City Council Subcommittee
February 25, 2025

Finance Subcommittee Agenda
City of Campbell, 70 N. First Street, Campbell, California

This Special Meeting of the Finance Subcommittee will be conducted in person and is compliant with provisions of the Brown Act.

Members of the public may attend this meeting in person at Campbell City Hall.

Public comment will also be accepted via email at [email protected] prior to the meeting. Please indicate in the subject line “FOR PUBLIC COMMENT.” Written comments received by 2:00 p.m. on the day of the meeting will be posted on the website and distributed to the Sub-Committee before the meeting.

SPECIAL MEETING OF THE CAMPBELL FINANCE SUB-COMMITTEE
Tuesday, February 25, 2025 3:00 p.m.

Campbell City Hall
Ralph Doetsch Conference Room
70 North First Street, Campbell CA 95008

CALL TO ORDER

PUBLIC COMMENTS

1. Presentation and Discussion of FY 202 4 Audit Results and Required Communications
• City Staff and Eide Bailly, LLP

Recommended Action: Receive and accept FY 2024 Audit Results and Required Communications and provide feedback and recommendation for acceptance by the City Council.

ADJOURN

In compliance with the Americans with Disabilities Act, assistive listening devices are available for meetings held in the Council Chambers. If you require accommodation to participate in the meeting, please contact Will Fuentes in the Finance Department, at [email protected] or (408) 866-2113.

To: Finance Sub-Committee Date: February 25, 2025
From: Norite Vong, Assistant Finance Director
Subject: FY 2024 Audit Results and Acceptance of City’s Annual Comprehensive Financial Report and Other Reports

This information is being distributed for the Sub-Committee meeting scheduled for 3:00 p.m. on February 25, 2025, in the Doetsch Room . Ahmad Gharaibeh, Partner from the City’s auditing firm, Eide Bailly LLP (Eide Bailly), will present the results of the audit as well as discuss their required communications with the City.

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 1 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 2 and 3).

DISCUSSION

Annual Comprehensive Financial Report for Fiscal Year Ending June 30, 2024

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 excellence in financial reporting to qualifying ACFRs. The City has received this award for the past 36 consecutive years and has again submitted this year’s document for consideration.

As shown on page 1
of the ACFR, t he “Independent Auditor’s Report” reflects an unmodified, “clean opinion” on the financial statements, meaning that it meets the standards of generally City of Campbell

MEMORANDUM
Finance Department

Acceptance of City’s ACFR and Audit Report
February 25, 2025

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, 2024 , 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 2024 highlights from the ACFR are as follows:

As shown on page 9
of the ACFR, City-wide, the City ended its fiscal year with total revenues of $81.1 million, an increase of $2.8 million from the previous year, and total expenses of $80.6 million, an increase of $10.9 million compared to the previous year. Excluding property taxes, general revenues; comprised of sales and use taxes, other taxes, investment income, and miscellaneous revenues, increased $0.8 million. Other financial highlights of the past year are as follows:

City-wide (All Funds):
• As shown on page 8 of the ACFR, t otal City assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $59.3 million. Of this amount, $75.4 million represents the net investment in capital assets while $20.1 million is restricted for various purposes including affordable housing, streets and roads, and community development. The negative $36.2 million in unrestricted net position decreased by $6.3 million since last year. While the City’s overall net position is positive, the unrestricted net position specifically accounts for the City’s Net Pension Liability of $78.0 million, resulting in a negative unrestricted net position of $36.2 million.

• As also shown on page 8 of the ACFR, total net position increased from the previous year by $0.5 million primarily due to an increase in capital assets with construction of the police operations building and renovations to the City library now underway.

Fund level:
• As shown on page 20
of the ACFR, total governmental fund balances were $84.6 million at fiscal year-end, a decrease of $13.1 million from the previous year total governmental fund balances of $97.7 million (as shown on page 20 of the FY 2023 ACFR). This decrease is primarily attributed to the Measure O Capital Fund, whose fund balance decreased by $12.5 million from construction costs related to the police operations building and City library.

• As shown on page 22 of the ACFR, General Fund revenues, excluding transfers, increased $0.9 million to $63.1 million from the previous year General Fund revenues of $62.2 million (as shown on page 22 of the FY 2023 ACFR). This is largely attributable to increases in property tax, other taxes, investments income, and charges for services; offset by decreases in sales and uses taxes, licenses and permits, rents and leases, and miscellaneous revenue.

• As shown on page 23 of the ACFR, r elated General Fund expenditures of $61.5 million increased by $1.5 million from the previous year General Fund expenditures of $60.0 million (as shown on page 23 of the FY 2023 ACFR). This is largely attributable to cost increases in all operating department; offset by decreases in capital outlays.

Acceptance of City’s ACFR and Audit Report
February 25, 2025

• As shown on page 23 of the ACFR, t he General Fund’s fund balance of $20.9 million decreased by $1.2 million from the previous year General Fund’s fund balance of $22.1 million (as shown on page 23 of the FY 2023 ACFR).

• As shown on page 56 of the ACFR, total Nonspendable General Fund balance of $0.2 million is reserved for leases. Total Committed General Fund balance of $2.9 million is for future contingencies and capital improvement projects. Total Assigned General Fund balance of $3.8 million is for CalPERS retirement costs and other postemployment benefits, and the remaining $14.1 million is for unassigned and available for to be determined general government purposes, City Council objectives, economic fluctuations, and emergencies.

General Fund Highlights

As shown on page 13 of the ACFR, the General Fund realized an excess of revenues over expenditures of $1.6 million, excluding transfers and other sources. General Fund revenues of $63.1 million, excluding transfers, increased $0.9 million from the previous year General Fund revenues of $62.2 million (as shown on page 13 of the FY 2023 ACFR ). Property taxes, other taxes, fines and forfeitures, investment income, rents and leases, and charges for services all exceeded budgeted amounts. These were partially offset by sales and taxes, licenses and permits, and intergovernmental revenues, which were less than budgeted amounts.

As shown on page 13
of the ACFR, Property Tax is the General Fund’s largest revenue source.

While budgeted at $21.8 million in the final amended budget, actual property tax revenue received was $21.9 million. That represents $0.1 million greater than budgeted. The positive variance is attributed to slightly greater receipt of current secured property taxes and the Education Revenue Augmentation Fund (ERAF).

As shown on page 13
of the ACFR, Sales and Use Tax is the General Fund’s second largest revenue source, budgeted at $16.8 million in the final amended budget. The City received $16.5 million or $0.2 million under 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.

As shown on page 13 of the ACFR, Charges for services amounted to $6.2 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 5.9% greater than budgeted in the final amended budget.

As shown on page 13
of the ACFR, General Fund expenditures, excluding transfers, were $61.5 million, an increase of $1.5 million from the previous year total of $.60.0 million (as shown on page 13 o f the FY 2023 ACFR). When compared to the final budget, general fund expenditures were $2.1 million or 3.4% under budget. The savings are mostly attributed to both the Community Development and Public Works departments, which came under budget by 31.7% and 13.6%, respectively. The positive variance is due to lower -than-expected incurred expenditures as it relates to personnel costs and professional services within the General Fund.

As shown on page 13 of the ACFR, The General Fund’s fund balance at fiscal year-end was $20.9 million, a decrease of $1.2 million from the previous year General Fund balance of $22.1 Acceptance of City’s ACFR and Audit Report
February 25, 2025

million (as shown on page 13 of the FY 2023 ACFR). Actual ending fund balance was lower than projected by $0.3 million. This is primarily due to the General Fund’s lower than expected intergovernmental grant revenue. As again shown on page 56 of the ACFR , Committed and Assigned fund balances at year end were $2.9 million and $3.8 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 $14.1 million serves as an additional reserve for unanticipated needs that may arise including a $9.5 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 4.

Per City Administrative Financial Policies, the economic fluctuations reserve target is set at

16.67% of operating expenditures for use during economic downturns. The City’s Fiscal Year 2025 Adopted General Fund expenditures did not significantly increase when compared to the City’s Fiscal Year 2024 Adopted General Fund expenditures. As such, the economic fluctuation reserve target remained $11.1 million, resulting in a FY 2024 balance of $9.5 million that is $1.6 million below th e 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, 2024, the emergency reserve balance remained at $3.2 million, which is $3. 3 million below its targeted level of $6.5 million.

For Fiscal Year 2024, the City did not need to draw upon its emergency reserve. However, the City utilized $0.5 million from the economic fluctuations reserve due to lower than projected revenues from Sales Tax, Licenses and Permits. As such, its balance decreased from $10.0 million to $9.5 million. 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 21.03%. This increases to 24.40% 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 and consistent with usage in the FY 2025 Adopted Budget, could be to fund annual ongoing pension premium costs in any given year.

Written Communications Letters

The auditor, as required by auditing standards, issues several letters regarding the audit process and results (Attachments 2 and 3) 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.”

The acceptance of the Fiscal Year 2024 ACFR and auditor’s written communication on internal controls will be agendized for the Council meeting on March 18, 2025. The results of this meeting will be incorporated into the final staff report submitted to Council.

Committee Members:

Sergio Lopez, Mayor
Terry Hines, Councilmember

Acceptance of City’s ACFR and Audit Report
February 25, 2025

Attachments:
1) Annual Comprehensive Financial Report – Fiscal Year 2023-24 2) Auditor letter on Audit Process Results (AU-C 260)
3) Auditor letter on Internal Control Over Financial Reporting and Compliance (GAGAS) 4) General Fund Reserve Comparison FYE 6.30.23 to 6.30.24

Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
City of Campbell,
California
Prepared by:

Finance Department
Will Fuentes, Finance Director

City of Campbell
Table of Contents
June 30, 2024
Introductory Section
Letter of Transmittal ............................................................................................................................................... i Certificate of Achievement ................................................................................................................................. viii Organizational Chart ............................................................................................................................................. ix City Officials ........................................................................................................................................................... x Commissions, Committees and Advisory Boards ................................................................................................... x 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 ....................... 75 Schedule of Pension Contributions – CalPERS Miscellaneous Plan ..................................................................... 76 Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans ....................................... 77 Schedule of Pension Contributions – CalPERS Safety Plan .................................................................................. 78 Schedule of Changes in the Net OPEB Liability and Related Ratios ..................................................................... 79 Schedule of OPEB Contributions .......................................................................................................................... 80 Budgetary Comparison Schedule – General Fund ............................................................................................... 81 Budgetary Comparison Schedule – Housing Assets Special Revenue Fund ........................................................ 83 Budgetary Comparison Schedule – ARPA Special Revenue Fund ........................................................................ 84 Notes to Required Supplementary Information .................................................................................................. 85

Supplementary Information
Description of Other Governmental Funds .......................................................................................................... 86 Combining Balance Sheet – Other Governmental Fund ...................................................................................... 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds ............................................................................................................................................ 90 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget Actual – Gas Tax Special Revenue Fund ............................................................................................................................. 92 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Vehicle Impact Fees Special Revenue Fund ......................................................................................................... 93 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Other Grants Special Revenue Fund .................................................................................................................... 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund ................................................................................................ 95 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Lighting and Landscaping District Special Revenue Fund .................................................................................... 96 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund ............................................................................................ 97 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund ................................................................................................... 98 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund...................................................................................... 99 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Restitution Fund Special Revenue Fund ......................................................................................... 100 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #1 Special Revenue Fund .................................................................................... 101 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Facilities District #2 Special Revenue Fund .................................................................................... 102 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund ......................................................................................................................................... 103 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Capital Projects Fund ...................................................................................................................... 104 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund .............................................................................................................................. 105 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund ........................................................................................................................... 106 Internal Service Funds ........................................................................................................................................ 107 Combining Statement of Net Position – Internal Service Funds ........................................................................ 108 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds ............ 109 Combining Statement of Cash Flows – Internal Service Funds .......................................................................... 110 Custodial Funds .................................................................................................................................................. 111 Combining Statement of Fiduciary Net Position – Custodial Funds .................................................................. 112 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ................................................ 113 Statistical Section
Description of Statistical Section Contents ........................................................................................................ 114 Net Position by Component ............................................................................................................................... 115 Changes in Net Position ..................................................................................................................................... 117 Fund Balances of Governmental Funds ............................................................................................................. 118 Changes in Fund Balances of Governmental Fund ............................................................................................ 120 Assessed and Estimated Actual – Value of Taxable Property ............................................................................ 121 Property Tax Rates – All Overlapping Governments ......................................................................................... 122

Principal Property Taxpayers ............................................................................................................................. 123 Property Tax Levies and Collections .................................................................................................................. 124 Ratio of Outstanding Debt by Type .................................................................................................................... 125 Ratio of Net General Bonded Debt Outstanding ............................................................................................... 126 Computation of Direct and Overlapping Debt ................................................................................................... 127 Computation of Legal Bonded Debt Margin ...................................................................................................... 128 Bonded Debt Pledged Revenue Coverage – Redevelopment/Successor Agency Tax Allocation Bonds ........... 129 Demographic and Economic Statics ................................................................................................................... 130 Top Ten Principal Employers .............................................................................................................................. 131 Full-Time Equivalent City Government Employees by Function ........................................................................ 132 Operating Indicators by Function/Program ....................................................................................................... 133 Capital Assets Statistics by Function/Program .................................................................................................. 134

Introductory Section
June 30, 2024
City of Campbell,
California

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 31, 2024

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, 2024. 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).

ii

City of Campbell
Letter of Transmittal
June 30, 2024

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, 2024, 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, 2024, the City did expend over $750,000 on Federal financial assistance programs; and therefore, a Single Audit will be required by March 31, 2025. 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 43,095 as of January 1, 2024. 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.

iii

City of Campbell
Letter of Transmittal
June 30, 2024

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 legal level of budgetary control is at the total department level. 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 Update 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 continued inflationary pressures that have only begun to ease during the last fiscal year. Nevertheless, the nation’s economy saw GDP growth equaling 2.8% in the third quarter of 2024; following an increase equaling

3.0% in the second quarter of 2024. Such an increase in the third quarter of 2024 primarily reflected increases in consumer spending, exports, federal government spending, and business investment. Imports, which are a subtraction in the calculation of GDP, increased. While economic factors were mixed, stock market prices within the Dow Jones Industrial Average increased by 13.7% over the course of fiscal year. As inflationary concerns lesson, the Federal Reserve has indicated a desire to loosen its monetary policy in response, and as economic uncertainty subsides, the economy and the stock market should continue to grow, but such growth is also not guaranteed and may be uneven.

iv

City of Campbell
Letter of Transmittal
June 30, 2024

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 3.7%, Santa Clara County had an unemployment rate of 4.1%, California had an unemployment rate of 5.2%, and the United States had an unemployment rate of 4.1%.

Local Economy

Silicon Valley is in the throes of an adjustment, with the tech sector recalibrating after some brisk hiring during the pandemic. Previously carefree, efficiency has become the new watchword. Venture capital is posting numbers that are half what they were, with renewed rigor replacing the FOMO frenzy of the past three years. Silicon Valley may not be booming, but it is still growing. When you take the long view, venture capital is right where it has been for the past decade ($30 billion), and the region con tinues to have the nation’s highest shares (34 percent). Our driving industries are shrinking in some places, but growing in others as the economy pivots into green energy, clean technology and artificial intelligence. If AI is your barometer of success, then Silicon Valley clearly has a leg up on the competition, with a 220% year - over-year rise in VC dollars, more start-up activity, more institutional investing, and by far the most research. We’re generating more patents (19,500) than any other place in th e nation. Even the regions ballyhooed population drain has reversed itself (with a net increase of 11,300 new residents over the last reporting period).

The best way to understand Silicon Valley right now is the same way we always have: we’re a region built on creative destruction and re-invention. This time, however, our reinventing must extend into the civic arena as well, as we address the permanent changes brought about by remote work, take up the possibility of converting vacant commercial space into housing, and find new approaches to our downtowns. What remains fixed are the region’s staggering wealth and income gaps, our inability to provide afford able housing, and persistent health, education and income disparities by race. Our income divide has grown twice as quickly as the state and nation over the past decade, and many are startled to learn that nearly one third of our households live below the sufficiency standards. 40 percent of Silicon Valley’s children live in income-inadequate households. An increased supply of affordable housing would go such a long way in addressing our biggest challenges. Unfortunately, 2023 marked an overall slowdown in residential approvals (52 percent fewer than in 2022). In a completely related development, our homeless population swelled to more than 10,500.

