AGENDA
REGULAR MEETING
* * *
CLAYTON CITY COUNCIL
* * *
TUESDAY, February 15, 2022
7:00 P.M.
*** NEW LOCATION***
This meeting is being held in accordance with AB 361, given the proclaimed state of emergency and the Contra Costa County Health Officer’s recommendation for social distancing for public meetings, which is also consistent with Cal OSHA requirements for social distancing, the City Council will be participating in meetings via phone/video conferencing. The public is invited to watch and participate via the methods listed below:
Mayor: Peter Cloven
Vice Mayor: Holly Tillman
Council Members
Jim Diaz
Jeff Wan
Carl Wolfe
• A complete packet of information containing staff reports and exhibits related to each public item is available for public review on the City’s website at www.claytonca.gov • Agendas are posted at: 1) City Hall, 6000 Heritage Trail; 2) Library, 6125 Clayton Road; 3) Ohm’s Bulletin Board, 1028 Diablo Street, Clayton; and 4) City Website at www.claytonca.gov • Any writings or documents provided to a majority of the City Council after distribution of the Agenda Packet and regarding any public item on this Agenda is available for review on the City’s website at www.claytonca.gov
• If you have a physical impairment that requires special accommodations to participate, please call the City Clerk’s office at least 72 hours in advance of the meeting at (925) 673-7300. _____________________________________________________________________________________________ Agenda February 15, 2022 Page 2
Instructions for Virtual City Council Meeting – February 15 To protect our residents, officials, and staff, and aligned with the Governor’s executive order to Shelter-at-Home, this meeting is being conducted utilizing teleconferencing means consistent with State order that that allows the public to address the local legislative body electronically.
To follow or participate in the meeting:
1. Videoconference: to follow the meeting on-line, click here to register:
https://us02web.zoom.us/webinar/register/WN_suxMeIgbQNWPGzIqaBNXFw After clicking on the URL, please take a few seconds to submit your first and last name, and e-mail address then click “Register”, which will approve your registration and a new URL to join the meeting will appear.
Phone-in: Once registered, you will receive an e-mail with instructions to join the meeting telephonically, and then dial Telephone: 877 853 5257 (Toll Free)
2. using the Webinar ID and Password found in the e-mail.
E-mail Public Comments: If preferred, please e-mail public comments to the City Clerk, Ms.
Calderon at [email protected] by 5 PM on the day of the City Council meeting. All E-mail Public Comments will be forwarded to the entire City Council.
For those who choose to attend the meeting via videoconferencing or telephone shall have 3 minutes for public comments.
Location:
Videoconferencing Meeting (this meeting via teleconferencing is open to the public) To join this virtual meeting on-line click here:
https://us02web.zoom.us/webinar/register/WN_suxMeIgbQNWPGzIqaBNXFw To join on telephone, you must register in the URL above, which sends an e-mail to your inbox, and then dial (877) 853-5257 using the Webinar ID and Password found in the e-mail.
_____________________________________________________________________________________________ Agenda February 15, 2022 Page 3
* CITY COUNCIL *
February 15, 2022
1. CALL TO ORDER AND ROLL CALL – Mayor Cloven.
2. MEETING PROTOCOL VIDEO– City Clerk
3. PLEDGE OF ALLEGIANCE – led by Councilmember Diaz.
4. CONSENT CALENDAR
Consent Calendar items are typically routine in nature and are considered for approval by one single motion of the City Council. Members of the Council, Audience, or Staff wishing an item removed from the Consent Calendar for purpose of public comment, question, discussion or alternative action may request so through the Mayor.
(a) Approve the minutes of the City Council’s regular meeting of February 1, 2022. (City Clerk) (View Here)
(b) Approve the Financial Demands and Obligations of the City. (Finance) (View Here) (c) Adopt a Resolution of the City Council of the City of Clayton Allowing for Video and Teleconference Meetings during the COVID-19 State of Emergency Under AB 361. (City Manager) (View Here)
(d) Adopt a Resolution Accepting the Recommendation of the City Engineer Regarding Posting and Authorizing Enforcement of No Parking at Specified Locations to Provide for Improved Visibility and Safety. (City Engineer and City Manager) (View Here)
(e) Set March 21, 2022 for City Council Special Meeting: City Council Goal Setting. (City Manager) (View Here)
5. RECOGNITIONS AND PRESENTATIONS
(a) Proclamation declaring February as “Black and African American History Month”. (Mayor Cloven) (View Here)
_____________________________________________________________________________________________ Agenda February 15, 2022 Page 4
6. REPORTS
(a) City Manager/Staff
(b) City Council - Reports from Council liaisons to Regional Committees, Commissions and Boards.
7. PUBLIC COMMENT ON NON - AGENDA ITEMS
Members of the public may address the City Council on items within the Council’s jurisdiction, (which are not on the agenda) at this time. To assure an orderly meeting and an equal opportunity for everyone, each speaker is limited to 3 minutes, enforced at the Mayor’s discretion. In accordance with State Law, no action may take place on any item not appearing on the posted agenda. The Council may respond to statements made or questions asked, or may at its discretion request Staff to report back at a future meeting concerning the matter.
Public comment and input on Public Hearing, Action Items and other Agenda Items will be allowed when each item is considered by the City Council.
8. PUBLIC HEARINGS – None.
9. ACTION ITEMS
(a) Audited Annual Comprehensive Financial Report (ACFR) of the City of Clayton for the Fiscal Year Ended June 30, 2021. (Finance Director) (View Here) (b) Adopt a Resolution Appropriating $30,000 from the Rainy Day Fund in FY2021/22 to Engage Strategy Research Institute for Research Related to a Potential Tax Measure for the November 2022 Ballot. (City Manager) (View Here)
10. CLOSED SESSION – None.
11. COUNCIL ITEMS – limited to Council requests and directives for future meetings.
12. ADJOURNMENT - the next regularly scheduled City Council meeting will be March 1, 2022. # # # # #
Agenda Item: 4(a)
____________________________________________________________________________ City Council Minutes February 1, 2022 Page 1
MINUTES
OF THE
REGULAR MEETING
CLAYTON CITY COUNCIL
TUESDAY, February 1, 2022
1. CALL TO ORDER THE CITY COUNCIL – The meeting was called to order at 7:00 p.m. by Mayor Cloven on a virtual web meeting and telephonically (877) 853-5257.
Councilmembers present: Mayor Cloven, Vice Mayor Tillman, and Councilmembers Diaz, Wan, and Wolfe. Councilmembers absent: None. Staff present: City Manager Reina Schwartz, City Attorney Mala Subramanian, Finance Director Katherine Korsak, and City Clerk/HR Manager Janet Calderon.
2. MEETING PROTOCOL VIDEO – City Clerk.
3. PLEDGE OF ALLEGIANCE – led by Councilmember Diaz.
4. CONSENT CALENDAR
It was moved by Councilmember Wolfe, seconded by Vice Mayor Tillman, to approve the Consent Calendar items 4(a) – 4(d) as submitted. (Passed 5-0). (a) Approved the minutes of the City Council’s regular meeting of January 18, 2022. (City Clerk)
(b) Approved the Financial Demands and Obligations of the City. (Finance) (c) Adopted Resolution No. 09-2022 of the City Council of the City of Clayton Allowing for Video and Teleconference Meetings during the COVID-19 State of Emergency Under AB 361. (City Manager)
(d) Adopted Resolution No. 10-2022 Accepting the Curb Ramp Improvement Project (CIP 10453) Performed by JJR Construction, Inc. as Complete, Approving the Attached Notice of Completion, Directing the City Clerk to Record Same with the County Recorder and Authorizing the Payment of All Retained Funds to JJR Construction, Inc. Except for $2,100 for Signal Loop Repair 35 Days After Recording the Notice of Completion. (City Engineer)
5. RECOGNITIONS AND PRESENTATIONS – None.
6. REPORTS
(a) City Manager/Staff
____________________________________________________________________________ City Council Minutes February 1, 2022 Page 2
City Manager Reina Schwartz provided a brief update regarding the Clayton Cares Program, an update regarding the Advance “Warning Signal Ahead” lighted sign installation on Clayton Road at Diablo View Middle School, advised the COVID numbers in Contra Costa County are dropping, and she is expecting to re-open City Hall to the public in the next few weeks.
(b) City Council - Reports from Council liaisons to Regional Committees, Commissions and Boards.
Councilmember Diaz attended a Celebration of Life for Clayton Perrick longtime former manager of Skipolini’s pizza, attended the Cal Cities East Bay Division meeting, the Clayton Business and Community Association (CBCA) General Membership meeting, the East Bay Regional Communication System Authority meeting, met with the City Manager, met with the Police Chief, and met with constituents.
Councilmember Wolfe emailed and called constituents, met with the City Manager, met with the Mayor, met with Planning Commissioner Miller, attended the Cal Cities East Bay Division meeting, attended the Clayton Business and Community Association (CBCA) General membership meeting, received a plaque from Senator Glazer for his term as Mayor, and was invited to join an advisory panel on digital equity.
Councilmember Wan attended the Budget/Audit Committee meeting.
Vice Mayor Tillman spoke to constituents about joining the Trails and Landscaping Committee, attended the Budget/Audit Committee meeting, the Clayton Business and Community Association (CBCA) General Membership meeting, met with the City Manager, received an inquiry from a constituent regarding the installation of signage on Marsh Creek Road, and coached the first St. Bonaventure CYO track and field practice.
Mayor Cloven attended the celebration of life for Clayton Perrick, met with Carlyn Obringer from the City of Concord, met with the City Manager, met with Vice Mayor Tillman, met with Councilmember Wolfe, attended the Clayton Business and Community Association (CBCA) General Membership meeting, corresponded with constituents regarding American Rescue Plan Fund Act increases, SB9, and street/sidewalk repair, and met with Keith Haydon regarding County Connection.
7. PUBLIC COMMENT ON NON - AGENDA ITEMS
Keith Haydon provided a brief update regarding County Connection.
Rich Enea of the Clayton Police Officers Association thanked the City Council for their generosity and continued support.
Mayor Cloven closed public comment.
8. PUBLIC HEARINGS – None.
Agenda Item: 4(a)
____________________________________________________________________________ City Council Minutes February 1, 2022 Page 3
9. ACTION ITEMS
(a) Discussion and Potential Authorization to Send a Letter to the BART Board of Directors Regarding Upcoming Redistricting. (City Manager)
City Manager Schwartz presented the report.
Following questions by the City Council, Mayor Cloven opened the item to public comment; no comments were offered.
It was moved by Vice Mayor Tillman, seconded by Councilmember Wolfe, to authorize a letter to be sent to the BART Board of Directors Regarding Upcoming Redistricting. (Passed 5-0).
(b) Discussion of Ten-Year General Fund Forecast. (City Manager) City Manager Schwartz presented the report.
Following questions by the City Council, Mayor Cloven opened the item to public comment; no comments were offered.
(c) Revenue Options and Potential Revenue Measure Next Steps. (City Manager and Finance Director)
City Manager Schwartz presented the report.
Following questions by the City Council, Mayor Cloven opened the item to public comment.
Dee Vieira suggested the City Council consider a potential revenue resource by requiring a business license for rental property owners in the city.
Mayor Cloven closed public comment.
Direction was provided to staff.
10. CLOSED SESSION – None.
11. COUNCIL ITEMS
Councilmember Diaz requested a future agenda item to consider additional premium pay for Clayton’s two part-time employees.
____________________________________________________________________________ City Council Minutes February 1, 2022 Page 4
12. ADJOURNMENT– on call by Mayor Cloven, the City Council adjourned its meeting at 9:21 p.m.
The next regularly scheduled meeting of the City Council will be February 15, 2022. # # # # #
Respectfully submitted,
________________________________
Janet Calderon, City Clerk
APPROVED BY THE CLAYTON CITY COUNCIL
______________________________________
Peter Cloven, Mayor
# # # # #
Agenda Item: 4(b)
STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: JENNIFER GIANTVALLEY, ACCOUNTING TECHNICIAN
DATE: 02/15/2022
SUBJECT: FINANCIAL DEMANDS AND OBLIGATIONS OF THE CITY
RECOMMENDATION:
It is recommended the City Council, by minute action, approve the financial demands and obligations of the City for the purchase of services and goods in the ordinary course of operations.
Attachments:
1. Open Invoice Report, dated 2/11/22 (4 pages)
2. Open Invoice Report for CalCard dated 2/8/22 (2 pages)
3. Open Invoice Report for ARPA, dated 2/8/22 (1 page)
4. Payroll Reconciliation Summary report PPE 01/23/22 (2 pages) Attached Report Purpose Date Amount
Open Invoice Report Accounts Payable 2/8/2022 $ 199,474.61 Open Invoice Report (CalCard) Accounts Payable 2/8/2022 $ 12,050.90 Open Invoice Report (ARPA) Accounts Payable 2/8/2022 $ 70,000.00 Payroll Reconciliation Summary Payroll, Taxes 1/28/2022 $ 101,144.23 Total Required $ 382,669.74
2/11/2022 City of Clayton Page 1
Open Invoice Report
Obligations
Vendor Name Due Date Date Invoice Number Invoice Description Balance Discount Expires On Net Amount Due Invoice Invoice Potential Discount
All City Management Services, Inc.
All City Management Services, Inc. 2/15/2022 1/12/2022 74488 School crossing guard svcs 12/26/21-1/8/22 $463.32 $0.00 $463.32 Totals for All City Management Services, Inc.: $463.32 $0.00 $463.32 Jesus Alvarez
Jesus Alvarez 2/15/2022 1/27/2022 CAP0392 Deposit refund $2,024.00 $0.00 $2,024.00 Jesus Alvarez 2/15/2022 2/8/2022 CAP0412 Deposit refund $2,024.00 $0.00 $2,024.00 Totals for Jesus Alvarez: $4,048.00 $0.00 $4,048.00
American Fidelity Assurance Company
American Fidelity Assurance Company 2/15/2022 2/4/2022 6044460 FSA PPE 2/6/22 $115.00 $0.00 $115.00 American Fidelity Assurance Company 2/15/2022 1/31/2022 D405169 Supplemental insurance January 2022 $844.92 $0.00 $844.92 American Fidelity Assurance Company 2/15/2022 1/23/2022 6043147 FSA PPE 1/23/22 $115.00 $0.00 $115.00 Totals for American Fidelity Assurance Company: $1,074.92 $0.00 $1,074.92 Authorize.net
Authorize.net 2/15/2022 1/31/2022 January2022 Online bankcard gateway fee January 2022 $32.60 $0.00 $32.60 Totals for Authorize.net: $32.60 $0.00 $32.60
Axon Enterprise, Inc
Axon Enterprise, Inc 2/15/2022 1/12/2022 INUS047231 PD Taser bundle $8,613.00 $0.00 $8,613.00 Totals for Axon Enterprise, Inc: $8,613.00 $0.00 $8,613.00 Bay Area Barricade Serv.
Bay Area Barricade Serv. 2/15/2022 1/27/2022 28294 Street signs $148.17 $0.00 $148.17 Totals for Bay Area Barricade Serv.: $148.17 $0.00 $148.17 CalPERS Health
CalPERS Health 2/15/2022 1/1/2022 16652031 Medical January 2022 $35,660.98 $0.00 $35,660.98 Totals for CalPERS Health: $35,660.98 $0.00 $35,660.98
CalPERS Retirement
CalPERS Retirement 2/15/2022 2/6/2022 020622 Retirement PPE 2/6/22 $19,226.85 $0.00 $19,226.85 CalPERS Retirement 2/15/2022 1/23/2022 012322 Retirement PPE 1/23/22 $19,251.02 $0.00 $19,251.02 Totals for CalPERS Retirement: $38,477.87 $0.00 $38,477.87 Cintas Corporation
Cintas Corporation 2/15/2022 1/27/2022 4108996351 PW uniforms through 1/27/22 $50.58 $0.00 $50.58 Totals for Cintas Corporation: $50.58 $0.00 $50.58
Clayton Police Officer's Assoc.
Clayton Police Officer's Assoc. 2/15/2022 1/9/2022 010922 POA dues PPE 1/9/22 $603.50 $0.00 $603.50 Totals for Clayton Police Officer's Assoc.: $603.50 $0.00 $603.50 Comcast Business
2/11/2022 City of Clayton Page 2
Open Invoice Report
Obligations
Vendor Name Due Date Date Invoice Number Invoice Description Balance Discount Expires On Net Amount Due Invoice Invoice Potential Discount
Comcast Business 2/15/2022 2/5/2022 020522 Internet 2/10/22-3/9/22 $386.16 $0.00 $386.16 Totals for Comcast Business: $386.16 $0.00 $386.16
Concord Uniforms
Concord Uniforms 2/15/2022 1/20/2022 19144 PD uniform $358.66 $0.00 $358.66 Totals for Concord Uniforms: $358.66 $0.00 $358.66
Contra Costa County - Office of the Sheriff
Contra Costa County - Office of the She 2/15/2022 1/12/2022 CLPD-2112 Toxicology December 2021 $950.00 $0.00 $950.00 Contra Costa County - Office of the She 2/15/2022 1/25/2022 CLPD-421 Blood withdrawals Q2FY22 $426.93 $0.00 $426.93 Totals for Contra Costa County - Office of the Sheriff: $1,376.93 $0.00 $1,376.93 Contra Costa County Mayors' Conference
Contra Costa County Mayors' Conferenc 2/15/2022 2/7/2022 MC22 Annual assessment for Mayors Conference 20 $384.00 $0.00 $384.00 Totals for Contra Costa County Mayors' Conference: $384.00 $0.00 $384.00 Contra Costa County Public Works Dept
Contra Costa County Public Works Dept 2/15/2022 1/24/2022 704595 Traffic signal maintenance December 2021 $1,420.40 $0.00 $1,420.40 Totals for Contra Costa County Public Works Dept: $1,420.40 $0.00 $1,420.40 Cropper Rowe, LLP
Cropper Rowe, LLP 2/15/2022 1/31/2022 330,336,338,347 Audit services FY 2021 $24,900.00 $0.00 $24,900.00 Totals for Cropper Rowe, LLP: $24,900.00 $0.00 $24,900.00 Dig & Demo
Dig & Demo 2/15/2022 2/1/2022 CAP0415 Deposit refund $1,443.25 $0.00 $1,443.25 Totals for Dig & Demo: $1,443.25 $0.00 $1,443.25
Digital Services
Digital Services 2/15/2022 2/2/2022 12029 IT services 12/2/21-2/1/22 $3,422.60 $0.00 $3,422.60 Totals for Digital Services: $3,422.60 $0.00 $3,422.60
Dillon Electric Inc
Dillon Electric Inc 2/15/2022 2/2/2022 4596 Street light repairs 2/2/22 $1,162.93 $0.00 $1,162.93 Dillon Electric Inc 2/15/2022 1/23/2022 4586 Street light repairs 1/21/22 $1,030.25 $0.00 $1,030.25 Dillon Electric Inc 2/15/2022 2/2/2022 4595 Street light repairs 2/1/22 $1,044.16 $0.00 $1,044.16 Totals for Dillon Electric Inc: $3,237.34 $0.00 $3,237.34 Mark Dodson
Mark Dodson 2/15/2022 1/25/2022 CAP0406 Deposit refund $2,024.00 $0.00 $2,024.00 Totals for Mark Dodson: $2,024.00 $0.00 $2,024.00
Environtech Enterprises
Environtech Enterprises 2/15/2022 2/1/2022 A001B-2B-22 Weed abatement January 2022 $9,500.00 $0.00 $9,500.00 Environtech Enterprises 2/15/2022 2/1/2022 A001-B1-22 Weed abatement November-December 2021 $11,400.00 $0.00 $11,400.00 2/11/2022 City of Clayton Page 3
Open Invoice Report
Obligations
Vendor Name Due Date Date Invoice Number Invoice Description Balance Discount Expires On Net Amount Due Invoice Invoice Potential Discount
Totals for Environtech Enterprises: $20,900.00 $0.00 $20,900.00 Hammons Supply Company
Hammons Supply Company 2/15/2022 1/24/2022 118850 The Grove Park janitorial supplies $79.97 $0.00 $79.97 Totals for Hammons Supply Company: $79.97 $0.00 $79.97
HdL Coren & Cone
HdL Coren & Cone 2/15/2022 2/1/2022 SIN014317 Contract svcs Property Tax Q3 FY 22 $1,923.75 $0.00 $1,923.75 Totals for HdL Coren & Cone: $1,923.75 $0.00 $1,923.75
Health Care Dental Trust
Health Care Dental Trust 2/15/2022 2/2/2022 309062 Dental March 2022 $1,839.93 $0.00 $1,839.93 Totals for Health Care Dental Trust: $1,839.93 $0.00 $1,839.93 J&R Floor Services
J&R Floor Services 2/15/2022 1/31/2022 One 2022 Janitorial svcs January 2022 $4,988.00 $0.00 $4,988.00 Totals for J&R Floor Services: $4,988.00 $0.00 $4,988.00 JAM Services
JAM Services 2/15/2022 1/25/2022 153820 Streetlight (replace downed pole) $1,337.93 $0.00 $1,337.93 Totals for JAM Services: $1,337.93 $0.00 $1,337.93
Ken Kuhn
Ken Kuhn 2/15/2022 2/2/2022 020222 EH deposit refund $500.00 $0.00 $500.00 Totals for Ken Kuhn: $500.00 $0.00 $500.00
Mission Square Retirement
Mission Square Retirement 2/15/2022 2/6/2022 020622 457 Plan contributions PPE 2/6/22 $2,263.46 $0.00 $2,263.46 Mission Square Retirement 2/15/2022 1/23/2022 01232022 457 Plan contributions PPE 1/23/22 $2,367.30 $0.00 $2,367.30 Totals for Mission Square Retirement: $4,630.76 $0.00 $4,630.76 Moore Iacofano Golstman, Inc
Moore Iacofano Golstman, Inc 2/15/2022 12/27/2021 72948 Housing Element svcs November 2021 $7,712.50 $0.00 $7,712.50 Moore Iacofano Golstman, Inc 2/15/2022 1/24/2022 73266 Housing Element svcs December 2021 $7,832.50 $0.00 $7,832.50 Totals for Moore Iacofano Golstman, Inc: $15,545.00 $0.00 $15,545.00 MPA
MPA 2/15/2022 2/1/2022 918-26102 Life/Disability Ins February 2022 $1,670.63 $0.00 $1,670.63 Totals for MPA: $1,670.63 $0.00 $1,670.63
Nationwide
Nationwide 2/15/2022 2/6/2022 02062022 457 Plan contribution PPE 2/6/22 $500.00 $0.00 $500.00 Nationwide 2/15/2022 1/23/2022 01232022 457 Plan contribution PPE 1/23/22 $500.00 $0.00 $500.00 Totals for Nationwide: $1,000.00 $0.00 $1,000.00
Neopost (add postage)
2/11/2022 City of Clayton Page 4
Open Invoice Report
Obligations
Vendor Name Due Date Date Invoice Number Invoice Description Balance Discount Expires On Net Amount Due Invoice Invoice Potential Discount
Neopost (add postage) 2/15/2022 1/28/2022 012822 Postage added $300.00 $0.00 $300.00 Totals for Neopost (add postage): $300.00 $0.00 $300.00 Pacific Telemanagement Svc
Pacific Telemanagement Svc 2/15/2022 1/27/2022 2091831 Courtyard pay phone February 2022 $62.00 $0.00 $62.00 Totals for Pacific Telemanagement Svc: $62.00 $0.00 $62.00 Rex Lock & Safe, Inc.
