemployment insurance 90,000 - - - - - 90,000 PERS 2,252,000 - - - - - 2,252,000 OPEB 370,102 - - - - - 370,102 All other 976,258 - - - - - 976,258 Total assigned 4,013,616 - - 929,106 - - 4,942,722 Unassigned
Unassigned 1,338,952 - - - - (1,040,149) 298,803 City council reserve 362,624 - - - - - 362,624 Economic fluctuations 9,955,452 - - - - - 9,955,452 Emergency 3,207,454 - - - - - 3,207,454 Total unassigned 14,864,482 - - - - (1,040,149) 13,824,333 Total 22,143,271$ 8, 495,688 $ 40,718$ 929,106 $ 52,842,127$ 13,234,486$ 97,685,396$ Capital
Projects FundRevenue Funds
Special
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Packet Pg. 367
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
58 City of Campbell
Notes to Financial Statements
June 30, 2023
Note 9 - Pension Plans
The following is a summary of pension related items for the year ended June 30, 2023:
Deferred Deferred
Pension Outflows Inflows Pension
Liability of Resources of Resources Expense
CalPERS Miscellaneous 37,496,328$ 12,666,344$ 79,387$ 6,436,667$ CalPERS Safety 33,886,517 15,167,885 1,447,584 1,658,996 71,382,845$ 27,834,229$ 1,526,971$ 8,095,663$
Public Employees’ Retirement System (CalPERS)
General Information about the Pension Plans:
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Safety (police) cost- sharing multiple-employer defined benefit plan or the Miscellaneous (all other) Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least 5 years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
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Packet Pg. 368
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
59 City of Campbell
Notes to Financial Statements
June 30, 2023
The Plans’ provisions and benefits in effect for the measurement period ended June 30, 2022, are summarized as follows:
Hire date
Prior to
March 7, 2011
On or After
March 7, 2011
On or after
January 1, 2013
Normal benefit formula 2.5%@55 2%@60 2%@62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Earliest retirement age 50 50 52
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.1% to 2.4% 1.0% to 2.5% Required employee contribution rates 8.00% 7.00% 7.75%
Required employer contribution rates:
Normal cost rate 10.29% 10.29% 10.29%
Employer portion of unfunded liability 2,803,541$ -$ -$ Hire date
Prior to
October 18, 2010
On or After
October 18, 2010
On or after
January 1, 2013
Normal benefit formula 3%@50 2%@50 2.7%@57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Earliest retirement age 50 50 50
Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates:
Normal cost rate 25.64% 19.27% 12.78%
Employer portion of unfunded liability 2,370,393$ 36,642$ 35,832$ Miscellaneous
Safety
Employees Covered
At June 30, 2022, the measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:
Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 255 Inactive employees entitled but not yet receiving benefits 169 Active employees 123
Total 547
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Packet Pg. 369
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
60 City of Campbell
Notes to Financial Statements
June 30, 2023
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions.
Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial methods and assumptions:
Miscellaneous Safety
Valuation Date June 30, 2021 June 30, 2021
Measurement Date June 30, 2022 June 30, 2022
Actuarial Cost Method Entry Age Normal Entry Age Normal Cost Method Cost Method
Actuarial Assumptions:
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increase (1) (1)
Mortality (2) (2)
Post Retirement Benefit Increase (3) (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
(3) Contract COLA up to 2.0% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter.
14.a
Packet Pg. 370
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
61 City of Campbell
Notes to Financial Statements
June 30, 2023
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS considered both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
Assumed
Asset Real rate
Allocation of Return 1, 2
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(2) Figures are based on the 2021 Asset Liability Management study. (1) An expected inflation of 2.30% used for this period.
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
14.a
Packet Pg. 371
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
62 City of Campbell
Notes to Financial Statements
June 30, 2023
Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan during the measurement year are as follows:
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at beginning of year 126,140,914$ 107,189,935$ 18,950,979$ Changes in the Year
Service cost 2,534,964 - 2,534,964 Interest on the total pension liability 8,828,016 - 8,828,016 Changes in assumptions 3,433,930 - 3,433,930 625,329 - 625,329 Contribution - employer - 3,925,027 (3,925,027) Contribution - employee - 1,000,275 (1,000,275) Net investment income - (7,981,639) 7,981,639 Administrative expenses - (66,773) 66,773 Benefit payments, including refunds
of employee contributions (7,050,778) (7,050,778) - Net changes 8,371,461 (10,173,888) 18,545,349 Balance at end of year 134,512,375$ 97,016,047$ 37,496,328$ Increase (Decrease)
Differences between expected and
actual experience
Proportionate Share of Net Pension Liability - Safety Plan
The City’s Safety Plan is included in the Safety Risk Pool administered by CalPERS in its Public Agency Cost- Sharing Multiple Employer Defined Benefit Pension Plan (PERFC). As of the year-end, the City’s proportionate share of the net pension liability for the Safety Risk Pool was as follows:
Proportionate
Share of
Net Pension
Liability
Safety Plan 33,886,517$
14.a
Packet Pg. 372
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
63 City of Campbell
Notes to Financial Statements
June 30, 2023
The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plans is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
The City’s change in proportionate share of the net pension liability for the Plan as of the measurement dates ended June 30, 2022 and 2021 was as follows:
Safety
Proportion - Fiscal Year ended June 30, 2021 0.54672%
Proportion - Fiscal Year ended June 30, 2022 0.49314%
Change - Increase (decrease) -0.05358%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for the Miscellaneous Plan and proportionate share of net pension liability for the Safety Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability and proportionate share of net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 55,102,763$ 49,995,379$ Current Discount Rate 6.90% 6.90%
Net Pension Liability 37,496,328$ 33,886,517$ 1% Increase 7.90% 7.90%
Net Pension Liability 22,961,471$ 20,721,162$
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
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Packet Pg. 373
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
64 City of Campbell
Notes to Financial Statements
June 30, 2023
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City recognized an aggregate pension expense of $8,095,663. The City recognized pension expense of $6,436,667 related to the Miscellaneous Plan and $1,658,996 related to the Safety Plan. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Deferred
Inflows of
Deferred
Outflows of
Deferred
Inflows of
Deferred
Outflows of
Deferred
Inflows of
5,419,711$ -$ 4,674,536$ -$ 10,094,247$ -$ 364,775 79,387 1,402,440 367,981 1,767,215 447,368 Changes in assumptions 2,003,126 - 3,416,787 - 5,419,913 - - - 96,940 900,102 96,940 900,102 Change in proportion - - 226,027 179,501 226,027 179,501 4,878,732 5, 351,155 - 10,229,887 - 12,666,344$ 79, 387$ 15,167,885$ 1,447,584$ 27,834,229$ 1,526,971$ Pension contributions subsequent
to measurement date
Difference between expected
and actual experiences
Difference between actual and
projected contribution
Net difference between projected and
actual earnings on pension plan
investments
Safety TotalMiscellaneous
$5,419,711 and $4,674,536 reported as deferred outflows of resources related to contributions subsequent to the measurement date for the miscellaneous and safety plans, respectively, will be recognized as a reduction of the net pension liability in the next fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year
Ending
June 30, Miscellaneous Safety Total
2024 2,410,113$ 2,674,623$ 5,084,736$ 2025 1,367,767 2,061,563 3,429,330 2026 330,035 1,045,305 1,375,340 2027 3,059,332 3,264,273 6,323,605 7,167,247$ 9,045,765$ 16,213,012$
Payable to the Pension Plans
At June 30, 2023, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023.
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Packet Pg. 374
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
65 City of Campbell
Notes to Financial Statements
June 30, 2023
Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the plan.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements.
Note 10 - Other Retirement System
The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992 be covered by either Social Security or an alternative plan. Effective July 1, 2004, the City contracted with the Public Agency Retirement System (PARS), a defined contribution plan. This Plan covers employees that are part-time, seasonal or temporary and all other employees that are not covered by another retirement system. All eligible employees covered by the Plan are fully vested. Employer liabilities are limited to the amount of current contributions.
Under PARS, employees contribute 6.2% and the City contributes 1.3% of the employees’ salary each pay period.
For the fiscal year ended June 30, 2023, total contributions of $75,772 ($62,638 employee and $13,134 employer) were made based on covered compensation of $1,010,277.
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Notes to Financial Statements
June 30, 2023
Note 11 - Post-Employment Benefits Plan
General Information about the OPEB Plan:
Plan Description
The City administers Retiree Award Program which provides medical insurance benefits on a reimbursement basis to eligible retirees in accordance with various labor agreements. The City pays up to $325 per month for retiree only medical insurance premiums or the actual cost of the retiree premium, whichever is less. Eligible retirees must be retired from the City with at least 17 years of service with the City and be at least 50 years of age.
The City has established a trust with the California Employers Retiree Benefit Trust, an agent multiple-employer plan, for the purpose of holding assets accumulated for plan benefits. Copies of PERS’ annual financial reports for its OPEB Trust may be obtained from its executive office at 400 “P” Street, Sacramento, California 95814.
Funding Policy
The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on the most recent actuarial study using a 10-year phase-in option.
Employees Covered:
As of the June 30, 2022 measurement date, the following current and former employees were covered by the benefit terms under the plan:
Inactive employees or beneficiaries currently receiving benefits 78 Inactive employees or beneficiaries entitled to but not yet receiving benefit payments 117 Active plan members 162
357
Contributions
The contribution requirements are established by the City and may be amended by City Council. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2023, the City’s cash contributions were $245,878 in payments to the trust, $438,070 of cash benefits payments and an estimated implied subsidy of $229,592 and resulting in payments of $913,540.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown on the next page.
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67 City of Campbell
Notes to Financial Statements
June 30, 2023
Actuarial Assumptions
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.15%
Investment rate of return 6.75%
Inflation 2.50%
Mortality, Retirement, Disability,
Termination
2017 experience study of the California Public Employees Retirement System using data from 1997 to 2015.
Mortality Improvement MW Scale 2022 Generationally
Salary Increase 3.00% per annum, in aggregate.
Medical Trend 5.8% in 2023, decreasing to an ultimate rate of 3.9% in 2076 and later years.
The actuarial assumptions used in the June 30, 2021, valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.
Long Term Expected Rate of Return
The long-term expected rate of return was determined using a building-block method in which best- estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of year-end, are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Global Equity 49.00% 4.50%
Global Fixed Income 23.00% 2.20%
Real Estate Investment Trusts 20.00% 3.90%
Treasury Inflation Protection Securities 5.00% 1.30%
Commodities 3.00% 1.20%
Total 100.00%
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Notes to Financial Statements
June 30, 2023
Discount Rate
The discount rate used to measure the total OPEB liability was 6.15%. The projection of cash flows used to determine the discount rate assumed that City’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in the Net OPEB Liability
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balance at beginning of year 11,272,372$ 6,605,325$ 4,667,047$ Changes recognized for year
Service cost 394,831 - 394,831 Interest 699,837 - 699,837 Changes due to investment experience - (1,293,654) 1,293,654 Contributions
Employer - explicit subsidy - 429,718 (429,718) Employer - implicit subsidy - 229,592 (229,592) Net investment income - 408,754 (408,754) Administrative expenses - (1,673) 1,673 Benefit payments (575,477) (575,477) - Net changes 519,191$ (802,740)$ 1,321,931$ Balance at end of year 11,791,563$ 5,802,585$ 5,988,978$ Increase (Decrease)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current discount rate:
Discount Rate - 1%
(5.15%)
Current Discount Rate
(6.15%)
Discount Rate + 1%
(7.15%)
7,489,203$ 5,988,978$ 4,742,641$
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Notes to Financial Statements
June 30, 2023
S
ensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates T
he following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare cost trend rates:
1% Decrease Current Healthcare Cost Trend 1% Increase
4,968,267$ 5,988,978$ 7,245,797$ OP
EB Expense and Deferred Outflows/Inflows of Resources Related to OPEB:
F
or the year ended June 30, 2023, the City recognized OPEB expense of $957,244. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Employer contributions made subsequent
to the measurement date 913,540$ -$
Differences between expected and actual experience 487,707 (160,945) Changes in assumptions 764,695 (17,424)
Net differences between projected and
actual earnings on plan investments 468,772 -
Total 2,634,714$ (178,369)$
$9
13,540 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the next fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Fiscal Year Ended Deferred Outflows/(Inflows)
2024 276,144$
2025 271,686
2026 241,344
2027 511,230
2028 242,401
Thereafter -
1,542,805$
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Notes to Financial Statements
June 30, 2023
Note 12 - Risk Management
General Liability
Risk management activity for City exposure to torts (general liability) is accounted for as a liability on the Statement of Net Position. The City is self-insured for the first $100,000 of liability for each occurrence, and the excess (up to $20,000,000) is covered through the City’s participation in the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) general liability risk pool. PLAN JPA also provides $1,000,000 of employee theft coverage in the excess of the City’s $5,000 deductible. Over the past three years, no claims exceeded the coverages above.
PLAN JPA pool consists of twenty-eight member agencies within the San Francisco Bay Area. The stated purpose of the PLAN JPA pool is to provide certain levels of liability insurance coverage, claims management, risk management services, and legal defense to each participating city within the pool.
Each city was required to make an initial deposit premium based on an actuarial study of each City’s risk exposure. The premium consists of a risk portion and administrative portion. The premium is revised each year based on claims experience and risk exposure.
Workers’ Compensation
The City has a risk financing fund to account for work related injuries and accidents to City employees. This fund is accounted for as an internal service fund in which assets are set aside for claim payments. Under the California Workers’ Disability and Compensation laws, the City, as an employer, is permissibly self-insured for the first $1,000,000 of claims arising from each occurrence. The City obtains excess Workers’ Compensation insurance through a policy up to statutory limits. A premium is charged to each fund and program that budgets for part-time or full-time employees. The total charge allocated is based upon the percentage of each fund’s current-year payroll as it relates to total payroll of the City.
Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and number of payouts and other economic and social factors. For the past three fiscal years, no claims were settled in excess of commercial insurance coverage.
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71 City of Campbell
Notes to Financial Statements
June 30, 2023
City’s Claims Liabilities
The City’s liability for uninsured claims was estimated by management based on prior year claims experience, as follows:
General Workers'
Liability Compensation Total
Balance as of July 1, 2021 246,103$ 3,586,717$ 3,832,820$ Liability for current year fiscal claims 171,371 657,841 829,212 Increase (decrease) in estimated liability 86,990 (53,834) 33,156 Claims paid (178,854) (413,124) (591,978) Balance as of June 30, 2022 325,610$ 3,777,600$ 4,103,210$ Balance as of July 1, 2022 325,610$ 3,777,600$ 4,103,210$ Liability for current year fiscal claims 394,920 732,540 1,127,460 Increase (decrease) in estimated liability (131,658) (235,472) (367,130) Claims paid (119,069) (362,961) (482,030) Balance as of June 30, 2023 469,803$ 3,911,707$ 4,381,510$
Note 13 - Joint Powers Agreements
Congestion Management Agency
The Congestion Management Agency (CMA) was formed in 1991 by a joint exercise of powers agreement between the County of Santa Clara and each of the cities of Santa Clara County for the purpose of preparing, implementing, and administering a traffic congestion management plan pursuant to California Government Code Section 66531.
The CMA financial statements are included as part of the Special Fund of the Santa Clara Valley Transportation Authority. Audited financial statements may be obtained at 3331 N. First Street, Building B-2, San Jose, California 95134-1927.
Silicon Valley Animal Control Authority
The City is a member of Silicon Valley Animal Control Authority (SVACA), established in 2000 to deliver animal control services. SVACA provides its own field services and has an agreement with the Humane Society of Santa Clara Valley to provide facilities, personnel, shelter, and animal services. SVACA is governed by a Board of Directors consisting of representatives from member cities.