Campbell though 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 $1.2 million in sales and use tax revenue. The largest categories of sales tax producers comprise business and industry, restaurants, and hotels, building and construction, and general consumer goods.

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City of Campbell
Letter of Transmittal
June 30, 2024

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 rev enue 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 pool 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 .

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.

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City of Campbell
Letter of Transmittal
June 30, 2024

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.

Over the course of the fiscal year 2023-24, the City began work on preparing an Economic Development Strategic Plan and a Climate Action Plan and continues to work on implementing its adopted Housing Element, including updates to the City’s Inclusionary Housing Ordinance, adoption of Commercial Linkage Fees, and establishment of an Affordable Housing Overlay Zone. During the fiscal year, the City also awarded two major construction projects as part of the Measure O Program, including a construction contract in the amount of $29,454,000 (and approved a 10% contingency in the amount of $2,945,400) for the construction of a new Police Operations Building, which started in January 2024, and a construction contract in the amount of $18,189,000 (and approved a 10% contingency in the amount of $1,818,900) for the renovation of the Campbell Library, which started in November 2023. In addition, during the fiscal year, the City completed the design and construction award of two other significant projects, including improvements to the John D. Morgan Park - San Tomas Expressway Parking Lot in the amount of $156,800, with construction scheduled to begin in January 2025, and enhancements to the Campbell Priority Development Area along Civic Center Drive in the amount of $804,677, with construction scheduled to begin in January 2025. And lastly, the City entered int the final design review phase for the Hamilton Avenue resurfacing project and will go out to bid later in fiscal year 2024-25. This project will resurface Hamilton Avenue in its entirety (within the Campbell City limits) and has a project budget of approximately $12.0 million.

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, 2023. 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 35 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 2023-24. This is the 31st 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.

vii

City of Campbell
Letter of Transmittal
June 30, 2024

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

viii

ix

x

City Officials

City Council

Mayor – Anne Bybee

Vice Mayor – Susan Landry

Councilmember – Dan Furtado

Councilmember – Sergio Lopez

Councilmember – Elliot Scozzola

Note: Mayor serves an annual term from December to December.

Names and positions are as of July 1, 2023.

City Administrative Staff

City Manager – Brian Loventhal

Assistant City Manager – Angelique Gaeta

City Clerk – Andrea Sanders

City Attorney – William Seligmann

Community Development Director – Rob Eastwood

Finance Director – Will Fuentes

Human Resources Manager – Jenny Le-Christensen

Acting Information Technology Manager – Ryan Favila

Police Chief – Gary Berg

Public Works Director – Todd Capurso

Recreation & Community Services Director – Natasha Bissell

xi

Commissions, Committees, and Advisory Boards

Bicycle/Pedestrian Committee
Mark Nakamura, Chairperson
Barton Smith, Vice Chairperson
Catherine Brady
Matt Schroeder
Renee Small

Building Board of Appeal
Bruno Marcelic
Jim Morelan
Jay Perrine
Kevin Salazar
Todd Zeman

Measure O - Citizens Oversight Committee
Al Bito, Chairperson
Anne Souza, Vice Chairperson
Terry Hines
Doris Quai Hoi
Paul Russell
Steven Saunders

Civic Improvement Commission
Maryanne Yoshikawa, Chairperson
Jenna Cadematori, Vice Chairperson
Christopher Bracher
Gary Coluccio
Jennifer Dooley
Heather Malcolm
Thomas Russell
Historic Preservation Board
Todd Walter, Chairperson
Susan Blake, Vice Chairperson
Rob Corteway
Michael Foulkes
Laura Taylor Moore

Parks and Recreation Commission
Allen Ishibashi, Chairperson
Traci Mitchell, Vice Chairperson
Frank Beitz
Sherrie Doherty
Robert Fidrych J
Tina Lee
Sharon Teeter

Planning Commission
Adam Buchbinder, Chairperson
Alan Zisser, Vice Chairperson
Stuart Ching
Davis Fields
Matt Kamkar
Michael Krey
Maggie Ostrowski

Rental Fact Finding Committee - (Not currently active)

Financial Section
June 30, 2024
City of Campbell,
California

1 Independent Auditor’s Report
The Honorable City Council
City of Campbell, California
Report on the Audit of the Financial Statements
Opinions
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, 2024, 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, 2024, 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.

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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.

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.

4 Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2024, 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, 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 31, 2024

5 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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, 2024 with comparative information from 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 2023-24 Financial Highlights

City-wide, the City ended its fiscal year with total revenues of $81.1 million, an increase of $2.8 million from the previous year, and total expenses of $80.6 million, an increase of $10.9 million compared to the previous year.

Excluding property taxes, general revenues; comprised of sales tax, transient occupancy tax and other revenues, increased $0.8 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 $59.3 million. Of this amount, $75.4 million represents the net investment in capital assets while $20.1 million is restricted for various purposes including affordable housing, streets and roads, and community development. The negative $36.2 million in unrestricted net position decreased by $6.3 million since last year.
• Total net position increased from the previous year by $0.5 million primarily due to an increase in capital assets with construction of the police operations building and renovations to the City library now underway.

Fund Level

• Total governmental fund balances were $84.6 million at fiscal year-end, a decrease of $13.1 million from the previous year. This decrease is attributed to the Measure O Capital Fund, whose fund balance decreased by $12.5 million from construction costs related to the police operations building and City library.
• General Fund revenues, excluding transfers, increased $0.9 million to $63.1 million from the previous year. Related expenditure increased by $1.5 million from the previous year to $61.5 million. • The General Fund’s fund balance decreased $1.2 million to $21.0 million at fiscal year-end. • Total Nonspendable General Fund balance of $0.2 million is reserved for leases. Total Committed General Fund balance of $2.9 million is for future contingencies and capital improvement projects. Total Assigned General Fund balance of $3.8 million is for CalPERS retirement costs and other post- employment benefits, and the remaining $14.1 million is for general government. The total General Fund balance represents a 34.1% reserve ratio to General Fund expenditures, excluding transfers out.

6 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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.

7 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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.

8 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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):

2024 2023
Cash and Investments 96.2$ 104.2$
Capital Assets 92.2 77.7
Other Assets 17.2 19.5
Total assets 205.6 201.4
Deferred Outflows of Resources 31.3 30.5 Noncurrent Liabilities 68.6 72.3 Other Liabilities 19.7 16.3
Net OPEB Liability 5.7 6.0
Net Pension Liability 78.0 71.4
Total liabilities 172.0 166.0
Deferred Inflows of Resources 5.6 7.1 Net Position
Net investment in capital assets 75.4 69.5 Restricted 20.1 19.3
Unrestricted (36.20) (29.9)
Total net position 59.3$ 58.8$
Governmental Activities

The changes in net position were comprised of the following elements:

• Cash and investments decreased by a net of $8.0 million, which is primarily due to payments made towards construction costs related to the construction of the police operations building and City library. • Net capital assets increased by $14.5 million year over year. This increase is due to capital investments made towards the Police Operations Building, City Library, and Camden Avenue Resurfacing projects. • Other assets such as taxes, leases, and notes receivable decreased by a net of $2.3 million due to a $1.1 million decrease in taxes receivable and a $1.65 million decrease in leases receivable. A decrease in leases receivable is expected with regular and recurring lease payments made by the City’s lessees. • Deferred outflows of resources increased $0.8 million, of which is attributed to an increase of $0.5 million for amounts related to pensions and an increase of $0.3 million 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 $3.7 million, which is a largely a result of debt service payments towards Measure O General Obligation Bonds.

9 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

• Other liabilities increased by $3.4 million solely due to a $4.0 million increase to accounts payable. This is solely due to a timing difference for payments due for construction costs related the construction of the police operations building and City library.
• Net Pension Liability increased $6.6 million. Of this increase, $3.9 million is an increase to the Miscellaneous Plan. The remaining $2.7 million is an increase to the Safety Plan. • Net investment in capital assets increased by $6.0 million mainly due to ongoing capital projects such as the police operations building, library renovation, and Camden Avenue resurfacing. • Restricted net position assets have external limitations placed upon them regarding how they may be spent. These assets, which increased by $0.9 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:

2024 2023
Revenues
Program revenues
Charges for services 14.4$ 13.9$
Operating grants and contributions 6.4 4.2 Capital grants and contributions 1.6 3.1 General revenues
Property taxes 26.4 25.6
Sales and use taxes 16.5 18.8
Other taxes 9.0 8.6
Investment Income 4.3 1.8
Miscellaneous 2.5 2.3
Total revenues 81.1 78.3
Expenses
General government 11.0 10.8
Recreation 7.8 6.6
Community development 5.4 4.8
Public safety 35.7 29.1
Public works 18.8 16.6
Interest on long term debt 1.9 1.8 Total expenses 80.6 69.7
Change in Net Position 0.5 8.6 Net Position at Beginning of Year 58.8 50.2 End of Year 59.3$ 58.8$
Governmental Activities

10 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

Government-wide net position increased $0.5 million from the prior year. Key elements of activity are as follows:

Revenues

• Within program revenues, charges for services increased $0.5 million reflecting increased service demands within the Recreation, Community Development, and Public Works departments. Furthermore, operating and capital grants increased year over year by $0.7 million.
• Within general revenues, property tax revenues increased $0.9 million reflecting continued strength in the real estate market fueled by increasing housing prices. Of the $26.4 million in Property Tax Revenues collected government-wide, $2.5 million is attributed to the levies as a result of the 2018 passage of Measure O.
• General tax revenue, other than property tax, decreased by $1.9 million. The decrease is attributed to a decrease in sales tax due to a loss of a top sales tax producer for the City and inflationary pressures.
• While miscellaneous revenues did not materially change, investment returns were strong and increased by $2.6 million year over year.

Expenses

• General Government expenses did not materially increase year over year, increasing by just $0.3 million from the prior fiscal year.
• Recreation and Community Development expenses increased $1.2 million and $0.7 million due to increased personnel costs, namely the allocation of pension related expenses. • Similar to Recreation and Community Development expenses, Public Safety expenses increased $6.7 million due to an increase in personnel costs and the allocation of pension related expenses from the City’s Safety Pension Plan.
• Public Works expenses increased $2.3 million as a result of recognized pension expense related to the Miscellaneous Plan, increased personnel costs, and increased maintenance costs. • Interest expense and other charges did not materially change, increasing by less than $0.1 million.

Financial Analysis of Fund Financial Statements

Combined governmental fund balances at fiscal year-end were $84.6 million, a decrease of $13.1 million from the previous year. The City has Nonspendable, Restricted, Committed, Assigned and Unassigned fund balances of $.2 million; $62.9 million; $2.9 million; $4.8 million and $13.8 million, respectively, at year end.

11 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

Governmental fund revenues, excluding transfers, were $80.9 million, an increase of $2.8 million from the previous year. Property taxes were higher by $0.9 million due to continued strength in the real estate market and rising housing prices. Sales and use tax decreased by $2.3 million as a result of inflationary pressures and the loss of one of the City’s top sales tax producers. Other taxes, including transient occupancy tax (TOT), did not materially change year over year and increased by a combined $0.4 million, largely due to a $0.1 million increase in TOT and a $0.2 million increase in Franchise Taxes. Investment income increased by $2.4 million due to strong returns. Intergovernmental revenues increased $0.9 million due to the receipt of various grants and the revenue recognition of deferred American Rescue Plan Act (ARPA) funds. Lastly, charges for services increased by $1.2 million due to increased receipts in zoning fees, solid waste rate fees, and engineering filing fees.

Governmental fund expenditures, excluding transfers, increased from the prior year by a net amount of $16.8 million to $93.3 million. The increase is mainly attributed to construction costs related to the construction of the City’s police operations building and renovation to the City library.

Analysis of Major Governmental Funds

General Fund

Property Tax is the General Fund’s largest revenue source. While budgeted at $21.8 million, actual property tax revenue received was $21.9 million. That represents $0.1 million greater than budgeted. The positive variance is attributed to slight greater receipt of current secured property taxes and the Education Revenue Augmentation Fund (ERAF).

Sales and Use Tax is the General Fund’s second largest revenue source, budgeted at $16.8 million. The City received $16.5 million or $0.2 million under 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 $6.2 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 5.9% greater than budgeted.

General Fund expenditures, excluding transfers, were $61.5 million, an increase of $1.5 million from the previous year. When compared to the final budget, general fund expenditures were $2.1 million or 3.4% under budget. The savings are mostly attributed to both the Community Development and Public Works departments, which came under budget by 31.7% and 13.6%, respectively. The positive variance is due to lower-than- expected incurred expenditures as it relates to personnel costs and professional services within the General Fund.

The General Fund’s fund balance at fiscal year-end was $21.0 million, a decrease of $1.2 million from the previous year. Actual ending fund balance was lower than projected by $0.3 million. This is due to the General Fund’s lower than expected intergovernmental grant revenue. Committed and Assigned fund balances at year end were $2.9 million and $3.8 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 $14.1 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.

12 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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 increased by $25,124 year over year.

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 $40,718 year over year. The ARPA Special Revenue fund, however, incurred nearly $2.0 million in expenditures to fund various operating and capital expenditures.

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 $39,214 or 4.2%. Though the fund incurred over $4.1 million in capital outlay expenditures, those expenditures were financed primarily through the General Fund, vehicle impact fees, 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 decreased by $12.5 million when compared to the prior year. This decrease is due to the ramp up of construction of the police operations building and City Library and its associated costs.

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 $0.6 million for an ending balance of $13.8 million. This increase is entirely due to the Gas Tax Fund, whose fund balance alone increased by $1.0 million.

13 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

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 22,047,000$ 21,847,000$ 21,912,688$ 65,688$ Sales and use taxes 17,699,289 16,826,202 16,549,227 (276,975) Other taxes 9,691,400 8,582,600 8,991,901 409,301 Licenses and permits 4,290,300 3,909,500 3,344,256 (565,244) Fines and forfeitures 100,000 150,000 172,012 22,012 Investment income 810,900 1,055,000 1,156,980 101,980 Rents and leases 3,052,500 3,098,400 3,172,450 74,050 Intergovernmental 2,059,068 2,541,100 1,358,912 (1,182,188) Charges for services 5,907,545 5,893,860 6,243,053 349,193 Miscellaneous 216,410 564,228 237,863 (326,365) Total Revenues 65,874,412 64,467,890 63,139,342 (1,328,548) Expenditures
General government 9,904,716 8,695,337 9,854,402 (1,159,065) Recreation 7,116,076 7,036,438 6,801,733 234,705 Community development 5,435,902 5,773,672 3,941,432 1,832,240 Public safety 33,548,964 33,897,364 33,752,714 144,650 Public works 7,438,600 7,873,076 6,801,853 1,071,223 Capital outlay 78,300 - - - Debt service - - 346,738 (346,738) Total expenditures 63,522,558 63,275,887 61,498,872 2,123,753 Excess (deficiency) of revenues
over (under) expenditures 2,351,854 1,192,003 1,640,470 448,467 Other financing sources (uses)
Leases issued - - 142,282 142,282 Transfers in 3,387,412 4,142,679 1,635,595 (2,507,084) Transfers out (2,520,545) (6,252,281) (4,598,406) 1,653,875 Total other
financing sources (uses) 866,867 (2,109,602) (2,820,529) (710,927) Net change in fund balance 3,218,721 (917,599) (1,180,059) (262,460) Fund balance at beginning of year 22,143,271 22,143,271 22,143,271 - Fund balance at end of year 25,361,992$ 21,225,672$ 20,963,212$ (262,460)$ Budgeted Amounts

The General Fund realized an excess of revenues over expenditures of $1.6 million, excluding transfers and other sources. General Fund revenues, excluding transfers, increased $0.9 million from the previous year to $63.1 million. When compared to the final budget, general fund revenues were $1.3 million or 2.1% lower than budgeted due to grants.

14 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

Capital Assets

The City had net capital assets of $92.2 million as of June 30, 2024. The following is a summary of the City’s capital assets for the fiscal year ended June 30:

2024 2023
Land 9.1$ 9.1$
Construction in progress 20.0 7.3
Building & improvements 35.8 32.7
Right-of-Use intangible assets 2.4 2.1
Machinery & equipment 10.9 11.6
Infrastructure 69.9 67.9
Less: Accumulated depreciation (55.9) (53.0) Net capital assets 92.20$ 77.70$ Capital Assets (in millions)

Total additions to capital assets were $14.6 million during the year consisting primarily of construction in progress of the Police Operations Building and City Library. The additions were partially offset by an increase of $2.9 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 $4.3 million in outstanding certificates of participation, $3.4 million in refunding lease revenue bonds, and $41.7 million of 2018 election general obligation bonds and $5.4 million in other debt outstanding as of June 30, 2024.