Rex Lock & Safe, Inc. 2/15/2022 1/31/2022 132232 Door latch guards, closer for The Grove Park $940.34 $0.00 $940.34 Rex Lock & Safe, Inc. 2/15/2022 1/27/2022 130574 Change timer lock @ The Grove Park $240.00 $0.00 $240.00 Rex Lock & Safe, Inc. 2/15/2022 2/8/2022 130592 Repair restroom lock @ The Grove Park $841.19 $0.00 $841.19 Totals for Rex Lock & Safe, Inc.: $2,021.53 $0.00 $2,021.53 Rural Pig Management, Inc
Rural Pig Management, Inc 2/15/2022 2/1/2022 CC013122 Pig control maint February 2022 $3,000.00 $0.00 $3,000.00 Totals for Rural Pig Management, Inc: $3,000.00 $0.00 $3,000.00 Sprint Comm (PD)
Sprint Comm (PD) 2/15/2022 1/29/2022 703335311-242 PD cell phones 12/26/21-1/25/22 $723.38 $0.00 $723.38 Totals for Sprint Comm (PD): $723.38 $0.00 $723.38
Staples Business Credit
Staples Business Credit 2/15/2022 1/25/2022 1640103773 Office supplies $747.02 $0.00 $747.02 Totals for Staples Business Credit: $747.02 $0.00 $747.02 Stericycle Inc
Stericycle Inc 2/15/2022 2/1/2022 3005870119 Medical waste disposal $68.62 $0.00 $68.62 Totals for Stericycle Inc: $68.62 $0.00 $68.62
Vision Service Plan (CA)
Vision Service Plan (CA) 2/15/2022 1/18/2022 814203115 Vision coverage- January, February 2022 $152.14 $0.00 $152.14 Totals for Vision Service Plan (CA): $152.14 $0.00 $152.14 Wex Bank-Fleet Cards
Wex Bank-Fleet Cards 2/15/2022 1/25/2022 77879482 Fuel - stmt end 1/25/22 $3,744.54 $0.00 $3,744.54 Totals for Wex Bank-Fleet Cards: $3,744.54 $0.00 $3,744.54 Workers.com
Workers.com 2/15/2022 1/21/2022 131934 Seasonal workers week end 1/16/22 $3,136.53 $0.00 $3,136.53 Workers.com 2/15/2022 1/28/2022 131979 Seasonal workers week end 1/23/22 $2,976.60 $0.00 $2,976.60 Totals for Workers.com: $6,113.13 $0.00 $6,113.13
GRAND TOTALS: $199,474.61 $0.00 $199,474.61
2/8/2022 City of Clayton Page 1
Open Invoice Report
Cal Card Obligations
Vendor Name Due Date Date Invoice Number Invoice Description Balance Discount Expires On Net Amount Due Invoice Invoice Potential Discount
US Bank CalCard
US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Leather gear SAFARILAND, LLC $102.97 $0.00 $102.97 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 CARRY ACCES MOTOROLA SOLUTIONS $34.80 $0.00 $34.80 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 MICROPHONE, MOTOROLA SOLUTIONS O $925.59 $0.00 $925.59 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 CHARGER, MU MOTOROLA SOLUTIONS $1,297.05 $0.00 $1,297.05 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Annual dues IACP $190.00 $0.00 $190.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 COVID tests SAMSCLUB.COM $228.38 $0.00 $228.38 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 BYD CARE Single Use Dispos AMZN MKT $59.75 $0.00 $59.75 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Smog Check CLAYTON TREAT AUTOMOTIV $159.50 $0.00 $159.50 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Bungie cords for banners OUTDOOR SUPPL $50.46 $0.00 $50.46 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Heater for fountain vault LOWES #02604* $218.40 $0.00 $218.40 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Smog Check CLAYTON TREAT AUTOMOTIV $179.50 $0.00 $179.50 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Kerosene for heater OUTDOOR SUPPLY CLA $71.33 $0.00 $71.33 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 4x4 sign posts ASHBY LUMBER $1,158.86 $0.00 $1,158.86 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Management training PAYPAL *REGIONALGO $950.00 $0.00 $950.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Plumbing supply The Grove Park OUTDOOR $30.71 $0.00 $30.71 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 DURALAST GOLD BATTERY AUTOZON $211.66 $0.00 $211.66 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Smog Check CLAYTON TREAT AUTOMOTIV $79.75 $0.00 $79.75 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Bulb for library OUTDOOR SUPPLY CLAYTO $7.12 $0.00 $7.12 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Pesticide CEUs A&K,TKIOSK,PESTSCHOO $20.00 $0.00 $20.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Data storage APPLE.COM/BILL $0.99 $0.00 $0.99 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 IT MSFT * E0200GJD9E $148.52 $0.00 $148.52 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 IT MSFT * E0200GJEY9 $5.00 $0.00 $5.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Storage unit rent CENTRAL SELF STORAG $190.00 $0.00 $190.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 IT AMAZON WEB SERVICES $531.62 $0.00 $531.62 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Cloud Recording 100 GB Audio Conferencin $180.00 $0.00 $180.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 9255229137,PAUL JACOBSON VZWRLSS*AP $120.24 $0.00 $120.24 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 QB 8.5X11 RCOPY 20 92 1RM QUILL CORP $146.16 $0.00 $146.16 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 PAC interview lunch ED'S MUDVILLE GRIL $51.32 $0.00 $51.32 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Standard Pro Monthly ZOOM.US 888-799-966 $14.99 $0.00 $14.99 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 COVID tests CVS/PHARMACY #06526 $260.89 $0.00 $260.89 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 COVID tests SAMSCLUB.COM $228.38 $0.00 $228.38 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Name Plate ALPINE AWARDS $24.15 $0.00 $24.15 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 IT ADOBE CREATIVE CLOUD $599.88 $0.00 $599.88 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Fuel F & T VALERO CONCORD $10.95 $0.00 $10.95 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 ARPA - E-sig setup DOCUSIGN $432.00 $0.00 $432.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Internet service COMCAST CALIFORNIA $386.16 $0.00 $386.16 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Chair for Finance Director SQ *BERKELEY O $385.88 $0.00 $385.88 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Decals for new vehicles FAST SIGNS OF PLE $786.29 $0.00 $786.29 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 (2 pack) Faittoo Restricte/SmartSign "Employee $36.02 $0.00 $36.02 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Camera hardware OUTDOOR SUPPLY CLA $4.06 $0.00 $4.06 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 ID card IMAGE SALES $26.59 $0.00 $26.59 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 Monthly fee TLO TRANSUNION $75.00 $0.00 $75.00 2/8/2022 City of Clayton Page 2
Open Invoice Report
Cal Card Obligations
Vendor Name Due Date Date Invoice Number Invoice Description Balance Discount Expires On Net Amount Due Invoice Invoice Potential Discount
US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 ID card IMAGE SALES $26.59 $0.00 $26.59 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 MICROPHONE, MOTOROLA SOLUTIONS O $925.59 $0.00 $925.59 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 HP 508X HY LASERJET TONER STAPLS73 $302.67 $0.00 $302.67 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 SIGN,METAL BASE,ENGRVD,2 OFFICE DE $17.55 $0.00 $17.55 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 BROTHER TN420 BLACK TONER STAPL $35.76 $0.00 $35.76 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 BAG, SHREDDER OFFICE DEPOT 1135 $29.70 $0.00 $29.70 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 32OZ HS SHREDDER OIL STAPLS734573 $25.00 $0.00 $25.00 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 BATTERY,AA,ALKALINE,24/P OFFICE D $26.89 $0.00 $26.89 US Bank CalCard 1/1/2022 12/22/2021 Stmt end 12/22/21 PAPER,X-9,8.5"X11",20LB, OFFICE DEPO $40.23 $0.00 $40.23 Totals for US Bank CalCard: $12,050.90 $0.00 $12,050.90 GRAND TOTALS: $12,050.90 $0.00 $12,050.90
2/8/2022 City of Clayton Page 1
Open Invoice Report
ARPA Obligations
Vendor Name Due Date Date Invoice Number Invoice Description Balance Discount Expires On Net Amount Due Invoice Invoice Potential Discount
Brenda the Braider
Brenda the Braider 2/11/2022 2/8/2022 ARPA Clayton Cares Program $10,000.00 $0.00 $10,000.00 Totals for Brenda the Braider: $10,000.00 $0.00 $10,000.00 Anthony Chippero
Anthony Chippero 2/11/2022 2/8/2022 ARPA Clayton Cares Program $10,000.00 $0.00 $10,000.00 Totals for Anthony Chippero: $10,000.00 $0.00 $10,000.00 Dana Hills Swim Team
Dana Hills Swim Team 2/11/2022 2/8/2022 ARPA Clayton Cares Program $10,000.00 $0.00 $10,000.00 Totals for Dana Hills Swim Team: $10,000.00 $0.00 $10,000.00 Diablo Lawnscape
Diablo Lawnscape 2/11/2022 2/8/2022 ARPA Clayton Cares Program $10,000.00 $0.00 $10,000.00 Totals for Diablo Lawnscape: $10,000.00 $0.00 $10,000.00 Darryl Gomez
Darryl Gomez 2/11/2022 2/8/2022 ARPA Clayton Cares Program $10,000.00 $0.00 $10,000.00 Totals for Darryl Gomez: $10,000.00 $0.00 $10,000.00
Alana Laux
Alana Laux 2/11/2022 2/8/2022 ARPA Clayton Cares Program $10,000.00 $0.00 $10,000.00 Totals for Alana Laux: $10,000.00 $0.00 $10,000.00
Mt Diablo Elementary PFC
Mt Diablo Elementary PFC 2/11/2022 2/8/2022 ARPA Clayton Cares Program $10,000.00 $0.00 $10,000.00 Totals for Mt Diablo Elementary PFC: $10,000.00 $0.00 $10,000.00 GRAND TOTALS: $70,000.00 $0.00 $70,000.00
Payroll Totals
Payroll Checks Check Type Count Net Check Dir Dep Amount Net Amount Regular 27 0.00 71,365.31 71,365.31
Regular 2 2,638.74 0.00 2,638.74
Totals 29 2,638.74 71,365.31 74,004.05 ĺ 74,004.05
Payroll Checks Check Type Agency Type Count Net Check Dir Dep Amount Net Amount Agency EFSDU 1 0.00 9.23 9.23
Agency Regular 1 0.00 663.50 663.50
Totals 2 0.00 672.73 672.73 ĺ 672.73
Total Net Payroll Liability 2,638.74 72,038.04 74,676.78 ĺ 74,676.78 Tax Liability
CA and Related Taxes Tax Id Rate Frequency Wage Cap Wages EE Amount ER Amount CA SDI - Employee Semi-Weekly 109,174.70 109,174.70
California SITW Semi-Weekly 106,822.78 106,822.78 5,896.47 Totals 5,896.47 0.00 ĺ 5,896.47
CASUI and Related Taxes Tax Id Rate Frequency Wage Cap Wages EE Amount ER Amount CA Edu & Training 0.001000 Quarterly 109,174.70 57,116.13 57.12 California SUI 0.020000 Quarterly 109,174.70 57,116.13 1,142.32 Totals 0.00 1,199.44 ĺ 1,199.44
FITW and Related Taxes Tax Id Rate Frequency Wage Cap Wages EE Amount ER Amount Federal Income Tax Semi-Weekly 106,822.78 106,822.78 15,829.60 Medicare Semi-Weekly 109,174.70 109,174.70 1,583.01
Medicare - Employer Semi-Weekly 109,174.70 109,174.70 1,583.03 OASDI Semi-Weekly 267.75 267.75 16.60
OASDI - Employer Semi-Weekly 267.75 267.75 16.60
Totals 17,429.21 1,599.63 ĺ 19,028.84
FUTA and Related Taxes Tax Id Rate Frequency Wage Cap Wages EE Amount ER Amount Fed Unemployment Quarterly 109,174.70 57,116.13 342.70
Totals 0.00 342.70 ĺ 342.70
Total Tax Liability 23,325.68 3,141.77 ĺ 26,467.45
Total Payroll Liability 101,144.23 ĺ 101,144.23
Paylocity Corporation
(888) 873-8205
Run on 1/31/2022 at 3:33 PM
User: JGiantvalley
Payroll Summary
City of Clayton
Check Dates: 01/21/2022 to 01/28/2022
Pay Periods: 01/10/2022 to 01/23/2022
Processes: 2022012101 - 2022012801
Billing
Invoice Date Gross Discount Tax Adjustment Amount
109627927 1/28/2022 516.00 516.00
Totals 516.00 0.00 516.00 ĺ 516.00
Transfers
Type Date Source Account Amount
Billing 1/28/2022 516.00
Dir Dep 1/20/2022 71,365.31
Tax 1/20/2022 26,467.45
Trust 1/27/2022 2,638.74
Trust Agency 1/27/2022 672.73
Totals Transfers 101,660.23 ĺ 101,660.23
Tax Deposits
Required Tax Deposits Tax Due On Amount
( Deposit made by Service Bureau ) California SITW 1/26/2022 1,059.28 ( Deposit made by Service Bureau ) Federal Income Tax 1/26/2022 3,248.00 ( Deposit made by Service Bureau ) California SITW 2/2/2022 4,837.19 ( Deposit made by Service Bureau ) Federal Income Tax 2/2/2022 15,780.84 ( Deposit made by Service Bureau ) California SUI 5/2/2022 1,199.44 ( Deposit made by Service Bureau ) Fed Unemployment 5/2/2022 342.70 Total Tax Deposits 26,467.45
Paylocity Corporation
(888) 873-8205
Run on 1/31/2022 at 3:33 PM
User: JGiantvalley
Payroll Summary
City of Clayton
Check Dates: 01/21/2022 to 01/28/2022
Pay Periods: 01/10/2022 to 01/23/2022
Processes: 2022012101 - 2022012801
Agenda Item: 4(c)
AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: CITY MANAGER
DATE: February 15, 2022
SUBJECT: Adopt a Resolution of the City Council of the City of Clayton Allowing for Video and Teleconference Meetings during the COVID-19 State of Emergency Under AB 361
___________________________________________________________________________
RECOMMENDATION
Adopt a Resolution of the City Council allowing for video and teleconference meetings during the COVID-19 state of emergency under AB 361.
BACKGROUND
Last year, the State Legislature passed and Governor Newsom signed AB 361 which continues many of the provisions related to the Brown Act that were in place under Executive Orders, which expired September 30, 2021 that allowed for video and teleconferencing during the state of emergency. Since AB 361 has been signed into law, the City can continue to meet virtually until such time as the Governor declares the State of Emergency due to COVID-19 over and measures to promote social distancing are no longer recommended.
On September 20, 2021, the Contra Costa County Health Officer issued recommendations for safely holding public meetings and strongly recommends on-line meetings. If in-person meetings need to occur, the County Health Officer recommends social distancing of six feet of separation between all attendees. The proposed resolution provides that the City Council and all subsidiary City boards and commissions may continue to hold video and teleconference meetings while the state of emergency is still in effect and physical distancing is recommended.
In order to continue to hold video and teleconference meetings, the City Council will need to review and make findings every thirty days that the state of emergency continues to directly impact the ability of the members to meet safely in person and that state or local officials continue to impose or recommend measures to promote physical distancing.
Subject: Resolution Allowing for Video and Teleconference Meetings during the COVID-19 State of Emergency Under AB 361
Date: February 15, 2022
FISCAL IMPACT
None.
Attachment:
Resolution of the City Council Allowing for Video and Teleconference Meetings during the COVID-19 State of Emergency Under AB 361
Resolution ##-2022 AB 361 February 15, 2022
RESOLUTION NO. ##-2022
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAYTON
ALLOWING FOR VIDEO AND TELECONFERENCE MEETINGS DURING THE COVID-19 STATE OF EMERGENCY UNDER AB 361
WHEREAS, on March 4, 2020, the Governor of the State of California proclaimed a State of Emergency for COVID-19;
WHEREAS, AB 361 was recently passed by the State Legislature and signed by Governor Newsom and went into effect immediately and allows the City to continue to meet virtually until such time as the Governor declares the State of Emergency due to COVID-19 over and measures to promote physical distancing are no longer recommended;
WHEREAS, on September 20, 2021 the Contra Costa County Health Officer issued recommendations for safely holding public meetings and strongly recommends on-line meetings and if in person meetings occur then recommends physical distancing of six feet of separation between all attendees;
WHEREAS, in light of this recommendation, the City Council desires for itself and for all other City legislatives bodies that are subject to the Brown Act to continue to meet via video and/or teleconference; and
WHEREAS, pursuant to AB 361 the City Council will review the findings required to be made every 30 days.
NOW THEREFORE BE IT RESOLVED the City Council hereby finds on behalf of itself and all other City legislative bodies: (1) a state of emergency has been proclaimed by the Governor; (2) the state of emergency continues to directly impact the ability of the City’s legislative bodies to meet safely in person; and (3) local officials continue to recommend measures to promote physical distancing.
BE IT FURTHER RESOLVED that the City Council and all other City legislative bodies will continue to meet via video and/or teleconference during the COVID-19 emergency.
PASSED AND ADOPTED by the Clayton City Council, State of California, on this 15th day of February 2022, by the following vote.
AYES:
NOES:
ABSENT:
ABSTAIN:
Resolution ##-2022 AB 361 February 15, 2022
THE CITY COUNCIL OF CLAYTON,
CA
Peter Cloven, Mayor
ATTEST:
_________________________________
Janet Calderon, City Clerk
Agenda Item: 4(d)
AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: Mark Nassar, City Engineer
Reina J. Schwartz, City Manager
DATE: February 15, 2022
SUBJECT: Adopt a Resolution Accepting the Recommendation of the City Engineer Regarding Posting and Authorizing Enforcement of No Parking at Specified Locations to Provide for Improved Visibility and Safety ___________________________________________________________________________
RECOMMENDATION
Staff recommends City Council adopt the attached Resolution accepting the recommendation of the City Engineer regarding posting and authorizing enforcement of No Parking at specified locations on Center Street and on Kelok Way to provide for improved visibility and safety.
BACKGROUND
It has been brought to the City’s attention that the cars parking on Center Street adjacent to the driveway to enter/exit the CVS Pharmacy parking lot may be creating a hazard by blocking visibility given the curve in the road at that location. Under the Clayton Municipal Code, the City Engineer is authorized to determine areas that should be signed or painted indicating no stopping or parking where the parking or stopping of any vehicle would constitute a traffic hazard or would endanger life or property. Under California Vehicle Code, in order to allow for enforcement of no parking signs/red curbs, the City Council must authorize such enforcement via resolution.