During the fiscal year ended June 30, 2023, the City contributed $319,484 to SVACA for field services and sheltering costs. Audited financial statements are available from SVACA at 2340-A Walsh Avenue, Santa Clara, California 95051.
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72 City of Campbell
Notes to Financial Statements
June 30, 2023
West Valley Solid Waste Management Authority
The West Valley Solid Waste Management Authority (WVSWMA) was formed on October 1, 1997, to implement and administer the West Valley Solid Waste Management Plan, manage rate studies, and negotiate the related contracts for member’s entities.
WVSWMA includes the Cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos. The City of Campbell maintains the financial records and provides accounting services for WVSWMA. Audited financial statements are available from the City of Campbell.
California Municipal Finance Authority
The California Municipal Finance Authority (CMFA) was created to assist local governments, non-profit organizations and business with the issuance of taxable and tax-exempt bonds aimed at improving the standards of living in California. In order for the CMFA to have the authority to serve as the issuer of the bonds for the rehabilitation of a project within the City limits, it was necessary for the City to become a member of the CMFA.
The City has no obligation with respect to the bonds issued by the CMFA, and the City has the right to withdraw from the Joint Exercise of Powers Agreement upon written notice to the Board of Directors of the CMFA.
Note 14 - Leases
Leases Receivable
The City leases a portion of the space at its Community Center to various third parties. The leases span between slightly more than one year and five years. The interest (discount) rate for the leases is a flat 2.14%. The City received $1,452,102 in monthly payments. The City recognized $1,354,338 in lease revenue and $97,764 in interest revenue during the current fiscal year related to these leases. As of June 30, 2023, the City’s receivable for lease payments was $4,613,666. Also, the City has a deferred outflow of resources associated with these leases that will be recognized as revenue over the lease terms. As of June 30, 2023, the balance of the deferred inflow of resources was $4,489,041.
The City leases land for the usage of cellular towers to various third parties. The leases span between slightly more than five year and nine years. The interest rate for the leases is a flat 2.14%. The City received $147,149 in monthly payments. The City recognized $125,479 in lease revenue and $21,670 in interest revenue during the current fiscal year related to these leases. As of June 30, 2023, the City’s receivable for lease payments was $944,144. Also, the City has a deferred outflow of resources associated with these leases that will be recognized as revenue over the lease terms. As of June 30, 2023, the balance of the deferred inflow of resources was $895,588.
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Notes to Financial Statements
June 30, 2023
Leases Payable
The City leases 16 vehicles. An initial lease liability for six vehicles was recorded during the year amount to $217,736. As of June 30, 2023 the value of the total lease liability was $362,169. The City made principal and interest payments of $103,511. The leases have interest rates between 4.75% and 14.75%. The value of the right-to-use leased equipment as of the end of the current fiscal year was $343,066. The City also has three office equipment leases. As of June 30, 2023 the value of the lease liability was $25,541. The City made principal and interest payments of $30,175. The City also acquired the right to use public safety equipment for $1,452,769 during the year at a rate of 3%. As of June 30, 2023, the lease liability was $1,245,062. The City made principal and interest payments of $280,255. Lastly, the City acquired the right to use equipment for $450,643 during the year at a rate of 3%. As of June 30, 2023, the lease liability was $360,465.
The future principal and interest lease payments as of June 30, 2023, were as follows:
Fiscal years Ended June 30 Principal Interest
2024 333,818$ 71,103$
2025 333,417 57,493
2026 343,438 43,342
2027 305,201 30,403
2028 175,208 20,346
2029-2033 502,155 30,447
Total 1,993,237$ 253,134$
Note 15 - Contingent Liabilities
Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City attorney, there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.
Grant Programs
The City participates in Federal and State grant programs. The amounts received or receivable from granting agencies are subject to audit adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
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74 City of Campbell
Notes to Financial Statements
June 30, 2023
Annexation of Territory
On May 1, 2013, the City annexed approximately 103 acres from the County of Santa Clara and 24 acres from the City of San Jose as part of a territorial reorganization between these entities. As a condition to the reorganization of territory from the City of San Jose to the City, the City entered into a 40-year agreement with the City of San Jose to provide it with compensation for future net revenues it has given up as a result of the territorial reorganization. Under the terms of the agreement, the City is committed to make annual payments to San Jose based on an initial base amount for the first five years, effective fiscal year 2013-14. This base amount is subject to adjustment if certain conditions are met. In the sixth year, and every subsequent fifth year thereafter, the payment is to be adjusted by an agreed upon formula that calculates the increase/decrease in net revenues, as defined in the agreement, as a percentage, and applies it to the base payment resulting in a revised based payment amount for the ensuing five-year period. Other provisions call for a recalculation of the revised base payment in between calculation dates if certain economic conditions are met. The City expects its annual payment amount to be approximately $230,042 through fiscal 2023-28. The annual payment is revised every five years through fiscal year 2052-53.
Note 16 - Successor Agency
Capital Assets
Capital assets of the Successor Agency as of June 30, 2023 consisted of the following:
Balance Balance Due Within
July 1,2022 Additions Deletions June 30,2023 O ne Year
2016 Tax Allocation Refunding Bonds 16,050,000$ -$ (1,555,000)$ 14,495,000$ 1,595,000 $
Long-term Liabilities
Long-term liabilities of the Successor Agency as of June 30, 2023 consisted of the following:
Balance at Balance at
July 1, 2022 Additions Deletions Reclassification June 30, 2023 Capital assets, not being depreciated
Land 7,123,531$ -$ -$ -$ 7,123,531$ Total capital assets, not
being depreciated 7,123,531 - - - 7,123,531 Capital assets, being depreciated
Buildings and improvements 18,939,961 - - - 18,939,961 Other improvements 11,805,911 - - - 11,805,911 Total capital assets,
being depreciated 30,745,872 - - - 30,745,872 Less accumulated depreciation for
Buildings and improvements (11,418,464) (309,151) - - (11,727,615) Other improvements (10,992,397) (388,368) - - (11,380,765) Total accumulated depreciation (22,410,861) (697,519) - - (23,108,380) Total capital assets,
being depreciated, net 8,335,011 (697,519) - - 7,637,492 Governmental Activities
capital assets, net 15,458,542$ (697,519)$ -$ -$ 14,761,023$
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Notes to Financial Statements
June 30, 2023
Advances from the City of Campbell
The City has advanced funds to the former redevelopment agency under the terms of a Third Amended and Restated Indebtedness Agreement. Principal was payable out of the excess of tax increment revenues over other similar liabilities and agreements. The Campbell Redevelopment Agency was dissolved on January 31, 2012 and the advance liability was transferred to the Successor Agency to be paid as an enforceable obligation.
This advance was refunded in August 2016 with proceeds from the 2016 Tax Allocation Refunding Bonds issued by the Successor Agency of the former Campbell Redevelopment Agency. The proceeds repaid to the City were utilized by the City to refund a portion of the 1997 Refunding Certificates of Participation and a portion of the 2002 Refunding Certificates of Participation as described in Note 6.
2016 Tax Allocation Refunding Bonds
Concurrently with the issue of the 2016 Refunding Lease Revenue Bonds, the City of Campbell Successor Agency issued Tax Allocation Refunding Bonds, Series 2016 in the aggregate principal amount of $22,705,000. These bonds were private placement bonds that pay interest at a rate from 1.825% to 2.15% payable semiannually on April 1 and October 1 commencing on April 1, 2017. The proceeds from the Tax Allocation Refunding Bonds, Series 2016 were used to prepay the 2002 RDA Tax Allocation Bonds, Series A, to prepay the 2005 RDA Tax Allocation Bonds, Series A, to prepay a portion of the 1997 Refunding Certificates of Participation and the 2002 Refunding Certificates of Participation, and to pay the cost of issuing the bonds.
The annual debt service requirements to amortize the 2016 Tax Allocation Refunding Bonds outstanding at June 30, 2023 are as follows:
Year Ending
June 30, Principal Interest Total
2024 1,595,000$ 300,984$ 1,895,984$ 2025 1,630,000 266,871 1,896,871 2026 1,660,000 232,066 1,892,066 2027 1,705,000 196,571 1,901,571 2028 1,730,000 160,228 1,890,228 2029-2031 6,175,000 257,570 6,432,570 Total 14,495,000$ 1,414,290$ 15,909,290$
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Required Supplementary Information
June 30, 2023
City of Campbell
eidebailly.com
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See Notes to Required Supplementary Information 76 City of Campbell
Schedule of Changes in the Pension Liability and Related Ratios – CalPERS Miscellaneous Plan Last Ten Fiscal Years*
Fiscal Year ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement period ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:
Service cost 2,534,964$ 2,410,558$ 2,407,298$ 2,335,864$ 2,318,339$ 2,334,869$ 1,958,173$ 1,794,374$ 1,803,589$ Interest on total pension liability 8,828,016 8,542,268 8,227,199 7,839,384 7,392,762 7,134,146 6,827,812 6,544,912 6,237,266 Differences between expected and actual experience 625,329 (396,930) 613,576 1,563,454 (487,309) 166,228 (487,339) (413,601) - Changes in assumptions 3,433,930 - - - (809,156) 5,879,356 - (1,598,990) - Changes in benefits - - - - - - - - - Benefit payments (7,050,778) (6,157,839) (5,507,392) (5,293,752) (4,779,950) (4,314,617) (4,673,560) (3,798,085) (3,467,485) Net Change in Total Pension Liability 8,371,461 4,398,057 5,740,681 6,444,950 3,634,686 11,199,982 3,625,086 2,528,610 4,573,370 Total Pension Liability - Beginning of Year 126,140,914 121,742,857 116,002,176 109,557,226 105,922,540 94,722,558 91,097,472 88,568,862 83,995,492 Total Pension Liability - End of Year 134,512,375$ 126,140,914$ 121,742,857$ 116,002,176$ 109,557,226$ 105,922,540$ 94,722,558$ 91,097,472$ 88,568,862$ Plan Fiduciary Net Position:
Contributions - employer 3,925,027$ 3,758,501$ 3,446,237$ 3,062,946$ 2,683,458$ 2,424,792$ 2,168,070$ 1,811,356$ 1,592,734$ Contributions - employee 1,000,275 1,059,499 1,052,758 1,050,023 1,040,310 920,368 903,290 818,954 869,838 Net investment income (7,981,639) 19,929,957 4,262,754 5,242,422 6,387,875 7,735,412 518,527 1,566,471 10,321,563 Plan to plan resource movement - - - - (189) - - (12,655) - Administrative expenses (66,773) (88,594) (120,615) (58,198) (119,314) (103,210) (43,290) (79,967) - Benefit payments (7,050,778) (6,157,839) (5,507,392) (5,293,752) (4,779,950) (4,314,617) (4,673,560) (3,798,085) (3,467,485) Other miscellaneous income/expenses - - (2,611) 189 (226,579) - - - - Net Change in Plan Fiduciary Net Position (10,173,888) 18,501,524 3,131,131 4,003,630 4,985,611 6,662,745 (1,126,963) 306,074 9,316,650 Plan Fiduciary Net Position - Beginning of Year 107,189,935 88,688,411 85,557,280 81,553,650 76,568,039 69,905,294 71,032,257 70,726,183 61,409,533 Plan Fiduciary Net Position - End of Year (b) 97,016,047$ 107,189,935$ 88,688,411$ 85,557,280$ 81,553,650$ 76,568,039$ 69,905,294$ 71,032,257$ 70,726,183$ Net Pension Liability - Ending (a) - (b) 37,496,328$ 18,950,979$ 33,054,446$ 30,444,896$ 28,003,576$ 29,354,501$ 24,817,264$ 20,065,215$ 17,842,679$ Plan's fiduciary net position as a percentage of
the plan's total pension liability 72.12% 84.98% 72.85% 73.75% 74.44% 72.29% 73.80% 77.97% 79.85% Covered payroll $13,672,947 $13,853,779 $13,631,359 $12,741,308 $12,620,931 $12,359,036 $11,526,124 $10,550,178 $9,939,320 Net pension liability as percentage of coverd payroll 274.24% 136.79% 242.49% 238.95% 221.88% 237.51% 215.31% 190.19% 179.52%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%.
From fiscal year June 30, 2022 to June 30, 2023:
The discount rate was reduced from 7.15% to 6.90%.
* - Fiscal year 2015 was the 1st year of implementation.
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See Notes to Required Supplementary Information 77 City of Campbell
Schedule of Pension Contributions – CalPERS Miscellaneous Plan Last Ten Fiscal Years*
Fiscal Year ended 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 5,419,711$ 3,925,027$ 3,758,501$ 3,446,237$ 3,062,946$ 2, 683,458$ 2,424,792 $ 2,168,070 $ 1,811,356 $ Contributions in relation to the actuarially
determined contributions (5,419,711) (3,925,027) (3,758,501) (3,446,237) (3,062,946) ( 2,683,458) (2,424,792) (2,168,070) (1,811,356) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll $14,180,589 $13,672,947 $13,853,779 $13,631,359 $12,741,308 $12,620,931 $12,359,036 $11,526,124 $10,550,178 Contributions as a percentage
of covered payroll 38.22% 28.71% 27.13% 25.28% 24.04% 21.26% 19.62% 18.81% 17.17%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017:
The discount rate was reduced from 7.65% to 7.15%.
From fiscal year June 30, 2022 to June 30, 2023:
The discount rate was reduced from 7.15% to 6.90%.
* - Fiscal year 2015 was the 1st year of implementation.
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Packet Pg. 389
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
See Notes to Required Supplementary Information 78 City of Campbell
Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans Last Ten Fiscal Years*
Fiscal Year ended June 30, 2023 June 30, 2022 J une 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement period ended June 30, 2022 June 30, 2021 J une 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Proportion of the net pension liability 0.49314% 0.54672% 0. 46782% 0.47274% 0.48183% 0.47999% 0.50062% 0.52828% 0.52660% 33,886,517$ 19, 187,021$ 31,167,715$ 29,511,142$ 28,271,751$ 28,680,686$ 25,928,666$ 21,767,656$ 19,752,687$ Covered payroll 6,821,979$ 6, 646,761$ 6,137,525$ 6,194,278$ 6,180,899$ 5,832,083$ 5,370,852$ 5,168,789$ 5,062,342$ 496.73% 288.67% 507.82% 476. 43% 457.41% 491.77% 482.77% 421.14% 390.19% Fiduciary net position as a percentage of the
plan's total pension liability 76.52% 82.42% 73. 12% 73.37% 73.39% 71.74% 72.69% 77.27% 78.83% Net pension liability as a percentage
of covered payroll
Proportionate share of the
net pension liability
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017:
The discount rate was reduced from 7.65% to 7.15%.
From fiscal year June 30, 2022 to June 30, 2023:
The discount rate was reduced from 7.15% to 6.90%.
* - Fiscal year 2015 was the 1st year of implementation.
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Packet Pg. 390
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
See Notes to Required Supplementary Information 79 City of Campbell
Schedule of Pension Contributions – CalPERS Safety Plan Last Ten Fiscal Years*
Fiscal Year ended 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 4,674,536$ 4,287,989$ 4,968,440$ 3,858,649$ 3,579,757$ 3,180,698$ 2,928,596$ 2,610,566$ 2,079,597$ Contributions in relation to the
actuarially determined contributions (4,674,536) (4,287,989) (4,968,440) (3,858,649) (3,579,757) (3,180,698) (2,928,596) (2,610,566) (2,079,597) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 6,748,836$ 6,821,979$ 6,646,761$ 6,137,525$ 6,194,278$ 6,180,899$ 5,832,083$ 5,370,852$ 5,168,789$
69.26% 62.86% 74.75% 62.87% 57.79% 51.46% 50.22% 48.61% 40.23% Contributions as a percentage
of covered payroll
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2016 to June 30, 2017:
The discount rate was reduced from 7.65% to 7.15%.