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 $12.9 million as of June 30, 2024.

15 City of Campbell
Management’s Discussion and Analysis
June 30, 2024

The nation’s economy saw GDP growth equaling 2.8% in the third quarter of 2024; following a GDP increase equaling 3.0% in the second quarter of 2024. The third quarter increase was a result of increased consumer spending, exports, federal government spending, and business investment. As inflationary concerns lesson, the Federal Reserve has indicated a desire to loosen its monetary policy in response, and as economic uncertainty subsides, the economy and the stock market should continue to grow, but such growth is also not guaranteed and may be uneven. In the City of Campbell, the unemployment rate rose to 3.7% as of fiscal year end.

Although the unemployment rate increased from 3.2% the prior year, it is far below the peak of the pandemic during which unemployment in Campbell reached 8.5%.

For the FY25 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 FY25 and beyond. In developing the FY25 budget, the following assumptions were used:

• Property tax revenues are expected to grow 4.38% compared to FY24 due to continued appreciation in the property tax base. Despite higher mortgage interest rates, the average home price in Campbell rose slightly from $1.93 million in the prior year to $2.28 million as of calendar year 2024 Q2. • Sales tax revenue is conservatively estimated to grow 3% per year. However, staff notes that inflationary pressures and the possibility of a recession caused by continued high 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

8.8% in FY24 due to increased service demands. Furthermore, it is projected to exceed pre-recessionary levels by approximately 10.4%.
• Transient Occupancy Tax is estimated to reach near pre-pandemic levels in FY25 and equal approximately $4.80 million.
• 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 3% in FY25 when compared to FY24 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].

16 City of Campbell
Government Wide Financial Statements
June 30, 2024

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.

See Notes to Financial Statements 17
City of Campbell
Statement of Net Position
June 30, 2024

Governmental
Activities
Assets
Cash and investments 95,634,420$
Cash held with fiscal agent 569,553
Receivables
Taxes 3,340,622
Accounts 1,233,177
Interest 926,922
Notes and loans 7,598,526
Leases 3,907,991
Prepaid items 122,313
Deposits 90,000
Capital assets, not depreciated or amortized 29,103,170 Capital assets, net depreciation and amortization 63,123,330 Total assets 205,650,024
Deferred outflows of resources
Amount related to pensions 28,311,806
Amount related to OPEB 2,999,600
Total deferred outflows of resources 31,311,406
Liabilities
Accounts payable 6,727,558
Accrued expenses 2,858,962
Interest payable 687,847
Deposits payable 3,203,512
Unearned revenues 6,216,817
Noncurrent liabilities
Due in less than one year
Bonds, leases, subscriptions, notes, loans, claims, compensated absences 5,634,739 Due in more than one year
Bonds, leases, subscriptions, notes, loans, claims, compensated absences 62,982,588 Net OPEB liability 5,702,315
Net pension liability 78,010,421
Total Liabilities 172,024,759
Deferred inflows of resources
Amount related to leases 3,708,910
Amount related to pensions 851,909
Amount related to OPEB 1,027,936
Total deferred inflows of resources 5,588,755
Net Position
Net investment in capital assets 75,408,051
Restricted for
Streets and roads 7,057,040
Museum and adult center 23,882
Public safety 329,059
Low and moderate income housing 8,521,158
Community development 4,189,144
Unrestricted deficit (36,180,418)
Total net position 59,347,916$

See Notes to Financial Statements 18
City of Campbell
Statement of Activities
Year Ended June 30, 2024

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 11,047,211$ 2,188,702$ 4,283,913$ -$ (4,574,596)$ Recreation 7,753,645 3,853,225 101,488 - (3,798,932) Community development 5,447,126 4,880,247 391,327 - (175,552) Public safety 35,745,519 883,548 1,535,186 - (33,326,785) Public works 18,812,196 2,564,257 116,752 1,572,079 (14,559,108) Interest expense 1,865,614 - - - (1,865,614) Total governmental activities 80,671,311$ 14,369,979$ 6,428,666$ 1,572,079$ (58,300,587) General revenues
Taxes
Property 26,403,788
Sales and use 16,549,227
Transient occupancy 3,747,247
Franchise 4,135,646
Other 1,098,118
Payments in lieu of taxes 54,209
Investment income 4,305,013
Miscellaneous 2,492,449
Total general revenues 58,785,697
Change in net position 485,110
Net Position At Beginning of Year 58,862,806
Net Position At the End of Year 59,347,916$
Program Revenues

19 City of Campbell
Government Fund Financial Statements
June 30, 2024

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 2024. 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.

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.

See Notes to Financial Statements 20
City of Campbell
Balance Sheet – Governmental Funds
June 30, 2024

General Fund
Housing
Assets
ARPA
Fund
Capital Projects
Fund Measure O
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 23,164,059$ 1,104,939$ 6,144,348$ 1,308,219$ 42,667,594$ 14,973,229$ 89,362,388$ Cash held with fiscal agent - - - - 536,448 33,105 569,553 Receivables
Accounts 901,684 - - 34,503 - 236,539 1,172,726 Taxes 3,023,332 - - - - 317,290 3,340,622 Interest 209,529 7,996 72,469 - 513,584 123,344 926,922 Notes and loans - 7,458,526 - - - 140,000 7,598,526 Leases receivable 3,907,991 - - - - - 3,907,991 Due from other funds 1,409,174 - - - - - 1,409,174 Total assets 32,615,769$ 8,571,461$ 6,216,817$ 1,342,722$ 43,717,626$ 15,823,507$ 108,287,902$ Liabilities
Accounts payable 2,165,226$ 32,833$ -$ 374,402$ 3,314,478$ 434,260$ 6,321,199$ Accrued payroll 2,574,909 17,816 - - 12,061 193,801 2,798,587 Deposits payable 3,203,512 - - - - - 3,203,512 Due to other funds - - - - - 1,409,174 1,409,174 Unearned revenue - - 6,216,817 - - - 6,216,817 Total liabilities 7,943,647 50,649 6,216,817 374,402 3,326,539 2,037,235 19,949,289 Deferred Inflows of Resources
Lease related 3,708,910 - - - - - 3,708,910 Fund balances (deficit)
Nonspendable 199,081 - - - - - 199,081 Restricted - 8,520,812 - - 40,391,087 14,015,393 62,927,292 Committed 2,916,934 - - - - - 2,916,934 Assigned 3,791,233 - - 968,320 - - 4,759,553 Unassigned 14,055,964 - - - - (229,121) 13,826,843 Total fund balances (deficit) 20,963,212 8,520,812 - 968,320 40,391,087 13,786,272 84,629,703 Total liabilities, deferred inflows
of resources and fund balances 32,615,769$ 8,571,461$ 6,216,817$ 1,342,722$ 43,717,626$ 15,823,507$ 108,287,902$ Capital Projects Funds Special Revenue Funds

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, 2024

Fund balances - total governmental funds 84,629,703$
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 141,145,041$
Accumulated depreciation (50,238,677)
90,906,364
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 (54,897,027)
Loans (3,403,722)
Leases payable (1,521,494)
Compensated absences (4,040,941)
Claims payable (754,423)
Accrued interest (687,847)
(65,305,454)
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 2,909,586
Deferred inflows of resources (997,089)
Net OPEB liability (5,531,197)
(3,618,700)
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 27,711,430
Deferred inflows of resources (851,909)
Net pension liability (76,044,111)
(49,184,590)
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. 1,920,593
Net Position of Govenmental Activities 59,347,916$

See Notes to Financial Statements 22
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended June 30, 2024

Other Total
General Housing ARPA Capital Projects Governmental Governmental Fund Assets Fund Fund Measure O Funds Funds
Revenues
Property taxes 21,912,688$ -$ -$ -$ -$ 4,491,100$ 26,403,788$ Sales and use taxes 16,549,227 - - - - - 16,549,227 Other Taxes 8,991,901 - - - - - 8,991,901 Special assessments - - - - - 1,392,199 1,392,199 Licenses and permits 3,344,256 - - - - - 3,344,256 Fines and forfeitures 172,012 - - - - 37,325 209,337 Investment income 1,156,980 66,946 - - 2,091,758 717,823 4,033,507 Rents and leases 3,172,450 - - - - - 3,172,450 Intergovernmental 1,358,912 150,000 1,995,935 - - 4,641,340 8,146,187 Charges for services 6,243,053 - - - - 982,320 7,225,373 Project revenues - - - 101,987 - - 101,987 Parkland dedication fees - - - - - 581,630 581,630 Miscellaneous revenues 237,863 371,233 - - - 96,963 706,059 Total revenues 63,139,342 588,179 1,995,935 101,987 2,091,758 12,940,700 80,857,901 Capital
Projects Fund
Special
Revenue Funds

See Notes to Financial Statements 23
City of Campbell
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds, Continued Year Ended June 30, 2024

Other Total
General Housing ARPA Capital Projects Governmental Governmental Fund Assets Fund Fund Measure O Funds Funds
Expenditures
Current
General government 9,854,402 - 200,718 - 136,834 3,971 10,195,925 Recreation 6,801,733 - - - - - 6,801,733 Community development 3,941,432 667,619 - - - 2,901 4,611,952 Public safety 33,752,714 - - - - 155,166 33,907,880 Public works 6,801,853 - - - - 6,946,190 13,748,043 Capital outlay - - - 4,153,269 14,405,964 - 18,559,233 Debt service
Principal 304,448 - - - - 3,095,000 3,399,448 Interest and fiscal charges 42,290 - - - - 2,023,950 2,066,240 Total expenditures 61,498,872 667,619 200,718 4,153,269 14,542,798 12,227,178 93,290,454 Excess (deficiency) of revenues
over (under) expenditures 1,640,470 (79,440) 1,795,217 (4,051,282) (12,451,040) 713,522 (12,432,553) Other financing sources (uses)
Leases issued 142,282 - - - - - 142,282 Transfers in 1,635,595 104,564 - 4,090,496 - 2,658,100 8,488,755 Transfers out (4,598,406) - (1,835,935) - - (2,819,836) (9,254,177) Total other financing
sources (uses) (2,820,529) 104,564 (1,835,935) 4,090,496 - (161,736) (623,140) Net change In fund balances (1,180,059) 25,124 (40,718) 39,214 (12,451,040) 551,786 (13,055,693) Fund balances (deficit) at beginning
of year
22,143,271 8,495,688 40,718 929,106 52,842,127 13,234,486 97,685,396 Fund balances at end of year 20,963,212$ 8,520,812$ -$ 968,320$ 40,391,087$ 13,786,272$ 84,629,703$ Revenue Funds Projects Fund
Special Capital

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, 2024

Net change in fund balances - total governmental funds (13,055,693)$ 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 18,559,233
Depreciation expense (3,742,876)
14,816,357
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 3,479,353
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. 120,721
Lease proceeds provide current financial sources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. (142,282)
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 or issuance of leases payable 203,791
Net change in compensated absences (188,409)
Net change in claims payable (284,620)
(269,238)
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. (5,571,252) 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. (200,215) 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. 1,307,359 Change in net position of governmental activities 485,110$

25 City of Campbell
Proprietary Fund Financial Statements
June 30, 2024

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.

See Notes to Financial Statements 26
City of Campbell
Statement of Net Position – Proprietary Funds
June 30, 2024

Governmental
Activities
Internal
Service Funds
Assets
Current assets
Cash and investments $ 6,272,032
Accounts receivable 60,451
Prepaid items 122,313
Deposits 90,000
Total current assets 6,544,796
Noncurrent assets
Capital assets, net of accumulated depreciation and amortization 1,320,136 Total assets 7,864,932
Deferred outflows of resources
Amount related to pensions 600,376
Amount related to OPEB 90,014
Total deferred outflows of resources 690,390 Liabilities
Current liabilities
Accounts payable 406,359
Accrued payroll 60,375
Compensated absences, current portion 45,678 Lease payable 437,240
Subscription payable 36,175
Claims and judgments payable, current portion 519,912 Total current liabilities 1,505,739
Noncurrent liabilities
Compensated absences 48,191
Claims payable and judgments 2,912,524
Net OPEB liability 171,118
Net pension liability 1,966,310
Total noncurrent liabilities 5,098,143
Total liabilities 6,603,882
Deferred inflows of resources
Amount related to OPEB 30,847
Total deferred inflows of resources 30,847 Net position
Net investment in capital assets 846,721 Unrestricted 1,073,872
Total net position 1,920,593$

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, 2024

Governmental
Activities
Internal
Service Funds
Operating revenues
Investment income 271,506$
Charges for services 2,960,728
Other 27,014
Total operating revenues 3,259,248
Operating expenses
Personnel services 994,865
Services and supplies 1,334,695
Depreciation 373,767
Total operating expenses 2,703,327
OPERATING LOSS 555,921
NONOPERATING INCOME (EXPENSES):

Loss on disposal of capital assets (13,984)
Operating loss 541,937
Transfers
Transfers in 769,322
Transfers out (3,900)
Total transfers 765,422
Change in net position 1,307,359
Net position at beginning of year 613,234
Net position at end of year 1,920,593$

See Notes to Financial Statements 28
City of Campbell
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2024

Governmental
Activities
Internal
Service Funds
Cash flows from operating activities
Cash received from department users 3,236,812$
Cash payments to suppliers of goods and services (1,652,308) Cash payments to employees for services (1,184,488)
Net cash provided by operating activities 400,016
Cash flows from noncapital financing activities:

Cash received from other funds 769,322
Cash paid to other funds (3,900)
Net cash provided by noncapital financing activities 765,422 Cash flows from capital and related financing activities Acquisition of capital assets (46,529)
Net cash used by capital and related financing activities (46,529) Net increase in cash and cash equivalents 1,118,909
Cash and cash equivalents at beginning of year 5,153,123 Cash and cash equivalents at end of year 6,272,032$
Reconciliation of operating loss to
Net cash provided by operating activities
Operating loss 555,921$
Adjustments to reconcile operating loss to net
cash provided by operating activities
Depreciation and amortization 373,767
Changes in operating assets and liabilities
(Increase) decrease in accounts receivable (22,436)
(Increase) decrease in prepaid expenses (122,313)
Increase (decrease) in accounts payable 283,971
Increase (decrease) in accrued payroll 2,430
Increase (decrease) in compensated absences (40,614)
Increase (decrease) in subscription liabilities (52,927) Increase (decrease) in claims and judgments payable (479,271) Increase (decrease) in net OPEB and related deferrals (2,197) Increase (decrease) in net pension liability and related deferrals (96,315) Net cash provided by operating activities 400,016$

29 City of Campbell
Fiduciary Fund Financial Statements
June 30, 2024

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.

See Notes to Financial Statements 30
City of Campbell
Statement of Fiduciary Net Position – Fiduciary Funds
June 30, 2024

Private-
Purpose Custodial
Trust Fund Funds
Assets
Cash and investments 993,906$ 2,597,868$
Cash held with fiscal agent 700 -
Accounts receivable 3,366 6,781
997,972 2,604,649
Capital assets, not being depreciated 7,123,531 - Capital assets, net of accumulated depreciation 6,939,972 - 14,063,503 -
Total assets 15,061,475 2,604,649
Liabilities
Accounts payable - 128,891
Accrued interest payable 67,926 -
Unearned revenues - 374,757
67,926 503,648
Long-term liabilities
Due within one year 1,630,000 -
Due in more than one year 11,270,000 -
12,900,000 -
Total liabilities 12,967,926 503,648
Net Position
Restricted for individuals and organizations 2,093,549$ 2,101,001$

See Notes to Financial Statements 31
City of Campbell
Statement of Changes in Net Position – Fiduciary Funds
Year Ended June 30, 2024

Private-
Purpose Custodial
Trust Fund Funds
Additions
Local government-administered contributions 1,915,098$ 1,283,670$ Other income - 719,461
Investment income 21,614 25,463
Total additions 1,936,712 2,028,594
Deductions
Professional and special services 3,091 980,563 Administrative - 859,855
Depreciation 697,519 -
Interest and fiscal agent costs 302,285 -
Total deductions 1,002,895 1,840,418
Change in net position 933,817 188,176
Net position at beginning of year 1,159,732 1,912,825 Net position at end of year 2,093,549$ 2,101,001$

32 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

33 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

34 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

35 City of Campbell
Notes to Financial Statements
June 30, 2024

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 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.