DISCUSSION
The City Engineer has evaluated the concern regarding visibility exiting the CVS parking lot turning either right or left onto Center Street. The specifics of that evaluation are shown in Attachment 2. According to the analysis and based on recommended sight distances for cars entering a two-lane roadway from the American Association of State Highway and Transportation Officials, the City Engineer recommends that the curbs adjacent to the CVS driveway on the south side of Center Street, from the driveway to the light at Clayton Road and from the CVS driveway to the next driveway be painted red and posted as No Parking zones.
Resolution Accepting the Recommendation of the City Engineer Regarding Posting and Authorizing Enforcement of No Parking at Specified Locations to Provide for Improved Visibility and Safety Date: February 15, 2022
While the authority to designate where situations may require no parking for safety reasons is delegated to the City Engineer, in order for the Clayton Police Department to enforce the No Parking restrictions, the City Council must adopt the locations of the red curbs via Resolution.
The attached resolution also corrects an administrative oversight regarding a curb that was painted red in November 2020 in front of the vista point on Kelok Way due to safety and neighborhood concerns. The attached resolution memorializes the City Council direction to paint the curb red and authorize enforcement of no parking in that cul-de-sac.
FISCAL IMPACT
There is little direct fiscal impact from painting these curb areas red and allowing for enforcement of no parking to occur.
Attachments: 1. Resolution
2. Center Street Curb Visibility Assessment
Resolution ##-2022 Red Curb CVS/Kelok February 15, 2022 RESOLUTION NO. ##-2022
A RESOLUTION ACCEPTING THE RECOMMENDATION BY THE CITY ENGINEER
REGARDING POSTING AND AUTHORIZING ENFORCEMENT OF NO PARKING AT
SPECIFIED LOCATIONS FOR IMPROVED VISIBILITY AND SAFETY
THE CITY COUNCIL
City of Clayton, California
WHEREAS, Clayton Municipal Code delegates to the City Engineer the authority to determine areas that should be signed or painted indicating no stopping or parking where the parking or stopping of any vehicle would constitute a traffic hazard or would endanger life or property;
WHEREAS, the City Engineer has evaluated potential visibility concerns related to exiting the driveway to the CVS Pharmacy onto Center Street and determined that parking should be removed in specified areas adjacent to that driveway; WHEREAS, the City had previously established a no parking zone in front of the vista point on Kelok Way; and
WHEREAS, under California Vehicle Code, in order to allow for enforcement of no parking signs/red curbs, the City Council must authorize such enforcement via resolution.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Clayton, California does hereby:
1. Accept the recommendation of the City Engineer regarding Posting of No Parking/painting red curb at specified locations on Center Street adjacent to the CVS Pharmacy Parking Lot for adequate and safe visibility;
2. Confirm authority to enforce No Parking restrictions at the vista point on Kelok Way.
PASSED, APPROVED and ADOPTEDby the City Council of Clayton, California at a regular public meeting thereof held on the 15th day of February 2022 by the following vote:
AYES:
NOES:
ABSENT:
Resolution ##-2022 Red Curb CVS/Kelok February 15, 2022 ABSTAIN:
THE CITY COUNCIL OF CLAYTON, CA
_________________________________
Peter Cloven, Mayor
ATTEST:
_________________________________
Janet Calderon, City Clerk
Agenda Item: 4(e)
1 AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: Reina J. Schwartz, City Manager
DATE: February 15, 2022
SUBJECT: Set March 21, 2022 for City Council Special Meeting: City Council Goal Setting
___________________________________________________________________________
RECOMMENDATION
Staff recommends the City Council discuss and by motion order direct staff to set a Special City Council meeting for March 21, 2022 at 4pm for the purpose of discussing current and future Goals.
BACKGROUND
Typically, the Clayton City Council meets at least once per year with its City Manager to discuss progress on prior City Council goals and to establish new and/or modified goals for the upcoming year. The last goal-setting session was March 22, 2021.
DISCUSSION
While this session has often taken place in January or February and been focused on a calendar year basis, funding for goals will generally be aligned on a fiscal year basis. This year the focus will be on setting up goals for FY2022/23 and beyond.
Based on a survey regarding potential available dates for this session, the City Manager is recommending that the Special Meeting be scheduled for 4pm on Monday March 21, 2022.
FISCAL IMPACTS
There is no direct fiscal impact from conducting the Goal Setting session, although session outcomes will inform the budget for FY2022/23. The session will be facilitated by the City Manager.
Attachments
FY2021/22 Council Priority Areas – Status as of February 15, 2022 Council Guidelines and Procedures (May 2019)
3/30/2021 (Status as of February 15, 2022)
FY2021/22 COUNCIL PRIORITY AREAS
(STATUS AS OF FEBRUARY 15, 2022)
Land Use and Housing
1. Complete a state required Housing Element Update (Mandated; $) - in process/on track for completion by the state deadline of January 2023.
2. ADU Ordinance (2020; $) – work has begun in 1st quarter 2022
3. General Plan Safety and Circulation Element Updates (New; $) – evaluating timing; will need to incorporate Local Hazard Mitigation Plan now that it is complete.
Public Safety
1. Update Local Hazard Mitigation Plan (2020; $) – Completed and approved by FEMA.
2. Update Emergency Operations Plan (New; $) – No progress has been made; need to determine if this is a high citywide priority.
3. Implement Nixle – for improved emergency communication with the community (New; $) – Implemented in December 2021.
4. Improve pedestrian/traffic safety (2020; $) – Advance Warning “Signal Ahead” signs approaching Diablo View Middle School have been installed (February 2022). Other improvements being evaluated on an ad hoc/ongoing basis.
Financial Stability
1. Develop long-term financial plan (2020) – Revenue options and timeline for ballot measure presented to City Council February 2022.
2. Adopt a Financial Reserve policy (2020) – draft completed; delayed for final draft to allow new Finance Director to come on board and complete audit in a timely manner. Goal to complete in advance of FY2022/23 Budget.
3. Improve Capital Improvement Project (CIP) information and planning (2020) – plan to address with FY2022/23 CIP budget.
Quality of Life
1. Consider joint fireworks event in conjunction with Concord/in Concord (New; $) Concord held event.
2. Consider a Community Survey (New; $) – No progress made on a general citywide community satisfaction type survey; specific surveys have been completed related to the Housing Element Update and ARPA funding.
3. Review Cannabis Ordinance (2021) – Council considered in May 2021 with direction to amend the City’s Ordinance; Planning Commission recommended approval to allow outdoor cultivation in October; final Council approval to allow outdoor cultivation for personal use was approved in December 2021.
3/30/2021 (Status as of February 15, 2022)
Good Governance
1. Install technology to provide Closed Captioning of Council Meetings (2020; $) In process, funding needed. Planned for 1st quarter 2022.
2. Update Purchasing Policy (2020) – Completed January 2022.
3. Update Employee Handbook (New) in process through Lexipol (automated, updated, includes tracking of policy acknowledgement and annual refresher); goal for completion prior to June 30, 2022.
4. Update City IT infrastructure (including continued digitizing of records) (2020; $) – slow progress; still need to identify funding for improvements.
5. Create annual City Manager contingency for small unforeseen events/needs (New; $) – to be addressed in FY2022/23 operating budget.
6. Improve employee recruitment and retention (2020; $) – new MOU for Police effective July 1, 2021 addressed some compensation issues; Miscellaneous compensation to be reviewed prior to June 30, 2022 per Terms & Conditions of Employment for that group. Will need to be addressed in the context of the FY2022/23 operating budget. 1 COUNCIL GUIDELINES AND PROCEDURES
* CITY OF CLAYTON *
In order to maximize the effectiveness of the Clayton City Council, the following guidelines have been adopted.
A. GENERAL
1. The Council takes courageous action when necessary to keep Clayton on the cutting edge of well-run, well-managed, innovative cities.
2. The Council provides leadership and participates in regional, state and national programs and meetings.
3. The Council looks to its Commissions and Committees for independent advice and some legislative actions.
4. There is extensive citizen participation and work on City programs and documents.
5. There are numerous meetings other than regular Council meetings.
6. There is a commitment to training for staff, Council and Commission members.
7. Council Members will inform the City Clerk when they will be out of town as early as possible so absences can be calendared.
8. Council Members receive the same information as much as possible: Citizen complaints, letters, background, etc. [All Members receive copies of everything].
9. Technology is used to create efficiencies.
10. Unwanted reports and documents are returned to staff for distribution to the public or for recycling.
B. COUNCIL VALUES
1. Each Councilperson is elected to and encouraged to represent his or her opinion and to work to carry out what he or she believes is in the best interests of Clayton and its citizens.
2. The Council and the City Manager are a participatory team.
3. The Council is high energy and achievement oriented. 2 4. Council Members exhibit care and respect for each other as persons.
5. Council Members promote care and respect for each other’s point of view. Each Member has a right to be heard.
6. Opinions are expressed honestly, openly, civilly and with integrity.
7. Humor is an important tool.
8. Traditions are respected but not always binding.
C. COUNCIL INTERACTION AND COMMUNICATION
1. The Mayor makes Council sub-committee appointments annually in December; the Mayor is encouraged to seek input from Council regarding appointment preferences.
2. Members will take seriously the responsibility of reporting to Council on subcommittees and other regional, state and national board/agency/group activities in which they are involved.
3. Each Council Member has the responsibility to initiate resolution of problems as soon as possible.
4. Members shall recall and abide by the Brown Act when giving information to each other outside of public meetings.
5. Cheap shots at each other are not allowed by Members during public meetings, in the media, or at any other time.
6. Relationships are informal, but Council Members need to be aware of impact on and perception of the public.
7. Council Members will be flexible in covering Council responsibilities for each other.
8. Council Sub-Committees.
a. Sub-committee areas belong to the Council as a whole; they are not seen as territorial.
b. Sub-committees shall keep the rest of the Council fully informed. The rest of the Council is responsible for letting a sub-committee know if they want more information or to give input.
c. Before sub-committees start moving in new directions, they will obtain direction from the rest of the Council.
3 d. Sub-committee reports will be made under “Council Reports” at Council meetings, when appropriate.
e. Sub-committee memos will be sent on an interim basis to update other Council Members on:
1). Issues being discussed.
2). Options being considered.
3). Progress.
f. Appropriate reports will also be included in the City Manager’s “Weekly Report”.
g. Council may contact Department Heads or the City Manager to be briefed on any sub-committee work.
h. Council shall review the performance of citizen committees no less frequently than every six months.
i. Sub-committees are task oriented with scheduled dates of completion.
D. COUNCIL INTERACTION AND COMMUNICATION WITH STAFF
1. City Manager.
a. Council Members should always feel free to communicate with the City Manager.
b. When a Council Member is unhappy about the performance of a Department, he/she should discuss this with the City Manager, not any other employee [the City Manager will inform the Mayor of any serious violations of this norm]. c. Concerns about the performance of Department Heads must be taken to the City Manager and/or Mayor first for resolution through proper channels. d. In passing along critical information, the City Manager will inform all Council Members.
e. Council will provide ongoing feedback, information and perceptions to the City Manager, including some response to the “Weekly Report”. f. Council will page the City Manager if there is an emergency and he/she cannot be reached by phone.
4 2. Staff in General.
a. Council may make reasonable requests for information directly from Department Heads.
b. An informal system of direct communication with staff is used but not abused by Council.
c. Staff will inform Council immediately when an unusual event occurs that the public would be concerned about [e.g., major vehicular accidents; major police activities; areas cordoned off by police or fire, etc.]. d. The Council and staff will not intentionally blind side each other in public; if there is an issue or a question a Council Member has regarding an agenda item, that Member will contact staff prior to the meeting.
E. COUNCIL RESPONSIBILITIES FOR KEEPING INFORMED
1. Read Commission minutes and staff reports to find out issues being addressed.
2. Read documents on planning items.
3. Read City Manager “goal updates” list for Council.
4. Do homework diligently and thoroughly.
F. MAYOR SELECTION
1. Election to Vice Mayor and Mayor requires supporting votes of three (3) Council Members, but in the interest of harmony unanimous consensus is to be sought and encouraged.
2. Any Council Member wanting or not wanting a role has a responsibility to tell all other Members.
3. As far as possible and until otherwise decided, Council Members will take turns as Mayor.
4. Mayorship will be a one-year term, commencing with the first meeting in December.
5. Selection of a Mayor is not a lock-step system. The Vice Mayor is generally expected to ascend to Mayor.
6. All Council Members are peers, and the Mayor and Vice Mayor serve at the pleasure of the Council.
5 G. MAYOR’S ROLE
1. Each Mayor operates somewhat uniquely from past Mayors; the role is largely defined by the person based on style.
2. The elected Mayor is to chair the meetings with proper decorum and to treat all Council Members and the public with respect.
3. The Mayor will inform the Council of any correspondence received or sent in relation to City business. This will be done within reason so as not to create a paper-trail overload. (Use of voice mail is encouraged, whenever possible).
4. The Mayor will forward pertinent information to other Council Members.
H. CITIZEN COMPLAINTS
1. City residents are considered “customers” and will be treated with courtesy and respect.
2. Council Members will receive copies of citizen written complaints, as received.
3. Council Members will be informed on telephone complaints, as appropriate.
4. Staff will inform Council of their response to complaints; copies of written responses should be included in Council packets.
5. Responses to citizens are personalized and professional.
6. Written responses will be selective. Reponses will be made to all complaints.
7. Staff will draft a copy of responses for Council to use; letters over Council signatures checked out with signatory.
8. Council should not go to a hands-on mode when complaints occur. Issues will be referred to appropriate staff who will be given adequate time to respond.
9. If a Council Member wants action based on a citizen complaint, he/she should go through the City Manager’s office to insure proper handling. 6 I. PUBLIC MEETINGS
1. Agendas.
a. Formation.
1). The City Manager and the City Clerk will prepare a draft agenda and review it with the Mayor for finalization.
2). Any member of the Council may request that an item be placed on the agenda by contacting the Mayor. It is the Mayor’s discretion as to which regularly scheduled meeting the requested agenda item will appear, after consultation with the City Manager regarding availability of staff time to prepare necessary reports and the extent and number of items already scheduled for each upcoming Council meeting.
b. Council may move to table any agenda item for future study. c. Council Members will feel free to ask for continuance if enough time has not been available for the Council to prepare.
d. If a Member is ill or away for any big or “personal” agenda item, the item may be tabled at the Member’s request.
e. Council may refuse to act on items where critical materials were not available in the Friday agenda packet.
f. Agenda packets are available by 5:00 PM on the Friday preceding the Tuesday meeting.
g. No item on the agenda will be taken up after 11:00 PM without the unanimous consent of the Council Members present.
2. Consent Calendar.
a. Items placed on the Consent Calendar are those considered by the Mayor or the City Manager to be routine in nature; they are enacted in one motion.
There is normally no separate discussion of these items, unless requested. b. The Consent Calendar is used judiciously for items such as minutes, routine City business, some appeals, items already approved in the Budget, etc. c. The Mayor will inquire of the public, “Is there anyone who wishes to speak to anything on the Consent Calendar?” [to be in bold type on the agenda].
If so, the item is pulled off the Calendar for separate discussion. 7 d. If a Council Member has a question on a Consent Calendar item for their information only, they are encouraged to ask staff ahead of time, rather than having it pulled off for discussion during the meeting. e. If there is time before the meeting, Council Members will inform staff of items they wish to pull from the Consent Calendar.
f. If additional information is requested by a Council Member, staff will provide back-up material to all Council Members.
3. It is reasonable to expect that staff be prepared to give an oral report on every agenda item.
4. The Mayor works with the City Manager to decide how much information needs to be disseminated at the meeting based on the item, and Council and audience needs.
5. There will be no packing of the audience by individual Council Members for specific agenda items.
6. Corrections to minutes should be passed to the City Clerk before the meeting, if possible.
7. Public Comment.
a. As required by law.
b. To be directed to the Mayor and Council, not staff or the audience. c. Has a three (3) minute time limit enforced at the Mayor’s discretion; is announced in advance and consistently applied.
d. Is addressed early in the meeting.
e. A Council Member may ask staff to put an item on a future agenda. f. Council may ask staff to respond, when appropriate.
g. The following options may be considered by the Mayor during times of high controversy:
1). The Mayor designates a block of time early in the meeting (20 minutes) and any comments beyond this limit will be held until the end of the meeting.
8 2). The Mayor polls the audience for an indication of the number of people wishing to speak, then calls on individuals to speak.
8. The Mayor should survey the audience, as appropriate, to move agenda items up or back to address audience items of concern.
9. Public participation is encouraged on all public agenda items.
10. Council and staff will treat participants and each other with courtesy. Derogatory or sarcastic comments are inappropriate.
11. The public will likewise be encouraged by the Mayor to maintain meeting decorum.
12. Council and staff will treat the public with respect; refer to citizens by surnames, as appropriate.
13. In Council meetings when citizens are agitated, the Mayor may call a short recess to calm the situation.
14. The portion of a regular Council meeting before 7:00 PM, in addition to the present items, should include Council and City Manager reports; action items are discussed first and reports second; Council will ask staff for a summary, if appropriate.
15. The Mayor allows other Members to speak first, then gives his/her views and afterward summarizes the discussion. Council Members should not be redundant if they concur with what has already been said.
16. Voting.
a. Each Council Member is given an opportunity to speak before a motion. b. Attempts are always made to reach consensus on significant issues. c. On split votes, each Member shares his/her views about the issue and the reasons for his/her vote.
d. Once a vote is final, Council Members will support the action taken. If a Council Member wants a vote to be reconsidered, he/she will follow The Standard Code of Parliamentary Procedure.
e. Any Council Member may request a roll call vote on any given issue.
17. When any Council Member believes something would be helpful during a meeting, he/she is free to suggest change in the procedure.
9 18. Department Head attendance is encouraged at every Council meeting when there is a pertinent issue relative to that Department on the agenda; other staff attendance at Council meetings is at the City Manager’s discretion.
19. Written documents, written statements, citizen petitions, references, newspaper articles or other materials submitted at or read by a council member or a member of the public at a City Council meeting become part of the Agenda Packet retained for that meeting, not an attachment to the official minutes prepared by the City Clerk of said meeting.
20. Council Members shall not use or receive digital or electronic communications (such as electronic text or visual communications and attachments distributed via email, instant messaging, twitter or comparable services) regarding an agenda item at any time during the meeting of the City Council at which he or she is in attendance.
J. EXECUTIVE SESSION IN GENERAL
1. Council will receive written reports for Closed Session items, as appropriate; these reports are to be returned to staff at the end of the meeting.
2. The City Manager will schedule pre-meeting Closed Sessions if it will save the City money [due to consultant or legal fees, etc.].
3. There is to be no violation of Executive Session confidentiality. Council Members will not talk to affected/opposing parties or anyone else (press, etc.) regarding Executive Session items without Council direction and concurrence.
4. The Mayor will make a public report after every Closed Session in the same meeting.
K. REDEVELOPMENT, GEOLOGIC HAZARD ABATEMENT DISTRICT (GHAD), AND
CLAYTON FINANCING AUTHORITY MEETINGS
1. All general procedural rules apply as related to normal agenda, consent calendar, etc. These meetings generally follow the Council meeting.
L. SPECIAL MEETINGS
1. Any member may request the Mayor to call a Special Meeting and the Mayor will call it unless there are extenuating circumstances. Special Meetings will be called as specified in the California Government Code.
10 M. CITY ELECTION YEAR
1. Election year politics should be conducted in such a fashion that the business of Clayton can carry on as usual.
2. Council Candidates will be introduced at Council meetings as candidates only after they have filed their nomination papers.
N. MEMBERS OF COMMISSIONS AND COMMITTEES
1. Commissions and Committees are appointed by the Council as advisory bodies.
2. Commissions and Committees need to:
a. Consider Council vision.
b. Understand their roles, authority, limitations, etc. c. Know annual priorities.
d. Work within established process and parameters [e.g., citizen involvement]. e. Have a Council Member serve as liaison.
3. Criteria to be considered in the selection and re-appointment of Commissions. * a. Lack of conflicts of interest.
b. Attendance [may not miss two consecutive meetings without an excuse]. c. Level of participation and preparation.
d. Support of community vision and values.
e. Respect for staff and public.
f. Work for community versus personal purposes.
g. Perform as a team player.
h. Be a resident [unless there is exceptional need].
11 i. Be competent.
j. Representative of community as a group [e.g., differing points of view, area of residence, aspects of community, backgrounds, experts versus generalists, etc.].
k. Appointments are to be made by Council as a whole, not on promises by individual Council Members or Mayor.
* [A Commissioner may be removed if he/she is in violation of criteria under this section].
4. Selection Process.
a. Commission candidate application information is to include: Council vision statement, expectations, Brown Act requirements, suggestion to attend a Commission meeting, problem-solving model, etc.
b. City Council reviews applications, giving input to the Ad-Hoc Committee regarding ranking; Council may request input from Department Heads and City Manager.
c. Ad-Hoc Committee conducts interviews and makes recommendations to Council [let Council Members know before the meeting who is being recommended in time for individual review].
d. Council appoints Commissioners [goal is 5-0 consensus vote]. e. Information packet (including Brown Act, Minutes, Ordinance forming Commission, Calendar of League of California Cities events) is provided to Commissioners by staff.