From fiscal year June 30, 2022 to June 30, 2023:
The discount rate was reduced from 7.15% to 6.90%.
* - Fiscal year 2015 was the 1st year of implementation.
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Packet Pg. 391
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
See Notes to Required Supplementary Information 80 City of Campbell
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
Fiscal Year ended 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement period ended 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service cost 394,831$ 341,663$ 331,712$ 339,543$ 329,653$ 320,051$ Interest on total OPEB liability 699,837 617,389 587,481 582,939 549,781 518,912 Actual vs. expected experience - 684,363 - (375,537) - - Assumption changes - 1,073,039 - (40,651) - - Benefit payments (575,477) (497,843) (474,260) (388,140) (408,022) (374,490) Net Change in Total OPEB Liability 519,191 2,218,611 444,933 118,154 471,412 464,473 Total OPEB Liability - Beginning of Year 11,272,372 9,053,761 8,608,828 8,490,674 8,019,262 7,554,789 Total OPEB Liability - End of Year (a) 11,791,563 11,272,372 9,053,761 8,608,828 8,490,674 8,019,262 Plan Fiduciary Net Position:
Contributions - employer 659,310 613,391 646,871 675,398 1,566,022 829,490 Net investment income (884,900) 1,399,683 169,139 261,853 255,576 251,971 Administrative expenses (1,673) (1,927) (3,830) (2,124) (5,460) (1,332) Benefit payments (575,477) (497,843) (474,260) (388,140) (408,022) (374,490) Net Change in Plan Fiduciary Net Position (802,740) 1,513,304 337,920 546,987 1,408,116 705,639 Plan Fiduciary Net Position - Beginning of Year 6,605,325 5,092,021 4,754,101 4,207,114 2,798,998 2,093,359 Plan Fiduciary Net Position - End of Year (b) 5,802,585 6,605,325 5,092,021 4,754,101 4,207,114 2,798,998 Net OPEB Liability - Ending (a) - (b) 5,988,978$ 4,667,047$ 3,961,740$ 3,854,727$ 4,283,560$ 5,220,264$ Plan fiduciary net position as a percentage of the
total OPEB Liability 49.21% 58.60% 56.24% 55.22% 49.55% 34.90% Covered payroll 23,935,378$ 23,360,322$ 23,681,909$ 22,349,167$ 22,223,899$ 21,017,236$ Net OPEB Liability as percentage of covered payroll 25.02% 19.98% 16.73% 17.25% 19.27% 24.84%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.25% to 6.75%.
From fiscal year June 30, 2021 to June 30, 2022:
The discount rate was reduced from 6.75% to 6.15%.
* - Fiscal year 2018 was the 1st year of implementation.
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Packet Pg. 392
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
See Notes to Required Supplementary Information 81
City of Campbell
Schedule of OPEB Contributions
Last Ten Fiscal Years*
Fiscal Year ended June 30, 2023 June 30, 2022 J une 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 822,791$ 624, 000$ 610,000$ 642,000$ 629,000$ 1,038,000$ Contributions in relation to the
actuarially determined contributions (913,540) ( 659,310) (613,391) (646,871) (675,398) (1,566,022) Contribution deficiency (excess) (90,749)$ ( 35,310)$ (3,391)$ (4,871)$ (46,398)$ (528,022)$ Covered payroll $25,483,309 $23,935,378 $23, 360,322 $23,681,909 $22,349,167 $22,223,899 Contributions as a percentage
of covered payroll 3.58% 2.75% 2. 63% 2.73% 3.02% 7.05%
Notes to Schedule:
Changes in Assumptions:
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.25% to 6.75%.
From fiscal year June 30, 2021 to June 30, 2022:
The discount rate was reduced from 6.75% to 6.15%.
* - Fiscal year 2018 was the 1st year of implementation.
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Packet Pg. 393
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
14.a
Packet Pg. 394
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Required Supplementary Information 82
City of Campbell
Budgetary Comparison Schedule – General Fund
Fiscal Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 20,654,400$ 20,526,000$ 20,907,124$ 381,124$ Sales and use taxes 15,903,012 18,221,459 18,832,569 611,110 Other taxes 8,622,400 8,602,100 8,605,379 3,279 Licenses and permits 3,894,820 4,173,500 3,387,574 (785,926) Fines and forfeitures 105,000 107,500 113,511 6,011 Investment income 310,900 610,900 413,171 (197,729) Rents and leases 2,933,200 2,965,800 3,223,340 257,540 Intergovernmental 999,100 1,226,598 1,146,995 (79,603) Charges for services 4,872,200 4,980,430 5,288,137 307,707 Miscellaneous 219,400 307,946 319,911 11,965 Total Revenues 58,514,432 61,722,233 62,237,711 515,478 Expenditures
General government
City council 346,065 346,065 353,432 (7,367) City manager 1,321,398 1,279,498 1,230,451 49,047 City clerk 665,073 609,573 493,226 116,347 Human resources 1,418,684 1,490,484 1,490,111 373 Accounting 2,292,382 2,501,255 2,596,615 (95,360) Non-departmental finance 1,912,593 2,302,692 2,853,125 (550,433) COVID response 50,000 103,468 109,337 (5,869) Legal services 582,809 582,809 525,088 57,721 Economic development 380,128 406,817 304,121 102,696 Total general government 8,969,132 9,622,661 9,955,506 (332,845) Recreation
Community services and administration 460,337 471,337 461,617 9,720 Senior citizens nutrition program 257,679 282,001 284,153 (2,152) Adult services 530,125 522,125 498,447 23,678 Campbell community center 1,149,389 1,458,753 1,527,767 (69,014) Museum services 368,374 384,682 408,058 (23,376) Theater 1,130,178 1,171,483 991,430 180,053 Sports, aquatics and fitness 1,107,655 1,179,555 958,258 221,297 Trips, tours and classes 1,159,465 1,191,889 1,016,300 175,589 Total recreation 6,163,202 6,661,825 6,146,030 515,795 Community development
Community development administration 631,994 867,264 703,885 163,379 Current planning 846,174 846,174 1,017,381 (171,207) Policy development 157,108 1,344,569 844,203 500,366 Building 1,616,677 1,856,246 1,548,595 307,651 Total community development 3,251,953 4,914,253 4,114,064 800,189 Budgeted Amounts
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Packet Pg. 395
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Required Supplementary Information 83
City of Campbell
Budgetary Comparison Schedule – General Fund
Fiscal Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Public safety
Police administration 1,660,829$ 1,660,829$ 1,742,788 (81,959)$ Communications 2,920,392 2,928,091 2,810,820 117,271 Records 1,503,834 1,503,834 1,506,778 (2,944) Special enforcement services 4,660,451 4,819,458 4,409,297 410,161 Field services 10,308,424 10,393,005 10,631,957 (238,952) Fire protection services 10,310,640 10,310,640 10,343,732 (33,092) Total public safety 31,364,570 31,615,857 31,445,372 170,485 Public works
Public works administration 964,303 964,303 778,843 185,460 Transportation engineering 443,611 443,611 418,770 24,841 Engineering 1,520,679 1,520,679 1,536,738 (16,059) Land development/environment programs 956,831 1,012,393 1,006,936 5,457 Maintenance administration 639,565 639,565 674,424 (34,859) Building maintenance 1,904,783 2,275,885 2,110,467 165,418 Total Public works 6,429,772 6,856,436 6,526,178 330,258 Total expenditures 56,178,629 59,671,032 58,187,150 1,483,882 Excess (deficiency) of revenues
over (under) expenditures 2,335,803 2,051,201 4,050,561 1,999,360 Other financing sources (uses)
Transfers in 2,939,083 791,371 791,371 - Transfers out (5,274,886) (6,758,371) (4,625,452) 2,132,919 Total other
financing sources (uses) (2,335,803) (5,967,000) (3,834,081) 2,132,919 Net change in fund balance - (3,915,799) 216,480 4,132,279 Fund balance at beginning of year, restated 21,926,791 21,926,791 21,926,791 - Fund balance at end of year 21,926,791$ 18,010,992$ 22,143,271$ 4,132,279$ Budgeted Amounts
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Packet Pg. 396
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Required Supplementary Information 84
City of Campbell
Budgetary Comparison Schedule – Housing Assets Special Revenue Fund Fiscal Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 50,000$ 50,000$ 108,075$ 58,075$ Miscellaneous revenue 215,839 215,839 47,741 (168,098) Total revenues 265,839 265,839 155,816 (110,023) Expenditures
Current
Community development 757,422 617,422 429,716 187,706 Net change in fund balance (491,583) (351,583) (273,900) 77,683 Fund balance at beginning of year 8,769,588 8,769,588 8,769,588 - Fund balance at end of year 8,278,005$ 8,418,005$ 8,495,688$ 77,683$ Budgeted Amounts
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Packet Pg. 397
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
See Notes to Required Supplementary Information 85
City of Campbell
Budgetary Comparison Schedule – ARPA Special Revenue Fund Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 91,397$ 91,397$ Total revenues - - 91,397 91,397 Expenditures
Current
City Managers Office 50,000 450,000 2,454 447,546 Total expenditures 50,000 450,000 2,454 447,546 Excess (deficiency) of revenues
over (under) expenditures (50,000) (450,000) 88,943 538,943 Other financing sources (uses)
Transfers out (725,467) (125,000) - (125,000) Total other
financing sources (uses) (725,467) (125,000) - 125,000 Net change in fund balance (775,467) (575,000) 88,943 663,943 Fund balance at beginning of year (48,225) (48,225) (48,225) - Fund balance at end of year (823,692)$ (623,225)$ 40,718$ 663,943$ Budgeted Amounts
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Packet Pg. 398
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
86 City of Campbell
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2023
Note 1 - Budgets and Budgetary Data
The City adopts a budget annually for General, Special Revenue, Capital Projects and Debt Service Funds. This budget is effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted by the City Council and controlled by each department head, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The legal level of budgetary control is at the total department level. For the General Fund, budgetary comparisons for line operating departments are presented and supporting departments, Finance and City Manager are combined as General Government. All appropriations lapse at year-end. During the fiscal year, supplemental adjustments to appropriations were adopted by City Council and have been included in the budget versus actual statements.
Annual budgets are adopted on a basis consistent with generally accepted accounting principles, except for the Museum and Adult Center and Community Development Block Grant Special Revenue Funds for which no budget was adopted in the current fiscal year. Accordingly, no budgetary comparison for these funds are presented in the financial statements.
Under encumbrance accounting, purchase orders, contracts and other commitments of the expenditures are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of the formal budgetary process. Encumbrances outstanding at year-end lapse and must be re- appropriated as part of the following year budget.
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Packet Pg. 399
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
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Packet Pg. 400
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control) Supplementary Information
June 30, 2023
City of Campbell
eidebailly.com
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Packet Pg. 401
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
87 City of Campbell
Description of Other Governmental Funds
June 30, 2023
Other Governmental Special Revenue Funds
Gas Tax
Accounts for revenues and expenditures pertaining to the construction and maintenance of City streets.
Vehicle Impact Fees
Accounts for revenues and expenditures pertaining to street maintenance.
Other Grants
Consists of State and Local grants, TDA grant and Federal grants. • State and Local grant accounts for funds which are provided for specific purposes from the State or other local agencies.
• TDA grant accounts for funds received from the Transportation Development Act (TDA) of 1971. • Federal grant accounts for federal grant funds which are provided for specific purposes.
Parkland Dedication Fees
Accounts for Quimby Act monies received from developers and records expenditures related to development of designated areas.
Lighting and Landscaping District
Accounts for revenues and expenditures providing for City street lighting and landscaping.
Community Development Block Grant
Accounts for Federal Block Grant Funds used for community development, such as low-and-moderate rehabilitation grants and loans.
Drug Enforcement Revenue
Accounts for revenues received through drug related asset seizures and any drug related convictions.
Environmental Services
Accounts for revenues received from developers and franchised garbage collection to be utilized for solid waste management and storm drain improvements.
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Packet Pg. 402
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
88 City of Campbell
Description of Other Governmental Funds
June 30, 2023
Community Restitution Fund
Accounts for assets of the City’s Successor Housing Agency, formed to take over certain housing assets from the former Redevelopment Agency Low-Moderate Income Housing Fund upon its dissolution by the State of California.
Supplemental Law Enforcement
Accounts for revenues and expenditures pertaining to grants received from enhancing law enforcement services.
Community Facilities District #1
Accounts for revenues and expenditures pertaining to specific ongoing maintenance of the District’s boundaries.
Community Facilities District #2
Accounts for revenues and expenditures pertaining to specific ongoing maintenance of the District’s boundaries.
Museum and Adult Center
Accounts for donations received from expenditures related to the City’s Museum and Adult Center. The City’s Museum and Adult Care Center did not have an adopted or final budget.
Debt Service Fund:
2016 LRB
Accounts for the City’s share of proceeds from the repayments of the 2016 Lease Revenue Bonds, which were utilized for the refunding of the City’s 1997 and 2002 COP obligations.
Measure O Debt Service Fund
Accounts for the City’s repayments of the 2020 Measure O General Obligation Bond.