36 City of Campbell
Notes to Financial Statements
June 30, 2024

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).

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.

37 City of Campbell
Notes to Financial Statements
June 30, 2024

• 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.

• 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.

38 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

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.

39 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

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.

40 City of Campbell
Notes to Financial Statements
June 30, 2024

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) The City is a lessee for a noncancellable lease of equipment and subscription assets. The City recognizes a lease/SBITA liability and an intangible right‐to‐use lease asset (lease/SBITA asset) in the government‐wide 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.

The 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‐line basis over its useful life.

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.

41 City of Campbell
Notes to Financial Statements
June 30, 2024

Note 2 - Cash and Investments

Cash and Investments

Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Statement of Net Position
Cash and investments 95,634,420$
Cash held with fiscal agent 569,553
Statement of Fiduciary Net Position
Cash and investments 3,591,774
Cash held with fiscal agent 700
Total Cash and Investments 99,796,447$

Cash and investments as of June 30, 2024 consisted of the following:

Cash on Hand 9,090$
Deposits with Financial Institutions 4,472,531
Investments 95,314,826
Total Cash and Investments 99,796,447$

42 City of Campbell
Notes to Financial Statements
June 30, 2024

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

43 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

44 City of Campbell
Notes to Financial Statements
June 30, 2024

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 10,840,770$ 3,876,700$ 979,170$ 15,696,640$ California Local Agency Investment Fund 78,620,990 - - 78,620,990 Negotiable Certificates of Deposits 997,196 - - 997,196 Total Investments 90,458,956$ 3,876,700$ 979,170$ 95,314,826$ 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, 2024 AA+ Rated
U.S. Government Sponsored Entities None 15,696,640$ 15,696,640$ -$ California Local Agency Investment Fund None 78,620,990 - 78,620,990 Negotiable Certificates of Deposits None 997,196 - 997,196 Total Investments 95,314,826$ 15,696,640$ 79,618,186$

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, 2024, the Federal Home Loan Banks securities represented more than 5% of total City investments at $13,734,460, which was approximately 14.41%.

45 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024, 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.

46 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
U.S. Government Sponsored Entities -$ 15,696,640$ -$ 15,696,640$ Negotiable Certificates of Deposits - 997,196 - 997,196 Total investments -$ 16,693,836$ -$ 16,693,836 Uncategorized
California local agency investment fund* 78,620,990
Total investment portfolio 95,314,826$

* uncategorized; not subject to fair value measurement tiers.

47 City of Campbell
Notes to Financial Statements
June 30, 2024

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 1,409,174$
1,409,174$

Transfers In/Out

Transfers between funds during the fiscal year ended June 30, 2024 were as follows:

Transfers Out Transfers In Amount
General Fund Other Governmental Funds (a) & (c) 2,652,100$ Capital Projects Fund (e) 1,300,370
Internal Service Funds (a) & (b) 645,936
ARPA Fund General Fund (d) 1,482,695
Housing Assets (d) 104,564
Capital Projects Fund (d) & (e) 125,290
Internal Service Funds (d) 123,386
Other Governmental Funds General Fund (a) 149,000
Capital Projects Fund (e) 2,664,836
Other Governmental Funds (a) 6,000
Internal Service Funds General Fund (a) 3,900
9,258,077$

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.

48 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024 was $382,000.

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, 2024 was $1,305,268.

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, 2024 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, 2024 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, 2024, the City had outstanding rehabilitation loans of $140,000 in its Community Development Block Grant Special Revenue Fund.

49 City of Campbell
Notes to Financial Statements
June 30, 2024

Note 5 - Capital Assets

Capital assets activity for the year ended June 30, 2024 is as follows:

Balance at Balance at
July 1, 2023, Additions Deletions Transfers June 30, 2024 Capital Assets, not Being Depreciated
Land 9,105,635$ -$ -$ -$ 9,105,635$ Construction in progress 7,326,799 18,183,816 - (5,513,080) 19,997,535 Total capital assets, not
being depreciated 16,432,434 18,183,816 - (5,513,080) 29,103,170 Capital Assets, Being Depreciated and Amortized
Buildings and improvements 32,667,386 - - 3,150,822 35,818,208 Right-to-use leased equipment
and subscriptions 2,117,998 314,511 (62,886) - 2,369,623 Machinery and equipment 11,638,108 182,504 (1,182,389) 292,301 10,930,524 Infrastructure 67,836,119 - - 2,069,957 69,906,076 Total capital assets,
being depreciated/amortized 114,259,611 497,015 (1,245,275) 5,513,080 119,024,431 Less Accumulated Depreciation and Amortization for
Buildings and improvements (18,015,400) (868,055) - - (18,883,455) Right-to-use leased equipment
and subscriptions (500,030) (331,683) 62,886 - (768,827) Machinery and equipment (8,356,564) (692,286) 1,168,406 - (7,880,444) Infrastructure (26,143,756) (2,224,619) - - (28,368,375) Total accumulated depreciation
and amortization (53,015,750) (4,116,643) 1,231,292 - (55,901,101) Total capital assets,
being depreciated/amortized, net 61,243,861 (3,619,628) (13,983) 5,513,080 63,123,330 Governmental Activities
capital assets, net 77,676,295$ 14,564,188$ (13,983)$ -$ 92,226,500$

Depreciation expense, including $373,767 relating to the internal service funds, was charged in the following functions in the Statement of Activities:

General government 449,175$
Recreation 230,895
Public safety 286,335
Public works 3,150,238
Total depreciation expense - governmental activities 4,116,643$

50 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024:

Balance Balance Due within
July 1, 2023, Additions Reductions June 30, 2024 One Year Other Debt
2002 refunding certificates of
participation - civic center project 4,090,458$ 241,507$ -$ 4,331,965$ -$ 2016 refunding lease revenue bonds 4,020,000 - (605,000) 3,415,000 630,000 2016 refunding lease premium 454,514 - (90,903) 363,611 90,903 2018 general obligation bond,
series 2020 16,200,000 - (780,000) 15,420,000 345,000 2018 GOB, series 2020 premium 2,854,463 - (105,721) 2,748,742 105,721 2018 general obligation bond,
series 2022 28,000,000 - (1,710,000) 26,290,000 1,010,000 2018 GOB, series 2022 premium 2,417,236 - (89,527) 2,327,709 89,527 California Energy Commission Loan 1,560,030 - (96,863) 1,463,167 97,876 PG&E On-Bill Financing Loan 2,228,045 - (287,490) 1,940,555 287,490 Subscription payables 89,102 - (52,927) 36,175 36,175 Leases payable 1,993,237 314,511 (349,014) 1,958,734 388,130 Other Noncurrent Liabilities
Compensated absences 3,987,015 2,052,067 (1,904,272) 4,134,810 2,034,005 Claims payable (Note 12) 4,381,510 759,070 (953,721) 4,186,859 519,912 72,275,610$ 3,367,155$ (7,025,438)$ 68,617,327$ 5,634,739$

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, 2024, the value of the subscription liability was $36,175. 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
2025 36,175$ 408$ 36,583$ 36,175$ 408$ 36,583$
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, 2024, the defeased 1993 Certificates had been retired.

51 City of Campbell
Notes to Financial Statements
June 30, 2024

Capital Appreciation Certificates in the amount of $1,245,843 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, 2024 is $3,086,122.

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, 2024 are as follows:

Fiscal
Year Ending Principal Interest Total
2025-2029 -$ -$ -$ 2030-2034 1,245,843 5,214,157 6,460,000 1,245,843 5,214,157 6,460,000
Accumulated Accreted
Interest 3,086,122 (3,086,122) -
4,331,965$ 2,128,035$ 6,460,000$
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
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 740,000 14,800 754,800 Total 3,415,000$ 352,500$ 3,767,500$ 2016 Lease Revenue Bonds

52 City of Campbell
Notes to Financial Statements
June 30, 2024

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
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 405,000 483,000 888,000 2030-2034 2,275,000 2,154,200 4,429,200 2035-2039 2,750,000 1,677,450 4,427,450 2040-2044 3,145,000 1,293,700 4,438,700 2045-2049 3,685,000 717,900 4,402,900 2050-2051 1,690,000 68,200 1,758,200 Total 15,420,000$ 8,479,450$ 23,899,450$
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
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 575,000 1,124,125 1,699,125 2030-2034 3,335,000 5,147,625 8,482,625 2035-2039 4,250,000 4,204,500 8,454,500 2040-2044 5,415,000 3,001,875 8,416,875 2045-2049 6,915,000 1,475,725 8,390,725 2050-2051 3,230,000 130,400 3,360,400 Total 26,290,000$ 19,861,000$ 46,151,000$
2018 Measure O General Obligation Bond Series 2022

53 City of Campbell
Notes to Financial Statements
June 30, 2024

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
2025 97,876$ 14,388$ 112,264$ 2026 98,857 13,407 112,264 2027 99,848 12,416 112,264 2028 100,818 11,446 112,264 2029 101,859 10,404 112,263 2030-2034 524,801 36,518 561,319 2035-2039 439,108 9,948 449,056 1,463,167$ 108,527$ 1,571,694$
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
2025 287,490$ -$ 287,490$ 2026 287,490 - 287,490 2027 287,490 - 287,490 2028 287,490 - 287,490 2029 287,490 - 287,490 2030-2031 503,106 - 503,106 1,940,555$ -$ 1,940,555$ Pacific Gas & Electric Loan

54 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024, the City had the following construction commitments:

Remaining
Project Commitment
Civic Center Improvement (Measure O) 41,850,059$
Annual Street Maintenance 299,106
Campbell Park Bike Pathway 44,779
Traffic Calming Improvements 43,998
All other capital projects commitments 93,043
42,330,985$

At June 30, 2024, the City had the following other encumbrances including the significant commitment to the Capital Projects Fund under various funds as noted below:

Fund Amount
General Fund 917,512$
Capital Projects Fund 42,330,985
Nonmajor Governmental Funds 193,642
Proprietary Funds 6,895
Total commitments 43,449,034$

55 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

56 City of Campbell
Notes to Financial Statements
June 30, 2024

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 $9,482,800 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, 2024, were classified as follows:

Capital Other Total
General Housing and Projects Measure O Governmental Governmental Fund Assets Fund Fund Funds Funds
Nonspendable
Leases 199,081$ -$ -$ -$ -$ 199,081$ Restricted
Debt service - - - - 2,415,922 2,415,922 Streets and roads - - - - 7,057,040 7,057,040 Museum and adult center - - - - 23,882 23,882 Public Safety - - - - 329,059 329,059 Community development - - - 40,391,087 4,189,144 44,580,231 Housing - 8,520,812 - - 346 8,521,158 Total restricted - 8,520,812 - 40,391,087 14,015,393 62,927,292 Committed
General plan update - - - - - - Historic preservation 5,000 - - - - 5,000 Compensated absences 970,698 - - - - 970,698 Liability insurance 157,936 - - - - 157,936 Capital improvements Reserve 212,351 - - - - 212,351 Committed Capital
improvements Reserve 1,240,899 - - - - 1,240,899 Community Center 149,706 - - - - 149,706 Heritage Theater 180,344 - - - - 180,344 Total committed 2,916,934 - - - - 2,916,934 Assigned
Capital projects
(Construction Tax) 138,406 - 968,320 - - 1,106,726 Unemployment insurance 90,000 - - - - 90,000 PERS 2,252,000 - - - - 2,252,000 OPEB 393,315 - - - - 393,315 All other 917,512 - - - - 917,512 Total assigned 3,791,233 - 968,320 - - 4,759,553 Unassigned
Unassigned 1,000,000 - - - (229,121) 770,879 City council reserve 362,624 - - - - 362,624 Economic fluctuations 9,485,886 - - - - 9,485,886 Emergency 3,207,454 - - - - 3,207,454 Total unassigned 14,055,964 - - - (229,121) 13,826,843 Total 20,963,212$ 8,520,812$ 968,320$ 40,391,087$ 13,786,272$ 84,629,703$ Capital
Projects FundRevenue Funds
Special

57 City of Campbell
Notes to Financial Statements
June 30, 2024

Note 9 - Pension Plans

The following is a summary of pension related items for the year ended June 30, 2024:

Deferred Deferred
Pension Outflows Inflows Pension
Liability of Resources of Resources Expense
CalPERS Miscellaneous 41,444,336$ 12,654,261$ -$ 9,614,534$ CalPERS Safety 36,566,085 15,657,545 851,909 6,331,799 78,010,421$ 28,311,806$ 851,909$ 15,946,333$

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.

58 City of Campbell
Notes to Financial Statements
June 30, 2024

The Plans’ provisions and benefits in effect for the measurement period ended June 30, 2023, 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 11.32% 11.32% 11.32%
Employer portion of unfunded liability 2,731,760$ -$ -$ 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% 13.75% Required employer contribution rates:

Normal cost rate 29.09% 21.15% 13.54%
Employer portion of unfunded liability 2,335,228$ -$ -$ Miscellaneous
Safety

Employees Covered

At June 30, 2023, the measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 265 Inactive employees entitled but not yet receiving benefits 171 Active employees 117
Total 553

59 City of Campbell
Notes to Financial Statements
June 30, 2024
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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 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, 2022 actuarial valuations were determined using the following actuarial methods and assumptions:

Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
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.

60 City of Campbell
Notes to Financial Statements
June 30, 2024

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 2021-22 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.

61 City of Campbell
Notes to Financial Statements
June 30, 2024

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 134,512,375$ 97,016,047$ 37,496,328$ Changes in the Year
Service cost 2,526,475 - 2,526,475 Interest on the total pension liability 9,334,654 - 9,334,654 Change in benefit terms 167,571 - 167,571 3,141,093 - 3,141,093 Contribution - employer - 4,275,514 (4,275,514) Contribution - employee - 1,090,549 (1,090,549) Net investment income - 5,927,063 (5,927,063) Administrative expenses - (71,341) 71,341 Benefit payments, including refunds
of employee contributions (7,598,828) (7,598,828) - Net changes 7,570,965 3,622,957 3,948,008 Balance at end of year 142,083,340$ 100,639,004$ 41,444,336$ 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 36,566,085$

62 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2023 and 2022 was as follows:

Safety
Proportion - Fiscal Year ended June 30, 2022 0.49314%
Proportion - Fiscal Year ended June 30, 2023 0.48918%
Change - Increase (decrease) -0.00396%

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 59,685,674$ 53,356,904$ Current Discount Rate 6.90% 6.90%
Net Pension Liability 41,444,336$ 36,566,085$ 1% Increase 7.90% 7.90%
Net Pension Liability 26,375,651$ 22,838,395$

Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

63 City of Campbell
Notes to Financial Statements
June 30, 2024

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2024, 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, 2024, 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
5,637,515$ -$ 4,737,566$ -$ 10,375,081$ -$ 1,817,544 - 2,684,625 229,832 4,502,169 229,832 Changes in assumptions 572,322 - 2,134,046 - 2,706,368 - - - 954,936 566,732 954,936 566,732 Change in proportion - - 142,313 55,345 142,313 55,345 4,626,880 5,004,059 - 9,630,939 - 12,654,261$ -$ 15,657,545$ 851,909$ 28,311,806$ 851,909$ 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

$5,637,515 and $4,737,566 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
2025 2,932,109$ 3,322,850$ 6,254,959$ 2026 752,160 2,315,527 3,067,687 2027 3,195,904 4,290,021 7,485,925 2028 136,573 139,672 276,245 7,016,746$ 10,068,070$ 17,084,816$

Payable to the Pension Plans

At June 30, 2024, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.

64 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024, total contributions of $88,720 ($73,342 employee and $15,378 employer) were made based on covered compensation of $1,188,123.

65 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2023 measurement date, the following current and former employees were covered by the benefit terms under the plan:

Inactive employees or beneficiaries currently receiving benefits 139 Inactive employees or beneficiaries entitled to but not yet receiving benefit payments 56 Active plan members 156
351

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, 2024, the City’s cash contributions were $73,327 in payments to the trust, $482,227 of cash benefits payments and an estimated implied subsidy of $272,193 and resulting in payments of $827,747.

Net OPEB Liability

The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown on the next page.