5. Commissions encouraged to be representative of and involve the entire community.
6. Planning Commissioners shall not use or receive digital or electronic communications (such as electronic text or visual communications and attachments distributed via email, instant messaging, twitter or comparable services) regarding an agenda item at any time during the meeting of the Planning Commission at which he or she is in attendance.
* * * * *
Revised: 21 May 2019
Revised: 20 February 2007
Revised: 20 August 2002
Adopted: 05 May 1998
Agenda Item: 5(a)
declaring
February as
“Black and African American History Month”
WHEREAS, in 1926, famous historian Dr. Carter G. Woodson, established what would become Black History Month to bring special awareness of African American accomplishments and contributions to American history; and WHEREAS, African Americans have contributed to the rich fabric and diversity of America and have made significant strides in civil rights, law, medicine, technology, business, food, music, literature, education, sports, entertainment, journalism and the arts; and
WHEREAS, in 1619, the first documented enslaved Africans arrived at the English colonies at Old Point Comfort, Virginia, on the English ships White Lion and Treasurer, and these individuals were sold in exchange for provisions, while others were transported to Jamestown, where they were sold; and WHEREAS, between 1863 and 1865, hundreds of Black men fought in the American Civil War and died as enlisted men in the United States Colored Troops, seeking life, liberty, and the pursuit of happiness as a free people; and WHEREAS, after 1865, and the ratification of the Thirteenth, Fourteenth, and Fifteenth Amendments to the United States Constitution, the complete freedom and civil rights granted to previously enslaved men, women, and children was subverted by brutal Jim Crow laws, preventing their ability to live as fully free citizens and pursue life, liberty and happiness as guaranteed to white citizens; and
WHEREAS, between 1954 and 1968, African American activists, in particular women, spearheaded the Civil Rights Movement, fought for social justice, constitutional rights, organized sit-ins, workshops, boycotts, and grassroots campaigns; and
WHEREAS, attacks on the Fourteenth and Fifteenth Amendments continue to persist in the 21st century for African Americans, and the City of Clayton devotes its resources to fulfilling the promises of the Emancipation Proclamation and the U.S. Constitution; and
WHEREAS, today, African Americans continue to make gains in public office, education, and professional fields, and as entrepreneurs, as well as fight for an inclusive vision of liberty, justice, and equality for all; and WHEREAS, the City of Clayton, CA will join with the nation in celebrating National Black History Month by honoring the essential contributions, sacrifices and accomplishments African American and Black people have made to the U.S. as part of American history.
Now, Therefore, I, Peter Cloven, Mayor, and on behalf of the entire Clayton City Council, proclaim February as Black and African American History Month in Clayton, CA and I call this observance to the attention of all of our citizens.
[Type here] Agenda Item: 9(a)
STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: REINA SCHWARTZ, CITY MANAGER
KATHERINE KORSAK, FINANCE DIRECTOR
BRYCE ROJAS, CPA, AUDITOR
DATE: FEBRARY 15, 2022
SUBJECT: AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPO0RT (ACFR) OF THE CITY OF CLAYTON FOR THE FISCAL YEAR ENDED JUNE 30, 2021
RECOMMENDATION
By minute order, accept the City of Clayton’s Annual Comprehensive Financial Report (ACFR), including the unmodified opinion of the Independent Auditors Report, issued by Cropper Accountancy Corporation for the fiscal year ended June 30, 2021.
BACKGROUND
The Budget and Audit Committee met on January 31, 2022 to review the Annual Comprehensive Financial Report (ACFR) and the Auditors’ Required Communication to Those Charged with Governance (SAS 114 Letter). The City’s independent audit firm, Cropper Accountancy Corporation, has issued their opinion on the City of Clayton’s financial statements for the fiscal year ended June 30, 2021 (FY 2020/21). In their opinion:
“the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, California as of June 30, 2021, 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.”
Subject: Audited Annual Financial Report Of The City Of Clayton For The Fiscal Year Ended June 30, 2021 Date: February 15, 2022
Page: 2 of 5
It is the responsibility of City management to ensure the financial statements are presented fairly in accordance with GAAP (generally accepted accounting principles). City management is also responsible for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements free from material misstatement, whether due to fraud or error. The responsibility of the City’s independent auditors is to express opinions on the City’s financial statements based on its audit performed in accordance with generally accepted audit standards (GAAS) issued by the American Institute of Certified Public Accountants (AICPA) as well as generally accepted government auditing standards (GAGAS), or “yellow book” standards, issued by the Comptroller General of the United States.
DISCUSSION
Fund Financial Statements
General Fund
The audited financials show a decrease in General Fund Balance of $55,589 for the year ended June 30, 2021. This is due to lower-than-expected investment results and a decrease in revenues from business licenses, permits and fees, and fines, forfeitures and closures.
This results in a total General Fund reserve balance of $6,108,981 as of June 30, 2021, of which $5,810,862 (95%) is reported as unassigned and available for appropriation. This unassigned fund balance is 1.12 times the size of the General Fund’s adopted operating expenditure budget of $5,177,482 for the current fiscal year ending June 30, 2022. Per governmental accounting standards, government funds, such as the general fund, are a report of current financial resources based on a modified accrual basis.
Non-major Governmental Funds
In the aggregate, the other non-major governmental funds of the City reported a net increase in fund balance totaling $165,980 for the year ending June 30, 2021. • HUTA Gas Tax Fund (No. 201) – The Highway Users Tax Account (HUTA) gas tax fund reported a net increase in fund balance of $114,485 to a total ending fund balance of $509,772.
• RMRA Gas Tax Fund (No. 202) – The Road Maintenance and Rehabilitation Account (RMRA) gas tax fund was established in FY 2017/18 as a result of the State legislature’s passing of the Road Repair and Accountability Act of 2017, also known as Senate Bill 1 (SB1). This fund reported an ending fund balance of $620,917 as of June 30, 2021, a net increase of $192,418.
• Landscape Maintenance District Fund (No. 210) – This fund reported a net increase in fund balance of $22,299 to a total fund balance of $1,085,886 as of June 30, 2021. Pursuant to the adopted FY 2021/22 budget, $895,531 of this available fund balance has been assigned for upcoming Landscape Maintenance Fund operating and CIP expenditures. • The Grove Park Fund (No. 211) – This fund reported a net increase of $58,589 in fund balance to a total positive ending fund balance of $465,045.
Subject: Audited Annual Financial Report Of The City Of Clayton For The Fiscal Year Ended June 30, 2021 Date: February 15, 2022
Page: 3 of 5
• Measure J Fund (No. 220) – This fund reported a net decrease in fund balance of $2,048 to a total ending fund balance of $86,243.
Endeavor Hall Enterprise Fund
Consistent with the prior year, the Endeavor Hall rental facility is the City’s only “business-type” enterprise fund reported in the ACFR. The Endeavor Hall fund reported a decrease in net position of $74,938. Two main factors are to blame for the decrease in net position – 1) there was no rental income due to the closures during the COVID-19 pandemic and 2) the depreciation expense of $35,667 had nothing to offset it. Additionally, we have had pandemic related staffing challenges for the building attendant position. Overall, this fund reported a positive net position balance of $923,986 primarily due to capital investment in the rental facility land, property and equipment.
However, as of June 30, 2021, Endeavor Hall continued to report a deficit unrestricted net position arising from several years of deficit operations covered temporarily by short-term General Fund cash flow loans. Going forward, the City must analyze the business model of Enterprise Hall including but not limited to: reviewing the current fee structure, finding adequate staff to be able to operate, and looking for other possible on-going community rental uses of this building. The end goal for Endeavor Hall is to operate at a break-even operational level.
Rainy Day Fund
The Rainy Day Fund (Fund 110) was established during the FY2020/21 fiscal year with the goal of appropriating money to set aside funds to capture any annual surplus identified through the annual audit for the City to earmark towards one time unexpected costs that may arise throughout a budgetary year. Per GASB 54, the Rain Day funds are presented in the financial statements as part of the general fund (reference page 99 of the ACFR). As of June 30, 2021, the Rainy Day Fund has an ending committed balance of $177,496.
Government-Wide Financial Statements
The government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, and unlike the “modified accrual” governmental fund financial statements discussed previously, the government-wide statements report long-term assets and liabilities in the Statement of Net Position. In the long-run, increases or decreases in net position serve as a useful indicator or whether the financial position of the City of Clayton is improving or deteriorating. For the fiscal year ended June 30, 2021, the total government-wide net position decreased by $892,149 with governmental activities net position decreasing by $817,211 and business activities net position decreasing by $74,938. This total decrease of $892,149 is primarily due to two things: a decrease in depreciable assets (there was less than $100,000 in additions to our fixed assets which would typically offset regular annual depreciation expenses) and there was an increase in the pension liability of $453,449.
As of June 30, 2021, the City reported total government-wide ending net position of $45,367,092 of which the largest portion totaling $29,831,761 (65.8%), is classified as “net investment in capital assets” and is not in liquid form. $13,156,670 (29%) of total government-wide net position is classified as “restricted” representing resources that are subject to external restrictions on how it Subject: Audited Annual Financial Report Of The City Of Clayton For The Fiscal Year Ended June 30, 2021 Date: February 15, 2022
Page: 4 of 5
may be used such as restricted special parcel taxes (i.e., The Grove Park and the Landscape Maintenance District), restricted transportation taxes (HUTA, RMRA, Measure J, etc.), and other restricted-use funds. The remaining governmental net position of $2,378,661 (5.2%) is reported as “unrestricted” and may be used to meet the ongoing obligations to citizens and creditors. The net position is a good indicator of the long-term financial health of the City. As stated previously, it is reported on a full accrual basis and includes all in-flows and out-flows of economic resources, which include the long-term pension liabilities, depreciation and other long-term assets and liabilities. The net position from year ending June 30, 2020 was $3,358,419. There was a decrease of $979,758 from FY 2020 to FY 2021 primarily due to increased pension liabilities and depreciation expenses.
FISCAL IMPACT
The acceptance of the audited financial statements for the year ended June 30, 2021 does not have any direct fiscal impact on the City but reflects the overall financial health of the City.
The findings of the Independent Auditors’ Report on Internal Controls over Financial Reporting and on Compliance and other matters based on an audit of Financial Statements performed in accordance with Governmental Auditing Standards (pages 174-176) provide the City a framework and necessitate the City investing in certain improvements. The material weaknesses identified were as follows: 1) continuity of personnel/developing a solid succession plan in the event that the Finance Director cannot perform their duties;2) a general ledger closing procedure that includes locking of the accounting records and a quarterly close; 3) documentation and defining the more complex journal entries to record the movement of funds correctly, and 4) ensuring a solid accounting process around recording of fixed assets in the fixed asset module. A significant deficiency was also found around the city’s IT systems and cybersecurity.
The goal is to rectify the auditors’ findings by the end of this fiscal year to become compliant with internal control best practices. The City will need to invest in this accounting “cleanup” project.
There are three components of this plan:
• The first is working with a technologies firm that are experts in the fund accounting software which the City uses. There are some very specific long-standing issues with the accounting software that need to be resolved in order to be able to close and lock the accounting records on a timely basis.
• The second component includes engaging with an outside CPA firm to get the City caught up and to help develop a long-term plan for a timely quarterly close, quarterly financial reporting to the City Council and a plan for succession focusing on the long-term success of the Finance Department which contributes to the overall financial health and stability of the City.
• The last component of this plan is to address the significant deficiency finding of the IT Review. This finding includes working with our current IT provider to assess the system and identify opportunities to strengthen and improve cybersecurity. We will need to obtain an IT Subject: Audited Annual Financial Report Of The City Of Clayton For The Fiscal Year Ended June 30, 2021 Date: February 15, 2022
Page: 5 of 5
health systems check-up from an outside service provider, this will be an out-of-pocket expense.
The Finance Director is working on getting a succinct plan together to remedy all of the above internal control findings and will be reporting back to the City Council within approximately 30 days as to scope and cost.
Attachments:
1. Comprehensive Annual Financial Report and Independent Auditors’ Report for the Year Ended June 30, 2021
2. Auditors’ Required Communication to Those Charged with Governance (SAS 114 Letter - AU-C 260)
3. PowerPoint Presentation from auditor, Bryce Rojas, CPA City of Clayton, California
Annual &RPSUHKHQVLYHFinancial Report
For the Year Ended June 30, 2021
INTRODUCTORY SECTION
City of Clayton
Annual Comprehensive Financial
Report For the year ended June 30, 2021
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents………………………………………………………………………………. 1
Letter of Transmittal…………………………………………………………………………… 4
Mission Statement……………………………………………………………………………... 9
Organizational Chart…………………………………………………………………………... 10
Principal Officers, Department Heads and Advisory Bodies 11 Regional Map of Clayton and Nearby Cities 12
FINANCIAL SECTION
Independent Auditors’ Report……………………………. . ………………………………… 17 Management's Discussion and Analysis………………………. . . …………………………. . 21 Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position………………………………………………. . …………… 33 Statement of Activities and Changes in Net Position………………………. . ……. 34 Governmental Fund Financial Statements:
Balance Sheet……………………………………………………………. . ……………. 39
Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position………………………………………………………………………… 42
Statement of Revenues, Expenditures and Changes in Fund Balances…………. . 43 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities and Changes in Net Position…. . . ……………………………………. . …………. . . 46
Proprietary Fund Financial Statements:
Statement of Net Position………………………………………. . …………………… 49 Statement of Revenues, Expenses and Changes in Net Position…………. . . ……. . 50 Statement of Cash Flows……………………………………………………. . ………. 51
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position…………………………………. . ……………. . 53 Statement of Changes in Fiduciary Net Position……………………. . ……………. 54 Notes to Basic Financial Statements…………………………………. . ……………………. . 57 1 City of Clayton
Annual Comprehensive Financial
Report For the year ended June 30, 2021
Table of Contents
FINANCIAL SECTION (Continued)
Required Supplementary Information
Budgetary Comparison Schedules
General Fund……………………………………………………. . . …………………… 103
Landscape Maintenance District ……………. …………. . . …………………………. 104 Successor Housing Agency………. . ……………. . . …………………………………. . 105 Pension Plan Funding Status
Schedule of Proportionate Share of Net Pension Liability…. . ……………………. 106 Schedule of Pension Plan Contributions…. . …. . . …………………………………… 107 Other Postemployment Benefits Plan Funding Status
Schedule of Changes in the Net OPEB Liability and Related Ratios. ……………. 108 Schedule of OPEB Plan Contributions……. . …. . . …………………………………… 109 Notes to the Required Supplementary Information…………………………………………. 110 Supplementary Information
Major Funds
Budgetary Comparison Schedules. . . . . …………………………………………. . …… 114 Non-Major Governmental Funds Financial Statements:
Combining Balance Sheet………………………………………………………. . …… 117
Combining Statement of Revenues, Expenditures and Changes in Fund Balances………………………………………………………. . . …………………… 119
Budgetary Comparison Schedules……………………………………. . ……………. 121 Internal Service Funds:
Combining Statement of Net Position. . . ………………………………. . …………… 133 Combining Statement of Revenues, Expenses and Changes in Net Position…………………………………………………………. . . …………………. 134
Combining Statement of Cash Flows………………………………. . ……………… 135 Agency Funds:
Combining Statement of Changes in Assets and Liabilities………………. . ……. . 137 2 City of Clayton
Annual Comprehensive Financial
Report For the year ended June 30, 2021
Table of Contents
STATISTICAL SECTION (UNAUDITED)
Statistical Section Table of Contents………………………………………………….. 142 Financial Trends
Net Position by Component…………………………………………………………… 143
Changes in Net Position………………………………………………………………. 145
Fund Balances of Governmental Funds………………………………………………. 147 Changes in Fund Balances of Governmental Funds………………………………….. 149 Revenue Capacity
Property Tax Levies and Collections…………………………………………….......... 151 Assessed Value and Estimated Actual Value of Taxable Property…………………… 152 Taxable Assessed Value by Source……………………………………………… 153
Property Tax Rates……………………………………………………………………. 155
Principal Property Tax Payers……………………………………………………….. 157 Debt Capacity
Ratios of Debt Outstanding………………………………………………………....... 159 Computation of Direct and Overlapping Debt……….………………………………. 160 Legal Debt Margin…………………………………………………………………..... 161
Bonded Debt Pledged Revenue Coverage……………………………………………….. 163 Demographic and Economic Information
Demographic and Economic Statistics………………………………………………… 164 Operating Information
Full-time Equivalent City Employees by Function……………………………………. 165 Operating Indicators by Function……………………………………………………… 167 Capital Asset Statistics by Function…………………………………………………… 169 General Information……………………………………………………………………. 171
ADDITIONAL REPORTS
Independent Auditors’ Report on Internal Controls over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards……………………. 174T 3 CITY COUNCIL
CARL “CW” WOLFE, MAYOR
COMMUNITY PETER CLOVEN, VICE MAYOR
DEVELOPMENT (925) 673‐7340 6000 HERITAGE TRAIL CLAYTON, CALIFORNIA 94517‐1250 JEFF WAN, COUNCILMEMBER ENGINEERING (925) 969‐8181 TELEPHONE (925) 673‐7300 FAX (925) 672‐4717 JIM DIAZ, COUNCILMEMBER
HOLLY TILLMAN, COUNCILMEMBER
January 24th, 2022
Honorable Mayor and Members of the City Council
City of Clayton
We are pleased to submit the City of Clayton’s Annual Comprehensive Financial Report (ACFR) for the Fiscal year ended June 30, 2021. Since its incorporation, the City has submitted an annual audited Financial Report to the City Council and its citizens in accordance with California Government Code section 25253. The ACFR provides the public, businesses, property owners, investors and all interested parties with an overview of the City’s finances. It is important to note the acronym for this report has changed from CAFR to ACFR as the prior acronym can be considered an offensive racial slur and is no longer used. The information in this ACFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and includes an “unmodified opinion” (the highest rating) on the report by an independent certified public accounting firm, Cropper Rowe, LLP.
Although we rely on the standards and expertise of these independent auditors, the responsibility for the accuracy and fair representation of the ACFR ultimately rests with City management. We believe the data presented in this Report is accurate in all material respects and all statements and disclosures have been included necessary for the reader to obtain a thorough understanding of the City’s financial activities.
Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile reliable and timely information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh its benefits, the City’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that its financial statements will be free from material misstatements.
For readers interested in a more detailed review of the City’s financial statements, a section in the ACFR called “Management Discussion and Analysis” (MD&A) has been included in accordance with Government Accounting Standards Board (GASB) Statement 34, Basic Financial Statements – And Management’s Discussion and Analysis – For State and Local Governments. The MD&A recounts the financial highlights of the City and provides additional analyses on the variances and trends reported as part of the financial statements. The MD&A further discloses significant items impacting the financial condition of the City and is designed to be read in conjunction with this Letter of Transmittal.
City Profile
The City of Clayton was incorporated in 1964 and is located in Contra Costa County, a suburban region in the eastern portion of the San Francisco-Bay Area. Pursuant to its adopted budget for the fiscal year ending June 30, 2021, the City has a permanent staff of 26.2 full-time equivalent employees which serves approximately 11,700 residents in a land area of approximately 4 square miles. Nestled in a small valley at the northern base of Mt. Diablo, the boundaries of the City are mostly developed with a 4 City of Clayton
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Letter of Transmittal
City Profile, continued
strong community emphasis on open space preservation and maintenance of an extensive network of trails. The City continues to show strength as a safe community with attractive residential neighborhoods as a gateway to the fast paced and robust Bay Area economy.
The City operates under a Council-Manager form of government and provides many essential public services to the community. The City is governed by a five-member City Council elected at large, serving staggered terms of four years. The Mayor and Vice Mayor are selected by the City Council each year from its membership and serve one-year terms. The City Council is responsible for setting policies, adopting City ordinances, resolutions, the annual budget, appointing commissions and committees, and hiring the City Manager and City Attorney, among other key duties. The City Manager is responsible for implementing the City Council’s policies, ordinances and directives, overseeing the daily operations of the City, and appointing all department heads and through them all other employees of the City.
As presented in the City’s government-wide statement of activities, pursuant to GASBS 34, the City’s numerous departments and restricted-use funds accounting for public services are consolidated into higher-level programs, which include: public safety, public works, parks and recreation services, community and economic development, and general government. The public safety program is composed of an in-house police department, staffed with eleven (11) full-time sworn police officers and two (2) administrative personnel dedicated to the function of police services. Public works tracks the maintenance of public landscaping (i.e. street medians and shoulders, sub-division entryways, etc.), facilities, transportation infrastructure (i.e. streets, lighting, traffic signals, etc.), as well as contract City engineering services for management of the City’s Capital Improvement Program as well as land development regulatory needs. In their capacity of providing parks and recreation services, the City’s inhouse maintenance department oversees the maintenance of the Clayton Community Library, the Clayton Community Park, The Grove Park, various neighborhood parks, and the historic Endeavor Hall rental facility. The community and economic development program consists of two (2) in-house staff providing planning and land-use regulatory services as well as the functions of economic development and affordable housing. Finally, the general government program reports legislative and support costs indispensable in providing in-house public services and maintains compliance an ever-expanding list of legal, fiscal and other statutory requirements imposed by the State of California.