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Packet Pg. 403
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
89 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2023
Vehicle Parkland Lighting and Community D rug Supplemental Gas Impact Other Dedication L andscaping Development Enforcement Environmental Law Tax Fees Grants Fees D istrict Block Grant Revenue Services Enforcement Assets
Cash and investments 1,165,731$ 2, 828,411 $ 470,067$ 3,398,925 $ 1,707,435 $ 16$ 106,894$ 381,605$ 186,464$ Cash held with fiscal agent - - - - - - - - - Receivables:
Accounts 1,624 39, 800 9,420 - 25,250 - - 60,535 - Taxes 268,386 - - - 6,071 - - - - Interest 9,087 23, 807 9,516 34,020 9,167 - 859 3,993 1,496 Notes and loans - - - - - 140,000 - - - Total assets 1,444,828$ 2, 892,018 $ 489,003$ 3,432,945 $ 1,747,923 $ 140,016$ 107,753$ 446,133$ 187,960$ Liabilities
Accounts payable 98,184$ -$ -$ -$ 166,602$ -$ -$ 217$ -$ Accrued payroll 58,142 - - - 110,857 - - 9,394 7,311 Due to other funds - - 1,529,152 - - 139,670 - - - Total liabilities 156,326 - 1,529,152 - 277,459 139,670 - 9,611 7,311 Fund balances (deficit)
Restricted 1,288,502 2, 892,018 - 3,432,945 1,470,464 346 107,753 436,522 180,649 Unassigned - - (1,040,149) - - - - - - Total fund balances (deficit) 1,288,502 2, 892,018 (1,040,149) 3,432,945 1,470,464 346 107,753 436,522 180,649 Total liabilities, deferred inflows
of resources and fund balances 1,444,828$ 2,892,018 $ 489, 003$ 3,432,945 $ 1,747,923 $ 140,016$ 107,753$ 446,133$ 187,960$ Special Revenue Funds
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Packet Pg. 404
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
90 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2023
Assets
Cash and investments
Cash held with fiscal agent
Receivables:
Accounts
Taxes
Interest
Notes and loans
Total assets
Liabilities
Accounts payable
Accrued payroll
Due to other funds
Total liabilities
Fund balances (deficit)
Restricted
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflows
of resources and fund balances
Total
Community Community Community Museum Other
Restitution Facilities Facilities and Governmental
Fund District #1 District #2 Adult Center Measure O 2016 LRB Funds 96,675$ 425$ 201,501$ 22, 537$ 4,089,357 $ -$ 14,656,043$ - - - - - 19,414 19,414 - - - - - - 136,629 - 471 297 - 8,884 - 284,109 560 1 1,426 169 24,935 47 119,083 - - - - - - 140,000 97,235$ 897$ 203,224$ 22, 706$ 4,123,176 $ 19,461$ 15,355,278$ -$ -$ 1,263$ -$ -$ -$ 266,266$ - - - - - - 185,704 - - - - - - 1,668,822 - - 1,263 - - - 2,120,792 97,235 897 201,961 22, 706 4,123,176 19,461 14,274,635 - - - - - - (1,040,149) 97,235 897 201,961 22, 706 4,123,176 19,461 13,234,486 97,235$ 897$ 203,224$ 22, 706$ 4,123,176 $ 19,461$ 15,355,278$ Debt Service FundSpecial Revenue Funds
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Packet Pg. 405
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
91 City of Campbell
Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds Year Ended June 30, 2023
Vehicle Parkland Lighting and Community Drug Supplemental Gas Impact Other Dedication Landscaping Development Enforcement Environmental Law Tax Fees Grants Fees District Block Grant Revenue Services Enforcement Revenues
Property taxes -$ -$ -$ -$ 1,871,063$ -$ -$ -$ -$ Special assessments - - - - 1,212,968 - - - - Fines and forfeitures - - - - - - - - - Investment income (2,673) 69,458 43,190 107,887 15,580 - 2,364 14,352 5,658 Intergovernmental 2,083,480 760,238 701,518 - 6,484 - (8,364) - 165,271 Charges for services - - - - - - - 771,501 - Parkland dedication fees - - - 1,182,118 - - - - - Miscellaneous revenues 2,630 - - - 63,113 - - - - Total revenues 2,083,437 829,696 744,708 1,290,005 3,169,208 - (6,000) 785,853 170,929 Expenditures
Current:
General government - - 83 - - - - - - Community development - - - - - - - - - Public safety - - - - - - - - 258,392 Public works 1,888,205 - - - 3,713,060 - - 292,736 - Debt service:
Principal - - - - - - - - - Interest and fiscal charges - - - - - - - - - Total expenditures 1,888,205 - 83 - 3,713,060 - - 292,736 258,392 Excess (deficiency) of revenues
over (under) expenditures 195,232 829,696 744,625 1,290,005 (543,852) - (6,000) 493,117 (87,463) Other financing sources (uses)
Transfers in 1,847,300 - - - 940,341 - - 505,000 - Transfers out (388,516) (410,266) (894,312) (1,161,781) (123,300) - - (1,225,517) - Total other financing
sources (uses) 1,458,784 (410,266) (894,312) (1,161,781) 817,041 - - (720,517) - Net change in fund balances 1,654,016 419,430 (149,687) 128,224 273,189 - (6,000) (227,400) (87,463) Fund balances at beginning of year (365,514) 2,472,588 (890,462) 3,304,721 1,197,275 346 113,753 663,922 268,112 Fund balances at end of year 1,288,502$ 2,892,018$ (1,040,149)$ 3,432,945$ 1,470,464$ 346$ 107,753$ 436,522$ 180,649$ Special Revenue Funds
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Packet Pg. 406
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
92 City of Campbell
Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds Year Ended June 30, 2023
Revenues
Property taxes
Special assessments
Fines and forfeitures
Investment income
Intergovernmental
Charges for services
Parkland dedication fees
Miscellaneous revenues
Total revenues
Expenditures
Current:
General government
Community development
Public safety
Public works
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Total
Community Community Community M useum Other
Restitution Facilities Facilities an d Governmental
Fund District #1 District #2 A dult Center Measure O 2016 LRB Funds -$ -$ -$ -$ 2,771,850$ -$ 4,642,913$ - 144, 170 49,382 - - - 1,406,520 98,591 - - - - - 98,591 (95) 157 3,867 494 80,597 459 341,295 - - - - - - 3,708,627 - - - - - - 771,501 - - - - - - 1,182,118 - - - - - - 65,743 98,496 144, 327 53,249 494 2,852,447 459 12,217,308 - 3, 804 - - - - 3,887 1,261 - - - - 1,261 - - - - - - 258,392 - - 20,784 - - - 5,914,785 - - - - 3,000,000 585,000 3,585,000 - - - - 1,550,747 173,750 1,724,497 1,261 3, 804 20,784 - 4,550,747 758,750 11,487,822 97,235 140, 523 32,465 494 (1,698,300) (758,291) 729,486 - - - - - 765,800 4,058,441 - ( 143,000) (12,000) - - - (4,358,692) - ( 143,000) (12,000) - - 765,800 (300,251) 97,235 ( 2,477) 20,465 494 (1,698,300) 7,509 429,235 - 3, 374 181,496 22,212 5,821,476 11,952 12,805,251 97,235$ 897$ 201,961$ 22,706$ 4,123,176$ 19,461$ 13,234,486$ Debt Service FundSpecial Revenue Funds
14.a
Packet Pg. 407
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
93 City of Campbell
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget Actual – Gas Tax Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 25,000$ 25,000$ (2,673)$ (27,673)$ Intergovernmental 2,063,136 2,101,716 2,083,480 (18,236) Miscellaneous revenue 2,500 2,500 2,630 130 Total Revenues 2,090,636 2,129,216 2,083,437 (45,779) Expenditures
Current
Public works 2,152,573 2,157,523 1,888,205 269,318 Total expenditures 2,152,573 2,157,523 1,888,205 269,318 Excess (deficiency) of revenues
over (under) expenditures (61,937) (28,307) 195,232 223,539 Other financing sources (uses)
Transfers in 1,847,300 1,847,300 1,847,300 - Transfers out (919,000) (1,307,516) (388,516) 919,000 Total other
financing sources (uses) 928,300 539,784 1,458,784 919,000 Net change in fund balance 866,363 511,477 1,654,016 1,142,539 Fund balance at beginning of year (365,514) (365,514) (365,514) - Fund balance at end of year 500,849$ 145,963$ 1,288,502$ 1,142,539$ Budgeted Amounts
14.a
Packet Pg. 408
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
94 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Vehicle Impact Fees Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 250$ 250$ 69,458$ 69,208$ Intergovernmental 777,000 777,000 760,238 (16,762) Total revenues 777,250 777,250 829,696 52,446 Other financing sources (uses)
Transfers out (777,000) (2,963,113) (410,266) 2,552,847 Net change in fund balance 250 (2,185,863) 419,430 2,605,293 Fund balance at beginning of year 2,472,588 2,472,588 2,472,588 - Fund balance at end of year 2,472,838$ 286,725$ 2,892,018$ 2,605,293$ Budgeted Amounts
14.a
Packet Pg. 409
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
95 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual –Other Grants Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 43,190$ 43,190$ Intergovernmental 1,325,155 1,329,640 701,518 (628,122) Total Revenues 1,325,155 1,329,640 744,708 (584,932) Expenditures
Current
Public works - - 83 (83) Excess (deficiency) of revenues
over (under) expenditures 1,325,155 1,329,640 744,625 (585,015) Other financing sources (uses)
Transfers out (1,122,155) (2,933,395) (894,312) 2,039,083 Total other
financing sources (uses) (1,122,155) (2,933,395) (894,312) 2,039,083 Net change in fund balance 203,000 (1,603,755) (149,687) 1,454,068 Fund balance at beginning of year, restated (890,462) (890,462) (890,462) - Fund balance at end of year (687,462)$ (2,494,217)$ (1,040,149)$ 1,454,068$ Budgeted Amounts
14.a
Packet Pg. 410
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
96 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 9,985$ 9,985$ 107,887$ 97,902$ Parkland dedication fees 400,000 400,000 1,182,118 782,118 Total revenues 409,985 409,985 1,290,005 880,020 Other financing sources (uses)
Transfers in - 232,412 - (232,412) Transfers out (240,000) (1,841,322) (1,161,781) 679,541 Net change in fund balance 169,985 (1,198,925) 128,224 1,327,149 Fund balance at beginning of year 3,304,721 3,304,721 3,304,721 - Fund balance at end of year 3,474,706$ 2,105,796$ 3,432,945$ 1,327,149$ Budgeted Amounts
14.a
Packet Pg. 411
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
97 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Lighting and Landscaping District Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 1,143,000$ 1,143,000$ 1,871,063$ 728,063$ Special assessments 1,210,000 1,210,000 1,212,968 2,968 Investment income - - 15,580 15,580 Intergovernmental 2,500 - 6,484 6,484 Miscellaneous revenues 25,000 42,300 63,113 20,813 Total revenues 2,380,500 2,395,300 3,169,208 773,908 Expenditures
Current
Public works 3,879,358 3,944,586 3,713,060 231,526 Total expenditures 3,879,358 3,944,586 3,713,060 231,526 Excess (deficiency) of revenues
over (under) expenditures (1,498,858) (1,549,286) (543,852) 1,005,434 Other financing sources (uses)
Transfers in 874,341 940,341 940,341 - Transfers out (111,300) (123,300) (123,300) - Total other
financing sources (uses) 763,041 817,041 817,041 - Net change in fund balance (735,817) (732,245) 273,189 1,005,434 Fund balance at beginning of year 1,197,275 1,197,275 1,197,275 - Fund balance at end of year 461,458$ 465,030$ 1,470,464$ 1,005,434$ Budgeted Amounts
14.a
Packet Pg. 412
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
98 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 2,500$ 2,500$ 2,364$ (136)$ Intergovernmental - - (8,364) (8,364) Miscellaneous revenues 10,000 10,000 - (10,000) Total revenues 12,500 12,500 (6,000) (18,500) Net change in fund balance 12,500 12,500 (6,000) (18,500) Fund balance at beginning of year 113,753 113,753 113,753 - Fund balance at end of year 126,253$ 126,253$ 107,753$ (18,500)$ Budgeted Amounts
14.a
Packet Pg. 413
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
99 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ 14,352$ 13,852$ Intergovernmental 130,000 130,000 - (130,000) Charges for services 627,064 627,064 771,501 144,437 Miscellaneous revenues 49,356 49,356 - (49,356) Total revenues 806,920 806,920 785,853 (21,067) Expenditures
Current
Public works 413,615 413,615 292,736 120,879 Excess (deficiency) of revenues
over (under) expenditures 393,305 393,305 493,117 99,812 Other financing sources (uses)
Transfers in 505,000 505,000 505,000 - Transfers out (1,241,771) (1,275,517) (1,225,517) 50,000 Total other
financing sources (uses) (736,771) (770,517) (720,517) 50,000 Net change in fund balance (343,466) (377,212) (227,400) 149,812 Fund balance at beginning of year 663,922 663,922 663,922 - Fund balance at end of year 320,456$ 286,710$ 436,522$ 149,812$ Budgeted Amounts
14.a
Packet Pg. 414
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
100
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 5,658$ 5,658$ Intergovernmental 100,000 100,000 165,271 65,271 Total revenues 100,000 100,000 170,929 70,929 Expenditures
Current
Public safety 133,556 273,831 258,392 15,439 Net change in fund balance (33,556) (173,831) (87,463) 86,368 Fund balance at beginning of year 268,112 268,112 268,112 - Fund balance at end of year 234,556$ 94,281$ 180,649$ 86,368$ Budgeted Amounts
14.a
Packet Pg. 415
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
101
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Restitution Fund Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Fines/Forfeits/Penalties 20,000$ 20,000$ 98,591$ 78,591$ Investment income - - (95) (95) Total Revenues 20,000 20,000 98,496 78,496 Expenditures
Current
Community Development 20,000 20,000 1,261 18,739 Total expenditures 20,000 20,000 1,261 18,739 Net change in fund balance - - 97,235 97,235 Fund balance at beginning of year - - - - Fund balance at end of year -$ -$ 97,235$ 97,235$ Budgeted Amounts
14.a
Packet Pg. 416
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
102
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #1 Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Special assessments 146,350$ 146,350$ 144,170$ (2,180)$ Investment income 550 550 157 (393) Total revenues 146,900 146,900 144,327 (2,573) Expenditures
Current
Community development 3,700 3,700 3,804 (104) Excess (deficiency) of revenues
over (under) expenditures 143,200 143,200 140,523 (2,677) Other financing sources (uses)
Transfers out (143,000) (143,000) (143,000) - Net change in fund balance 200 200 (2,477) (2,677) Fund balance at beginning of year 3,374 3,374 3,374 - Fund balance at end of year 3,574$ 3,574$ 897$ (2,677)$ Budgeted Amounts
14.a
Packet Pg. 417
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
103
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #2 Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 3,867$ 3,867$ Special assessments 35,250 52,400 49,382 (3,018) Total revenues 35,250 52,400 53,249 849 Expenditures
Current
Public Works 28,000 28,000 20,784 7,216 Excess (deficiency) of revenues
over (under) expenditures 7,250 24,400 32,465 8,065 Other financing sources (uses)
Transfers out (12,000) (12,000) (12,000) - Total other
financing sources (uses) (12,000) (12,000) (12,000) - Net change in fund balance (4,750) 12,400 20,465 8,065 Fund balance at beginning of year 181,496 181,496 181,496 - Fund balance at end of year 176,746$ 193,896$ 201,961$ 8,065$ Budgeted Amounts
14.a
Packet Pg. 418
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
104
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Project revenues -$ -$ 281,473$ 281,473$ Miscellaneous revenues - (173,921) - 173,921 Total revenues - (173,921) 281,473 455,394 Expenditures
Current
Capital outlay 5,115,400 12,812,086 3,882,336 8,929,750 Excess (deficiency) of revenues
over (under) expenditures (5,115,400) (12,986,007) (3,600,863) 9,385,144 Other financing sources (uses)
Transfers in 5,115,400 12,081,142 3,582,752 (8,498,390) Transfers out - (232,412) - 232,412 Total other
financing sources (uses) 5,115,400 11,848,730 3,582,752 (8,265,978) Net change in fund balance - (1,137,277) (18,111) 1,119,166 Fund balance at beginning of year 947,217 947,217 947,217 - Fund balance at end of year 947,217$ (190,060)$ 929,106$ 1,119,166$ Budgeted Amounts
14.a
Packet Pg. 419
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
105
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Capital Projects Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 350,000$ 350,000$ 698,902$ 348,902$ Intergovernmental - 4,718,450 2,359,225 (2,359,225) TOTAL REVENUES 350,000 5,068,450 3,058,127 (2,010,323) Expenditures
Current
City Manager 39,433,480 53,796,289 678,161 53,118,128 Total expenditures 39,433,480 53,796,289 678,161 53,118,128 Excess (deficiency) of revenues
over (under) expenditures (39,083,480) (48,727,839) 2,379,966 51,107,805 Other financing sources (uses)
Transfers in 30,000,000 - - - Total other
Financing sources (uses) 30,000,000 - - - Net Change in Fund Balance (9,083,480) (48,727,839) 2,379,966 51,107,805 Fund Balance at Beginning of Year 50,462,161 50,462,161 50,462,161 - Fund Balance at End of Year 41,378,681$ 1,734,322$ 52,842,127$ 51,107,805$ Budgeted Amounts
14.a
Packet Pg. 420
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
106
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ 459$ (41)$ Expenditures
Debt Service
Principal 585,000 585,000 585,000 - Interest and fees 175,100 175,100 173,750 1,350 Total expenditures 760,100 760,100 758,750 1,350 Excess (deficiency) of revenues
over (under) expenditures (759,600) (759,600) (758,291) 1,309 Other financing sources (uses)
Transfers in 763,750 765,800 765,800 - Net change in fund balance 4,150 6,200 7,509 1,309 Fund balance at beginning of year 11,952 11,952 11,952 - Fund balance at end of year 16,102$ 18,152$ 19,461$ 1,309$ Budgeted Amounts
14.a
Packet Pg. 421
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
107
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund
Year Ended June 30, 2023
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 2,600,000$ 2,600,000$ 2,771,850$ 171,850$ Investment income - - 80,597 80,597 Total revenues 2,600,000 2,600,000 2,852,447 252,447 Expenditures
General government 1,500 1,500 - 1,500 Debt Service
Interest and other 4,268,846 4,268,846 4,550,747 (281,901) Total expenditures 4,270,346 4,270,346 4,550,747 (280,401) Excess (deficiency) of revenues
over (under) expenditures (1,670,346) (1,670,346) (1,698,300) (27,954) Other financing sources (uses)
Transfers in 30,000,000 - - - Total other
financing sources (uses) 30,000,000 - - - Net change in fund balance 28,329,654 (1,670,346) (1,698,300) (27,954) Fund balance at beginning of year 5,821,476 5,821,476 5,821,476 - Fund balance at end of year 34,151,130$ 4,151,130$ 4,123,176$ (27,954)$ Budgeted Amounts
14.a
Packet Pg. 422
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
108
City of Campbell
Internal Service Funds
June 30, 2023
Account for goods or services provided to other departments of the City where the intent of the City is that the costs of these goods or services are to be recovered through interdepartmental charges at the time that the goods are delivered, or the services rendered to those departments.