66 City of Campbell
Notes to Financial Statements
June 30, 2024

Actuarial Assumptions

The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.10%
Investment rate of return 6.10%
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 4.7% in 2025, decreasing to an ultimate rate of 3.9% in 2076 and later years.

The actuarial assumptions used in the June 30, 2023, valuation was 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%

67 City of Campbell
Notes to Financial Statements
June 30, 2024

Discount Rate

The discount rate used to measure the total OPEB liability was 6.10%. This is a 5% change from 6.15% as of the last valuation used for fiscal year ended June 30, 2023. 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 11,791,563$ 5,802,585$ 5,988,978$ Changes recognized for year
Service cost 406,676 - 406,676 Interest 729,661 - 729,661 Changes due to investment experience - 9,305 (9,305) Change due to other plan experience 946,361 - 946,361 Changes of assumptions (1,083,835) - (1,083,835) Contributions
Employer - explicit subsidy - 683,948 (683,948) Employer - implicit subsidy - 229,592 (229,592) Net investment income - 364,368 (364,368) Administrative expenses - (1,687) 1,687 Benefit payments (667,662) (667,662) - Net changes 331,201$ 617,864$ (286,663)$ Balance at end of year 12,122,764$ 6,420,449$ 5,702,315$ 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%
(5.10%)
Current Discount Rate
(6.10%)
Discount Rate + 1%
(7.10%)
7,102,938$ 5,702,315$ 4,532,329$

68 City of Campbell
Notes to Financial Statements
June 30, 2024

Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates

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 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
4,984,324$ 5,702,315$ 6,583,012$

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB:

For the year ended June 30, 2024, the City recognized OPEB expense of $957,244. At June 30, 2024, 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 827,747$ -$ Differences between expected and actual experience 1,183,101 (107,297) Changes in assumptions 610,523 (920,639) Net differences between projected and
actual earnings on plan investments 378,229 - Total 2,999,600$ (1,027,936)$

$827,747 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)
2025 247,652$
2026 217,310
2027 487,196
2028 218,368
2029 (22,173)
Thereafter (4,436)
1,143,917$

69 City of Campbell
Notes to Financial Statements
June 30, 2024

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.

70 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 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$ Balance as of July 1, 2023 469,803$ 3,911,707$ 4,381,510$ Liability for current year fiscal claims 5,284 753,786 759,070 Increase (decrease) in estimated liability 455,223 (940,949) (485,726) Claims paid (175,887) (292,108) (467,995) Balance as of June 30, 2024 754,423$ 3,432,436$ 4,186,859$

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, 2024, the City contributed $331,743 to SVACA for field services and sheltering costs. Audited financial statements are available from SVACA at 2340-A Walsh Avenue, Santa Clara, California 95051.

71 City of Campbell
Notes to Financial Statements
June 30, 2024

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 up to five years. The interest (discount) rate for the leases is a flat 2.14% to 3.378%. The City received $1,521,497 in monthly payments. The City recognized $1,432,099 in lease revenue and $89,398 in interest revenue during the current fiscal year related to these leases. As of June 30, 2024, the City’s receivable for lease payments was $3,302,555. 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, 2024, the balance of the deferred inflow of resources was $3,149,940.

The City leases land for the usage of cellular towers to various third parties. The leases span up to eight years.

The interest rate for the leases is a flat 2.14%. The City received $152,087 in monthly payments. The City recognized $133,177 in lease revenue and $18,910 in interest revenue during the current fiscal year related to these leases. As of June 30, 2024, the City’s receivable for lease payments was $605,437. 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, 2024, the balance of the deferred inflow of resources was $558,970.

72 City of Campbell
Notes to Financial Statements
June 30, 2024

Leases Payable

The City leases 19 vehicles. An initial lease liability for three vehicles was recorded during the year amount to $172,229. As of June 30, 2024 the value of the total lease liability was $437,240. The City made principal and interest payments of $133,403. The leases have interest rates between 4.75% and 14.75%. The City also has three office equipment leases. As of June 30, 2024 the value of the lease liability was $141,205. The City made principal and interest payments of $29,608. Additionally, the City has a public safety equipment lease for $1,105,368 at a rate of 3%. As of June 30, 2024. The City made principal and interest payments of $177,044.

Lastly, the City maintains an equipment lease at a rate of 3%. As of June 30, 2024, the lease liability was $274,921.

The future principal and interest lease payments as of June 30, 2024, were as follows:

Fiscal years Ended June 30 Principal Interest
2025 388,130$ 71,103$
2026 402,383 57,493
2027 368,742 43,342
2028 243,740 30,403
2029 215,362 20,346
2030-2034 340,377 30,447
Total 1,958,734$ 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.

73 City of Campbell
Notes to Financial Statements
June 30, 2024

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 2024-28. 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, 2024 consisted of the following:

Balance Balance Due Within
July 1,2023 Additions Deletions June 30,2024 One Year
2016 Tax Allocation Refunding Bonds 14,495,000$ -$ (1,595,000)$ 12,900,000$ 1,630,000$

Long-term Liabilities

Long-term liabilities of the Successor Agency as of June 30, 2024 consisted of the following:

Balance at Balance at
July 1, 2023 Additions June 30, 2024
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 (11,727,615) (309,152) (12,036,767) Other improvements (11,380,765) (388,368) (11,769,133) Total accumulated depreciation (23,108,380) (697,520) (23,805,900) Total capital assets,
being depreciated, net 7,637,492 (697,520) 6,939,972 Governmental Activities
capital assets, net 14,761,023$ (697,520)$ 14,063,503$

74 City of Campbell
Notes to Financial Statements
June 30, 2024

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, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 1,740,000 123,195 1,863,195 2030-2031 4,435,000 134,375 4,569,375 Total 12,900,000$ 1,113,306$ 14,013,306$

Required Supplementary Information
June 30, 2024
City of Campbell

See Notes to Required Supplementary Information 75
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, 2024 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, 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 June 30, 2014 Total Pension Liability:

Service cost 2,526,475$ 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 9,334,654 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 3,141,093 625,329 (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 167,571 - - - - - - - - - Benefit payments (7,598,828) (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 7,570,965 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 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 83,995,492 Total Pension Liability - End of Year 142,083,340$ 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 4,275,514$ 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 1,090,549 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 5,927,063 (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 (71,341) (66,773) (88,594) (120,615) (58,198) (119,314) (103,210) (43,290) (79,967) - Benefit payments (7,598,828) (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 3,622,957 (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 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 61,409,533 Plan Fiduciary Net Position - End of Year (b) 100,639,004$ 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) 41,444,336$ 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 70.83% 72.12% 84.98% 72.85% 73.75% 74.44% 72.29% 73.80% 77.97% 79.85% Covered payroll $13,798,336 $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 300.36% 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%.

See Notes to Required Supplementary Information 76
City of Campbell
Schedule of Pension Contributions – CalPERS Miscellaneous Plan Last Ten Fiscal Years
Fiscal Year ended 2024 2023 2022 2021 2020 2019 2018 2017 2016 2016 Actuarially determined contribution 5,637,515$ 4,275,514$ 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 (5,637,515) (4,275,514) (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 $13,798,336 $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 39.76% 30.99% 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%.

See Notes to Required Supplementary Information 77
City of Campbell
Schedule of Proportionate Share of the Net Pension Liability – CalPERS Safety Plans Last Ten Fiscal Years
Fiscal Year ended June 30, 2024 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, 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 June 30, 2014 Proportion of the net pension liability 0.48918% 0.49314% 0.54672% 0.46782% 0.47274% 0.48183% 0.47999% 0.50062% 0.52828% 0.52660% 36,566,085$ 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 6,748,836$ 6,821,979$ 6,646,761$ 6,137,525$ 6,194,278$ 6,180,899$ 5,832,083$ 5,370,852$ 5,168,789$ 5,062,342$ 541.81% 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 74.87% 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%.

See Notes to Required Supplementary Information 78
City of Campbell
Schedule of Pension Contributions – CalPERS Safety
Plan Last Ten Fiscal Years
Fiscal Year ended 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 4,737,566$ 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 (4,737,566) (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 7,120,552$ 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$

66.53% 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%.

See Notes to Required Supplementary Information 79
City of Campbell
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
Fiscal Year ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement period ended 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:

Service cost 406,676$ 394,831$ 341,663$ 331,712$ 339,543$ 329,653$ 320,051$ Interest on total OPEB liability 729,661 699,837 617,389 587,481 582,939 549,781 518,912 Actual vs. expected experience 946,361 - 684,363 - (375,537) - - Assumption changes (1,083,835) - 1,073,039 - (40,651) - - Benefit payments (667,662) (575,477) (497,843) (474,260) (388,140) (408,022) (374,490) Net Change in Total OPEB Liability 331,201 519,191 2,218,611 444,933 118,154 471,412 464,473 Total OPEB Liability - Beginning of Year 11,791,563 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) 12,122,764 11,791,563 11,272,372 9,053,761 8,608,828 8,490,674 8,019,262 Plan Fiduciary Net Position:

Contributions - employer 913,540 659,310 613,391 646,871 675,398 1,566,022 829,490 Net investment income 373,673 (884,900) 1,399,683 169,139 261,853 255,576 251,971 Administrative expenses (1,687) (1,673) (1,927) (3,830) (2,124) (5,460) (1,332) Benefit payments (667,662) (575,477) (497,843) (474,260) (388,140) (408,022) (374,490) Net Change in Plan Fiduciary Net Position 617,864 (802,740) 1,513,304 337,920 546,987 1,408,116 705,639 Plan Fiduciary Net Position - Beginning of Year 5,802,585 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) 6,420,449 5,802,585 6,605,325 5,092,021 4,754,101 4,207,114 2,798,998 Net OPEB Liability - Ending (a) - (b) 5,702,315$ 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 52.96% 49.21% 58.60% 56.24% 55.22% 49.55% 34.90% Covered-employee payroll 25,483,309$ 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 22.38% 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%.

From fiscal year June 30, 2023 to June 30, 2024:

The discount rate was reduced from 6.15% to 6.10%.
* - Fiscal year 2018 was the 1st year of implementation.

See Notes to Required Supplementary Information 80
City of Campbell
Schedule of OPEB Contributions
Last Ten Fiscal Years*
Fiscal Year ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 847,447$ 822,791$ 624,000$ 610,000$ 642,000$ 629,000$ 1,038,000$ Contributions in relation to the
actuarially determined contributions (827,747) (913,540) (659,310) (613,391) (646,871) (675,398) (1,566,022) Contribution deficiency (excess) 19,700$ (90,749)$ (35,310)$ (3,391)$ (4,871)$ (46,398)$ (528,022)$ Covered-employee payroll $27,216,437 $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 3.04% 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%.

From fiscal year June 30, 2023 to June 30, 2024:

The discount rate was reduced from 6.15% to 6.10%.
* - Fiscal year 2018 was the 1st year of implementation.

See Notes to Required Supplementary Information 81
City of Campbell
Budgetary Comparison Schedule – General Fund
Fiscal Year Ended June 30, 2024
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 22,047,000$ 21,847,000$ 21,912,688$ 65,688$ Sales and use taxes 17,699,289 16,826,202 16,549,227 (276,975) Other taxes 9,691,400 8,582,600 8,991,901 409,301 Licenses and permits 4,290,300 3,909,500 3,344,256 (565,244) Fines and forfeitures 100,000 150,000 172,012 22,012 Investment income 810,900 1,055,000 1,156,980 101,980 Rents and leases 3,052,500 3,098,400 3,172,450 74,050 Intergovernmental 2,059,068 2,541,100 1,358,912 (1,182,188) Charges for services 5,907,545 5,893,860 6,243,053 349,193 Miscellaneous 216,410 564,228 237,863 (326,365) Total Revenues 65,874,412 64,467,890 63,139,342 (1,328,548) Expenditures
General government
City council 363,952 363,952 599,066 (235,114) City manager 1,411,857 1,511,857 1,230,451 281,406 City clerk 577,829 577,829 493,226 84,603 Human resources 1,567,865 1,556,864 1,490,111 66,753 Accounting 2,446,442 2,540,651 2,596,615 (55,964) Non-departmental finance 2,715,229 1,140,894 2,853,125 (1,712,231) COVID response - - 109,337 (109,337)
Legal services 579,520 614,520 525,088 89,432 Economic development 242,022 388,770 304,121 84,649 Total general government 9,904,716 8,695,337 10,201,140 (1,505,803) Recreation
Community services and administration 568,648 568,648 1,117,320 (548,672) Senior citizens nutrition program 241,330 270,330 284,153 (13,823) Adult services 570,171 570,171 498,447 71,724 Campbell community center 1,506,152 1,494,374 1,527,767 (33,393) Museum services 442,172 462,172 408,058 54,114 Theater 1,322,450 1,203,965 991,430 212,535 Sports, aquatics and fitness 1,061,227 1,082,727 958,258 124,469 Trips, tours and classes 1,403,926 1,384,051 1,016,300 367,751 Total recreation 7,116,076 7,036,438 6,801,733 234,705 Community development
Community development administration 777,237 777,237 531,253 245,984 Current planning 1,062,023 1,062,023 1,017,381 44,642 Policy development 1,637,122 1,977,736 844,203 1,133,533 Building 1,959,520 1,956,676 1,548,595 408,081 Total community development 5,435,902 5,773,672 3,941,432 1,832,240 Budgeted Amounts
See Notes to Required Supplementary Information 82
City of Campbell
Budgetary Comparison Schedule – General Fund
Fiscal Year Ended June 30, 2024
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Public safety
Police administration 2,137,601$ 2,172,696$ 4,050,130 (1,877,434)$ Communications 2,995,049 2,995,049 2,810,820 184,229 Records 1,582,747 1,586,744 1,506,778 79,966 Special enforcement services 4,303,331 4,372,005 4,409,297 (37,292) Field services 11,669,318 11,909,952 10,631,957 1,277,995 Fire protection services 10,860,918 10,860,918 10,343,732 517,186 Total public safety 33,548,964 33,897,364 33,752,714 144,650 Public works
Public works administration 1,199,624 1,209,324 1,054,518 154,806 Transportation engineering 942,239 942,239 418,770 523,469 Engineering 1,705,569 1,705,569 1,536,738 168,831 Land development/environment programs 1,008,128 1,022,103 1,006,936 15,167 Maintenance administration 717,146 717,146 674,424 42,722 Building maintenance 1,865,894 2,276,695 2,110,467 166,228 Total Public works 7,438,600 7,873,076 6,801,853 1,071,223 Total expenditures 63,444,258 63,275,887 61,498,872 1,777,015 Excess (deficiency) of revenues
over (under) expenditures 2,430,154 1,192,003 1,640,470 448,467 Other financing sources (uses)
Leases proceeds - - 142,282 142,282
Transfers in 3,387,412 4,142,679 1,635,595 (2,507,084) Transfers out (5,666,245) (6,252,281) (4,598,406) 1,653,875 Total other
financing sources (uses) (2,278,833) (2,109,602) (2,820,529) (710,927) Net change in fund balance 151,321 (917,599) (1,180,059) (262,460) Fund balance at beginning of year 22,143,271 22,143,271 22,143,271 - Fund balance at end of year 22,294,592$ 21,225,672$ 20,963,212$ (262,460)$ Budgeted Amounts

See Notes to Required Supplementary Information 83
City of Campbell
Budgetary Comparison Schedule – Housing Assets Special Revenue Fund Fiscal Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 50,000$ 50,000$ 66,946$ 16,946$ Intergovernmental - - 150,000 150,000 Miscellaneous revenue 175,000 175,000 371,233 196,233 Total revenues 225,000 225,000 588,179 363,179 Expenditures
Current
Community development 1,026,130 1,090,066 667,619 422,447 Total expenditures 1,026,130 1,090,066 667,619 422,447 Excess (Deficiency) of Revenues
Over (Under) Expenditures (801,130) (865,066) (79,440) 785,626 Other Financing Sources (Uses):

Transfers in 210,585 210,585 104,564 (106,021) Total Other
Financing Sources (Uses) 210,585 210,585 104,564 (106,021) Net change in fund balance (590,545) (654,481) 25,124 679,605 Fund balance at beginning of year 8,495,688 8,495,688 8,495,688 - Fund balance at end of year 7,905,143$ 7,841,207$ 8,520,812$ 679,605$ Budgeted Amounts

See Notes to Required Supplementary Information 84
City of Campbell
Budgetary Comparison Schedule – ARPA Special Revenue Fund Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Intergovernmental -$ -$ 1,995,935$ 1,995,935$ Total revenues - - 1,995,935 1,995,935 Expenditures
Current
City Managers Office - - 200,718 (200,718) Total expenditures - - 200,718 (200,718) Excess (deficiency) of revenues
over (under) expenditures - - 1,795,217 1,795,217 Other financing sources (uses)
Transfers out (3,277,097) (5,385,364) (1,835,935) (3,549,429) Total other
financing sources (uses) (3,277,097) (5,385,364) (1,835,935) 3,549,429 Net change in fund balance (3,277,097) (5,385,364) (40,718) 5,344,646 Fund balance at beginning of year 40,718 40,718 40,718 - Fund balance at end of year (3,236,379)$ (5,344,646)$ -$ 5,344,646$ Budgeted Amounts

85 City of Campbell
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2024

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.