The City’s fiscal year runs from July 1st through June 30th. Each year, the City Manager presents an annual budget to the City Council for adoption by Resolution on or before June 30th in accordance with Clayton Municipal Code section 3.02.040. On an interim basis the budget is monitored continually with the budgetary level of control maintained at the fund level.
Economic Condition and Outlook
Essentially a cul-de-sac hugging the base of acclaimed Mt. Diablo, Clayton maintains a small-town atmosphere while its relative proximity to California State Highway 24 and neighboring city BART stations make it ideal for commuters. In addition, the semi-rural setting, low crime rate and excellent middle and elementary public schools make Clayton attractive to families of all types. 5 City of Clayton
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Letter of Transmittal
Economic Condition and Outlook, continued
Its residents are generally highly educated with approximately 57.8% of adults greater than age 25 having a bachelor’s degree or higher. In June of 2021, the unemployment rate of the City was 6.5%, compared to 7.0% and 7.6% for Contra Costa County and the State of California, respectively. In 2019 the median household income in the City was $157,768 compared to $87,100 for the state. The median age of Clayton residents is 45.9 as of the 2020 calendar year. The median sales price of homes in Clayton at June 30, 2021 was $1,150,000, a 26.4% year over year increase. These factors bode well for the City’s major sources of revenue, as property and sales & use taxes maintain all-time high levels.
In order, the City General Fund’s top revenue sources are: in-lieu vehicle license fees (VLF – paid from the state’s portion of property taxes); secured property taxes; franchise fees; and sales & use taxes (including the state-allocated “triple flip” prior to the fiscal year ending June 30, 2017). The following chart illustrates the ten-year trend of these four major revenue sources for the City taken from the 2020-2021 Adopted Budget:
6 City of Clayton
Comprehensive Annual Financial Report
For the year ended June 30, 2021
Letter of Transmittal
Altogether, these four primary revenue sources (Property Tax In-Lieu 21.9%, Property Taxes 20.4%, Franchise Fees 11.1%, Sales and Use Taxes 11.3%) comprise 64.7% of General Fund revenues per the adopted budget for the fiscal year ending June 30, 2022. A non-recurring spike was realized in sales and use taxes four years ago in the year ended June 30, 2017 attributable to the City receiving a final true-up Triple Flip allocation from the state following the statutory dissolution of this process effective January 1, 2017. Accordingly, the following year realized a dip back to “normal” sales & use tax trend levels. In the long-run however, given the suburban composition of the City and its geographic boundaries limiting future development, management anticipates slow growth for the next ten years in sales & use taxes and franchise fees and moderate growth in property tax revenue (including in-lieu VLF property taxes received from the state). With increasing telecommunications technologies, cable-based franchise fees could be a declining or at-risk revenue, while other factors such as weather patterns and sustainable energy trends could impact similar franchise fee revenue.
Given the recent U.S. Supreme Court South Dakota v. Wayfair ruling, it is reasonably possible the City will see an increase in sales & use tax revenue in forthcoming years with the definition of eligible taxable sales transactions now potentially including all online sales where “substantial nexus” requirements exist with online sellers in California.
Long‐Term Financial Planning
As of the year ended June 30, 2021, the City of Clayton’s financial condition remains sound. An indicator of financial condition is the level of fund balances, both reserved and unreserved, in the City’s General Fund. The City Council has directed an absolute minimum reserve of $250,000 as its never-to-be- expended “catastrophic reserve.” In practice, due to the effectiveness in fiscal management, this policy has been easily achieved, indicating perhaps this floor requirement should be elevated in the future. However, the standing Policy Goal of the City Council is to establish and retain an undesignated reserve of 50% the annual General Fund operating budget. At June 30, 2021, the total unassigned General Fund reserve balance is $5,810,862 or 1.12 times the size of the adopted General Fund operating budget for the fiscal year ending June 30, 2022. This means in an emergency scenario, the City could operate over an entire year on reserves alone.
The City of Clayton maintains a five-year Capital Improvement Program (CIP), which serves as its planning document to ensure its infrastructure is well maintained. The City prioritizes roads for maintenance and reconstruction based on the relative pavement condition index, with other infrastructure and facility improvement projects prioritized at the discretion of the City Council. Over the course of the last 10 years the City has invested approximately $9.7 million into facility and infrastructure capital improvements, funded by Highway User Tax Apportionments (i.e. HUTA or “gas taxes”), local Measure J taxes, redevelopment property tax increment allocations (prior to the dissolution of the Clayton Redevelopment Agency in 2012), and other state and federal grants. For the upcoming fiscal year ending June 30, 2022, the City’s CIP is expected to invest an additional $2.296 million into transportation and general infrastructure maintenance and improvement needs of the community.
7 City of Clayton
Comprehensive Annual Financial Report
For the year ended June 30, 2021
Letter of Transmittal
Acknowledgements
The preparation of an ACFR cannot be accomplished without the professional, efficient and dedicated services of the Admin/Finance/Legal Department staff (in particular, Accounting Technician Jennifer Giantvalley), and the independent accounting firm of Cropper Rowe, LLP. We also thank the honorable members of the City Council and the various departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.
Respectfully Submitted,
Reina J. Schwartz Katherine Korsak
City Manager Finance Director
8 OUR MISSION
To be of exemplary service to the Clayton community with an emphasis on:
Health and safety
Responsive customer service
Highly trained team of employees
A cooperative work environment
OUR VALUES
Courtesy
Creativity
Diversity
Employee participation
Ethical behavior
Fiscal responsibility
Inclusiveness
Informed risk taking
Open communication
Professionalism
Trustworthiness
OUR VISION
The City of Clayton organization will be recognized as a premier small city.
Customer service will be our hallmark; organizational processes will be a model of efficiency and effectiveness; innovation will be common place; and excellence of work product will be the norm. The employees will enjoy their work environment, and each will be a valued and respected member in his or her field of work. All residents and the City Council will be proud of their City government. 9 x
Finance Director
10 DIRECTORY OF PRINCIPAL OFFICIALS
AND ADVISORY BODIES
As of report issuance
CITY COUNCIL
Peter Cloven, Mayor
Holly Tillman, Vice Mayor
Jim Diaz, Councilmember
Jeff Wan, Councilmember
Carl Wolfe, Councilmember
COMMISSIONS
Planning Commission
COMMITTEES
Trails and Landscaping Committee
APPOINTED OFFICIALS AND DEPARTMENT HEADS
Reina Schwartz City Manager
Laura Hoffmeister Assistant to the City Manager
Hank Stratford City Treasurer
Katherine Korsak Finance Director
Elise Warren Chief of Police
Janet Calderon City Clerk / HR Manager
Dana Ayers Community Development Director
Jim Warburton Maintenance Supervisor
Malathy Subramanian City Attorney (contract)
Mark Nassar City Engineer (contract)
11 Regional Map of Clayton, California
And Nearby Cities
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13 FINANCIAL SECTION
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15 INDEPENDENT AUDITORS’
REPORT
16 INDEPENDENT AUDITORS’ REPORT
To the City Council
City of Clayton, California
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Clayton as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton as of June 30, 2021, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 21-31, budgetary comparison information on pages 103-105, 17 17
18 This page intentionally left blank
19 MANAGEMENT’S DISCUSSION
AND ANALYSIS
20 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
Management of the City of Clayton (the "City") provides this Management’s Discussion and Analysis of the City's Basic Financial Statements for readers of the City's financial statements. This narrative overview and analysis of the financial activities of the City is for its fiscal year ended June 30, 2021. We encourage readers to consider this information in conjunction with the additional information that is furnished with the City's financial statements, which follow.
FINANCIAL HIGHLIGHTS - PRIMARY GOVERNMENT
Government -Wide Highlights
Net Position - The assets of the City of Clayton exceeded its liabilities at the close of the year ended June 30, 2021 by $45,367,092. Of this amount, $2,378,661 was reported as "unrestricted net position" and may be used to meet the ongoing obligations to citizens and creditors.
Changes in Net Position - The City's total net position decreased by $892,149 in the fiscal year ending June 30, 2021. Net position of governmental activities decreased by $817,211, while net position of businesstype activities decreased by $74,938.
Major Fund Highlights
Governmental Funds – As of the year ended June 30, 2021, the City's governmental funds reported a combined ending fund balance of $17,297,680. Of this amount $5,810,862 represents "unassigned fund balances" available for appropriation.
General Fund - The unassigned fund balance of the General Fund on June 30, 2021 was $5,810,862, while the non-spendable and assigned fund balances were $120,623 and $0 respectively.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Clayton's basic financial statements. The City of Clayton's basic financial statements comprise three components: 1) governmentwide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains required supplementary information and supplemental information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of Clayton's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City of Clayton's assets and liabilities, with the difference between the two 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 of Clayton is improving or deteriorating.
21 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
OVERVIEW OF THE FINANCIAL STATEMENTS, Continued
Government-wide Financial Statements, Continued
The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e. g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Clayton that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Clayton include general government, public safety, public works, community and economic development, and parks and recreation services. The business-type activities of the City of Clayton include the activities of the Endeavor Hall enterprise fund.
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 Clayton, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Clayton can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental 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.
22 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
OVERVIEW OF THE FINANCIAL STATEMENTS, Continued
Fund Financial Statements, Continued
The City of Clayton maintains fifteen individual governmental funds. Information is presented separately in the government funds balance sheet and governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Landscape Maintenance District, Housing Successor Agency, and Capital Improvement Program, all of which are reported as major funds.
Proprietary Funds
The City of Clayton maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Clayton uses an enterprise fund to account for its Endeavor Hall activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Clayton various functions. City of Clayton uses three internal service funds to account for its capital equipment replacement program, self-insurance activities, and extraordinary employer pension contribution fluctuations. Because these services predominantly benefit governmental rather that business-type functions, they have been included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City’s sole enterprise fund is considered to be a major fund. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.
Fiduciary Funds
The City is the fiscal agent for benefit assessment districts and other parties holding amounts collected which await payment as directed. The City’s fiduciary activities are reported in the separate statement of fiduciary net position and the agency funds statement of assets and liabilities. These activities are excluded from the City’s other financial statements because the City is acting as a trustee for these funds and cannot use these assets to finance its own operations. The City’s fiduciary funds include a privatepurpose trust fund to account for the activities of the City of Clayton Redevelopment Successor Agency.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 57 – 100 of this report.
23 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
OVERVIEW OF THE FINANCIAL STATEMENTS, Continued
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and other post-employment benefits to its employees as well as budgetary information for the General Fund and each of the major governmental funds.
FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS
Analysis of Overall Net Position and Results of Operations As noted previously, net position may serve over time as a useful indicator of a government's financial position. The City’s total net position was $45,367,092 at June 30, 2021, which is a decrease of $892,149 (1.9%) from the prior year’s net position at June 30, 2020.
The largest portion of the City’s net position reflects its investment in capital assets (e. g. land, buildings, etc. ) net of any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens and these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is condensed comparative Statements of Net Position for the fiscal years ended June 30, 2021 and June 30, 2020:
Business- Business-
Governmental Governmental Type Type
Activities Activities Activities Activities Total Total 2021 2020 2021 2020 2021 2020
Assets
Current Assets $ 14,812,813 $ 14,388,102 $ (112,174) $ (69,042) $ 14,700,639 $ 14,319,060 Noncurrent Assets 6,462,021 6,359,697 - - 6,462,021 6,359,697 Capital Assets 28,793,685 29,780,115 1,038,076 1,073,743 29,831,761 30,853,858 Total Assets 50,068,519 50,527,914 925,902 1,004,701 50,994,421 51,532,615
Deferred outflows 1,051,589 1,182,093 - - 1,051,589 1,182,093 Liabilities
Current Liabilities 362,937 606,265 1,916 5,777 364,853 612,042 Noncurrent Liabilities 5,944,104 5,484,655 - - 5,944,104 5,484,655 Total Liabilities 6,307,041 6,090,920 1,916 5,777 6,308,957 6,096,697
Deferred inflows 369,961 358,770 - - 369,961 358,770
Net Position
Net investment in
capital assets 28,793,685 29,780,115 1,038,076 1,073,743 29,831,761 30,853,858 Restricted 13,156,670 12,046,964 - - 13,156,670 12,046,964 Unrestricted 2,492,751 3,433,238 (114,090) (74,819) 2,378,661 3,358,419 Total net position $ 44,443,106 $ 45,260,317 $ 923,986 $ 998,924 $ 45,367,092 $ 46,259,241
24 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Overall Net Position and Results of Operations, Continued Of the City’s total net position, $13,156,670 (29.0%) represents resources that are subject to external restrictions on how they may be used. The balance of the unrestricted net position of $2,378,661 (5.2%) may be used to meet the City's ongoing obligations to citizens and creditors. City revenues for the year, including both governmental and business-type activities, were $7,816,698, while expenses totaled $8,708,847, resulting in a net decrease in net position of $892,149 excluding transfers, extraordinary and special items. This net decrease was primarily attributable to a decrease in net position of governmental activities, which is discussed in greater detail in the following section.
The following is a recap of the City’s Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2021 and June 30, 2020:
Business- Business-
Governmental Governmental Type Type
Activities Activities Activities Activities Total Total 2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for Services $ 961,910 $ 1,000,692 $ (1,442) $ 24,702 $ 960,468 $ 1,025,394 Operating grants and contributions 893,718 1,024,732 - - 893,718 1,024,732 Capital grants and contributions 42,363 559,220 - - 42,363 559,220 Total program revenues 1,897,991 2,584,644 (1,442) 24,702 1,896,549 2,609,346 General revenues:
Property taxes 2,722,906 2,587,812 - - 2,722,906 2,587,812 Special parcel taxes 1,309,373 1,295,034 - - 1,309,373 1,295,034 Sales and use taxes 510,029 512,868 - - 510,029 512,868 Business license taxes 90,872 140,620 - - 90,872 140,620 Franchise fees 567,350 565,893 - - 567,350 565,893
Payments in lieu of taxes 171,029 167,677 - - 171,029 167,677 Investment income 508,256 684,244 (379) 121 507,877 684,365 Miscellaneous 38,972 40,516 - - 38,972 40,516
Gain (loss) on sale of assets 1,741 5,760 - - 1,741 5,760 Total general revenues 5,920,528 6,000,424 (379) 121 5,920,149 6,000,545 Total revenues 7,818,519 8,625,068 (1,821) 24,823 7,816,698 8,609,891 Expenses:
General government 1,796,454 1,516,739 - - 1,796,454 1,516,739 Public works 2,909,710 2,735,012 - - 2,909,710 2,735,012 Public safety 2,980,000 2,768,030 - - 2,980,000 2,768,030 Community and economic
development 357,133 296,372 - - 357,133 296,372
Parks and recreation services 592,433 724,733 - - 592,433 724,733 Endeavor Hall - - 73,117 63,631 73,117 63,631
Total expenses 8,635,730 8,040,886 73,117 63,631 8,708,847 8,104,517 Change in Net Position (817,211) 544,182 (74,938) (38,808) (892,149) 505,374 Net Position – Beginning 45,260,317 44,716,135 998,924 1,037,732 46,259,241 45,753,867 Net Position – ending $ 44,443,106 $ 45,260,317 $ 923,986 $ 998,924 $ 45,367,092 $ 46,259,241 25 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities
The decrease in net position of the governmental activities over the prior year was primarily attributable to a decrease in both operating and capital grants and contributions. Total expenses were $8,635,730 in the current year compared to $8,040,886 in the prior year. The following chart depicts the relative size of expenses by function for the fiscal years ending June 30, 2021 and 2020:
Total program revenues from governmental activities were $1,897,991 in the current year compared to $2,584,644 in the prior year. Program revenues are derived directly from the program itself or from parties outside the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from government's general revenues. Of the governmental program revenues, 50.7% were derived from charges for services, which includes park use fees, rental fees, licenses and permits, planning services fees, engineering plan check fees, police service fees, and other revenues. The remaining 49.3% of the governmental program revenues came from operating and capital grants and contributions. General revenues are all other revenues not categorized as program revenues such as property taxes, special parcel taxes, sales and use taxes, motor vehicle fees, investment earnings, franchise fees, use of money and property, service charges, and miscellaneous revenues. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Public
Works
Public
Safety
General
Gov
Parks &
Rec
Com &
Econ
Dev
Function
Governmental Activities
Expenses by Function
June 30, 2021
June 30, 2020
26 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities, Continued
Total general revenues from governmental activities decreased by $686,653 (25.6%) over the prior year.
The following pie charts depict the relative size of governmental activities program and general revenues by source for the fiscal years ending June 30, 2021 and 2020:
Property taxes
Special
parcel taxes
Charges for
services
Capital grants
and
contributions
Operating
grants and
contributions
Franchise fees
Sales and
use taxes
Payments in
lieu of taxes
Business
licenses
Investment
income
Miscellaneous Gain (loss) on
sale of assets
GOVERNMENTAL ACTIVITIES REVENUES
BY SOURCE YEAR ENDING JUNE 30, 2021
Property taxes
Special
parcel
taxes
Charges for
services
Capital grants
and
contributions
Operating grants
and
contributions
Franchise fees
Sales and
use taxes
Payments in
lieu of taxes
Business licenses
Investment
income
Miscellaneous Gain (loss) on
sale of assets
GOVERNMENTAL ACTIVITIES REVENUES
BY SOURCE YEAR ENDING JUNE 30, 2020
27 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Business-Type Activities
Total business-type expenses increased 14.9% from $63,631 in the prior year to $73,117 in the current year. This increase is largely attributable to the increase in operating costs of the Endeavor Hall rental facility. Total services revenue decreased as well by 105.8%, from $24,702 in the prior year to $(1,442) in the current year due to the effects from the COVID-19 pandemic. Net position of business-type activities declined $74,938 to a total of $923,986 at June 30, 2021 due to charges for services being insufficient to cover the annual depreciation expense of underlying Endeavor Hall rental facility assets.
FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS
Analysis of Governmental Funds
The focus of the City of Clayton's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Clayton's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $17,297,680. Of this amount, $5,810,862 (33.6%) is unassigned; $120,623 (0.7%) is in nonspendable form; $3,261,239 (18.9%) is assigned for specific purposes; $7,283,999 (42.1%) is restricted by law, regulation, or other outside contractual agreements; and $820,957 (4.7%) is committed for specific expenditures in the future.
General Fund
The City’s General Fund reported a decrease in fund balance of $55,589 (0.9%) in the current fiscal year.
This modest decrease is mostly attributable to lower than expected investment results and a decrease in business licenses, permits and fees, and fines, forfeitures, and closures. Total fund balance of the General Fund is $6,108,981 as of June 30, 2021, of which $5,810,862 (95.1%) is reported as unassigned and available for appropriation. This unassigned fund balance is 1.12 times the size of the General Fund’s adopted operating budget for the upcoming fiscal year ending June 30, 2021.
Landscape Maintenance District
Community Facilities District No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, reported an increase in fund balance of $22,299 (2.1%) in the current fiscal year. This increase in fund balance is largely attributable to decreases in operating costs such as water service and weed abatement, as well as a decrease in project costs. Total fund balance of the Landscape Maintenance District is $1,085,886 as of June 30, 2021, of which $895,531 (82.5%) is reported as assigned for the following year’s operating budget.
28 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS, Continued Analysis of Governmental Funds, Continued
Successor Housing Agency
The Successor Housing Agency special revenue fund reported a increase in fund balance of $472,291 (9.5%) in the current fiscal year. This increase in fund balance resulted primarily from unspent program revenue on housing loan repayments as well as unrealized gains on the inventory of affordable income housing. Total fund balance of the Successor Housing Agency is $5,430,243 as of June 30, 2021, which is classified entirely as restricted.
Capital Improvement Program
The Capital Improvement Program capital projects fund reported an increase in fund balance of $261,379 (15.7%) in the current fiscal year. This increase in fund balance primarily arose from timing differences between project execution and funding. Total fund balance of the Capital Improvement Program fund is $1,924,746 and is reported entirely as assigned for capital projects as of June 30, 2021.
Analysis of Proprietary Funds
The City of Clayton's proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail. The net position of the City’s only major enterprise fund, Endeavor Hall, at the end of the year was $923,986, and total net position for the internal service funds amounted to $1,005,542.
GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund actual revenues and transfers exceeded total revenues and transfers of the final budget by $131,758 (1.7%), which exceeds the adopted fiscal year 2021 budget projection of a $440,558 planned decrease in fund balance. The remainder of the increase was from better than expected investment results and an unrealized investment gain. The unrealized investment gain was reported as a direct result of the City’s investment portfolio being largely made up of fixed instrument securities during a time of declining interest rates. As noted in recent quarterly investment portfolio reports presented to the City Council, the City’s investment policy is designed to reduce volatility and generate consistent returns in the long run in order to protect public funds. Actual property tax revenues exceeded somewhat conservative adopted budgetary growth projections by 4.3%, which was largely offset by lower than expected revenue from permits, licenses and fees.