Motor Vehicle Pool
Accounts for the costs of operating maintaining and replacing vehicle and other equipment used by City departments. Rental rates charged to user departments include costs and equipment depreciation.
Workers’ Compensation Self-Insurance
Accounts for revenues derived from charges made to operating departments at rates based on the State Compensation Fund annually adjusted to ensure an adequate reserve for future claims. This fund is charged for administrative costs of settling claims, as well as material and other costs of job-related illness or injury.
Information Technology Services
Accounts for the costs of operating maintaining and replacing computer hardware and software. Rental rates charged to the user departments include operating costs and equipment depreciation.
14.a
Packet Pg. 423
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
109
City of Campbell
Combining Statement of Net Position – Internal Service Funds June 30, 2023
Motor Workers' Information
Vehicle Compensation Technology
Pool Self-Insurance Services Total
Assets
Current assets
Cash and investments 708,663$ 4,326,096$ 118,364$ 5,153,123$ Accounts receivable 4,934 32,590 491 38,015 Deposits - 90,000 - 90,000 Total current assets 713,597 4,448,686 118,855 5,281,138 Noncurrent assets
Capital assets, net 1,359,432 - 226,856 1,586,288 Total noncurrent assets 1,359,432 - 226,856 1,586,288 Total assets 2,073,029 4,448,686 345,711 6,867,426 Deferred outflows of resources
Amount related to pensions 215,802 - 527,747 743,549 Amount related to OPEB 24,709 - 60,425 85,134 Total deferred outflows of resources 240,511 - 588,172 828,683 Liabilities
Current liabilities
Accounts payable 44,254 - 78,134 122,388 Accrued payroll 17,230 - 40,715 57,945 Compensated absences, current portion 19,050 - 34,864 53,914 Leases payable 362,170 - - 362,170 Subscription liabilities - - 89,102 89,102 Claims and judgments payable, current portion - 557,568 - 557,568 .
Total current liabilities 442,704 557,568 242,815 1,243,087 Noncurrent liabilities
Compensated absences 17,851 - 62,718 80,569 Claims and judgments payable - 3,354,139 - 3,354,139 Net OPEB liability 56,165 - 137,353 193,518 Net pension liability 638,842 - 1,562,295 2,201,137 Total noncurrent liabilities 712,858 3,354,139 1,762,366 5,829,363 Total liabilities 1,155,562 3,911,707 2,005,181 7,072,450 Deferred inflows of resources
Amount related to pensions 1,353 - 3,308 4,661 Amount related to OPEB 1,673 - 4,091 5,764 Total deferred inflows of resources 3,026 - 7,399 10,425 Net position
Net investments in capital assets 997,262 - 137,754 1,135,016 Unrestricted 157,690 536,979 (1,216,451) (521,782) Total net position 1,154,952$ 536,979$ (1,078,697)$ 613,234$
14.a
Packet Pg. 424
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
110
City of Campbell
Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds Year Ended June 30, 2023
Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service Total
Operating revenues
Investment income 7,739$ 91,278$ 2,978$ 101,995$ Charges for services 1,101,068 668,781 1,161,992 2,931,841 Other 66,093 4,089 4,187 74,369 Total operating revenues 1,174,900 764,148 1,169,157 3,108,205 Operating expenses
Personnel services 306,813 - 775,364 1,082,177 Services and supplies 468,318 632,349 720,971 1,821,638 Depreciation and amortization 287,648 - 144,159 431,807 Total operating expenses 1,062,779 632,349 1,640,494 3,335,622 Operating gain (loss) 112,121 131,799 (471,337) (227,417) Nonoperating income (expenses)
Loss on disposal of capital assets (9,659) - (2,735) (12,394) Income (loss) before transfers 102,462 131,799 (474,072) (239,811) Transfers
Transfers in 388,400 - 262,780 651,180 Transfers out (50,000) - (49,600) (99,600) Total transfers 338,400 - 213,180 551,580 Net change in fund balance 440,862 131,799 (260,892) 311,769 Fund balance at beginning of year 714,090 405,180 (817,805) 301,465 Fund balance at end of year 1,154,952$ 536,979$ (1,078,697)$ 613,234$
14.a
Packet Pg. 425
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
111
City of Campbell
Combining Statement of Cash Flows – Internal Service Funds Year Ended June 30, 2023
Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service To tal
Cash flows from operating activities
Cash received from department users 1,170,474$ 738, 937$ 1,174,564$ 3,083,975$ Cash payments to suppliers of goods and services (464,879) ( 527,904) (690,107) (1,682,890) Cash payments to employees for services (344,706) - (681,635) (1,026,341) Net cash provided (used)
by operating activities 360,889 211, 033 (197,178) 374,744 Cash flows from noncapital
financing activities
Cash received from other funds 388,400 - 262,780 651,180 Cash paid to other funds (50,000) - (49,600) (99,600) Net cash provided by
noncapital financing activities 338,400 - 213,180 551,580 Cash flows from capital and related financing activities Acquisition of capital assets (408,460) - (88,884) (497,344) Net cash used by capital and
related financing activities (408,460) - (88,884) (497,344) Net increase (decrease) in
cash and cash equivalents 290,829 211, 033 (72,882) 428,980 Cash and cash equivalents
at beginning of year 417,834 4, 115,063 191,246 4,724,143 Cash and cash equivalents
at end of year 708,663$ 4, 326,096$ 118,364$ 5,153,123$ Reconciliation of opearting income (loss)
to net cash provided (used) by operating activities
Operating income (loss) 112,121$ 131, 799$ (471,337)$ (227,417)$ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 287,648 - 144,159 431,807 Changes in operating assets and liabilities
(Increase) decrease in accounts receivables (4,426) ( 25,211) 5,407 (24,230) Increase (decrease) in accounts payable 3,439 ( 29,662) 30,864 4,641 Increase (decrease) in accrued payroll 1,578 - 3,126 4,704 Increase (decrease) in compensation absences 743 - 4,504 5,247 Increase (decrease) in subscription liabilities - - 89,102 89,102 Increase (decrease) in claims and judgements payable - 134, 107 - 134,107 Increase (decrease) in net OPEB and related deferrals 74,004 - 1,649 75,653 Increase (decrease) in net pension and related deferrals (114,218) - (4,652) (118,870) Net cash provided (used)
by operating activities 360,889$ 211, 033$ (197,178)$ 374,744$
14.a
Packet Pg. 426
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
112
City of Campbell
Custodial Funds
June 30, 2023
Custodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Entity-wide financial statements but are presented in separate Fiduciary Fund financial statements.
Account for assets held by the City on behalf of other organizations are as follows:
West Valley Solid Waste Management Authority
Accounts for the monies of the West Valley Solid Waste Management Authority. The City acts as custodian for the operating resources of the entity.
1915 Acts Bonds
Accounts for the assessments received and the payment of principal and interest under the Improvement Bond Act of 1915.
Santa Clara County Specialized Enforcement Task Fund (SCCSET)
Accounts for the monies of the Santa Clara County Specialized Enforcement Task Force. The City acts as custodian for the operating resources of the task force.
14.a
Packet Pg. 427
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
113
City of Campbell
Combining Statement of Fiduciary Net Position – Custodial Funds June 30, 2023
West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Assets
Cash and investments 454,661$ 32,093$ 1,540,213$ 2,026,967$ Cash held with fiscal agent - - - Accounts receivable 17,356 241 - 17,597 Total assets 472,017 32,334 1,540,213 2,044,564 Liabilities
Accounts payable 131,739 - - 131,739 Total liabilities 131,739 - - 131,739 Net Position
Restricted for individuals
and organizations 340,278$ 32,334$ 1,540,213$ 1,912,825$
14.a
Packet Pg. 428
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
114
City of Campbell
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds Year Ended June 30, 2023
West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Additions
Local government-administered
contributions 1,143,958$ -$ -$ 1,143,958$ Other income 81,548 - 673,204 754,752 Investment income 5,952 704 - 6,656 Total additions 1,231,458 704 673,204 1,905,366 Deductions
Professional and special services 732,720 - - 732,720 Administrative 450,000 - 699,524 1,149,524 Total deductions 1,182,720 - 699,524 1,882,244 Change in net position 48,738 704 (26,320) 23,122 Net position at beginning of year 291,540 31,630 1,566,533 1,889,703 Net position at end of year 340,278$ 32,334$ 1,540,213$ 1,912,825$
14.a
Packet Pg. 429
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
14.a
Packet Pg. 430
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control) Statistical Section (Unaudited)
June 30, 2023
City of Campbell
eidebailly.com
14.a
Packet Pg. 431
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
115
City of Campbell
Description of Statistical Section Contents
Year Ended June 30, 2023
This part of the City of Campbell, California’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.
Contents:
Pages
Financial Trends theses schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 116 - 121
Revenue Capacity these schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 122 - 125
Debt Capacity these schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 126 - 130
Demographic and Economic Information these schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 131 - 132
Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 133 - 135
Sources:
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year
14.a
Packet Pg. 432
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
116
City of Campbell
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
$(40,000,000)
$(20,000,000)
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
Net of Related Debt Restricted Unrestricted
14.a
Packet Pg. 433
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
117
City of Campbell
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
2014 2015 2016 2017 2018
Governmental activities: (A)
Net investments in
capital assets 17,024,512$ 22, 884,579$ 26,997,661$ 34,884,223$ 38,177,017$ Restricted 22,841,487 21, 868,884 23,616,442 17,077,829 15,970,726 Unrestricted 22,067,786 ( 20,170,607) (12,748,328) (12,358,383) (21,605,385) Total governmental activities net position 61,933,785$ 24, 582,856$ 37,865,775$ 39,603,669$ 32,542,358$ Primary government:
Net investments in
capital assets 17,024,512$ 22, 884,579$ 26,997,661$ 34,884,223$ 38,177,017$ Restricted 22,841,487 21, 868,884 23,616,442 17,077,829 15,970,726 Unrestricted 22,067,786 ( 20,170,607) (12,748,328) (12,358,383) (21,605,385) Total primary government net position 61,933,785$ 24, 582,856$ 37,865,775$ 39,603,669$ 32,542,358$ 2019 2020 2021 2022 2023
Governmental activities:
Net investments in
capital assets 47,429,206$ 48, 798,520$ 56,200,867$ 60,313,314$ 69,455,950$ Restricted 17,211,524 20, 196,004 21,541,280 22,029,954 19,250,568 Unrestricted (24,121,289) ( 32,631,237) (37,922,516) (32,155,840) (29,843,712) Total governmental activities net position 40,519,441$ 36, 363,287$ 39,819,631$ 50,187,428$ 58,862,806$ Primary government:
Net investments in
capital assets 47,429,206$ 48, 798,520$ 56,200,867$ 60,313,314$ 69,455,950$ Restricted 17,211,524 20, 196,004 21,541,280 22,029,954 19,250,568 Unrestricted (24,121,289) ( 32,631,237) (37,922,516) (32,155,840) (29,843,712) Total primary government net position 40,519,441$ 36, 363,287$ 39,819,631$ 50,187,428$ 58,862,806$ (A) Reported Pension Liability resulted in a negative $20.1 million of unrestricted in net position in order to comply with provision of GASB 68.
Fiscal Year Ended June 30,
Fiscal Year Ended June 30,
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Packet Pg. 434
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
118
City of Campbell
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses:
Governmental activities:
General government 5,165,958$ 6,146,700$ 6,679,357$ 9,472,432$ 7,671,343$ 7,315,270$ 8,363,548$ 7,740,547$ 7,780,899$ 10,756,246$ Public safety 20,361,802 21,022,373 22,179,057 23,679,842 27,628,421 29,623,711 31,160,818 31,982,827 30,801,294 29,060,937 Public Works 9,945,032 11,194,915 10,595,886 11,122,831 15,187,009 13,981,288 15,040,395 12,994,559 13,002,919 16,603,696 Community Development 1,787,491 2,047,303 2,590,034 3,111,691 3,484,767 3,661,787 4,166,582 2,938,422 2,853,912 4,758,602 Recreation and Community Services 5,297,874 5,613,775 5,689,721 6,166,806 6,894,086 7,183,132 6,765,508 4,281,719 4,942,719 6,569,294 Interest on long-term debt 990,140 965,225 936,250 579,013 336,577 330,687 324,934 1,056,277 1,319,942 1,794,044 Total Primary Government Expenses 43,548,297 46,990,291 48,670,305 54,132,615 61,202,203 62,095,875 65,821,785 60,994,351 60,701,685 69,542,819 Program Revenues:
Governmental activities:
Charges of services:
General government 1,492,558 1,478,895 1,624,617 1,602,647 1,586,881 18,592 9,375 342 1,814,425 1,993,223 Public safety 684,986 686,364 740,750 790,163 857,212 693,216 787,204 409,743 883,254 235,043 Public Works 2,696,169 2,787,091 3,443,486 3,464,407 3,178,780 3,522,641 3,530,034 4,289,206 2,793,430 5,014,492 Community Development 2,851,264 2,072,487 4,375,330 3,335,990 2,947,460 2,817,123 2,257,036 2,857,170 4,516,534 3,387,574 Recreation and Community Services 3,887,599 3,831,513 3,822,648 4,136,749 4,142,115 5,946,637 4,536,171 3,225,350 2,864,338 3,261,942 Operating Grants and Contribution 3,725,646 4,133,704 5,437,108 2,316,936 2,789,656 3,512,647 4,681,319 7,135,599 4,033,399 4,158,620 Capital Grants and Contributions 1,760,526 1,744,822 3,240,726 1,688,085 534,583 634,321 2,595,822 3,537,522 6,745,712 3,060,743 Total Primary Government Program Revenues 17,098,748 16,734,876 22,684,665 17,334,977 16,036,687 17,145,177 18,396,961 21,454,932 23,651,092 21,111,637 Net (Expense)/Revenue:
Total primary government net revenue (26,449,549) (30,255,415) (25,985,640) (36,797,638) (45,165,516) (44,950,698) (47,424,824) (39,539,419) (37,050,593) (48,431,182) General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property tax 11,134,726 12,297,621 13,161,587 14,191,181 15,251,542 16,921,874 19,812,728 21,009,102 23,469,044 25,550,037 Sales Tax 13,115,263 13,915,291 14,818,495 14,297,751 14,859,014 15,684,222 13,965,745 14,006,163 16,419,363 18,832,569 Transient Occupancy Tax 3,417,412 4,091,923 4,439,668 4,420,208 4,554,949 4,768,870 3,144,208 1,568,908 2,657,334 3,626,019 Franchise Fees 2,917,263 3,322,031 3,319,603 3,478,916 3,586,297 3,515,547 3,527,926 3,458,300 3,690,355 3,924,558 Business License Taxes 647,872 662,787 683,445 694,569 698,184 693,263 664,071 666,642 659,094 656,109 Property Transfer Taxes 354,112 526,054 551,007 467,990 761,583 519,407 566,794 542,456 665,607 335,574 Construction Taxes 212,522 50,710 338,718 208,373 85,406 26,451 50,505 143,066 212,975 47,353 Motor Vehicle In Lieu 17,335 26,321 69,109 19,077 45,523 20,494 34,231 135,448 47,981 44,984 Investment earnings 621,301 529,495 487,662 171,257 181,016 1,040,069 1,062,566 122,547 (1,114,797) 1,754,835 Miscellaneous 291,071 153,958 1,399,265 586,210 436,370 293,126 439,896 1,343,131 2,170,315 2,334,522 Total Primary Government 32,728,877 35,576,191 39,268,559 38,535,532 40,459,884 43,483,323 43,268,670 42,995,763 48,877,271 57,106,560 Change in Net Position
Governmental activities 6,279,328 5,320,776 13,282,919 1,737,894 (4,705,632) (1,467,375) (4,156,154) 3,456,344 11,826,678 8,675,378 Extraordinary Loss - - - - - - - - - - Total primary government 6,279,328$ 5,320,776$ 13,282,919$ 1,737,894$ (4,705,632)$ (1,467,375)$ (4,156,154)$ 3,456,344$ 11,826,678$ 8,675,378$ (a) Extraordinary gain resulted from the State mandated dissolution of the Redevelopment Agency (RDA) as of 1/31/2012. (b) Housing rehabilitation loans transferred to the County due to dissolution of RDA.