Supplementary Information
June 30, 2024
City of Campbell

86 City of Campbell
Description of Other Governmental Funds
June 30, 2024

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.

87 City of Campbell
Description of Other Governmental Funds
June 30, 2024

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.

88 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2024

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 Assets
Cash and investments 2,106,209$ 1,897,359$ 947,473$ 3,926,839$ 1,917,512$ 16$ 114,074$ 1,088,798$ 219,559$ Cash held with fiscal agent - - - - - - - - - Receivables:

Accounts 1,474 39,800 81,662 - 20,917 - - 92,686 - Taxes 300,426 - - - 5,998 - - - - Interest 17,718 27,951 11,248 36,981 12,275 - 1,041 9,370 2,057 Notes and loans - - - - - 140,000 - - - Total assets 2,425,827$ 1,965,110$ 1,040,383$ 3,963,820$ 1,956,702$ 140,016$ 115,115$ 1,190,854$ 221,616$ Liabilities
Accounts payable 104,743$ -$ -$ -$ 256,951$ -$ -$ 70,445$ -$ Accrued payroll 67,693 - - - 110,006 - - 8,430 7,672 Due to other funds - - 1,269,504 - - 139,670 - - - Total liabilities 172,436 - 1,269,504 - 366,957 139,670 - 78,875 7,672 Fund balances (deficit)
Restricted 2,253,391 1,965,110 - 3,963,820 1,589,745 346 115,115 1,111,979 213,944 Unassigned - - (229,121) - - - - - - Total fund balances (deficit) 2,253,391 1,965,110 (229,121) 3,963,820 1,589,745 346 115,115 1,111,979 213,944 Total liabilities, deferred inflows
of resources and fund balances 2,425,827$ 1,965,110$ 1,040,383$ 3,963,820$ 1,956,702$ 140,016$ 115,115$ 1,190,854$ 221,616$ Special Revenue Funds

89 City of Campbell
Combining Balance Sheet – Other Governmental Fund
Year Ended June 30, 2024

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 135,633$ 379$ 221,744$ 23,666$ 2,373,968$ -$ 14,973,229$ - - - - - 33,105 33,105 - - - - - - 236,539 - 601 1,155 - 9,110 - 317,290 1,182 2 1,922 216 1,381 - 123,344 - - - - - - 140,000 136,815$ 982$ 224,821$ 23,882$ 2,384,459$ 33,105$ 15,823,507$ -$ -$ 479$ -$ 1,642$ -$ 434,260$ - - - - - - 193,801 - - - - - - 1,409,174 - - 479 - 1,642 - 2,037,235 136,815 982 224,342 23,882 2,382,817 33,105 14,015,393 - - - - - - (229,121) 136,815 982 224,342 23,882 2,382,817 33,105 13,786,272 136,815$ 982$ 224,821$ 23,882$ 2,384,459$ 33,105$ 15,823,507$ Debt Service FundSpecial Revenue Funds

90 City of Campbell
Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds Year Ended June 30, 2024

Vehicle Parkland Lighting and Community Drug
Gas Impact Other Dedication Landscaping Development Enforcement Environmental Tax Fees Grants Fees District Block Grant Revenue Services Revenues
Property taxes -$ -$ -$ -$ 1,947,465$ -$ -$ -$ Special assessments - - - - 1,197,356 - - - Fines and forfeitures - - - - - - - - Investment income 74,854 164,562 59,654 209,280 54,630 - 5,773 39,641 Intergovernmental 2,325,751 753,310 1,272,649 - 2,215 - 1,589 108,000 Charges for services - - - - - - - 982,320 Parkland dedication fees - - - 581,630 - - - - Miscellaneous revenues 54 - - - 96,909 - - - Total revenues 2,400,659 917,872 1,332,303 790,910 3,298,575 - 7,362 1,129,961 Expenditures
Current:

General government - - - - - - - - Community development - - - - - - - - Public safety - - - - - - - - Public works 2,141,270 - 11,254 - 4,178,294 - - 591,504 Debt service:

Principal - - - - - - - - Interest and fiscal charges - - - - - - - - Total expenditures 2,141,270 - 11,254 - 4,178,294 - - 591,504 Excess (deficiency) of revenues
over (under) expenditures 259,389 917,872 1,321,049 790,910 (879,719) - 7,362 538,457 Other financing sources (uses)
Transfers in 705,500 - - - 999,000 - - 187,000 Transfers out - (1,844,780) (510,021) (260,035) - - - (50,000) Total other financing
sources (uses) 705,500 (1,844,780) (510,021) (260,035) 999,000 - - 137,000 Net change in fund balances 964,889 (926,908) 811,028 530,875 119,281 - 7,362 675,457 Fund balances at beginning of year 1,288,502 2,892,018 (1,040,149) 3,432,945 1,470,464 346 107,753 436,522 Fund balances at end of year 2,253,391$ 1,965,110$ (229,121)$ 3,963,820$ 1,589,745$ 346$ 115,115$ 1,111,979$ Special Revenue Funds

91 City of Campbell
Combining Statement of Revenues, Expenditures and Changes in Fund Balance other Governmental Funds Year Ended June 30, 2024

Revenues
Property taxes
Special assessments
Fines and forfeitures
Investment income
Intergovernmental
Charges for services
Parkland dedication fees
Miscellaneous revenues
TOTAL REVENUESTotal revenues
Expenditures
Current:

General government
Community development
Public safety
Public works
Debt service:

Principal
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUESExcess (deficiency) of revenues OVER (UNDER) EXPENDITURES 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 Museum Other
Restitution Facilities Facilities and Governmental
Fund District #1 District #2 Adult Center Measure O 2016 LRB Funds -$ -$ -$ -$ 2,543,635$ -$ 4,491,100$ - 146,672 48,171 - - - 1,392,199 37,325 - - - - - 37,325 5,156 384 10,078 1,176 81,256 744 717,823 - - - - - - 4,641,340 - - - - - - 982,320 - - - - - - 581,630 - - - - - - 96,963 42,481 147,056 58,249 1,176 2,624,891 744 12,940,700 - 3,971 - - - - 3,971 2,901 - - - - 2,901 - - - - - - 155,166 - - 23,868 - - - 6,946,190 - - - - 2,490,000 605,000 3,095,000 - - - - 1,875,250 148,700 2,023,950 2,901 3,971 23,868 - 4,365,250 753,700 12,227,178 39,580 143,085 34,381 1,176 (1,740,359) (752,956) 713,522 - - - - - 766,600 2,658,100 - (143,000) (12,000) - - - (2,819,836) - (143,000) (12,000) - - 766,600 (161,736) 39,580 85 22,381 1,176 (1,740,359) 13,644 551,786 97,235 897 201,961 22,706 4,123,176 19,461 13,234,486 136,815$ 982$ 224,342$ 23,882$ 2,382,817$ 33,105$ 13,786,272$ Debt Service FundSpecial Revenue Funds

92 City of Campbell
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget Actual – Gas Tax Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 25,000$ 25,000$ 74,854$ 49,854$ Intergovernmental 2,331,938 2,331,938 2,325,751 (6,187) Miscellaneous revenue 2,500 2,500 54 (2,446) Total Revenues 2,359,438 2,359,438 2,400,659 41,221 Expenditures
Current
Public works 2,184,229 2,187,287 2,141,270 46,017 Total expenditures 2,184,229 2,187,287 2,141,270 46,017 Excess (deficiency) of revenues
over (under) expenditures 175,209 172,151 259,389 87,238 Other financing sources (uses)
Transfers in 705,500 705,500 705,500 - Transfers out (1,000,000) (1,000,000) - 1,000,000 Total other
financing sources (uses) (294,500) (294,500) 705,500 1,000,000 Net change in fund balance (119,291) (122,349) 964,889 1,087,238 Fund balance at beginning of year 1,288,502 1,288,502 1,288,502 - Fund balance at end of year 1,169,211$ 1,166,153$ 2,253,391$ 1,087,238$ Budgeted Amounts

93 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Vehicle Impact Fees Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 250$ 250$ 164,562$ 164,312$ Intergovernmental 777,000 777,000 753,310 (23,690) Total revenues 777,250 777,250 917,872 140,622 Other financing sources (uses)
Transfers out (837,000) (958,000) (1,844,780) (886,780) Net change in fund balance (59,750) (180,750) (926,908) (746,158) Fund balance at beginning of year 2,892,018 2,892,018 2,892,018 - Fund balance at end of year 2,832,268$ 2,711,268$ 1,965,110$ (746,158)$ Budgeted Amounts

94 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual –Other Grants Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 59,654$ 59,654$ Intergovernmental 1,482,000 1,833,000 1,272,649 (560,351) Total Revenues 1,482,000 1,833,000 1,332,303 (500,697) Expenditures
Current
Public works - 85,000 11,254 73,746 Excess (deficiency) of revenues
over (under) expenditures 1,482,000 1,748,000 1,321,049 (426,951) Other financing sources (uses)
Transfers out (1,482,000) (1,748,000) (510,021) 1,237,979 Total other
financing sources (uses) (1,482,000) (1,748,000) (510,021) 1,237,979 Net change in fund balance - - 811,028 811,028 Fund balance at beginning of year (1,040,149) (1,040,149) (1,040,149) - Fund balance at end of year (1,040,149)$ (1,040,149)$ (229,121)$ 811,028$ Budgeted Amounts

95 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Parkland Dedication Fees Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 11,900$ 11,900$ 209,280$ 197,380$ Parkland dedication fees 400,000 400,000 581,630 181,630 Total revenues 411,900 411,900 790,910 379,010 Other financing sources (uses)
Transfers out (428,000) (428,000) (260,035) 167,965 Net change in fund balance (16,100) (16,100) 530,875 546,975 Fund balance at beginning of year 3,432,945 3,432,945 3,432,945 - Fund balance at end of year 3,416,845$ 3,416,845$ 3,963,820$ 546,975$ Budgeted Amounts

96 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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 1,143,000$ 1,143,000$ 1,947,465$ 804,465$ Special assessments 1,210,000 1,210,000 1,197,356 (12,644) Investment income - - 54,630 54,630 Intergovernmental 2,500 2,500 2,215 (285) Miscellaneous revenues 25,000 25,000 96,909 71,909 Total revenues 2,380,500 2,380,500 3,298,575 918,075 Expenditures
Current
Public works 3,844,436 3,956,927 4,178,294 (221,367) Total expenditures 3,844,436 3,956,927 4,178,294 (221,367) Excess (deficiency) of revenues
over (under) expenditures (1,463,936) (1,576,427) (879,719) 696,708 Other financing sources (uses)
Transfers in 999,000 999,000 999,000 - Total other
financing sources (uses) 999,000 999,000 999,000 - Net change in fund balance (464,936) (577,427) 119,281 696,708 Fund balance at beginning of year 1,470,464 1,470,464 1,470,464 - Fund balance at end of year 1,005,528$ 893,037$ 1,589,745$ 696,708$ Budgeted Amounts

97 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Drug Enforcement Revenue Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 2,500$ 2,500$ 5,773$ 3,273$ Intergovernmental - - 1,589 1,589 Miscellaneous revenues 10,000 10,000 - (10,000) Total revenues 12,500 12,500 7,362 (5,138) Net change in fund balance 12,500 12,500 7,362 (5,138) Fund balance at beginning of year 107,753 107,753 107,753 - Fund balance at end of year 120,253$ 120,253$ 115,115$ (5,138)$ Budgeted Amounts

98 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Environmental Services Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ 39,641$ 39,141$ Intergovernmental - 197,972 108,000 (89,972) Charges for services 65,000 65,000 982,320 917,320 Miscellaneous revenues 49,356 49,356 - (49,356) Total revenues 114,856 312,828 1,129,961 817,133 Expenditures
Current
Public works 587,754 785,726 591,504 194,222 Excess (deficiency) of revenues
over (under) expenditures (472,898) (472,898) 538,457 1,011,355 Other financing sources (uses)
Transfers in 187,000 187,000 187,000 - Transfers out - - (50,000) (50,000) Total other
financing sources (uses) 187,000 187,000 137,000 (50,000) Net change in fund balance (285,898) (285,898) 675,457 961,355 Fund balance at beginning of year 436,522 436,522 436,522 - Fund balance at end of year 150,624$ 150,624$ 1,111,979$ 961,355$ Budgeted Amounts

99 City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Supplemental Law Enforcement Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 10,635$ 10,635$ Intergovernmental 100,000 100,000 177,826 77,826 Total revenues 100,000 100,000 188,461 88,461 Expenditures
Current
Public safety 144,333 161,044 155,166 5,878 Net change in fund balance (44,333) (61,044) 33,295 94,339 Fund balance at beginning of year 180,649 180,649 180,649 - Fund balance at end of year 136,316$ 119,605$ 213,944$ 94,339$ Budgeted Amounts

100
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Community Restitution Fund Special Revenue Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Fines/Forfeits/Penalties 45,000$ 45,000$ 37,325$ (7,675)$ Investment income - - 5,156 5,156 Total Revenues 45,000 45,000 42,481 (2,519) Expenditures
Current
Community Development 30,000 30,000 2,901 27,099 Total expenditures 30,000 30,000 2,901 27,099 Net change in fund balance 15,000 15,000 39,580 24,580 Fund balance at beginning of year 97,235 97,235 97,235 - Fund balance at end of year 112,235$ 112,235$ 136,815$ 24,580$ Budgeted Amounts

101
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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Special assessments 146,350$ 146,350$ 146,672$ 322$ Investment income 550 550 384 (166) Total revenues 146,900 146,900 147,056 156 Expenditures
Current
Community development 3,700 3,700 3,971 (271) Excess (deficiency) of revenues
over (under) expenditures 143,200 143,200 143,085 (115) Other financing sources (uses)
Transfers out (143,000) (143,000) (143,000) - Net change in fund balance 200 200 85 (115) Fund balance at beginning of year 897 897 897 - Fund balance at end of year 1,097$ 1,097$ 982$ (115)$ Budgeted Amounts

102
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, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income -$ -$ 10,078$ 10,078$ Special assessments 35,250 50,673 48,171 (2,502) Total revenues 35,250 50,673 58,249 7,576 Expenditures
Current
Public Works 28,000 28,000 23,868 4,132 Excess (deficiency) of revenues
over (under) expenditures 7,250 22,673 34,381 11,708 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) 10,673 22,381 11,708 Fund balance at beginning of year 201,961 201,961 201,961 - Fund balance at end of year 197,211$ 212,634$ 224,342$ 11,708$ Budgeted Amounts

103
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Capital Projects Fund Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Project revenues -$ -$ 101,987$ 101,987$ Miscellaneous revenues 507,000 507,000 - (507,000) Total revenues 507,000 507,000 101,987 (405,013) Expenditures
Current
Other 581,500 48,335 - 48,335 Capital outlay 6,114,745 15,973,080 4,153,269 11,819,811 Excess (deficiency) of revenues
over (under) expenditures (6,189,245) (15,514,415) (4,051,282) 11,463,133 Other financing sources (uses)
Transfers in 6,189,245 6,690,245 4,090,496 (2,599,749) Total other
financing sources (uses) 6,189,245 6,690,245 4,090,496 (2,599,749) Net change in fund balance - (8,824,170) 39,214 8,863,384 Fund balance at beginning of year 929,106 929,106 929,106 - Fund balance at end of year 929,106$ (7,895,064)$ 968,320$ 8,863,384$ Budgeted Amounts