29 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
GENERAL FUND BUDGETARY HIGHLIGHTS, Continued
Actual General Fund expenditures of $4,666,962 were less than the final adjusted budget by $253,211 (5.1%) for the year ended June 30, 2021. The positive variance is a result of actual expenditures being less than budgeted in Parks and Recreation, Community and Economic Development, and Public Safety.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021 amounted to $29,831,761 (net of accumulated depreciation). This investment in capital assets includes land, building, improvements, machinery and equipment, park facilities, corporate yard building, and roads. Total depreciation expense on governmental assets totaled $1,080,713, versus $1,068,773 in the prior year. The increase in depreciation is attributable to the completion of significant capital projects during the prior and current fiscal years. Additional information on the City of Clayton's capital assets can be found in Note 5 of this report.
Debt Administration
The remaining debt of the former Clayton Redevelopment Agency (RDA) of $5,835,000 was transferred to the Successor Agency on February 1, 2012 (fiscal year ending June 30, 2012). The City has no outstanding general obligation debt. The Successor Agency has maintained its "AAA" credit rating (S&P) on outstanding Tax Allocation Bonds. Additional information on the Successor Agency's long-term debt can be found in Note 12 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
As the City of Clayton is largely a residential community the annual General Fund operating budget relies heavily on property taxes to finance annual operating appropriations rather than other sources of revenue larger and more commercially and industrial developed municipalities have access to (i. e. sales and transient occupancy taxes). The City strives to meet the ever evolving needs of local residents and businesses within the constraints of limited and sometimes restrictive revenue sources.
There was an increase in adopted General Fund operating appropriations for the upcoming fiscal year ending June 30, 2022 of $333,679 (6.9%). The increase in appropriations is attributable primarily to labor wage and benefit costs of various City departments. The annual June 2020 to June 2021 consumer price index inflationary factor is 3.2% as published by the U. S. Bureau of Labor and Statistics for the San Francisco-Oakland-Hayward region. In addition, there are projected decreases in the annual CalPERS unfunded accrued liabilities and normal costs, primarily due to Classic Tier employees retiring and new employees being hired in the PEPRA tier. The adopted budget for the fiscal year ending June 30, 2022 projects total General Fund revenues of $5,185,450, an increase of approximately 30 City of Clayton
Management’s Discussion and Analysis
For the year ended June 30, 2021
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET, Continued
$341,219 (7.0%) over the prior year adopted budget. The projected revenue growth reflects continued growth in property tax and sales and use taxes supported by actual results reported in the fiscal year ending June 30, 2021.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of Clayton's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Office of the Finance Manager, 6000 Heritage Trail, Clayton, California 94517. 31 GOVERNMENT-WIDE
FINANCIAL STATEMENTS
32 City of Clayton
Government-Wide
Statement of Net Position
June 30, 2021
Governmental Business-Type
ASSETS Activities Activites Total
Current Assets:
Cash and investments 14,067,857 $ $ 14,067,857 - $
Accounts receivable (net of allowances) 600,469 - 600,469 Interest receivable 23,864 - 23,864
Internal balances 112,174 (112,174) -
Prepaid expenses 8,449 - 8,449
Total Current Assets 14,812,813 (112,174) 14,700,639
Noncurrent Assets:
Investment in affordable housing 3,039,071 - 3,039,071
Notes receivable 3,422,950 - 3,422,950
Nondepreciable assets 3,196,235 167,738 3,363,973
Depreciable assets, net 25,597,450 870,338 26,467,788
Total Noncurrent Assets 35,255,706 1,038,076 36,293,782 Total Assets 50,068,519 925,902 50,994,421
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 996,699 - 996,699
Deferred outflows related to OPEB 54,890 - 54,890
Total Deferred Outflows of Resources 1,051,589 - 1,051,589
LIABILITIES
Current Liabilites:
Accounts payable 247,660 416 248,076
Deposits payable - 1,500 1,500
Accrued payroll 14 - 14
Unearned revenue 26,754 - 26,754
Compensated absences payable 82,847 - 82,847
Other liabilities 5,662 - 5,662
Total Current Liabilities 362,937 1,916 364,853
Noncurrent Liabilites:
Compensated absences payable 82,900 - 82,900
Net OPEB liability 532,528 - 532,528
Net pension liability 5,328,676 - 5,328,676
Total Noncurrent Liabilities 5,944,104 - 5,944,104
Total Liabilities 6,307,041 1,916 6,308,957
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 344,226 - 344,226
Deferred inflows related to OPEB 25,735 - 25,735
Total Deferred Inflows of Resources 369,961 - 369,961
NET POSITION
Net investment in capital assets 28,793,685 1,038,076 29,831,761 Restricted for special projects and programs 13,156,670 - 13,156,670 Unrestricted 2,492,751 (114,090) 2,378,661
Total Net Position $ 44,443,106 $ 923,986 $ 45,367,092
The accompanying notes are an integral part of the financial statements 33 City of Clayton
Government-Wide
Statement of Activities and Changes in Net Position
For the year ended June 30, 2021
Operating Capital
Charges Grants and Grants and Governmental Business-type Functions/Programs Expenses for Services Contributions Contributions Activities Activities Total Primary Government:
Governmental Activities
General government $ 430,894 1,796,454 $ 14,449 $ -$ (1,351,111) $ -$ (1,351,111) $ Public safety 2,980,000 51,259 396,672 - (2,532,069) - (2,532,069) Public works 2,909,710 328,731 482,597 58,752 (2,039,630) - (2,039,630) Community and economic development 357,133 133,404 - (16,389) (240,118) - (240,118) Parks and recreation services 592,433 17,622 - - (574,811) - (574,811) Total Governmental Activities 8,635,730 961,910 893,718 42,363 (6,737,739) - (6,737,739)Business-Type Activities Endeavor Hall 73,117 (1,442) - - - (74,559) (74,559)
Total Business-Type Activities 73,117 (1,442) - - - (74,559) (74,559) Total Primary Government $ 960,468 8,708,847 $ 893,718 $ 42,363 $ (6,737,739) (74,559) (6,812,298) General revenues:
Taxes:
Property taxes 2,722,906 - 2,722,906
Special parcel taxes 1,309,373 - 1,309,373
Sales and use taxes 510,029 - 510,029
Business license taxes 90,872 - 90,872
Total Taxes 4,633,180 - 4,633,180
Franchise fees 567,350 - 567,350Payments in lieu of taxes 171,029 - 171,029Investment income (loss) 508,256 (379) 507,877 Other miscellaneous general revenues 38,972 - 38,972
Gain (loss) on disposal of fixed assets 1,741 - 1,741
Total general revenues and transfers 5,920,528 (379) 5,920,149 Change in net position (817,211) (74,938) (892,149)
45,260,317 998,924 46,259,241
Net position - ending $ 44,443,106 $ 923,986 $ 45,367,092 Net position - beginning
The accompanying notes are an integral part of the financial statements 34 This page intentionally left blank
35 FUND FINANCIAL STATEMENTS
36 This page intentionally left blank
37 GOVERNMENTAL FUNDS
Governmental Funds are used to account for activities primarily supported by taxes, grants, and similar revenue sources. All governmental funds can be classified into one of five fund types: the General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.
General Fund:
The General Fund is the main operating fund of the City and is presented as a major fund. It is used to account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds:
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The following are reported as major special revenue funds:
Landscape Maintenance District - Community Facilities District (CFD) No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, accounts for real property voter-approved special parcel taxes collected to maintain arterial landscaping and open space within the City (CFD No. 2007-1 sunsets in 2027).
Successor Housing Agency - Accounts for the activities related to the assets assumed by the City of Clayton as the Housing Successor to the housing activities of the former Redevelopment Agency of the City of Clayton.
Capital Projects Funds:
Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. The following is the City’s sole major capital projects fund:
Capital Improvement Program - Accounts for the projects identified in the capital improvement program funded by various federal and state grants as well as through transfers from the General Fund.
Non-major Governmental Funds:
All non-major governmental funds of the City are aggregated and presented on the face of the basic financial statements in one column.
38 City of Clayton
Governmental Funds
Balance Sheet
June 30, 2021
General Fund
Landscape
Maintenance
District
Successor
Housing Agency
ASSETS
Cash and investments 5,878,530 $ 1,149,606 $ 1,798,822 $ Accounts receivable 555,622 - 3,000
Interest receivable 23,864 - -
Investment in affordable housing - - 3,039,071
Notes receivable - - 3,422,950
Prepaid items 8,449 - -
Due from other funds 112,174 - -
Advance to other funds - - -
Total Assets $ 6,578,639 $ 1,149,606 $ 8,263,843
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 63,720 91,455 $ - $
Other payables 5,662 - -
Accrued payroll 14 - -
Compensated absences 82,847 - -
Unearned revenue 26,754 - -
Total Liabilities 206,732 63,720 -
Deferred Inflows of Resources:
Deferred revenue 262,926 - 2,833,600
Total Deferred Inflows of Resources 262,926 - 2,833,600 Fund Balance:
Non-spendable 120,623 - -
Restricted - 190,355 5,430,243
Committed 177,496 - -
Assigned - 895,531 -
Unassigned - 5,810,862 -
Total Fund Balance 6,108,981 1,085,886 5,430,243
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 1,149,606 6,578,639 $ 8,263,843 $ Special Revenue
The accompanying notes are an integral part of the financial statements 39 City of Clayton
Governmental Funds
Balance Sheet
June 30, 2021
Capital Project
Capital
Improvement
Program
Other
Governmental
Funds Total
$ 1,951,959 $ 2,771,069 $ 13,549,986
- 41,847 600,469
- - 23,864
- - 3,039,071
- - 3,422,950
- - 8,449
- - 112,174
- - -
$ 1,951,959 $ 2,812,916 $ 20,756,963
$ 27,213 $ 65,092 $ 247,480
- - 5,662
- - 14
- - 82,847
- - 26,754
27,213 65,092 362,757
- - 3,096,526
- - 3,096,526
- - 120,623
- 1,663,401 7,283,999
- 643,461 820,957
1,924,746 440,962 3,261,239
- - 5,810,862
1,924,746 2,747,824 17,297,680
$ 1,951,959 $ 2,812,916 $ 20,756,963
The accompanying notes are an integral part of the financial statements 40 This page intentionally left blank
41 City of Clayton
Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2021
Total Fund Balances - Governmental Funds $ 17,297,680
Amounts reported for governmental activities in the Statement of Net Position are different because:
CAPITAL ASSETS
Non-depreciable capital assets 3,196,235
Depreciable capital assets (net of internal service fund assets of $493,547) 25,109,599
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Unavailable revenue which are deferred inflows of resources in the Governmental Funds because they are not available currently, but are taken into revenue in the statement of activities. 3,096,526
LONG-TERM ASSETS AND LIABILITIES
Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.
Net OPEB liability not reported on the Governmental Funds Balance Sheet (532,528) Compensated absences payable (82,900)
Net pension liability not reported on the Governmental Funds Balance Sheet (5,328,676)
DEFERRED INFLOWS AND OUTFLOWS
Deferred inflows/(outflows) of resources for not reported on the Governmental Funds Balance Sheet
Deferred outflows of resources for net pension liability 996,699 Deferred inflows of resources for net pension liability (344,226) Deferred outflows of resources for net OPEB liability 54,890 Deferred inflows of resources for net OPEB liability (25,735)
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Government-wide Statement of Net Position. 1,005,542 Net Position of Governmental Activities $ 44,443,106
Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet.
The accompanying notes are an integral part of the financial statements 42 City of Clayton
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 2021
General Fund
Landscape
Maintenance
District
Successor
Housing
Agency
REVENUES
Property taxes $ 2,722,905 $ - $ -
Program income - - 106,400
Special parcel taxes and assessments - 1,169,764 -
Sales and use taxes 510,029 - -
Business licenses 90,872 - -
Permits, licenses and fees 112,867 - -
Fines, forfeitures and penalties 118,766 - -
Intergovernmental 117,286 - -
Motor vehicle in-lieu fees -- -
Other in-lieu fees 171,029 - -
Franchise fees 567,350 - -
Service charges 297,393 - -
Use of money and property 66,374 14,054 23,567
Other revenue 30,657 - -
Total Revenues 4,805,528 1,183,818 129,967
EXPENDITURES
Current:
General government - 1,397,917 -
Public safety - 2,374,819 -
Public works 330,983 1,067,386 -
Community and economic development - 290,222 27,951
Parks and recreation services 273,021 - -
Capital outlay - 53,813 -
Total Expenditures 1,121,199 4,666,962 27,951
Excess (Deficiency) of Revenues
Over (Under) Expenditures 138,566 62,619 102,016
OTHER FINANCING SOURCES (USES)
Unrealized gains (losses) - - 370,275
Transfers in 135,845 - -
Transfers out (330,000) (40,320) -
Total Other Financing Sources (Uses) (40,320) (194,155) 370,275 Net Change in Fund Balances (55,589) 22,299 472,291
FUND BALANCES
Beginning of year 6,164,570 1,063,587 4,957,952
End of fiscal year $ 6,108,981 $ 1,085,886 $ 5,430,243
Special Revenue
The accompanying notes are an integral part of the financial statements 43 City of Clayton
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 2021
Capital Project
Capital
Improvement
Program
Other
Governmental
Funds Total
$ - - $ 2,722,905 $
- - 106,400
436,942 - 1,606,706
- - 510,029
- - 90,872
59,430 - 172,297
- - 118,766
793,753 201 911,240
- - -
- - 171,029
- - 567,350
- - 297,393
13,875 14,921 132,791
- - 30,657
1,304,000 15,122 7,438,435
149,402 - 1,547,319
230,284 - 2,605,103
509,922 - 1,908,291
- - 318,173
76,833 - 349,854
48,882 110,915 213,610
1,015,323 110,915 6,942,350
288,677 (95,793) 496,085
- - 370,275
1,130 357,172 494,147
- (123,827) (494,147)
(122,697) 357,172 370,275
261,379 165,980 866,360
1,663,367 2,581,844 16,431,320
$ 1,924,746 $ 2,747,824 $ 17,297,680
The accompanying notes are an integral part of the financial statements 44 This page intentionally left blank
45 City of Clayton
Reconciliation of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities and Changes in Net Position For the year ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds $ 866,360 Amounts reported for governmental activities in the Statement of Activities are different because:
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in the Governmental Funds (net change).
Net change in post-employment benefits (OPEB) liability and deferred inflows (outflows) 17,863 Long-term compensated absences payable (9,053)
Net change in pension liability and deferred inflows (outflows). (609,954) Unavailable revenues (109,020)
CAPITAL ASSET TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital asset acquisition, excluding internal service fund asset acquisitions. - Depreciation expense is deducted from the fund balance (Net of internal service fund depreciation of $99,979). (980,734)
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net gain or loss of the internal service funds is reported with governmental activities. 7,327
Change in Net Position of Governmental Activities on Statement of Activities $ (817,211) The accompanying notes are an integral part of the financial statements 46 This page intentionally left blank
47 PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City’s proprietary funds can be classified into two fund types:
enterprise and internal service funds.
Enterprise Funds:
Enterprise funds are used to report any activity for which a fee is charged to external users for goods or services. The following is the City’s sole major enterprise fund:
Endeavor Hall – Accounts for all rental activities related to operation of the underlying rental facility asset. The primary use of the rental facility has been for wedding receptions and other formal special events.
Internal Service Funds:
The City’s internal service funds account for activities that provide goods or services to other City funds, departments, or agencies on a cost reimbursement basis. All internal service funds of the City are aggregated and presented on the face of the proprietary fund financial statements in one column. 48 City of Clayton
Proprietary Funds
Statement of Net Position
June 30, 2021
Business-type
Activities -
Endeavor Hall
Governmental
Activities -
Internal Service
ASSETS
Current assets:
Cash and investments - $ 517,871 $
Noncurrent assets
Land 167,738 -
Depreciable assets, net 870,338 487,851
Total Assets 1,038,076 1,005,722
LIABILITIES
Current liabilities:
Accounts payable 416 180
Other payables - -
Deposits payable - 1,500
Due to other funds 112,174 -
Total Liabilities 180 114,090
NET POSITION
Net investment in capital assets 1,038,076 487,851
Unrestricted (114,090) 517,691
Total Net Position $ 923,986 $ 1,005,542
The accompanying notes are an integral part of the financial statements 49 City of Clayton
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2021
Business-type
Activities -
Endeavor Hall
Governmental
Activities -
Internal Service
Funds
OPERATING REVENUES
Charges for current services $ (1,442) $ 111,900
Total Operating Revenues (1,442) 111,900
OPERATING EXPENSES
Personnel 3,698 -
General and administrative 33,752 11,523
Depreciation and amortization 35,667 99,979
Total Operating Expenses 73,117 111,502
Operating Income (Loss) 398 (74,559)
NONOPERATING REVENUES (EXPENSES)
Gain (loss) on disposal of assets - 1,741
Investment income (379) 5,188
Total Nonoperating Revenues (Expenses) (379) 6,929
Net (loss) Before Contributions and
Operating Transfers 7,327 (74,938)
Capital contributions - -
Transfers in / (out) - -
Change in Net Position 7,327 (74,938)
NET POSITION:
Beginning of fiscal year 998,924 998,215
End of fiscal year $ 1,005,542 923,986 $
The accompanying notes are an integral part of the financial statements 50 City of Clayton
Proprietary Funds
Statement of Cash Flows
For the year ended June 30, 2021
Business-type
Activities -
Endeavor Hall
Governmental
Activities -
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ (2,942) $ 111,900
Payments to suppliers (36,113) (8,851)
Payments to employees (3,698) -
Claims paid - (2,492)
Net cash provided (used) by operating activities 100,557 (42,753)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers in / (out) 42,922 -
Net cash provided by noncapital financing 42,922 -
activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of fixed assets - (94,283)
Proceeds from the sale of capital assets - 1,741
Net cash provided (used) by capital and related - (92,542) financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments (379) 5,188
Net Cash provided by investing activities (379) 5,188
Net increase (decrease) in cash and cash equivalents (210) 13,203 CASH AND CASH EQUIVALENTS:
Beginning of fiscal year 210 504,668
End of fiscal year $ - $ 517,871
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:
Operating income (loss) $ (74,559) $ 398
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation and amortization 35,667 99,979
Changes in current assets and liabilities:
Increase (decrease) in accounts payable (2,361) 180
Increase (decrease) in deposits payable (1,500) -
Increase (decrease) in interfund payables - -
Net cash provided (used) by operating activities $ (42,753) $ 100,557 The accompanying notes are an integral part of the financial statements 51 FIDUCIARY FUNDS
Fiduciary funds report assets held in a trustee or agency capacity for others and therefore cannot be used to support the government’s own programs. The City’s fiduciary funds can be classified into two fund types: agency and private purpose trust funds.
Agency Funds:
Agency funds are custodial in nature (assets equal liabilities) and do not involve measurements of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's program. Agency funds are accounted for using the economic resources measurement focus and the accrual basis of accounting.
Private Purpose Trust Funds
Private purpose trust funds account for resources held by the City as trustee for third party beneficiaries, and are used to report both the Fiduciary Net Position and Changes in Fiduciary Net Position for the Successor Agency for the former Redevelopment Agency. Private Purpose Trust Funds are accounted for under the full accrual basis of accounting.
52 City of Clayton
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2021
Private Purpose
Trust Fund
Redevelopment
Successor
Agency Agency Funds
ASSETS
Cash and investments 180,568 $ 1,751,167 $
Cash and investments with fiscal agents - 332,880
Accounts receivable - 19,600
Prepaid expenses - -
Assessments receivable 1,109,029 -
Notes receivable 61,705 -
Investment in bonds - 904,000
Total Assets 242,273 4,116,676
LIABILITIES
Accounts payable 27,200 3,000
Other liabilities - 1,576,305
Deposits payable - 582,355
Accrued interest payable - -
Advance from Successor Housing Agency - -
Notes payable - 61,704
Bonds payable 1,145,000 1,869,112
Total Liabilities 1,148,000 $ 4,116,676
DEFERRED INFLOWS OF RESOURCES
Deferred notes receivables -
Total Deferred Inflows of Resources -
NET POSITION
Held in trust for others (905,727)
Total Net Position $ (905,727)
The accompanying notes are an integral part of the financial statements 53 City of Clayton
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the year ended June 30, 2021
Private Purpose
Trust Fund
Redevelopment
Successor
Agency
ADDITIONS
Tax increment revenue 646,816 $
Program revenue 1,827
Investment gain (loss) (9,308)
Total Additions 639,335
DEDUCTIONS
Interest expense 38,302
Administrative costs 250,864
Other expenses 2,178
Total Deductions 291,344
Changes in Net Position 347,991
NET POSITION
Beginning of Year (1,253,718)
End of Year $ (905,727)
The accompanying notes are an integral part of the financial statements 54 This page intentionally left blank
55 NOTES TO THE BASIC
FINANCIAL STATEMENTS
56 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Clayton, California (City) have been prepared in conformity with generally accepted accounting principles (US GAAP) as applied to governmental agencies. 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 City's accounting policies are described below.