14.a
Packet Pg. 435
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
119
City of Campbell
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
$(20,000,000)
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
Non-Spendable Committed Assigned Unassigned Total General Fund Total General Fund Restricted Committed Assigned Unassigned
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Packet Pg. 436
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
120
City of Campbell
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Non-Spendable -$ -$ -$ -$ -$ -$ -$ -$ -$ 173,181$ Committed 22,443,923 22, 930,342 25,392,112 23,896,221 21,592,089 21,743,948 5,192,639 4,296,174 3,482,825 3,091,992 Assigned 1,881,401 2, 176,615 3,830,100 4,027,890 4,528,546 4,257,115 3,757,823 3,643,857 3,918,437 4,013,616 Unassigned 1,104,285 961, 258 1,000,000 999,994 360,129 1,026,759 13,322,046 12,976,419 14,525,529 14,864,482 Total General Fund 25,429,609$ 26, 068,215$ 30,222,212$ 28,924,105$ 26,480,764$ 27,027,822$ 22,272,508$ 20,916,450$ 21,926,791$ 22,143,271$ All Other
Governmental Funds
Restricted 22,443,840$ 21, 623,743$ 23,493,450$ 16,993,836$ 15,772,926$ 17,211,524$ 20,250,454$ 40,615,483$ 72,927,462$ 75,653,168$ Committed - - 1,223,623 - - - - - - - Assigned 371,381 108, 767 140,666 1,758,104 1,747,982 1,715,955 1,703,633 914,232 947,217 929,106 Unassigned (44,852) ( 1,234,364) (2,414,736) (2,064,713) (498,452) (242,428) (311,506) (1,424,397) (938,687) (1,040,149) Total all other
governmental funds 22,770,369$ 20, 498,146$ 22,443,003$ 16,687,227$ 17,022,456$ 18,685,051$ 21,954,087$ 40,105,318$ 72,935,992$ 75,542,125$
14.a
Packet Pg. 437
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
121
City of Campbell
Changes in Fund Balances of Governmental Fund
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes 31,811,171$ 34,881,417$ 37,324,522$ 37,768,238$ 39,809,475$ 42,145,259$ 41,269,352$ 41,967,223$ 47,782,758$ 52,987,985$ License, permits and fees 4,852,752 2,839,871 6,900,052 3,873,976 3,214,847 3,232,524 3,714,070 4,493,838 3,742,393 3,387,574 Special Assessments 1,309,750 1,329,637 1,369,696 1,387,853 1,377,069 1,469,308 1,391,283 1,398,933 1,391,231 1,406,520 Fines and forfeitures 332,100 354,445 324,137 320,193 345,627 704,030 694,347 547,469 222,721 212,102 Use of money and property 2,567,440 2,604,602 2,746,371 2,829,484 3,115,345 4,273,538 3,492,676 2,065,292 1,734,314 4,876,180 Intergovernmental revenues 4,626,035 3,880,357 5,346,920 4,172,179 4,630,928 3,262,896 6,466,424 10,440,661 10,774,460 7,214,847 Changes for services 4,256,235 4,422,552 4,491,002 4,623,876 4,897,185 4,784,243 3,268,310 2,566,943 5,696,772 6,059,638 Other 1,275,310 1,117,511 2,237,463 1,200,939 981,249 1,105,429 610,516 1,373,431 1,159,577 1,896,986 Total Revenues 51,030,793 51,430,392 60,740,163 56,176,738 58,371,725 60,977,227 60,906,978 64,853,790 72,504,226 78,041,832 Expenditures
Current:
General government 5,210,662 5,673,874 6,220,587 8,543,097 6,832,027 7,245,353 8,194,825 7,266,166 8,115,428 9,906,051 Public safety 20,299,917 21,049,851 23,007,615 24,544,078 25,837,666 27,423,109 29,132,295 31,419,241 30,639,409 31,703,764 Public works 9,040,957 10,305,115 10,506,080 11,493,731 12,576,675 10,940,940 11,170,432 10,748,474 11,675,932 12,556,021 Community development 1,791,094 2,063,640 2,702,702 3,230,153 3,166,797 3,387,115 3,608,339 2,938,030 3,392,935 4,545,041 Recreation and Community Services 4,983,642 5,340,786 5,611,544 6,080,395 6,235,452 6,663,662 5,854,410 4,018,010 5,190,818 6,146,030 Capital outlay 2,512,727 6,773,543 4,675,614 2,487,393 4,878,204 2,103,720 3,878,985 12,550,723 10,624,498 6,084,529 Debt services:
Principal repayment 740,000 775,000 810,000 625,000 595,000 605,000 535,000 1,690,000 2,253,957 3,790,441 Interest and fiscal changes 861,944 829,600 793,300 176,642 259,200 244,275 227,076 833,397 1,131,724 1,762,972 Bond issuance costs - - - 209,762 - - - - - - Payments to refunding escrow agent - - - 6,203,790 - - - - - - Total Expenditures 45,440,943 52,811,409 54,327,442 63,594,041 60,381,021 58,613,174 62,601,362 71,464,041 73,024,701 76,494,849 Excess (deficiency) of revenues over
(under) expenditures 5,589,850 (1,381,017) 6,412,721 (7,417,303) (2,009,296) 2,364,053 (1,694,384) (6,610,251) (520,475) 1,546,983 Other Financing Sources (Uses)
Transfers In 7,489,674 11,266,904 10,100,282 9,809,123 10,383,455 6,759,234 8,251,100 40,785,100 43,207,002 8,432,564 Transfers Out (7,667,874) (11,519,504) (10,414,149) (9,659,635) (10,481,271) (6,913,634) (8,354,500) (40,239,796) (44,071,054) (8,984,144) Issuance of debt - - - 8,085,000 - - - 20,809,094 33,368,566 (590,026) Premium from bond issuance - - - 1,090,835 - - - 3,171,626 2,506,763 2,417,236 Payments to refunding escrow agent - - - (8,962,993) - - - - - - Total other financing sources (uses) (178,200) (252,600) (313,867) 362,330 (97,816) (154,400) (103,400) 24,526,024 35,011,277 1,275,630 Net Change in fund balances 5,411,650$ (1,633,617)$ 6,098,854$ (7,054,973)$ (2,107,112)$ 2,209,653$ (1,797,784)$ 17,915,773$ 34,490,802$ 2,822,613$ Debt service as a percentage of
noncapital expenditures 3.7% 3. 5% 3.2% 11.8% * 1.5% 1.5% 1. 3% 4.3% 5.4% 7.9% * 2017 Debt service as a percentage of noncapital expenditures is calculated by taking the sum of the principal repayment, interest and fiscal changes, and payments to refunding escrow agent by Total expenditures less capital outlay.
14.a
Packet Pg. 438
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
122
City of Campbell
Assessed and Estimated Actual – Value of Taxable Property Last Ten Fiscal Years
$-
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
S ec ured Unsecured
Total Total
Fiscal Secured HOPTR SBE Secured Unsecured Total Direct Year Property Exemptions Utilities Value Property Assessed (a) Tax Rate (b) 2014 6,903,997,112$ 46,993,800$ 145,750$ 6,951,136,662$ 284,251,723$ 7,235,388,385$ (c) 1% 2015 7,361,679,060 46,186,046 172,250 7,408,037,356 288,458,347 7,696,495,703 1% 2016 7,912,201,031 45,357,200 172,250 7,957,730,481 273,569,603 8,231,300,084 1% 2017 8,522,484,862 45,200,400 172,250 8,567,857,512 290,398,591 8,858,256,103 1% 2018 9,158,664,046 44,251,200 172,250 9,203,087,496 276,228,712 9,479,316,208 1% 2019 9,866,148,537 43,876,000 238,500 9,910,263,037 276,847,459 10,187,110,496 1% 2020 10,724,368,314 43,384,600 238,500 10,767,991,414 295,779,677 11,063,771,091 1% 2021 11,446,319,015 42,973,000 238,500 11,489,530,515 318,127,779 11,807,658,294 1% 2022 11,967,282,485 41,654,200 238,500 12,009,175,185 363,425,707 12,372,600,892 1% 2023 12,787,900,741 40,744,200 238,500 12,828,883,441 320,304,772 13,149,188,213 1% Source: Santa Clara County Assessor's Office
(a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. (b) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. The City of Campbell encompasses more than 20 tax rate areas. (c) Total assessed value increased 11.6% due primarily to the annexation of several County pockets in 2013.
14.a
Packet Pg. 439
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written
123
City of Campbell
Property Tax Rates – All Overlapping Governments
Last Ten Fiscal Years
0.0 0.2
0.4 0.6
0.8 1.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Per Hundred $
A xis Title
City of Campbell SCVWD State Project Library Retirement Hospital and Housing Bond West Valley College SCC Retirement High School Bonds Elem or Unified Schools Basic Direct Tax Rate
Elem or Hospital
Basic Unified High S CVWD West and
Expenses Direct SCC Library C ity of School School State Valley Housing Year Tax Rate Retirement R etirement Campbell Bonds Bonds Project College Bond Total 2014 1.0000 0.0388 0. 0024 0.0000 0.0231 0.0290 0.0070 0.0255 0.0035 1.1293 2015 1.0000 0.0388 0. 0024 0.0000 0.0517 0.0284 0.0065 0.0120 0.0091 1.1489 2016 1.0000 0.0388 0. 0024 0.0000 0.0467 0.0257 0.0057 0.0232 0.0088 1.1513 2017 1.0000 0.0388 0. 0024 0.0000 0.0442 0.0252 0.0086 0.0196 0.0086 1.1474 2018 1.0000 0.0388 0. 0024 0.0000 0.0437 0.0519 0.0062 0.0200 0.0209 1.1839 2019 1.0000 0.0388 0. 0024 0.0000 0.0418 0.0487 0.0042 0.0198 0.0177 1.1734 2020 1.0000 0.0388 0. 0024 0.0100 0.0415 0.0436 0.0041 0.0296 0.0169 1.1869 2021 1.0000 0.0388 0. 0024 0.0100 0.0415 0.0439 0.0037 0.0311 0.0069 1.1783 2022 1.0000 0.0388 0. 0024 0.0175 0.0672 0.0421 0.0051 0.0304 0.0188 1.2223 2023 1.0000 0.0388 0. 0024 0.0200 0.0672 0.0410 0.0044 0.0283 0.0171 1.2192
Source: Santa Clara County Assessors Office
Note: In 1978, California voters passed Proposition 13 which set property tax rate at a fixed amount of 1.00% of assessed value.
Each year, the assessed values may be increased by the California consumer price index (CPI), not to exceed 2.0%. Properties are reassessed at market value upon sale. The 1.0% tax levy is shared by all jurisdictions within the County. Based upon the Assessors report for 2019-20 the levy was distributed as follows:
School Districts 44% Community Colleges 7%
Cities 14% Special Districts 6%
Other (Successor Agencies) 11% County 18%
Total 100%
14.a
Packet Pg. 440
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
124
City of Campbell
Principal Property Taxpayers
Current Year and Ten Years Ago
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Pruneyard Regengy LLC 218,995,529$ 1 1.67%
AG-SW Hamilton Plaza Owner LP 152,826,097 2 1.16% Pruneyard Office Investors LLC 148,741,763 3 1.13% KW Fund V1 Vasona Medical Tech 147,250,000 4 1.12% 675 Creekside Owner LLC 143,248,836 5 1.09%
Revere LLC 114,491,722 6 0.87%
Parc Residences LLC 113,043,450 7 0.86%
Campbell Technology Park LLC 87,612,563 8 0.67% 75,523,661$ 2 1.04% SHI-III Campbell LP 73,114,281 9 0.56%
Raintree Campbell LLC 71,818,601 10 0.55%
Blackhawk Parent LLC 199,367,199 1 2.76%
Legacy III Campbell LLC 64,115,913 3 0.89%
Fund X PY Campbell LLC 56,148,983 4 0.78%
Hines VAF No Cal Properties LP 52,581,000 5 0.73% Bay Apartment Communities Inc 50,742,994 6 0.70%
Hamilton Plaza Investors, LLC 50,300,565 7 0.70%
EQR Woodleaf Apartments, LP 47,012,404 8 0.65%
Essex The commons Apartments 44,228,714 9 0.61%
Marc W Buzolich Trustee Et Al 40,601,610 10 0.56% 1,271,142,842$ 9.68% 680,623,043$ 9.42%
Total Net Assessed Valuation
Fiscal Year 2022-2023 13,149,188,213$
Fiscal Year 2013-2014 7,235,388,385
Source: Santa Clara Tax Assessor's Office.
2022-23 2013-14
14.a
Packet Pg. 441
Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
125
City of Campbell
Property Tax Levies and Collections
Last Ten Fiscal Years
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Tax Levy (a) Tax Collections
Percent
of Total
Current Percent Delinquent Total Tax
Fisal Total Tax of Levy Tax Tax Collections
Year Tax Levy (a) Collections Collected Collections Collections to Tax Levy 2014 11,134,726$ 11,134,726$ 100% -$ 11, 134,726$ 100% 2015 12,297,621 12,297,621 100% - 12, 297,621 100% 2016 13,161,587 13,161,587 100% - 13, 161,587 100% 2017 14,191,181 14,191,181 100% - 14, 191,181 100% 2018 16,058,014 16,058,014 100% - 16, 058,014 100% 2019 16,882,323 16,882,323 100% - 16, 882,323 100% 2020 19,812,728 19,812,728 100% - 19, 812,728 100% 2021 20,965,132 20,965,132 100% - 20, 965,132 100% 2022 23,464,393 23,464,393 100% - 23, 464,393 100% 2023 25,587,659 25,587,659 100% - 25, 587,659 100%
Source: City of Campbell Records
NOTES: Proposition 13 approved by the voters in 1978 provided for a maximum tax rate. The proceeds are apportioned to the various taxing entities on a formula basis. In 1981 – 1982 the basis of assessed valuation was adjusted to full cash value upon resale or new construction, rather than the previous 25 percent estimate. The property tax levy was not to exceed one percent.