104
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Capital Projects Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 200,000$ 200,000$ 2,091,758$ 1,891,758$ Intergovernmental 2,859,225 2,859,225 - (2,859,225) TOTAL REVENUES 3,059,225 3,059,225 2,091,758 (967,467) Expenditures
Capital outlay 1,722,533 59,130,756 14,542,798 44,587,958 Total expenditures 1,722,533 59,130,756 14,542,798 44,587,958 Excess (deficiency) of revenues
over (under) expenditures 1,336,692 (56,071,531) (12,451,040) 43,620,491 Other financing sources (uses)
Transfers in - 1,451,000 - (1,451,000) Total other
Financing sources (uses) - 1,451,000 - (1,451,000) Net Change in Fund Balance 1,336,692 (54,620,531) (12,451,040) 42,169,491 Fund Balance at Beginning of Year 52,842,127 52,842,127 52,842,127 - Fund Balance at End of Year 54,178,819$ (1,778,404)$ 40,391,087$ 42,169,491$ Budgeted Amounts

105
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – 2016 LRB Debt Service Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Investment income 500$ 500$ 744$ 244$ Expenditures
Debt Service
Principal 630,000 630,000 605,000 25,000 Interest and fees 139,200 139,200 148,700 (9,500) Total expenditures 769,200 769,200 753,700 15,500 Excess (deficiency) of revenues
over (under) expenditures (768,700) (768,700) (752,956) 15,744 Other financing sources (uses)
Transfers in 766,600 766,600 766,600 - Net change in fund balance (2,100) (2,100) 13,644 15,744 Fund balance at beginning of year 19,461 19,461 19,461 - Fund balance at end of year 17,361$ 17,361$ 33,105$ 15,744$ Budgeted Amounts

106
City of Campbell
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget Actual – Measure O Debt Service Fund
Year Ended June 30, 2024

Variance with
Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Property taxes 2,600,000$ 2,600,000$ 2,543,635$ (56,365)$ Investment income - - 81,256 81,256 Total revenues 2,600,000 2,600,000 2,624,891 24,891 Expenditures
General government 1,500 1,500 - 1,500 Debt Service 4,365,250 4,365,250 4,365,250 - Total expenditures 4,366,750 4,366,750 4,365,250 1,500 Excess (deficiency) of revenues
over (under) expenditures (1,766,750) (1,766,750) (1,740,359) 26,391 Net change in fund balance (1,766,750) (1,766,750) (1,740,359) 26,391 Fund balance at beginning of year 4,123,176 4,123,176 4,123,176 - Fund balance at end of year 2,356,426$ 2,356,426$ 2,382,817$ 26,391$ Budgeted Amounts

107
City of Campbell
Internal Service Funds
June 30, 2024

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.

108
City of Campbell
Combining Statement of Net Position – Internal Service Funds June 30, 2024

Motor Workers' Information
Vehicle Compensation Technology
Pool Self-Insurance Services Total
Assets
Current assets
Cash and investments 861,862$ 4,826,583$ 583,587$ 6,272,032$ Accounts receivable 7,566 43,710 9,175 60,451 Prepaid items - - 122,313 122,313 Deposits - 90,000 - 90,000 Total current assets 869,428 4,960,293 715,075 6,544,796 Noncurrent assets
Capital assets, net 1,172,841 - 147,295 1,320,136 Total noncurrent assets 1,172,841 - 147,295 1,320,136 Total assets 2,042,269 4,960,293 862,370 7,864,932 Deferred outflows of resources
Amount related to pensions 210,367 - 390,009 600,376 Amount related to OPEB 26,125 - 63,889 90,014 Total deferred outflows of resources 236,492 - 453,898 690,390 Liabilities
Current liabilities
Accounts payable 63,400 48,294 294,665 406,359 Accrued payroll 19,225 - 41,150 60,375 Compensated absences, current portion 18,333 - 27,345 45,678 Leases payable 437,240 - - 437,240 Subscription liabilities - - 36,175 36,175 Claims and judgments payable, current portion - 519,912 - 519,912 .

Total current liabilities 538,198 568,206 399,335 1,505,739 Noncurrent liabilities
Compensated absences 16,921 - 31,270 48,191 Claims and judgments payable - 2,912,524 - 2,912,524 Net OPEB liability 49,664 - 121,454 171,118 Net pension liability 688,980 - 1,277,330 1,966,310 Total noncurrent liabilities 755,565 2,912,524 1,430,054 5,098,143 Total liabilities 1,293,763 3,480,730 1,829,389 6,603,882 Deferred inflows of resources
Amount related to OPEB 8,953 - 21,894 30,847 Total deferred inflows of resources 8,953 - 21,894 30,847 Net position
Net investments in capital assets 735,601 - 111,120 846,721 Unrestricted 240,444 1,479,563 (646,135) 1,073,872 Total net position 976,045$ 1,479,563$ (535,015)$ 1,920,593$

109
City of Campbell
Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds Year Ended June 30, 2024

Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service Total
Operating revenues
Investment income 37,001$ 230,171$ 4,334$ 271,506$ Charges for services 1,101,068 697,668 1,161,992 2,960,728 Other 3,024 3,598 20,392 27,014 Total operating revenues 1,141,093 931,437 1,186,718 3,259,248 Operating expenses
Personnel services 411,435 - 583,430 994,865 Services and supplies 556,714 (11,147) 789,128 1,334,695 Depreciation and amortization 346,237 - 27,530 373,767 Total operating expenses 1,314,386 (11,147) 1,400,088 2,703,327 Operating gain (loss) (173,293) 942,584 (213,370) 555,921 Nonoperating income (expenses)
Loss on disposal of capital assets (1,714) - (12,270) (13,984) Income (loss) before transfers (175,007) 942,584 (225,640) 541,937 Transfers
Transfers in - - 769,322 769,322 Transfers out (3,900) - - (3,900) Total transfers (3,900) - 769,322 765,422 Net change in net position (178,907) 942,584 543,682 1,307,359 Net position at beginning of year 1,154,952 536,979 (1,078,697) 613,234 Net position at end of year 976,045$ 1,479,563$ (535,015)$ 1,920,593$

110
City of Campbell
Combining Statement of Cash Flows – Internal Service Funds Year Ended June 30, 2024

Motor Worker' Information
Vehicle Compensation Technology
Pool Self-Insurance Service Total
Cash flows from operating activities
Cash received from department users 1,138,461$ 920,317$ 1,178,034$ 3,236,812$ Cash payments to suppliers of goods and services (537,568) (419,830) (694,910) (1,652,308) Cash payments to employees for services (357,504) - (826,984) (1,184,488) Net cash provided (used)
by operating activities 243,389 500,487 (343,860) 400,016 Cash flows from noncapital
financing activities
Cash received from other funds - - 769,322 769,322 Cash paid to other funds (3,900) - - (3,900) Net cash provided by
noncapital financing activities (3,900) - 769,322 765,422 Cash flows from capital and related financing activities Acquisition of capital assets (86,290) - 39,761 (46,529) Net cash used by capital and
related financing activities (86,290) - 39,761 (46,529) Net increase (decrease) in
cash and cash equivalents 153,199 500,487 465,223 1,118,909 Cash and cash equivalents
at beginning of year 708,663 4,326,096 118,364 5,153,123 Cash and cash equivalents
at end of year 861,862$ 4,826,583$ 583,587$ 6,272,032$ Reconciliation of opearting income (loss)
to net cash provided (used) by operating activities
Operating income (loss) (173,293)$ 942,584$ (213,370)$ 555,921$ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 346,237 - 27,530 373,767 Changes in operating assets and liabilities
(Increase) decrease in accounts receivables (2,632) (11,120) (8,684) (22,436) (Increase) decrease in prepaid expenses - - (122,313) (122,313) Increase (decrease) in accounts payable 19,146 48,294 216,531 283,971 Increase (decrease) in accrued payroll 1,995 - 435 2,430 Increase (decrease) in compensation absences (1,647) - (38,967) (40,614) Increase (decrease) in subscription liabilities - - (52,927) (52,927) Increase (decrease) in claims and judgements payable - (479,271) - (479,271) Increase (decrease) in net OPEB and related deferrals (637) - (1,560) (2,197) Increase (decrease) in net pension and related deferrals 54,220 - (150,535) (96,315) Net cash provided (used)
by operating activities 243,389$ 500,487$ (343,860)$ 400,016$

111
City of Campbell
Custodial Funds
June 30, 2024

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.

112
City of Campbell
Combining Statement of Fiduciary Net Position – Custodial Funds June 30, 2024

West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Assets
Cash and investments 1,087,449$ 33,700$ 1,476,719$ 2,597,868$ Accounts receivable 6,473 308 - 6,781 Total assets 1,093,922 34,008 1,476,719 2,604,649 Liabilities
Accounts payable 128,891 - - 128,891 Unearned revenues 374,757 - - 374,757 Total liabilities 503,648 - - 503,648 Net Position
Restricted for individuals
and organizations 590,274$ 34,008$ 1,476,719$ 2,101,001$

113
City of Campbell
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds Year Ended June 30, 2024

West Valley
Solid Waste
Management 1915 Act SCCSET
Authority Bonds Fund Fund Total
Additions
Local government-administered
contributions 1,283,670$ -$ -$ 1,283,670$ Other income 223,100 - 496,361 719,461 Investment income 23,789 1,674 - 25,463 Total additions 1,530,559 1,674 496,361 2,028,594 Deductions
Professional and special services 980,563 - - 980,563 Administrative 300,000 - 559,855 859,855 Total deductions 1,280,563 - 559,855 1,840,418 Change in net position 249,996 1,674 (63,494) 188,176 Net position at beginning of year 340,278 32,334 1,540,213 1,912,825 Net position at end of year 590,274$ 34,008$ 1,476,719$ 2,101,001$

Statistical Section (Unaudited)
June 30, 2024
City of Campbell

114
City of Campbell
Description of Statistical Section Contents
Year Ended June 30, 2024

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. 115 - 120

Revenue Capacity these schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 121 - 124

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. 125 - 129

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. 130 - 131

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. 132 - 134

Sources:

Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year

115
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net of Related Debt Restricted Unrestricted

116
City of Campbell
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)

2015 2016 2017 2018 2019
Governmental activities: (A)
Net investments in
capital assets 22,884,579$ 26,997,661$ 34,884,223$ 38,177,017$ 47,429,206$ Restricted 21,868,884 23,616,442 17,077,829 15,970,726 17,211,524 Unrestricted (20,170,607) (12,748,328) (12,358,383) (21,605,385) (24,121,289) Total governmental activities net position 24,582,856$ 37,865,775$ 39,603,669$ 32,542,358$ 40,519,441$ Primary government:

Net investments in
capital assets 22,884,579$ 26,997,661$ 34,884,223$ 38,177,017$ 47,429,206$ Restricted 21,868,884 23,616,442 17,077,829 15,970,726 17,211,524 Unrestricted (20,170,607) (12,748,328) (12,358,383) (21,605,385) (24,121,289) Total primary government net position 24,582,856$ 37,865,775$ 39,603,669$ 32,542,358$ 40,519,441$ 2020 2021 2022 2023 2024
Governmental activities:

Net investments in
capital assets 48,798,520$ 56,200,867$ 60,313,314$ 69,455,950$ 75,408,051$ Restricted 20,196,004 21,541,280 22,029,954 19,250,568 20,120,283 Unrestricted (32,631,237) (37,922,516) (32,155,840) (29,843,712) (36,180,418) Total governmental activities net position 36,363,287$ 39,819,631$ 50,187,428$ 58,862,806$ 59,347,916$ Primary government:

Net investments in
capital assets 48,798,520$ 56,200,867$ 60,313,314$ 69,455,950$ 75,408,051$ Restricted 20,196,004 21,541,280 22,029,954 19,250,568 20,120,283 Unrestricted (32,631,237) (37,922,516) (32,155,840) (29,843,712) (36,180,418) Total primary government net position 36,363,287$ 39,819,631$ 50,187,428$ 58,862,806$ 59,347,916$ (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,

117
City of Campbell
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses:

Governmental activities:

General government 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$ 11,047,211$ Public safety 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 35,745,519 Public Works 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 18,812,196 Community Development 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 5,447,126 Recreation and Community Services 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 7,753,645 Interest on long-term debt 965,225 936,250 579,013 336,577 330,687 324,934 1,056,277 1,319,942 1,794,044 1,865,614 Total Primary Government Expenses 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 80,671,311 Program Revenues:

Governmental activities:

Charges of services:

General government 1,478,895 1,624,617 1,602,647 1,586,881 18,592 9,375 342 1,814,425 1,993,223 2,188,702 Public safety 686,364 740,750 790,163 857,212 693,216 787,204 409,743 883,254 235,043 883,548 Public Works 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 2,564,257 Community Development 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 4,880,247 Recreation and Community Services 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 3,853,225 Operating Grants and Contribution 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 6,428,666 Capital Grants and Contributions 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 1,572,079 Total Primary Government Program Revenues 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 22,370,724 Net (Expense)/Revenue:

Total primary government net revenue (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) (58,300,587) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property tax 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 26,403,788 Sales Tax 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 16,549,227 Transient Occupancy Tax 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 3,747,247 Franchise Fees 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 4,135,646 Business License Taxes 662,787 683,445 694,569 698,184 693,263 664,071 666,642 659,094 656,109 666,379 Property Transfer Taxes 526,054 551,007 467,990 761,583 519,407 566,794 542,456 665,607 335,574 374,144 Construction Taxes 50,710 338,718 208,373 85,406 26,451 50,505 143,066 212,975 47,353 57,595 Motor Vehicle In Lieu 26,321 69,109 19,077 45,523 20,494 34,231 135,448 47,981 44,984 54,209 Investment earnings 529,495 487,662 171,257 181,016 1,040,069 1,062,566 122,547 (1,114,797) 1,754,835 4,305,013 Miscellaneous 153,958 1,399,265 586,210 436,370 293,126 439,896 1,343,131 2,170,315 2,334,522 2,492,449 Total Primary Government 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 58,785,697 Change in Net Position
Governmental activities 5,320,776 13,282,919 1,737,894 (4,705,632) (1,467,375) (4,156,154) 3,456,344 11,826,678 8,675,378 485,110 Total primary government 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$ 485,110$

(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.

118
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Non-Spendable Committed Assigned Unassigned Total General Fund Total General Fund Restricted Committed Assigned Unassigned

119
City of Campbell
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Non-Spendable -$ -$ -$ -$ -$ -$ -$ -$ 173,181$ 199,081$ Committed 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 2,916,934 Assigned 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 3,791,233 Unassigned 961,258 1,000,000 999,994 360,129 1,026,759 13,322,046 12,976,419 14,525,529 14,864,482 14,055,964 Total General Fund 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$ 20,963,212$ All Other
Governmental Funds
Restricted 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$ 62,927,292$ Committed - 1,223,623 - - - - - - - - Assigned 108,767 140,666 1,758,104 1,747,982 1,715,955 1,703,633 914,232 947,217 929,106 968,320 Unassigned (1,234,364) (2,414,736) (2,064,713) (498,452) (242,428) (311,506) (1,424,397) (938,687) (1,040,149) (229,121) Total all other
governmental funds 20,498,146$ 22,443,003$ 16,687,227$ 17,022,456$ 18,685,051$ 21,642,581$ 40,105,318$ 72,935,992$ 75,542,125$ 63,666,491$

120
City of Campbell
Changes in Fund Balances of Governmental Fund
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes 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$ 51,944,916$ License, permits and fees 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 3,344,256 Special Assessments 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 1,392,199 Fines and forfeitures 354,445 324,137 320,193 345,627 704,030 694,347 547,469 222,721 212,102 209,337 Use of money and property 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 7,205,957 Intergovernmental revenues 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 8,146,187 Changes for services 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 7,225,373 Other 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 1,389,676 Total Revenues 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 80,857,901 Expenditures
Current:

General government 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 10,195,925 Public safety 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 33,907,880 Public works 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 13,748,043 Community development 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 4,611,952 Recreation and Community Services 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 6,801,733 Capital outlay 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 18,559,233 Debt services:

Principal repayment 775,000 810,000 625,000 595,000 605,000 535,000 1,690,000 2,253,957 3,790,441 3,399,448 Interest and fiscal changes 829,600 793,300 176,642 259,200 244,275 227,076 833,397 1,131,724 1,762,972 2,066,240 Bond issuance costs - - 209,762 - - - - - - - Payments to refunding escrow agent - - 6,203,790 - - - - - - - Total Expenditures 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 93,290,454 Excess (deficiency) of revenues over
(under) expenditures (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 (12,432,553) Other Financing Sources (Uses)
Transfers In 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 8,488,755 Transfers Out (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) (9,254,177) Issuance of debt - - 8,085,000 - - - 20,809,094 33,368,566 (590,026) (2,185,427) Premium from bond issuance - - 1,090,835 - - - 3,171,626 2,506,763 2,417,236 2,327,709 Payments to refunding escrow agent - - (8,962,993) - - - - - - - Total other financing sources (uses) (252,600) (313,867) 362,330 (97,816) (154,400) (103,400) 24,526,024 35,011,277 1,275,630 (623,140) Net Change in fund balances (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$ (13,055,693)$ Debt service as a percentage of
noncapital expenditures 3.5% 3.2% 11.8% * 1.5% 1.5% 1.3% 4.3% 5.4% 7.9% 7.3%

* 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.