Reporting Entity
The City of Clayton (City) is primarily a residential community nestled in the foothills of Mount Diablo in Contra Costa County, California. The City was incorporated on March 3, 1964 under the laws of the State of California, and encompasses approximately four square miles with a population of 11,700. The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager totaling a staff of twenty-six and a fifth (26.2) full-time equivalent employees providing the following services: public works, parks and recreation services, community and economic development, public safety, and general government. The City’s public safety program is served by an in-house police force of eleven (11) full-time sworn police officers supported by two (2) fulltime administrative personnel.
The basic financial statements include the financial activities of the City, Successor Agency to the Clayton Redevelopment Agency (Successor Agency) and the Clayton Financing Authority (Authority).
The City is the primary government unit. Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component unit's board, or because the component unit will provide a financial benefit or impose a financial burden on the City. The Clayton Redevelopment Agency (“RDA”), which was dissolved as of February 1, 2012 was accounted for as a "blended" component unit of the City. Despite being legally separate, this entity was so intertwined with the City that it is, in substance, part of the City's operations.
Accordingly, the balances and transactions of this component unit were reported within the funds of the City. Upon the dissolution of the RDA, the RDA ceased to be reported as a blended component unit and was replaced by the Successor Agency, which is reported as a private purpose trust fund in the fiduciary fund section of the financial statements.
The Authority is a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Exercise of Powers Agreement, by and between the City and the former RDA of the City of Clayton with the City Council serving as the Board of Directors. It was created by the City of Clayton City Council in 1990 with the primary purpose of issuing bonded obligations to finance capital projects within the community for which repayment is secured by pledges of revenue from legally separate and distinct districts. The activities of the Authority are reported in the fiduciary fund financial statement section as the Authority’s debt is secured entirely by third parties that are not part of the primary government of the City and the City has no obligation for such debt. Separate financial statements of the Authority are available at the City’s website at www. ci. clayton. ca. gov. 57 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business type activities for the City, the primary government. Fiduciary activities of the City are not included in these statements.
These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets and related infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.
Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to inter-fund activities, payables and receivables. All internal balances in the statement of net position have been eliminated in the statement of activities; internal service fund transactions have been eliminated. However, those transactions between governmental and business-type activities have not been eliminated. The following inter-fund activities have been eliminated:
Advances to/from other funds
Due to/from other funds
Transfers in/out
58 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus, Continued
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position as presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.
Governmental Fund Financial Statements
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The statement of revenues, expenditures and changes in fund balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except those revenues subject to accrual (generally sixty [60] days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues, and other taxes. Revenues from other governmental agencies (excluding property taxes) are deemed to be available if received within one hundred eighty (180) days after fiscal year end. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the balance sheet and revenue is recognized.
The reconciliation of the fund financial statements to the government-wide financial statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. The City has the following major governmental funds:
General Fund - This fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund. 59 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus, Continued
Landscape Maintenance District – This special revenue fund accounts for the Community Facility District No. 2007-1 restricted special parcel tax approved over two-thirds the local electorate in the June 2016 election through the passing of “Measure H. ” This special parcel tax is restricted to fund the operation, maintenance, and improvement of specific city-wide public landscaped areas.
Successor Housing Agency – This special revenue fund accounts for the City’s low and moderate housing program, which was assumed by the by City Council action upon dissolution of the former redevelopment agency. Program revenue of this fund is primarily generated through the repayment on low-moderate income housing loans.
Capital Improvement Program - This capital projects fund accounts for the projects identified in the capital improvement program funded by various federal and state grants as well as through transfers from the General Fund.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses and change in fund net position, and a statement of cash flows for all proprietary funds. Internal service funds are presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in fund net position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
The City has the following major enterprise fund:
Endeavor Hall - This fund accounts for all activities related to use of the facility. The primary use has been for wedding receptions.
60 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus, Continued
The City has the following internal service funds:
Capital Equipment Replacement Fund - This fund accounts for the operation, maintenance, and replacement of the City vehicles and equipment.
Self-Insurance Fund - This fund accounts for the administration of the City's self-insurance programs, payment of Employee Assistance Programs, and self-insured liability claim deductibles.
Pension Rate Stabilization Fund - This fund stabilizes major fluctuations in annual employer pension costs driven by market factors and actuarial changes.
Fiduciary Fund Financial Statements
The agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations, therefore only a statement of fiduciary net position is presented. Agency funds are accounted for using the economic resources measurement focus and the accrual basis of accounting.
Reclassifications were recorded to prior year amounts reported for various assets and liabilities for agency funds in order to be consistent with the current year’s presentation.
Private purpose trust funds account for resources held by the City as trustee for third party beneficiaries, and are used to report both the fiduciary net position and changes in fiduciary net position of the Successor Agency to the former Redevelopment Agency. Private purpose trust funds are accounted for under the full accrual basis of accounting.
Use of Restricted and Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.
Cash Equivalents
For purposes of reporting cash flows for the City’s proprietary funds, pooled cash and investments held by the City are considered cash equivalents as the proprietary fund can access pooled cash and investments in a manner similar to a demand deposit.
61 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Cash and Investments
The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Interest income on investments is allocated to the funds on the basis of average month-end cash and investment balances. Investments are carried at fair value. Fair value is based on quoted market price if applicable. Otherwise the fair value hierarchy is as follows:
Level 1 – Values are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2 – Inputs, other than quoted prices, included within Level 1 that are observable for the asset or liabilities at the measurement date.
Level 3 – Certain inputs are unobservable inputs (supported by little or no market activity, such as the City’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date).
Local Agency Investment Fund (LAIF) determines fair value on its investment portfolio based on market quotations for these securities where market quotations are readily available, and on amortized cost or best estimate for those securities where market value is not readily available.
The City’s investment policy (Policy) states that the primary investment objective is safety with investments being legally permitted and sufficiently liquid to meet forecasted needs. Maximization of interest earnings is a secondary objective. Further, the Policy states that the City Treasurer has the ultimate responsibility to protect, preserve and maintain cash and investments. The Policy also established internal controls and reporting requirements. The Policy stipulates "Permitted Investments and Limitation on Investments. " The City invests in the California LAIF, which is part of the Pooled Money Investment Account operated by the California State Treasurer. LAIF funds are invested in high quality money market securities and are managed to insure the safety of the portfolio. A portion of LAIF's investments are in structured notes and asset-backed securities.
Investments held with CAMP are recorded at amortized cost in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants. The Agency participates in the California Asset Management Program (CAMP) which is a voluntary investment alternative authorized by Section 53601(p) of the California Government Code. CAMP is managed by a seven-member Board of Trustees comprised of California public agency finance officials. Investments are transacted by an investment advisor and all securities are held by a third-party custodian. All securities in CAMP are purchased under the authority of Section 53601, subdivisions (a) to (n) of the California Government Code. 62 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Cash and Investments, Continued
Certain disclosure requirements, if applicable, for deposits and investment risks are specified in the following areas:
Interest Rate Risk
Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
Prepaid Items
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items in governmental funds are equally offset by amounts included nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net position. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
Investment in Affordable Housing
This City Successor Housing Agency special revenue fund has purchased and re-sold several housing properties located in Stranahan Circle to low and moderate income households. The City carries the difference between the cost and sale on these properties as an investment in affordable housing until the property is either bought back by the City or sold on the open market. The City participates in the profits on any sales of these properties to an outside party in the same proportion as what the low and moderate income purchaser acquired the property from the City at the below market subsidized value. The City reports the investment in affordable housing at its proportionate equity share of the fair market value of the underlying properties at year-end. Stranahan Circle properties are considered “level 2” investments.
The City values their interest in the properties annually using third party published market inputs. At June 30, 2021 the fair value was $3,039,071, which includes an increase of $384,778 for the year then ended.
Capital Assets
Capital assets are valued at cost or, during the initial implementation, estimated historical cost if actual historical cost was not available. Donated capital assets are valued at their estimated fair market value on the date donated. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. City policy has set the capitalization threshold for reporting infrastructure at $100,000; all other capital assets 63 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Capital Assets, Continued
are set at $5,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings 50 years
Improvements other than buildings 20 – 75 years
Vehicles, machinery and equipment 5 – 10 years
Infrastructure 20 – 75 years
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with GASB Statement No. 34, the City has included all infrastructure into the current basic financial statements. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, park lands, and buildings. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the businesstype and proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 2003. This appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition.
Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.
Long-Term Liabilities
In the government-wide financial statements, long-term debt and other financial obligations are reported as liabilities in the appropriate activities columns. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are reported as deferred charges. 64 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Long-Term Liabilities, Continued
The governmental fund financial statements do not present long-term debt, which are shown in the reconciliation of the governmental funds balance sheet to the government-wide statement of net position.
Governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Compensated Absences
In the government-wide financial statements compensated absences are recorded as incurred and related expenses and liabilities are reported by activity. The long-term portion of governmental activities is liquidated primarily by the General Fund. In the governmental funds compensated absences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30th from future resources, rather than currently available financial resources. Compensated absences include vacation as well as compensated leave hours earned in-lieu of overtime. It is the policy of the City to pay up to and capped at a maximum of eighteen (18) times an employee’s capped monthly vacation accrual upon retirement or termination.
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. CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments, if any, are reported at fair value. 65 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Other Post-Employment Benefits (OPEB), Continued
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation date June 30, 2020
Measurement Date June 30, 2020
Measurement Period July 1, 2019 – June 30, 2020
Net Position / Fund Balances
Government-Wide Financial Statements
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position - This amount is all net position that do not meet the definition of "net investment in capital assets" or "restricted net position. " Nonspendable governmental funds balances are categorized as unrestricted net position on the government-wide financial statements.
Fund Balance Reporting
Equity of governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The City Council, as the highest level of decision-making authority, commits and assigns fund balances through the passing of resolutions and ordinances, requiring an equal action for modification or rescinding thereof. It is the policy of the City to spend funds in order from restricted to unassigned, as listed below.
Fund balances for the governmental funds are made up of the following:
Non-spendable – Includes amounts that cannot be spent because they are either not in spendable form, or are legally or contractually required to be maintained intact. 66 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Net Position / Fund Balances, Continued
Restricted – Includes amounts that should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws and regulations of other governments; or imposed by law through constitutional provisions or enabling legislation.
Committed – Includes amounts that cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action it employed to previously commit those amounts.
Assigned – Includes amounts constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed, except for stabilization arrangements. Unassigned – The residual funds that have not been assigned to other funds, are not nonspendable, restricted, committed, or assigned to specific purposes. The General Fund is the only fund that reports a positive unassigned fund balance.
The City Council has formally adopted a policy requiring a minimum General Fund reserve contingency of $250,000.
Property tax revenues are recognized in the fiscal year for which the tax and assessment is levied. The County of Contra Costa (County) levies, bills, and collects property taxes and special assessments for the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties (under the Teeter Plan). Secured and unsecured property taxes are levied on July 1 based on January 1 assessed valuation and are payable in two installments, becoming delinquent on December 10th and April 10th.
Reclassifications
Certain prior year balances may have been reclassified in order to conform to current year presentation.
These reclassifications had no effect upon reported net position.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
67 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Inter-fund Balances/Internal Balances
Outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year.
Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances. " New Accounting Pronouncements
The following Governmental Accounting Standards Board Statements have been implemented in the current financial statements:
GASB Statement No. 84, “Fiduciary Activities”
The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists.
Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The implementation of this pronouncement did not have a material impact on the City’s financials.
GASB Statement No. 90 “Majority Equity Interests – an amendment of GASB Statements No. 14 and 61” The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information related to presentation of majority equity interests in legally separate organizations that previously was reported inconsistently. In addition, requiring reporting of information about component units if the government acquires a 100 percent equity interest provides information about the cost of services to be provided by the component unit in relation to the consideration provided to acquire the component unit.
The implementation of this pronouncement did not have a material impact on the City’s financials.. 68 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements
The following Governmental Accounting Standards Board Statements are effective in future years subsequent to the current financial reporting period:
GASB Statement No. 87, “Leases”
The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.
This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model.
This Statement also will enhance the decision-usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government’s leasing arrangements. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 (fiscal 2023). Earlier application is encouraged. The City is currently evaluating the potential impact on the City’s financials. GASB Statement No. 89, “Accounting for Interest Cost Incurred before the End of a Construction Period” The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period.
The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business-type activities. The requirements of this Statement are effective for reporting periods beginning after December 15, 2020 (fiscal 2022). Earlier application is encouraged. The requirements of this Statement should be applied prospectively. The City is currently evaluating the potential impact on the City’s financials.
69 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued
GASB Statement No. 91 “Conduit Debt Obligations”
The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures.
The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations.
The requirements of this Statement are effective for reporting periods beginning after December 15, 2021 (fiscal 2023). Earlier application is encouraged. The City is currently evaluating the potential impact on the City’s financials.
GASB Statement No. 92 “Omnibus 2020”
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions. The topics include but are not limited to leases, intra-entity transfers between a primary government and a post-employment benefit plan component unit, accounting for pensions and OPEB related assets, measurement of liabilities related to asset retirement obligations, and nonrecurring fair value measurements of assets or liabilities.
The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 (fiscal 2022). The City is currently evaluating the potential impact on the City’s financials. 70 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued
GASB Statement No. 93 “Replacement of Interbank Offered Rates” The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an Interbank Offer Rate (IBOR). This Statement achieves that objective by:
Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument’s variable payment
Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate
Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged transaction is probable Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap
Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap.
Clarifying the definition of reference rate, as it is used in Statement 53, as amended.
The removal of London IBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021 (fiscal year 2022-23). The City is currently evaluating the potential impact on the City’s financials.
All other requirements of this Statement are effective for the current fiscal year, and did not have a material impact on the financial statements.
GASB Statement No. 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements”
The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. 71 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued
The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting from PPP.
PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated).
The requirements of this Statement are effective for fiscal years beginning after June 15, 2022 (fiscal year 2022-23), and all reporting periods thereafter. The City is currently evaluating the potential impact on the City’s financials.
GASB Statement No. 96 “Subscription-Based Information Technology Arrangements” This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset— an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.
The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice.
Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs.
72 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued
The requirements of this Statement are effective for fiscal years beginning after June 15, 2022 (fiscal year 2022-23), and all reporting periods thereafter. The City is currently evaluating the potential impact on the City’s financials.
GASB Statement No. 97 “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32” The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.
The requirements of this Statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021 (fiscal year 2021-22). For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this Statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021 (fiscal year 2021-22). The City is currently evaluating the potential impact on the City’s financials. 73 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
2. CASH AND INVESTMENTS
Classification
The City’s total cash and investments, at fair value, are presented on the accompanying financial statements in the following allocation:
Government-Wide Statement of Net Position
Governmental Activities
Cash and investments $ 14,067,857
Statements of Fiduciary Net Position
Private Purpose Trust Fund
Cash and investments 180,568
Agency Funds
Cash and investments 1,751,167
Cash and investments with fiscal agents 332,880
Investments in bonds 904,000
Total $ 17,236,472
Cash and investments as of June 30, 2021 consist of the following:
Cash on hand $ 1,000
Deposits with financial institutions 3,233,675
Investments 14,001,797
Total $ 17,236,472
Policy
Investments Authorized by the California Government Code and the City's Investment Policy The following table identifies the investment types that are authorized for the City of Clayton by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit 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 Agency's investment policy.
Maximum Maximum
Maximum Percentage of Percentage of
Authorized Investment Type Maturity Portfolio One Issuer Local Agency Investment Fund (State Pool) N/A None $40 million CAMP N/A None None
Money Market Funds N/A None None
U. S. Treasury Obligations 5 years None None
U. S. Government Agency Issues 5 years 20% None
Bank Deposits N/A None None
Negotiable Time Certificates of Deposit 5 years None None Medium Term Corporate Bonds 5 years 20% None
74 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
2. CASH AND INVESTMENTS, Continued
Policy, Continued
Investments Authorized by Debt Agreements
Investments 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 trustees.
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 Percentage of Investment in
Authorized Investment Type Maturity Portfolio One Issuer Money Market Mutual Funds N/A N/A N/A
U. S. Government Agency Issues 5 years 20% None
Federal Housing Administration Debentures N/A N/A N/A
Commercial paper 92 days N/A N/A
Demand or time deposits 366 days N/A N/A
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Usually, the later the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of investments by maturity:
Remaining Maturity (in Months)
12 Months or 13-24 25-36 37-48 49-60
Investment Type Totals Less Months Months Months Months Pooled Investments:
Local Agency Investment
Fund (LAIF) $ 1,494,635 $ 1,494,635 $ - $ - $ - $ -
California Asset Management
Program (CAMP) 890,812 890,812 - - - -
Certificates of Deposit 9,931,642 2,650,332 3,363,809 1,135,024 964,588 1,817,889 Government Securities 780,708 - - - - 780,708
Held by Bond Trustees:
U. S. Treasury Note - - - - - -
Municipal Bonds 904,000 434,000 470,000 - - -
Total Investments $ 14,001,797 $ 5,469,779 $ 3,833,809 $ 1,135,024 $ 964,588 $ 2,598,597
75 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
2. CASH AND INVESTMENTS, Continued
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 rating as of fiscal year end for each investment type.
Investment Type AAA AA+ A Unrated Total
Pooled Investments:
Local Agency Investment
Fund (LAIF) $ - $ - $ - $ 1,494,635 $ 1,494,635
California Asset Management
Program (CAMP) 890,812 - - - 890,812
Certificates of Deposit - - - 9,931,642 9,931,642
Government securities 780,708 - - - 780,708
Held by Bond Trustees:
Municipal Bonds - - - 904,000 904,000
Total Investments $ 1,671,520 $ - $ - $ 12,330,277 $ 14,001,797 Concentration of Credit Risk
This is the risk of loss attributed to the magnitude of a government’s investment in a single issuer.
Accordingly, the notes to the financial statements should disclose if the government has five (5) percent or more of its total investments in a single issuer. More than five percent of the City’s investments are with the “Middle School” Community Facilities District No. 1990-1.
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 counter party (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 fair 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.
76 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
2. CASH AND INVESTMENTS, Continued
Investment Fair Value
The City has the following recurring fair value measurements as of June 30, 2021:
U. S. government agency note, certificates of deposit, Local Agency Investment Fund (LAIF), and California Asset Management Program (CAMP) values are based on unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date [Level 1 inputs]. Municipal bonds are valued based on unobservable inputs (supported by little or no market activity, such as the City’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date) [Level 3 inputs].
The City is a voluntary participant in the LAIF and the CAMP that are 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 and CAMP for the entire respective portfolios (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF and CAMP, which are recorded on an amortized cost basis.
3. LOANS AND NOTES RECEIVABLE
The following is a summary of loans and notes receivable of the City for the year ended June 30, 2021:
Balance Balance at
July 1, 2020 Additions Deletions June 30, 2021
Successor Housing Agency:
Diamond Terrace P. A. M. Note $ 2,940,000 $ - $ (106,400) $ 2,833,600 Eden Affordable Housing Note 567,000 - - 567,000
Stranahan Affordable Housing Notes 50,301 - (27,951) 22,350 Successor Agency SERAF Loan 148,103 - (148,103) -
Total Successor Housing Agency 3,705,404 - (282,454) 3,422,950 Total Notes Receivable $ 3,705,404 $ - $ (282,454) $ 3,422,950 Diamond Terrace Note
On September 21, 1999, the former RDA low-moderate housing fund made a loan to the Professional Apartment Management, Inc. ("PAM") in the amount of $750,000, at a non-interest bearing rate, to construct and develop an affordable senior assisted living center on the site known as "Diamond Terrace." The note is secured by the Deed of Trust. The former RDA loaned an additional $1,286,000 on October 24, 2001. On December 1, 2003, PAM began drawing on a $2,000,000 loan from the former RDA in the amount of $200,000 annually. The principal balance is payable commencing on October 1, 2005 through October 1, 2030. The balance of the loan due to the Successor Housing Agency was $2,833,600 at June 30, 2021.
77 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
3. LOANS AND NOTES RECEIVABLE, Continued
Eden Housing Loan
On October 13, 1992, the former RDA low-moderate housing fund made a loan to the Peace Grove, Inc. in the amount of $567,000, at a non-interest bearing rate, for the purchase of land for a redevelopment and housing project for low-income mental health system clients. The loan is secured by the Deed of Trust. The principal balance is payable on December 18, 2052. As of June 30, 2021, the outstanding balance of the loan due to the Successor Housing Agency was $567,000.
Stranahan Affordable Housing Loans
The former RDA low-moderate housing fund participated in a second mortgage assistance program, whereby qualified applicants are loaned money for a "silent second" down payment to purchase a home in the Stranahan Development within the City. There are five individual loans outstanding.
Interest is accrued on the principal for the first 15-35 years and then the total of accrued interest and principal is forgiven over the last 10 years of the term of the lease. As of June 30, 2021, the outstanding balance of the loans due to the Successor Agency was $22,350 of principal. The collectability of the accrued interest on these notes ($28,877) is doubtful and an allowance has been recorded to offset the full amount.