(a) Includes RDA in total tax levy through 1/31/2012.
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126
City of Campbell
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fiscal
General
Obligation
Lease Revenue
Bonds and
Certificates of
Total
Primary
Percentage
of Personal Per
Year Bonds Loans Leases Participation (b) Government Income (a) Capita (a) 2014 -$ -$ -$ 19,010,976$ 19,010,976$ 0.6470% 452.72 2015 - - - 18,380,066 18,380,066 0.6290% 439.12 2016 - - - 17,722,700 17,722,700 0.5742% 416.18 2017 - - - 10,359,329 10,359,329 0.3157% 242.46 2018 - - - 9,935,519 9,935,519 0.2892% 232.70 2019 - - - 9,511,787 9,511,787 0.2636% 219.93 2020 - - - 9,168,762 9,168,762 0.2175% 216.82 2021 21,925,905 - - 9,458,411 31,384,316 0.7308% 212.41 2022 52,666,947 4,153,703 267,692 9,012,853 66,101,195 1.4387% 1,543.23 2023 49,471,699 3,788,075 1,993,237 8,564,972 63,817,983 1.3428% 1,494.11
Note: Debt amounts exclude any premiums, discounts, or other amortization amounts.
RDA tax allocation bonds are included in total debt through 1/31/2012.
Sources: City of Campbell
State of California, Department of Finance (population) U.S. Department of Commerce, Bureau of the Census (income)
(a) See page 131 (Demographic Statistics) for personal income and population data. (b) Certificates of Participation were refinanced in 2017. A portion of the Certificates related to the Campbell Successor Agency was repaid during the refinancing.
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127
City of Campbell
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
General
Obligation
Less: Amounts
Available in Debt
Percentage of
Estiamted Actual
Taxable Value of Per
Year Bonds (a) Service Fund (b) Total Property (c) Capita (d) 2014 -$ -$ -$ 0.0000% 452.72 2015 - - - 0.0000% 439.12 2016 - - - 0.0000% 416.18 2017 - - - 0.0000% 242.46 2018 - - - 0.0000% 232.70 2019 - - - 0.0000% 219.93 2020 - 1,114,130 (1,114,130) -0.0101% 216.82 2021 21,925,905 3,774,338 18,151,567 0.1537% 212.41 2022 52,666,947 5,821,476 46,845,471 0.3786% 1,543.23 2023 49,471,699 4,123,176 45,348,523 0.3449% 1,494.11
Note: Details regarding the City’s outstanding debt can be found in the notes to the financial statements.
(a) This is the general bonded debt of the governmental activities, net of original issuance premiums. (b) This is the amount restricted for debt service principal payments in the Measure O debt service fund. (c) See the Schedule of Assessed and Estimated Actual – Value of Taxable Property for property value data. (d) Population data can be found in the schedule of Ratios of Outstanding Debt by Type .
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128
City of Campbell
Computation of Direct and Overlapping Debt
June 30, 2023
2022-23 Assessed Valuation: $13,149,188,213
Amount
Net Debt Applicable Applicable to
Outstanding Percentage (1) City of Campbell
Santa Clara County 1,041,125,000$ 2.124% 22,113,495$
West Valley - Mission Community College District 694,320,000 7.395% 51,344,964 Campbell Union High School District 354,085,000 21.054% 74,549,056 Cambrian School District 96,314,944 30.860% 29,722,792 Campbell Union School District 205,899,324 31.018% 63,865,852 Moreland School District 109,784,407 12.618% 13,852,596 City of Campbell 49,471,699 100.000% 49,471,699 City of Campbell Loans, Leases, and Subscription payables 5,870,414 100.000% 5,870,414 Midpeninsula Regional Open Space District 82,680,000 0.035% 28,938 Santa Clara County Valley Water District benefit Assessment District 38,900,000 2.124% 826,236 311,646,042$
Santa Clara County General Fund Obligations 1,120,404,570$ 2.124% 23,797,393$ Santa Clara County Pension Obligations Bonds 329,741,844 2.124% 7,003,717 Santa Clara County Board of Education Certificates of Participation 935,000 2.124% 19,859 Santa Clara County Vector Control District Certificates of Participation 1,230,000 2.124% 26,125 West Valley - Mission Community College District General Fund Obligations 8,160,000 7.395% 603,432 Campbell Union High School District General Fund Obligations 1,575,000 31.018% 488,534 Campbell Union School District General Fund Obligations 14,500,000 21.054% 3,052,830 City of Campbell General Fund Obligations 8,564,972 100.000% 8,564,972 Midpeninsula Regional Open Space District General Fund Obligations 91,570,600 0.035% 32,050 SUB-TOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT 43,588,912$ Less: Santa Clara County supported obligations 223,449
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 43,365,463$ OVERLAPPING TAX INCREMENT DEBT (Successor agency): 14,495,000 100.000% 14,495,000$ TOTAL DIRECT DEBT 63,907,085$
TOTAL GROSS OVERLAPPING DEBT 355,234,954$
TOTAL NET OVERLAPPING DEBT 355,011,505$
GROSS COMBINED TOTAL DEBT 419,142,039$
NET COMBINED TOTAL DEBT (excludes County supported item) 418,918,590$ Ratios to 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.70%
Total Direct Debt ($63,907,085) 0.49%
Gross Combined Total Debt 3.19%
Net Combined Total Debt 3.19%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,401,955,206):
Total Overlapping Tax Increment Debt 1.03%
Source: California Municipal Statistics, Inc. and City of Campbell
OVERLAPPING GENERAL FUND DEBT
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the town divided by the district's total taxable assessed value.
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129
City of Campbell
Computation of Legal Bonded Debt Margin
Last Ten Fiscal Years
Total
Net Debt Legal
Fiscal Assessed Debt Limit Applicable Debt
Year Value 3.75% (1) to Limit Margin
2014 7,235,388,385$ 271,327,064$ -$ 271,327,064$ 2015 7,696,495,703 288,618,589 - 288,618,589 2016 8,231,300,084 308,673,753 - 308,673,753 2017 8,858,256,103 332,184,604 - 332,184,604 2018 9,479,316,208 355,474,358 - 355,474,358 2019 10,187,110,496 382,016,644 - 382,016,644 2020 11,063,771,091 414,891,416 - 414,891,416 2021 11,807,658,294 442,787,186 18,860,000 423,927,186 2022 12,372,600,892 463,972,533 47,200,000 416,772,533 2023 13,149,188,213 493,094,558 44,200,000 448,894,558 (1) Pursuant to California Government Code Section 43605 (15% of 25% of full cash value).
Source: City of Campbell Finance Department.
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
130
City of Campbell
Bonded Debt Pledged Revenue Coverage – Redevelopment/Successor Agency Tax Allocation Bonds Last Ten Fiscal Years
Tax Interest and Total
Fiscal Increment Fiscal Debt
Year Revenue Principal Charges Service Coverage
2014 1,375,013$ 310,000$ 1,065,013$ 1,375,013$ 1.00 2015 1,376,201 325,000 1,051,201 1,376,201 1.00 2016 1,376,380 340,000 1,036,380 1,376,380 1.00 2017 652,867 335,000 317,867 652,867 1.00 2018 1,821,338 1,355,000 466,338 1,821,338 1.00 2019 1,595,695 1,170,000 425,695 1,595,695 1.00 2020 1,590,741 1,175,000 415,741 1,590,741 1.00 2021 1,590,737 1,200,000 390,737 1,590,737 1.00 2022 1,740,150 1,375,000 365,190 1,740,150 1.00 2023 1,883,552 1,555,000 328,552 1,883,552 1.00
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131
City of Campbell
Demographic and Economic Statics
Last Ten Fiscal Years
2.08%
2.10%
2.12%
2.14%
2.16%
2.18%
2.20%
2.22%
2.24%
2.26%
2.28%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Population % of County
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Personal Income
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2012 2014 2016 2018 2020 2022 2024
Per Capita Personal Income
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unemployment Rate
Calendar
Year Population
Personal
Income
Per Capita Personal
Income
Unemployment
Rate
Santa Clara
County
City Population %
of County
2014 41,993 2,938,192 $ 69,969$ 4.6% 1,868,558 2.25% 2015 41,857 2,921,953 69,808 2.8% 1,889,638 2.22% 2016 42,584 3,086,261 72,475 2.9% 1,927,888 2.21% 2017 42,726 3,262,837 76,367 2.5% 1,938,180 2.20% 2018 42,696 3,435,638 80,467 2.4% 1,956,598 2.18% 2019 43,250 3,607,941 83,421 2.4% 1,954,286 2.21% 2020 42,288 4,215,608 99,688 8.5% 1,961,969 2.16% 2021 41,533 4,294,776 103,406 4.5% 1,934,171 2.15% 2022 42,833 4,594,414 107,263 2.2% 1,894,783 2.26% 2023 42,713 4,752,434 111,264 3.1% 1,886,079 2.26%
Sources: State of California, Department of Finance; Employment Development Department U.S. Department of Commerce, Bureau of Economic Analysis
Note: Unemployment rate for FY2011 is an average. FY2012-2016 are collected as of June 30 Per Capita Income for 2017 is adjusted using the California Department of Finance Change in Per Capita Income as reported in May 2016 (5.37%).
(1) The City annexed several County pockets effective May 1, 2013.
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132
City of Campbell
Top Ten Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment 8x8 Inc 554 1 2.02%
West Valley Construction 400 2 1.46%
Chargepoint, Inc. 375 3 1.37%
Andro's Rostili LLC 342 4 1.25%
ZRG Partners LLC 330 5 1.20%
Barracuda Networks Inc 315 6 1.15% 393 1 1.8%
Imperative Care Inc 300 7 1.09% 0.0%
The Home Depot #0642 287 8 1.05% 189 6 0.9%
(24)7.AI.INC 266 9 0.97% 0.0%
Whole Foods Market 242 10 0.88% 250 3 1.1%
Safeway Inc 263 2 1.2%
SAAMA Technologies 200 4 0.9%
Beaference Laboratories, Inc. 190 5 0.9%
Fry's Electronics 184 7 0.8%
Moss Adams, Inc. 161 8 0.7%
City of Campbell 157 9 0.7%
24/7 Customer, Inc. 150 10 0.7%
Total City Labor Force 27,400 22,043
Source: City of Campbell - California Employment Development Department 2022-23 2013-14
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133
City of Campbell
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
0 50
100
150
200
250
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function General government Public safety Pu blic work s Community development Rec reatio n an d community services
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government 21.72 23.88 25.28 26. 26 25.35 24.45 24.55 22.3 23.46 23.95 Public safety 69.01 70.01 70.01 73. 01 74.13 76.33 76.83 72.37 74.84 76.40 Public works 50.5 53.14 54.26 56. 65 56.05 55.7 55 51.10 49.53 52.20 Community development 11.51 13.51 15.55 16. 1 16.77 16.77 16.77 15.14 12.14 14.00 Recreation and
community services 50.67 53.48 56.37 57.49 58. 5 57.73 58.57 31.81 28.03 35.57 Total 203.41 214.02 221. 47 229.51 230.80 230.98 231.72 192.72 188.00 202.12
Source: City of Campbell, California Budget Documents.
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134
City of Campbell
Operating Indicators by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety
Fire:
Fire calls for service 76 90 81 67 72 90 84 78 74 64
Medical aid calls 1,886 1,966 2,177 2,318 2,354 2,174 2,102 2,044 2,478 2,611 Police:
Police calls for service 24,151 24,624 24,408 23,275 23,312 26,242 25,141 29,917 32,124 31,465 Law violations:
Arrests 1,835 2,141 2,183 2,027 2,080 1,898 1,347 1,657 1,963 1,819 Traffic violations 4,607 6,205 4,501 4,638 4,339 3,544 1,356 825 1,307 955 Parking violations 2,335 3,110 3,733 4,384 3,741 3,716 2,369 518 761 1,378 Public works
Miles of streets (major) 16 16 16 16 16 16 15 14 14 14
Miles of streets (secondary) 80 80 80 80 80 80 80 80 80 80 Potholes repaired 78 81 90 108 58 228 350 200 220 215
Culture and recreation:
Community services:
Recreation class participants 31,749 30,022 35,082 35,737 42,195 63,207 51,150 23,133 40,463 43,648 Performing Arts Center performances 8 8 6 6 7 6 4 0 2 6 Wastewater
Miles of sewers (storm) 50 50 50 50 59 59 59 59 59 59
Miles of sewers (sanitary - entire district) 618 618 618 618 602 602 602 602 602 602 Miles of sewers (sanitary - Campbell only) 158 158 158 158 168 168 168 168 165 165 Solid Waste
Refuse landfilled (tons per year) 26,555 27,398 29,422 28,386 28,300 22,082 26,460 24,943 25,573 24,717 Green waste - - - 6,781 7,312 6,893 7,375 7,201 6,703 5,948 Recyclables processed (tons per year) 15,414 16,702 15,866 10,004 18,483 10,251 9,085 9,362 7,615 8,549 Organics (tons per year) 0 0 0 0 0 0 0 0 505 2,891
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135
City of Campbell
Capital Assets Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety:
Fire stations 2 2 2 2 2 2 2 2 2 2
Police stations 1 1 1 1 1 1 1 1 1 1
Police patrol units 12 15 15 15 15 15 14 14 13 14
Public works:
Miles of streets 96 96 96 96 96 96 96 94 94 94
Street lights 2610 2705 2705 2706 2715 2715 2800 2800 2800 2800 Traffic Signals 43 44 44 44 45 45 46 45 45 45
Culture and recreation:
Community services:
City parks 12 12 12 12 12 12 12 12 12 12
City park acreage 87 87 87 87 87 87 87 87 87 87
Playgrounds 7 7 7 7 8 8 8 8 8 8
City trails 1 1 1 1 1 1 1 1 1 1
City trails miles 3 3 3 3 3 3 3 3 3 3
Historic house (museum) 1 1 1 1 1 1 1 1 1 1
Community gardens 1 1 1 1 1 1 1 1 1 1
Community centers 1 1 1 1 1 1 1 1 1 1
Adult centers 1 1 1 1 1 1 1 1 1 1
Sports centers 1 1 1 1 1 1 1 1 1 1
Performing arts centers 1 1 1 1 1 1 1 1 1 1
Swimming pools 1 1 1 1 1 1 1 1 1 1
Tennis courts 8 8 8 8 4 4 4 4 4 4
Baseball/softball diamonds 3 3 3 3 3 3 3 3 3 3
Soccer/football fields 9 9 9 9 9 9 9 9 9 9
Library:
City Libraries 1 1 1 1 1 1 1 1 1 1
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Attachment: ACFR - FY2022-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE 1 December 29, 2023
To the City Council of the
City of Campbell
Campbell, California
We have audited the financial statements of City of Campbell, California (the “City”) as of and for the year ended June 30, 2023, and have issued our report thereon dated December 29, 2023.
Professional standards require that we advise you of the following matters relating to our audit.
Ou
r Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards
A
s communicated in our letter dated May 31, 2023, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
O
ur responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reas
onable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We
are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
W
e have provided our comments regarding a significant control deficiency during our audit in our 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 dated December 29, 2023.
P
lanned Scope and Timing of the Audit
W
e conducted our audit consistent with the planned scope and timing we previously communicated to you.
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Attachment: AU-C 260 Governance Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
2 Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
Significant Risks Identified
As stated in our auditor’s report, professional standards require us to design our audit to provide reasonable assurance that the financial statements are free of material misstatement whether caused by fraud or error. In designing our audit procedures, professional standards require us to evaluate the financial statements and assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to misstatements, and thereby require special audit considerations, are designated as areas of potential significant risks. We have identified the following as potential significant risks.