121
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
$16,000,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Secured Unsecured

Total Total
Fiscal Secured HOPTR SBE Secured Unsecured Total Direct Year Property Exemptions Utilities Value Property Assessed (a) Tax Rate (b) 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% 2024 13,501,814,011 41,193,600 397,500 13,543,405,111 365,919,955 13,909,325,066 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.

122
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Per Hundred $
Axis 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 SCVWD West and
Expenses Direct SCC Library City of School School State Valley Housing Year Tax Rate Retirement Retirement Campbell Bonds Bonds Project College Bond Total 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 2024 1.0000 0.0388 0.0024 0.0175 0.0672 0.0366 0.0041 0.0258 0.0150 1.2074

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%

123
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 223,375,439$ 1 1.61%
AG-SW Hamilton Plaza Owner LP 155,882,615 2 1.12% Pruneyard Office Investors LLC 151,716,597 3 1.09% KW Fund V1 Vasona Medical Tech 150,194,999 4 1.08% 675 Creekside Owner LLC 146,113,811 5 1.05%
Revere LLC 116,726,944 6 0.84%
Parc Residences LLC 115,212,584 7 0.83%
Campbell Technology Park LLC 89,364,810 8 0.64% 75,864,721$ 4 0.99% SHI-III Campbell LP 75,120,354 9 0.54%
Raintree Campbell LLC 73,237,020 10 0.53%
CFEP Pruneyard LLC 212,746,369 1 2.76%
Legacy III Campbell LLC 121,448,892 2 1.58%
CRP Vasona LLC 76,335,439 3 0.99%
RP Maximus Pruneyard Owner LLC 56,403,367 5 0.73% Hamilton Plaza Investors LLC 53,740,555 6 0.70%
Bay Apartment Communities Inc 52,136,127 7 0.68%
Essex The commons LP 44,466,182 8 0.58%
Marc W Buzolich Trustee Et Al 43,250,000 9 0.56%
Campbell Plaza Apartments LLC 27,686,276 10 0.36% 1,296,945,173$ 9.32% 764,077,928$ 9.93%
Total Net Assessed Valuation
Fiscal Year 2023-2024 13,909,325,066$
Fiscal Year 2014-2015 7,696,495,703
Source: Santa Clara Tax Assessor's Office.
2023-24 2014-15

124
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 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% 2024 26,437,162 26,437,162 100% - 26,437,162 100%

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.

125
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Fiscal
General
Obligation SBITAs &
Lease Revenue
Bonds and
Certificates of
Total
Primary
Percentage
of Personal Per
Year Bonds Loans Leases Participation (b) Government Income (a) Capita (a) 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 2,082,339 8,564,972 63,907,085 1.3447% 1,496.20 2024 46,786,451 3,403,722 1,994,909 8,110,576 60,295,658 1.2136% 1,399.13

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 130 (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.

126
City of Campbell
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years

Fiscal
Total Primary
Government
Less: Amounts
Available in Debt
Percentage of
Estiamted Actual
Taxable Value of Per
Year Debt (a) Service Fund (b) Total Property (c) Capita (d) 2015 18,380,066$ -$ 18,380,066$ 0.0000% 439.12 2016 17,722,700 - 17,722,700 0.0000% 416.18 2017 10,359,329 - 10,359,329 0.0000% 242.46 2018 9,935,519 - 9,935,519 0.0000% 232.70 2019 9,511,787 - 9,511,787 0.0000% 219.93 2020 9,168,762 1,114,130 8,054,632 -0.0101% 216.82 2021 31,384,316 3,774,338 27,609,978 0.1537% 212.41 2022 66,101,195 5,821,476 60,279,719 0.3786% 1,543.23 2023 63,907,085 4,123,176 59,783,909 0.3449% 1,494.11 2024 60,295,658 2,382,817 57,912,841 0.4164% 1,399.13

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.

127
City of Campbell
Computation of Direct and Overlapping Debt
June 30, 2024

2023-24 Assessed Valuation: $13,909,325,066
Amount
Net Debt Applicable Applicable to
Outstanding Percentage (1) City of Campbell
Santa Clara County 956,770,000$ 2.107% 20,159,144$ West Valley - Mission Community College District 663,040,000 7.359% 48,793,114 Campbell Union High School District 336,185,000 20.827% 70,017,250 Cambrian School District 89,619,944 30.926% 27,715,864 Campbell Union School District 250,309,324 30.658% 76,739,833 Moreland School District 100,974,243 12.305% 12,424,881 City of Campbell 46,786,451 100.000% 46,786,451 City of Campbell Loans, Leases, and Subscription payables 5,398,631 100.000% 5,398,631 Midpeninsula Regional Open Space District 80,700,000 0.042% 33,894 Santa Clara County Valley Water District benefit Assessment District 29,235,000 2.107% 615,981 308,685,043$
Santa Clara County General Fund Obligations 1,057,709,440$ 2.107% 22,285,938$ Santa Clara County Pension Obligations Bonds 323,733,582 2.107% 6,821,067 Santa Clara County Board of Education Certificates of Participation 12,073,098 2.107% 254,380 Campbell Union High School District General Fund Obligations 1,230,000 30.658% 377,093 West Valley - Mission Community College District General Fund Obligations 2,520,000 7.359% 185,447 Campbell Union School District General Fund Obligations 13,500,000 20.827% 2,811,645 City of Campbell General Fund Obligations 8,110,576 100.000% 8,110,576 Santa Clara County Vector Control District Certificates of Participation 945,000 2.107% 19,911 Midpeninsula Regional Open Space District General Fund Obligations 79,795,600 0.042% 33,514 SUB-TOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT 40,899,571$ Less: Santa Clara County supported obligations 56,046
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 40,843,525$ OVERLAPPING TAX INCREMENT DEBT (Successor agency): 12,900,000 100.000% 12,900,000$ TOTAL DIRECT DEBT 60,295,658$
TOTAL GROSS OVERLAPPING DEBT 289,288,956$
TOTAL NET OVERLAPPING DEBT 289,232,910$
GROSS COMBINED TOTAL DEBT 349,584,614$
NET COMBINED TOTAL DEBT (excludes County supported item) 349,528,568$ Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.08%
Total Direct Debt ($60,295,658) 0.43%
Gross Combined Total Debt 2.51%
Net Combined Total Debt 2.51%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,480,045,580):

Total Overlapping Tax Increment Debt 0.87%
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.

128
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
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 2024 13,909,325,066 521,599,690 41,710,000 479,889,690 (1) Pursuant to California Government Code Section 43605 (15% of 25% of full cash value).

Source: City of Campbell Finance Department.

129
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
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 2024 1,895,984 1,595,000 300,984 1,895,984 1.00

130
City of Campbell
Demographic and Economic Statistics
Last Ten Fiscal Years

Calendar
Year Population
Personal
Income
Per Capita Personal
Income
Unemployment
Rate
Santa Clara
County
City Population %
of County
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% 2024 43,095 4,968,514 115,292 4.0% 1,903,198 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.

2.08%

2.10%

2.12%

2.14%

2.16%

2.18%

2.20%

2.22%

2.24%

2.26%

2.28%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Population % of County
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
T otal Personal Income
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
2014 2016 2018 2020 2022 2024 2026
Per Capita Personal Income

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Unemployment Rate

131
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 Labor Force Employees Rank Labor Force 8x8 Inc 554 1 2.02%
West Valley Construction 450 2 1.64%
ZRG Partners LLC 330 3 1.20%
Barracuda Networks Inc 315 4 1.15% 393 1 1.8%
Imperative Care Inc 300 5 1.09%
Qolsys, Inc. 300 6 1.09%
The Home Depot #0642 287 7 1.05% 228 4 1.0%
Care Indeed Inc. 270 8 0.99%
(24)7.AI.INC 266 9 0.97%
Chargepoint, Inc. 230 10 0.84%
Daley'sDrywall & Taping Inc 270 2 1.2%
Whole Foods Market 260 3 1.2%
Bioreference Laboratories, Inc. 210 5 1.0%
Hightail Inc 200 6 0.9%
SAAMA Technologies 200 7 0.9%
Friendfinder Networks Inc 185 8 0.8%
Fry's Electronics 184 9 0.8%
Moss Adams, Inc 179 10 0.8%
Subtotal 3,302 12.05% 2,309 10.47%
Total City Labor Force 27,400 22,043

Source: City of Campbell - California Employment Development Department 2023-24 2014-15

132
City of Campbell
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years

0 50
100
150
200
250
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function General government Public safety Public works Community development Recreation and community services

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government 23.88 25.28 26.26 25.35 24.45 24.55 22.3 23.46 23.95 26.15 Public safety 70.01 70.01 73.01 74.13 76.33 76.83 72.37 74.84 76.4 74.13 Public works 53.14 54.26 56.65 56.05 55.7 55 51.1 49.53 52.20 53.85 Community development 13.51 15.55 16.1 16.77 16.77 16.77 15.14 12.14 14 17.62 Recreation and
community services 53.48 56.37 57.49 58.5 57.73 58.57 31.81 28.03 35.57 38.84 Total 203.41 214.02 221.47 229.51 230.80 230.98 231.72 188.00 202.12 210.59

Source: City of Campbell, California Budget Documents.

133
City of Campbell
Operating Indicators by Function/Program
Last Ten Fiscal Years

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
Public safety
Fire:

Fire calls for service 90 81 67 72 90 84 78 74 64 71
Medical aid calls 1,966 2,177 2,318 2,354 2,174 2,102 2,044 2,478 2,611 2,228 Police:

Police calls for service 24,624 24,408 23,275 23,312 26,242 25,141 29,917 32,124 31,465 30,077 Law violations:

Arrests 2,141 2,183 2,027 2,080 1,898 1,347 1,657 1,963 1,819 1,361 Traffic violations 6,205 4,501 4,638 4,339 3,544 1,356 825 1,307 955 2,584 Parking violations 3,110 3,733 4,384 3,741 3,716 2,369 518 761 1,378 608 Public works
Miles of streets (major) 16 16 16 16 16 15 14 14 14 14
Miles of streets (secondary) 80 80 80 80 80 80 80 80 80 80 Potholes repaired 81 90 108 58 228 350 200 220 215 290
Culture and recreation:

Community services:

Recreation class participants 30,022 35,082 35,737 42,195 63,207 51,150 23,133 40,463 43,648 67,359 Performing Arts Center performances 8 6 6 7 6 4 0 2 6 5 Wastewater
Miles of sewers (storm) 50 50 50 59 59 59 59 59 59 59
Miles of sewers (sanitary - entire district) 618 618 618 602 602 602 602 602 602 580 Miles of sewers (sanitary - Campbell only) 158 158 158 168 168 168 168 165 165 161 Solid Waste
Refuse landfilled (tons per year) 27,398 29,422 28,386 28,300 22,082 26,460 24,943 25,573 24,717 23,471 Green waste - - 6,781 7,312 6,893 7,375 7,201 6,703 5,948 339 Recyclables processed (tons per year) 16,702 15,866 10,004 18,483 10,251 9,085 9,362 7,615 8,549 7,187 Organics (tons per year) 0 0 0 0 0 0 0 505 2,891 9,101

134
City of Campbell
Capital Assets Statistics by Function/Program
Last Ten Fiscal Years

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 15 15 15 15 15 14 14 13 14 15
Public works:

Miles of streets 96 96 96 96 96 96 94 94 94 94
Street lights 2705 2705 2706 2715 2715 2800 2800 2800 2800 2800 Traffic Signals 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 8 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 4 4 4 4 4 4 4
Baseball/softball diamonds End of Year 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

1 December 31, 2024
To the City Council of
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, 2024, and have issued our report thereon dated December 31, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards
As communicated in our letter dated August 8, 2024, 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.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, 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.

We have provided our comments regarding internal controls 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 31, 2024.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

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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 “significant risks”. We have identified the following as significant risks:

• Management override of internal controls.
• Sales Tax & Grants Revenue Recognition – could occur in the inappropriate period due to timing of cash receipts not corresponding with the period earned.
• Estimates as it relates to self-insurance incurred but not reported amounts, pension, and other post- employment benefits (OPEB) liabilities.

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 fiscal year 2024. 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.

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 pension, OPEB and claims liabilities.

Management’s estimate of the pension, OPEB and claims liabilities are based on actuarial valuations. We evaluated the key factors and assumptions used to develop the liabilities, deferred outflows, and deferred inflows of pension, OPEB, and claims balances and determined that it is reasonable in relation to the basic financial statements taken as a whole.

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.

Representations Requested from Management

We have requested certain written representations from management which are included in the management representation letter dated December 31, 2024.

4 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 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

Independent Auditor’s Reports
June 30, 2024
City of Campbell
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1 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
City of Campbell, California
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 June 30, 2024, 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 31, 2024.

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

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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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 City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Menlo Park California
December 31, 2024

3 City of Campbell
Schedule of Findings and Responses
June 30, 2024
None.
4 City of Campbell
Schedule of Prior Findings and Responses
June 30, 2024
None.

General Fund - Fund Balance Comparison
Fiscal Year Ending (FYE) June 30, 2023 to FYE June 30, 2024 Audited Audited
FYE 06/30/23 FYE 06/30/24 Variance Short Description
Nonspendable:

Leases 173,181$ 199,081$ 25,900$ Accounts for nonspendable General Fund monies from leases Total Nonspendable 173,181$ 199,081$ 25,900$ 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 961,449 970,698 9,249 50% of noncurrent liability for absences.

Liability insurance 136,473 157,936 21,463 Set at minimum of 100% of self-insured retention for claims.

Available Capital Improvements Reserve 30,109 212,351 182,242 CIPR for General Fund funded capital projects. Target $5M.

Committed Capital Improvements Reserve 1,569,671 1,240,899 (328,772) Carryover CIPR projects approved in prior years.

Community Center Facility 111,699 149,706 38,007 For use at Community Center.

Heritage Theater 233,382 180,344 (53,038) For use at Heritage Theater.

Total Committed 3,091,992$ 2,916,934$ (175,058)$ Assigned:

Capital projects (Construction Tax) 325,256$ 138,406$ (186,850)$ 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 370,102 393,315 23,213 Annual required contribution for OPEB liabilities.

Other 976,258 917,512 (58,746) Set aside for operating encumbrance carryovers.

Total Assigned 4,013,616$ 3,791,233$ (222,383)$ Unassigned:

Unassigned, Undesignated 1,338,952 1,000,000 (338,952) 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 9,485,886 (469,566) 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 14,864,482$ 14,055,964$ (808,518)$ TOTAL FUND BALANCE 22,143,271 20,963,212 (1,180,059) Adopted GF Operating Budget 66,589,958 66,843,036 253,078 Unassigned as % of Budget 22.32% 21.03%
Unassigned + PERS as % of Budget 25.70% 24.40%
Unassigned Reserve Stress Test (GFOA Guidance 16.67%)
$1 million deficit in FY 2025 (1,000,000) 19.53%
$2 million deficit in FY 2025 (2,000,000) 18.04%
$3 million deficit in FY 2025 (3,000,000) 16.54%
$4 million deficit in FY 2025 (4,000,000) 15.04%
$5 million deficit in FY 2025 (5,000,000) 13.55%
Unassigned + PERS Reserve Stress Test (GFOA Guidance 16.67%) $1 million deficit in FY 2025 (1,000,000) 22.90%
$2 million deficit in FY 2025 (2,000,000) 21.41%
$3 million deficit in FY 2025 (3,000,000) 19.91%
$4 million deficit in FY 2025 (4,000,000) 18.41%
$5 million deficit in FY 2025 (5,000,000) 16.92%