As described above, we are required to perform additional audit procedures relating to revenue recognition and management override of internal controls.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the fiscal year 2023. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are management’s estimates of pension, other postemployment benefits and claims liabilities.
Management’s estimate of the of pension, other postemployment benefits and claims liabilities is based on actuarial valuations. We evaluated the key factors and assumptions used to develop the of pension, other postemployment benefits and claims liabilities and determined that it is reasonable in relation to the basic financial statements taken as a whole.
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Attachment: AU-C 260 Governance Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
3 Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
• Note 9 describes the valuation of the City’s net pension liability and related deferred outflows and inflows of resources. Such amounts are sensitive to the underlying actuarial assumptions used including, but not limited to, the investment rate of return and discount rate. As disclosed, a one percent increase or decrease in the discount rate has a material effect on the City’s net pension liability.
• Note 11 describes the City’s postemployment benefits liability and related deferred outflows and inflows of resources are sensitive to the underlying actuarial assumptions used including, but not limited to, the discount rate and healthcare cost trend rate. As disclosed, a one percent increase or decrease in the discount rate or the healthcare cost trend rate has a material effect on the City’s net post-employment benefits liability.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no uncorrected or corrected misstatements identified as a result of our audit procedures.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report.
No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report
For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. We did not identify any circumstances that affect the form and content of the auditor’s report.
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Attachment: AU-C 260 Governance Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
4 Representations Requested from Management
We have requested certain written representations from management which are included in the management representation letter dated December 29, 2023.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Other Information Included in Annual Comprehensive Financial Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual comprehensive financial reports (ACFR) does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have:
Read for consideration of material inconsistency between the introductory and statistical sections and the basic financial statements, or if the other information otherwise appears to be materially misstated.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the City Council, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Menlo Park, California
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Attachment: AU-C 260 Governance Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
Independent Auditor’s Reports
June 30, 2023
City of Campbell
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Attachment: GAGAS Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control) What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE 2 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
To the City Council of the
City of Campbell
Campbell, California
We
have audited, 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 (Government Auditing Standards), the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Campbell, California (the “City”), as of and for the year ended December 29, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 29, 2023.
R
eport on Internal Control over Financial Reporting
I
n planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A d
eficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
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Attachment: GAGAS Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
3 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Menlo Park California
December 29, 2023
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Attachment: GAGAS Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
4 City of Campbell
Schedule of Findings and Responses
June 30, 2023
None
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Attachment: GAGAS Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control)
5 City of Campbell
Schedule of Prior Findings and Responses
June 30, 2023
2022-001 - Material Weakness of Internal Control over Financial Reporting
Criteria
Management’s responsibilities include the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Condition
The prior year financial statements contained and error that was discovered during the current year.
Adjustments were necessary for the City’s financial statements to comply with generally accepted accounting principles for governmental entities (GAAP).
Current Status
Resolved; The matter described as 2022-001 is appropriately recorded and rolled forward as represented on the District’s Financial Statements for the fiscal year ended June 30, 2023.
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Attachment: GAGAS Letter (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on Internal Control) General Fund - Fund Balance Comparison
Fiscal Year Ending (FYE) June 30, 2022 to FYE June 30, 2023 Audited Audited
FYE 06/30/22 FYE 06/30/23 Variance Short Description
Nonspendable:
Leases -$ 173,181$ 173,181$ No General Fund monies are restricted by external factors Total Nonspendable -$ 173,181$ 173,181$ Restricted:
None -$ -$ -$ No General Fund monies are restricted by external factors Total Restricted -$ -$ -$ Committed:
General plan update -$ 44,209$ 44,209$ Accounts for General Plan (GP) expenses and GP Maint. Fees.
Historic preservation - 5,000 5,000 Accounts for historic preservation in-lieu fees.
Compensated absences 994,762 961,449 (33,313) 50% of noncurrent liability for absences.
Liability insurance 105,930 136,473 30,543 Set at minimum of 100% of self-insured retention for claims.
Available Capital Improvements Reserve 1,144,790 30,109 (1,114,681) CIPR for General Fund funded capital projects. Target $5M.
Committed Capital Improvements Reserve 897,782 1,569,671 671,889 Carryover CIPR projects approved in prior years.
Community Center Facility 71,019 111,699 40,680 For use at Community Center.
Heritage Theater 268,542 233,382 (35,160) For use at Heritage Theater.
Total Committed 3,482,825$ 3,091,992$ (390,833)$ Assigned:
Capital projects (Construction Tax) 517,242$ 325,256$ (191,986)$ Construction tax funded capital projects.
Unemployment insurance 90,000 90,000 - Fixed amount to pay for anticipated unemployment costs.
PERS 2,252,000 2,252,000 - Set aside for pay down of PERS, trust, or cost mitigation.
OPEB 347,321 370,102 22,781 Annual required contribution for OPEB liabilities.
Other 711,874 976,258 264,384 Set aside for operating encumbrance carryovers.
Total Assigned 3,918,437$ 4,013,616$ 95,179$
Unassigned:
Unassigned, Undesignated 999,999 1,338,952 338,953 To be maintained at $1M for operating cash flow purposes.
City council reserve 362,624 362,624 - Council discretionary reserve for requests, recognition, etc.
Economic fluctuations 9,955,452 9,955,452 - 16.67% of Operating Expenditures for economic downturns.
Emergency 3,207,454 3,207,454 - 10% of Revenue for unexpected physical or fiscal emergency.
Total Unassigned 14,525,529$ 14,864,482$ 338,953$
TOTAL FUND BALANCE 21,926,791 22,143,271 216,480 Adopted GF Operating Budget 59,720,770 66,589,958 6,869,188 Unassigned as % of Budget 24.32% 22.32%
Unassigned + PERS as % of Budget 28.09% 25.70%
Unassigned Reserve Stress Test (GFOA Guidance 16.67%)
$1 million deficit in FY 2024 (1,000,000) 20.82%
$2 million deficit in FY 2024 (2,000,000) 19.32%
$3 million deficit in FY 2024 (3,000,000) 17.82%
$4 million deficit in FY 2024 (4,000,000) 16.32%
$5 million deficit in FY 2024 (5,000,000) 14.81%
Unassigned + PERS Reserve Stress Test (GFOA Guidance 16.67%) $1 million deficit in FY 2024 (1,000,000) 24.20%
$2 million deficit in FY 2024 (2,000,000) 22.70%
$3 million deficit in FY 2024 (3,000,000) 21.20%
$4 million deficit in FY 2024 (4,000,000) 19.70%
$5 million deficit in FY 2024 (5,000,000) 18.20%
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Attachment: General Fund Comparison FYE 06-30-22 to 06-30-23 (Acceptance of Fiscal 2022-23 ACFR and Auditor's Written Communication on City
Council
Report
TITLE: Council Committee Reports
RECOMMENDED ACTION
That the City Council report on activities from their committee assignments.
DISCUSSION
This is the section of the City Council Agenda that allows the City Councilmembers to report on items of interest and the work of City Council Subcommittees.
MAYOR LANDRY
Advisory Commissioner Appointment Interview Subcommittee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Education Subcommittee
Economic Development Subcommittee
West Valley Mayors and Managers
DCBA Liaison
Santa Clara County Housing and Community Development Advisory Committee Santa Clara Valley Water District County Water Commission Santa Clara County Library District JPA Board of Directors Cities Association of Santa Clara County - City Selection Committee Friends of the Heritage Theater Liaison (Alt.)
West Valley Clean Water JPA (Alt.)
West Valley Solid Waste Authority JPA (Alt.)
VICE MAYOR LOPEZ
City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Economic Development Subcommittee
Finance Subcommittee
Legislative Subcommittee
Silicon Valley Clean Energy Finance and Audit Committee Item: 15
Category: COUNCIL COMMITTEE
REPORTS
Meeting Date: February 20, 2024
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Council Committee Reports Page 2 of 3
Bay Area Quality Management District Board of Directors** League of Cities Peninsula Division Executive Committee** Valley Transportation Authority Board of Directors**
West Valley Mayors and Managers (Alt.)
Cities Association of Santa Clara County:
Board Representative (Alt.)
Legislative Action Committee and City Selection Committee (Alt.) Silicon Valley Clean Energy JPA Board of Directors (Alt.) West Valley Sanitation District (Alt.)
COUNCILMEMBER BYBEE:
Finance Subcommittee
Legislative Subcommittee
Cities Association of Santa Clara County:
Board Representative
Legislative Action Committee
Silicon Valley Animal Control Authority Board (SVACA)
Silicon Valley Clean Energy JPA Board of Directors
Campbell Historical Museum & Ainsley House Foundation Liaison (Alt.) West Valley Sanitation District (Alt.)
COUNCILMEMBER FURTADO
Advisory Commissioner Appointment Interview Committee
West Valley Clean Water JPA
West Valley Sanitation District
West Valley Solid Waste Authority JPA
Association of Bay Area Governments (ABAG)
Silicon Valley Regional Interoperability Authority (SVRIA) Santa Clara County Emergency Operational Council (EOAC)** Association of Bay Area Governments (ABAG) Executive Board** - Pending vote on 2/8 Silicon Valley Animal Control Authority Board (SVACA) (Alt.) Valley Transportation Authority Policy Advisory Committee (Alt.)
COUNCILMEMBER SCOZZOLA
Campbell Historical Museum & Ainsley House Foundation Liaison Friends of the Heritage Theater Liaison
Education Subcommittee
Silicon Valley Clean Energy JPA Board of Directors
Valley Transportation Authority Policy Advisory Board
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Council Committee Reports Page 3 of 3
Santa Clara Valley Water District: County Water Commission (Alt.) DCBA Liaison (Alt.)
Santa Clara County Housing and Community Development Advisory Committee (Alt.) Santa Clara County Library District JPA Board of Directors (Alt.) Association of Bay Area Governments (Alt.)
**appointed by other agencies
Prepared by:
Kristen Epolite, Deputy City Clerk
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To: Honorable Mayor and City Council Date: February 20, 2024 From: Andrea Sanders, City Clerk
Subject: Desk Item 9 – Revised Temporary Salary Schedule The attached revised salary schedule notes changes to the Crossing Guard top of the range to align with our current contracted s ervices amount of $26.00 per hour.
Please reference this desk item when motioning for approval of item 9.
C
ity of Campbell M
EMORANDUM
City Clerk’s Office
JOB TITLE Comments
ACCOUNTING ASSISTANT $27.00 - $55.00 $27.00 - $55.00
AEROBICS INSTRUCTOR $21.00 - $40.00 $21.00 - $40.00
AQUATICS/FITNESS SPECIALIST/ POOL
MANAGER
$15.50 - $26.00 $16.00 - $27.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
ASSISTANT SWIM TEAM COACH $15.50 - $20.00 $16.00 - $21.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
BUILDING ATTENDANT $15.50 - $20.00 $16.00 - $21.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
BUILDING INSPECTOR $29.75 - $45.00 $29.75 - $45.00
CAD OPERATOR $15.50 - $41.50 $16.00 - $42.50 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
CLERICAL-ADMIN SUPPORT, RECORDS
CLERK, OTHERS
$15.50 - $32.00 $16.00 - $33.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
CROSSING GUARD $16.00 - $23.00 $16.00 - $26.00 Align with crossing guard contracted amount ENGINEERING ASSISTANT $15.50 - $22.00 $16.00 - $23.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
ENGINEERING INTERN $15.50 - $22.00 $16.00 - $23.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
ENGINEERING TECHNICIAN $16.85 - $36.00 $16.85 - $40.00 Reflect COLA increase for market conditions FIELD ATTENDANT $15.50 - $18.00 $16.00 - $19.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
GRAPHICS TECHNICIAN $16.85 - $33.75 $16.85 - $33.75
INSTRUCTOR/LIFEGUARD/LAP SWIM
PROGRAM ATTENDANT
$15.50 - $20.00 $16.00 - $21.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
INTERN $15.50 - $22.50 $16.00 - $23.50 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
IT TECHNICIAN $35.00 - $54.00 $35.00 - $54.00
MAINTENANCE WORKER (ALL) $15.50 - $26.00 $16.00 - $30.00 Reflect mimimum wage increase for bottom of the range and COLA increase for market conditions
MECHANIC ASSISTANT $15.50 - $26.00 $16.00 - $27.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
MECHANIC JOURNEYMAN $20.00 - $32.00 $20.00 - $32.00
MUSEUM AIDE $15.50 - $21.00 $16.00 - $22.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
PLANNER $30.00 - $54.00 $30.00 - $54.00
POLICE OFFICER - EXTRA HELP $73.25
HOURLY STEP RANGES NEW HOURLY STEP RANGES
Effective: 1/1/2024
CITY OF CAMPBELL
TEMPORARY SALARY SCHEDULE
FY 24/25- SALARY SCHEDULE
JOB TITLE Comments HOURLY STEP RANGES NEW HOURLY STEP RANGES Effective: 1/1/2024
CITY OF CAMPBELL
TEMPORARY SALARY SCHEDULE
FY 24/25- SALARY SCHEDULE
PRE-SCHOOL INSTRUCTOR/TEACHER $20.00 - $27.00 $20.00 - $27.00 PRE-SCHOOL TEACHER'S AIDE $15.50 - $19.00 $16.00 - $20.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
PROJECT ENGINEER $34.50 - $52.00 $34.50 - $55.00 Reflect COLA increase for market conditions PROJECT MANAGER $26.00 - $75.00 $26.00 - $85.00 Reflect COLA increases to align with mid-range of current Project Manager classification
PUBLIC SAFETY ASSISTANT $26.00 - $36.00 $26.00 - $36.00 PUBLIC SAFETY DISPATCHER $25.00 - $58.79 $25.00 - $61.14 Reflect COLA increases to align with current classification PUBLIC WORKS INSPECTOR $22.50 - $62.50 $22.50 - $62.50
RECREATION LEADER I $15.50 - $16.00 $16.00 - $18.00 Reflect mimimum wage increase for bottom of the range, COLA, compaction
RECREATION LEADER II $16.00 - $18.00 $18.00 - $20.00 Address compaction between temp. classifications RECREATION LEADER III $17.00 - $19.00 $20.00 - $22.00 Address compaction between temp. classifications RECREATION SPECIALIST $17.00 - $23.00 $18.00 - $24.00 Address compaction between temp. classifications
RELIEF FOOD SERVER/SENIOR NUTRITION
PROGRAM
$15.50 - $17.00 $16.00 - $18.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
RELIEF SITE MANAGER/SENIOR
NUTRITION PROGRAM
$15.50 - $21.00 $16.00 - $22.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
SENIOR ACCOUNTING SPECIALIST $43.00 - $70.00 $43.00 - $70.00 SENIOR INSTRUCTOR/LIFEGUARD $15.50 - $20.00 $16.00 - $21.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
SENIOR RECREATION SPECIALIST $23.00 - $34.00 $23.00 - $34.00
SIGNAL & LIGHTING TECHNICIAN AND
ASSISTANT
$15.50 - $28.00 $16.00 - $29.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
SKATE PARK ATTENDANT $15.50 - $18.00 $16.00 - $19.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
SPECIAL INTEREST CLASS INSTRUCTOR $15.50 - $41.50 $16.00 - $42.50 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
SPORTS OFFICIAL $15.50 - $26.00 $16.00 - $27.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
SPORTS ATTENDANT/SCOREKEEPER $15.50 - $18.00 $16.00 - $19.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
SWIM TEAM COACH $17.00 - $27.00 $17.00 - $27.00
TRAFFIC ENGINEERING ASSISTANT,
TRAFFIC ASSISTANT
$15.50 - $22.00 $16.00 - $23.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range
WORK CREW SUPERVISOR $15.50 - $28.00 $16.00 - $29.00 Reflect mimimum wage increase for bottom of the range and 2 years of minimum wage increases that were not adjusted for top of range