SERAF Loan
On May 10, 2011, the former RDA received a loan from the low-moderate housing fund in the amount of $592,412 to partially cover a demand from the California Department of Finance for property tax revenues to K-12 schools during the 2011-12 fiscal year via the Supplemental Educational Revenue Augmentation Funds (SERAF). Pursuant to the California Department of Finance determination letter approving the 2017-18 Recognized Obligation Payment Schedule (ROPS) dated March 17, 2017, the loan will be repaid by the Successor Agency through the ROPS process in four (4) installments and matured in the current fiscal year. The loan is non-interest bearing. The outstanding balance was paid in full during the year ended June 30, 2021.
78 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
4. INTERFUND TRANSACTIONS
Due To, Due From
At June 30, 2021, the City had the following short-term interfund receivables and payables:
Due from
Non-major
Governmental Endeavor
Due to Funds Hall Total
General Fund $ - $ 112,174 $ 112,174
Total $ - $ 112,174 $ 112,174
General Fund cash flow loans totaling $112,174 were made to Endeavor Hall. The balance of the Endeavor Hall receivable is expected to be repaid from future facility rental fees.
Interfund Transfers
The following is a summary of the City’s interfund transfers for the year ended June 30, 2021:
Transfers in
Capital Non-major
General Improvement Governmental
Transfers out Fund Program Funds Total
General Fund $ - $ 330,000 $ - $ 330,000
Landscape Maintenance 39,190 - 1,130 40,320
Non-major governmental funds 96,655 27,172 - 123,827
Total $ 135,845 $ 357,172 $ 1,130 $ 494,147
The City transferred money into the General Fund from the following funds: Landscape Maintenance, Gas Tax HUTA, the Grove Park District, Oakhurst Geological Hazard Abatement District, Neighborhood Street Lighting District, Measure J Grants, and Stormwater Treatment Assessment District to reimburse the City for administrative support activities. In addition, the City transferred money from the General fund into the Capital Improvement Program to fund project costs associated with the Stormwater Treatment Assessment District.
79 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
5. CAPITAL ASSETS
Government-Wide Financial Statements
As of June 30, 2021 the City's capital assets consisted of the following:
Governmental Business-Type Total
Activities Activities
Net depreciable Assets:
Construction in progress $ 1,109,270 $ - $ 1,109,270
Land 2,086,965 167,738 2,254,703
Total non depreciable assets 3,196,235 167,738 3,363,973 Depreciable Assets:
Buildings 5,937,106 1,400,744 7,337,850
Improvements 6,635,295 159,579 6,794,874
Machinery and equipment 1,773,780 5,024 1,778,804
Infrastructure 33,239,930 - 33,239,930
Total depreciable assets 47,586,111 1,565,347 49,151,458 Total accumulated depreciation (21,988,661) (695,009) (22,683,670) Depreciable assets, net 25,597,450 870,338 26,467,788
Total governmental activities capital assets, net $ 28,793,685 $ 1,038,076 $ 29,831,761 The following is a summary of governmental activities capital assets transactions for the year ended June 30, 2021:
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Non depreciable Assets:
Construction in progress $ 1,109,270 $ - $ - $ 1,109,270 Land 2,086,965 - - 2,086,965
Total non depreciable assets 3,196,235 - - 3,196,235
Depreciable Assets:
Machinery and equipment 1,679,497 94,283 - 1,773,780
Buildings 5,937,106 - - 5,937,106
Improvements 6,635,295 - - 6,635,295
Infrastructure 33,239,930 - - 33,239,930
Total depreciable assets 47,491,828 94,283 - 47,586,111 Accumulated depreciation:
Machinery and equipment (1,185,949) (99,979) - (1,285,928) Buildings (2,957,177) (118,557) - (3,075,734)
Improvements (3,015,810) (223,543) - (3,239,353)
Infrastructure (13,749,012) (638,634) - (14,387,646)
Total accumulated depreciation (20,907,948) (1,080,713) - (21,988,661) Depreciable assets, net 26,583,880 (986,430) - 25,597,450 Total governmental activities
capital assets, net $ 29,780,115 $ (986,430) $ - $ 28,793,685 80 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
5. CAPITAL ASSETS, Continued
Government-Wide Financial Statements, Continued
For the year ending June 30, 2021 depreciation expense was charged to functions/programs of the governmental activities as follows:
General government $ 69,812
Parks and recreation 246,613
Public safety 69,496
Public works 694,791
Total depreciation expense $ 1,080,712
The following is a summary of business-type activities capital assets transactions for the year ended June 30, 2021:
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Non depreciable Assets:
Land $ 167,738 $ - $ - $ 167,738
Total non depreciable assets 167,738 - - 167,738
Depreciable Assets:
Machinery and equipment 5,024 - - 5,024
Improvements 159,579 - - 159,579
Buildings 1,400,744 - - 1,400,744
Total depreciable assets 1,565,347 - - 1,565,347
Accumulated depreciation:
Machinery and equipment (9,312) - - (9,312)
Buildings (508,202) (28,335) - (536,537)
Improvements (141,828) (7,332) - (149,160)
Total accumulated depreciation (659,342) (35,667) - (695,009) Depreciable assets, net 906,005 (35,667) - 870,338
Total business-type activities
capital assets, net $ 1,073,743 $ (35,667) $ - $ 1,038,076 For the year ending June 30, 2021 depreciation expense was charged to functions/programs of the business-type activities as follows:
Endeavor Hall $ 35,667
Total depreciation expense $ 35,667
81 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
5. CAPITAL ASSETS, Continued
Fund Financial Statements
The governmental fund financial statements do not present general government capital assets, which are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. The capital assets of the enterprise funds in the Proprietary Fund Financial Statements are the same as those shown in the business-type activities of the Government-Wide Financial Statements. Internal Service Funds' capital assets are combined with governmental activities.
6. COMPENSATED ABSENCES
Compensated absences include vacation and sick leave. It is the policy of the City to pay 100% of the capped accumulated vacation leave when a public safety employee retires or terminates, and up to 18 months of a general employee's maximum annual accrual allowed upon the same leave of employment action. The City recognizes the liability for its compensated absences in the governmental activities. The following is a summary of compensated absences transactions during the year ended June 30, 2021:
Beginning Ending
Balance Balance Amount Due in
July 1, 2020 Additions Deletions June 30, 2021 One Year Compensated absences $ 147,694 $ 37,363 $ 19,310 $ 165,747 $ 82,847
7. CONDUIT DEBT
The following debt issuances were issued by the City for the express purpose of providing capital financing for third parties that are not part of the primary government of the City. Although these conduit debt obligations may bear the name of the City, the City has no obligation for such debt beyond the resources provided by a lease or loan with the third party on whose behalf they are issued.
Middle School Community Facilities District- Original Issue $6,400,000 Middle School Community Facilities District (CFD) Bonds in the principal amount of $6,400,000 were issued on September 2, 1990 by the City under the Mello-Roos Community Facilities Act of 1982.
Principal payments are payable on September 2 of each year. Interest payments are payable semiannually on March 2 and September 2. The bonds are non-city obligations and are secured solely by special assessment revenue from CFD No. 1990-1. As of June 30, 2021, the outstanding balance of the non-city bond obligation was $904,000.
82 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
7. CONDUIT DEBT, Continued
Lydia Lane Sewer Assessment District-Original Issue $228,325 Lydia Lane Sewer Assessment District Bonds in the principal amount of $228,325 were issued on August 5, 2002 by the City. Principal payments are payable on September 2 of each year. Interest payments are payable semi-annually on March 2 and September 2. The bonds are non city obligations and are secured by sewer assessment district revenue. As of June 30, 2021, the outstanding balance of the non-city bond obligation was $143,325.
Clayton Financing Authority 2007 Special Tax Revenue Refunding Bonds-Original Issue $5,060,000 Refunding bonds were issued on May 17, 2007 by the Clayton Financing Authority in the principal amount of $5,060,000 to refund the Authority's 1997 Special Tax Revenue Refunding Bonds (the "1997 Bonds"), finance the acquisition and construction of certain public capital improvements (the Project), establish a reserve fund for the Bonds (funded part in cash and part from a reserve fund surety bond), and to pay the costs of issuance of the Bonds. The 1997 Bonds were issued to purchase the CFD 1990-1 local obligations, which are recovered by special assessment revenues from CFD 1990-1. Principal payments are payable on September 2 of each year. Interest payments are payable semi-annually on March 2 and September 2. The bonds are non city obligations and are secured by revenues received by the Authority as the result of the payment of debt service on the CFD 1990-1 Local Obligations. As of June 30, 2021, the outstanding balance of the non-city bond obligation was $815,000.
8. UNEARNED AND DEFERRED REVENUE
Deferred Revenue
Deferred inflows of resources were recorded in the fund financial statements because the funds were not available to finance expenditures of the current period. At June 30, 2021, deferred inflows of resources in the fund financial statements were as follows.
Successor Total
General Housing Governmental
Fund Agency Funds
Deferred revenue
Unavailable state-mandated
program reimbursements $ 262,926 $ - $ 262,926
Unavailable loans receivable - 2,833,600 2,833,600
Total deferred revenue $ 262,926 $ 2,833,600 $ 3,096,526 83 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
9. RISK MANAGEMENT
The City participates in the Municipal Pooling Authority of Northern California (MPA), a joint powers agreement between twenty cities, which provides insurance coverage for liability, auto, property, and workers' compensation claims. Claims liabilities are accrued when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. The MPA covers claims in an amount up to $29,000,000. The City has a deductible of $5,000 per claim for liability cases and no deductible for workers’ compensation claims. Once the City's deductible is met, the MPA becomes responsible for payment of all claims and legal defense. The MPA is governed by a board consisting of one voting representative from each member municipality. The Board controls the operations of the MPA including selection of management, approval of operating budgets, and is independent of any influence by member municipalities beyond their representation on the Board. The City's general liability and workers’ compensation premium payments made to MPA for the fiscal year ending June 30, 2021 are in accordance with formulas established by the MPA. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Financial statements may be obtained from MPA at 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596. The City has had no settlements which exceeded insurance coverage during fiscal year ending June 30, 2021. Estimates of incurred, but not reported, liability claims are included in the City's claims estimates and based upon historical experiences as calculated by the MPA.
10. DEFINED BENEFIT PENSION PLAN
Plan Description
The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes (not accounting purposes) and membership information is listed in the latest Annual Actuarial Valuation Report as of June 30, 2018. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications. All qualified permanent and probationary employees are eligible to participate in the City’s separate Public Safety (police) and Miscellaneous (all other) defined benefit pension plans. Both the Public Safety and Miscellaneous plans are part of the public agency cost-sharing multiple employer defined benefit pension plan (PERF C), which is administered by CalPERS. PERF C consists of a Safety and Miscellaneous pool (also referred to as “risk pools”), which are comprised of individual employer safety and miscellaneous rate plans, respectively. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be obtained from CalPERS at 400 Q Street, Sacramento, CA 95811. 84 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
10. DEFINED BENEFIT PENSION PLAN, Continued
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service become vested and are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:
Miscellaneous Pension Plan
Tier I Tier II Tier III (PEPRA)*
Hire Date Before 7/1/2010 On or after On or after
7/1/2020 but 1/1/2013
Before 1/1/2013
Benefit formula 2% @ 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 Minimum retirement age 50 50 52
Monthly benefits, as % of
eligible compensation 1. 426% - 2. 418% 1. 092% - 2. 418% 1. 0% - 2. 5% Safety Pension Plan
Tier I Tier II Tier III (PEPRA)*
Hire Date Before 7/1/2010 On or after On or after
7/1/2010 but 1/1/2013
Before 1/1/2013
Benefit formula 3% @ 55 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 Minimum retirement age 50 50 50
Monthly benefits, as % of
eligible compensation 2. 4% - 3. 0% 2. 0% - 2. 7% 2. 0% - 2. 7% *The California Public Employees’ Reform Act (PEPRA) was enacted in 2012 and became effective January 1, 2013.
85 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
10. DEFINED BENEFIT PENSION PLAN, Continued
Employees Covered
At June 30, 2021 the following employees were covered by the benefit terms for each plan:
Miscellaneous Public Safety
Tier I Tier II PEPRA Tier I Tier II PEPRA
Inactive employees (or their beneficiaries)
currently receiving benefits 33 1 - 27 1 1
Inactive employees entitled to but not yet
receiving benefits 6 1 2 3 2 2
Active employees 4 3 10 4 - 7
Total 43 5 12 34 3 10
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. The Plan’s actuarially determined rate is based on the estimated amount necessary to pay the costs of benefits earned by employees during the year, with an additional amount to pay any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2021, the City’s contractually required contributions, which are actuarially determined, were as follows:
Employer Contributions
Normal Cost Unfunded
Percentage of Actuarial Total
Pension Plan Payroll Liability
Miscellaneous Tier I $ 2,905 $ 156,440 $ 159,345
Miscellaneous Tier II 3,518 2,371 5,889
Miscellaneous PEPRA 3,871 2,749 6,620
Public Safety Tier I 9,053 214,242 223,295
Public Safety Tier II - 1,729 1,729
Public Safety PEPRA 11,450 4,644 16,094
Total $ 30,797 $ 382,175 $ 412,972
86 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
10. DEFINED BENEFIT PENSION PLAN, Continued
Contributions, Continued
The following is a summary of actuarially determined employer and contractually determined employee pension contribution rates as a percentage of payroll for the year ended June 30, 2021:
Employer Employee
Pension Plan Contribution Rate Contribution Rate
Miscellaneous Tier I 10.484 7.0001
Miscellaneous Tier II 8.794 7.000
Miscellaneous PEPRA 7.732 6.750
Public Safety Tier I 20.585 9.000
Public Safety Tier II 18.152 9.000
Public Safety PEPRA 13.044 13.000
1 Paid on behalf of employee per labor agreement referred to as “Employee Paid Member Contribution” (EPMC) by CalPERS.
Net Pension Liability
At June 30, 2021, the City reported total net pension liabilities for its proportionate share in both the Miscellaneous and Safety plans as follows:
Proportionate
Net Pension Liability Share of Net
Pension Plan (Asset) Pension Liability
Miscellaneous $ 2,286,792 0. 05421%
Public Safety 3,041,884 0. 04566%
Total $ 5,328,676 $ 0. 04897%
The City’s net pension liability was based on the proportionate shares (in dollars) determined by CalPERS based on individual actuarial measurement specific to each rate plan in the Miscellaneous Pool and the Safety Pool. The City’s total proportionate share of the cost-sharing plan pension amounts is the sum of the pension amounts allocated to each of the City’s Miscellaneous and Safety rate plans. The City’s net pension liability is measured as of June 30, 2020, using annual actuarial valuations as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. 87 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
10. DEFINED BENEFIT PENSION PLAN, Continued
Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ending June 30, 2021 the City recognized a total pension expense of $609,954. At June 30, 2021 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Net Deferred
Deferred Deferred Outflows /
Outflows of Inflows of (Inflows) of
Resources Resources Resources
Pension contributions subsequent
to measurement date $ 412,971 $ - $ 412,971
Net difference between projected
and actual earnings on
pension plan investments 134,046 - 134,046
Change in employer’s proportion 94,452 46,691 47,761
Changes in assumptions - 26,443 (26,443)
Differences between actual and
expected experiences 353,727 - 353,727
Differences between the employer’s
contributions and the employer’s
proportion share of contributions 1,503 271,092 (269,589) Total $ 996,699 $ 344,226 $ 652,473
Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources, Continued Of the reported deferred outflows of resources, $412,971 is related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022 (measurement period ended June 30, 2021). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Employer Specific Amounts
Difference Between
Actual and
Proportionate
Fiscal Miscellaneous Safety Change in Share of
Year End Risk Pool Risk Pool Proportion Contributions Total 2022 $ 26,204 $ 70,862 $ 3,674 $ (109,658) $ (8,918)
2023 61,597 110,988 17,099 (103,127) 86,557
2024 49,084 76,887 26,988 (56,804) 96,155
2025 32,582 33,126 - - 65,708
Thereafter - - - - -
88 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
10. DEFINED BENEFIT PENSION PLAN, Continued
Discount Rate
The discount rate used to measure the total pension liability was 7. 15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7. 15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7. 15% will be applied to all plans in the PERF C. The stress test results are presented in a detailed report that can be obtained from the CalPERS website at www. calpers. ca. gov.
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of 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 took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a 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.
The expected real rates of return by asset class are as follows:
Assumed Asset Real Return Real Return
Asset Class Allocation Years 1-101 Years 11+2
Global Equity 50. 00% 4. 80% 5. 98%
Fixed Income 28. 00% 1. 00% 2. 62%
Inflation Assets - 0. 77% 1. 81%
Private Equity 8. 00% 6. 30% 7. 23%
Real Assets 13. 00% 3. 75% 4. 93%
Liquidity 1. 00% - -0. 92%
Total 100. 00%
2An expected inflation of 2. 00% is used for this period 3An expected inflation of 2. 92% is used for this period. 89 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
10. DEFINED BENEFIT PENSION PLAN, Continued
Actuarial Methods and Assumptions
The following actuarial assumptions and methods were used to calculate the total pension liability as of June 30, 2021:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Discount Rate 7. 15%
Inflation 2. 50%
Salary Increase Varies by Entry Age and Service
Mortality Derived using specific CalPERS Membership Data for all Funds.
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.
Post Retirement Benefit Increase Contract COLA up to 2. 50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies.
All other actuarial assumptions used in the June 30, 2019 valuation can be obtained from CalPERS at their website at www. calpers. ca. gov under Forms and Publications.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate of 7. 15%, as well as what the City’s proportionate share of the net pension liability/(asset) would be if it were calculated using a discount rate that is 1-percentage point lower (6. 15%) or 1- percentage point higher (8. 15%) than the current rate:
Miscellaneous Safety Total
1% decrease 6. 15% 6. 15% 6. 15%
Net pension liability $ 3,555,285 $ 4,829,330 $ 8,384,615 Current discount rate 7. 15% 7. 15% 7. 15%
Net pension liability $ 2,286,792 $ 3,041,884 $ 5,328,676
1% increase 8. 15% 8. 15% 8. 15%
Net pension liability $ 1,238,677 $ 1,575,116 $ 2,813,793 90 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
10. DEFINED BENEFIT PENSION PLAN, Continued
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. The plan’s fiduciary net position disclosed per the GASB Statement No. 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. For the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the City’s funding actuarial valuation. In addition, differences may result from early financial statement closing and final reconciled reserves.
11. OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City of Clayton Retired Employee Health Care Program is a single-employer defined benefit healthcare program administered by the City of Clayton. The program offers medical only (no dental) insurance benefits to eligible retirees and their families through the same self-insured program coverage to active City employees. In connection with this, the City has established a plan to provide postemployment benefits other than pensions as defined in California Public Employees' Retirement Law section 7500-7514. 5. The plan provides employees who retire directly from the City, at a minimum age of 50, with a minimum of five years of service, a cash subsidy for monthly medical insurance premiums to a cap of $143 per employee per month as of June 30, 2021. This monthly subsidy is the statutory minimum employer premium contribution under the California Public Employee’s Medical and Health Care Act (PEMHCA). To be eligible for this OPEB health coverage, employees must retire within 120 days of separation from employment with the City and also receive a monthly retirement warrant. Furthermore, to be eligible for retiree health benefits, the City of Clayton must still contract with CalPERS for health benefits. Once a retiree becomes eligible for Medicare, these benefits are integrated with the Medicare plan. Separate stand-alone audited financial statements are not issued for this plan.
Employees Covered
As of the June 30, 2021, the date of the latest actuarial valuation, the following current and former employees were covered by the benefit terms under the plan:
Active employees 27
Inactive employees or beneficiaries currently receiving benefits 9 Inactive employees entitled to, but not yet receiving benefits - Total employees 36
91 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
11. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued
Contributions
The City does not have an actuarially-determined contribution requirement as an irrevocable trust has not yet been established. The City currently administers the plan on a pay-as-you-go basis with eight (9) retirees currently receiving the PEMHCA minimum benefit. Total retiree OPEB premium payments, excluding the implicit rate subsidy of $14,578 were made by the City during the fiscal year ended June 30, 2021.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2020 that was rolled forward to determine the June 30, 2021 total OPEB liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal (AMM)
Discount Rate 2.18%
Inflation Rate 3.00%
Salary Rate Increase 4.00%
Mortality Rate PubG. H-2010 Mortality Table - General
Funded Ratio 0. 00%
Health Care Trends
Initial Health Care Cost Trend Rate 6. 30%
Ultimate Health Care Cost Trend Rate 4. 50%
Fiscal Year the Ultimate Rate is Reached Fiscal Year 2035 Discount Rate
As of June 30, 2021, the City has not established a dedicated irrevocable trust to pay retiree healthcare benefits. Pursuant to GASBS 75, the discount rate should be a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). A rate of 2.18% is used, with is the Standard & Poor’s Municipal Bond 20-Year High-Grade Rate Index as of June 30, 2021.
92 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
11. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued
Changes in the OPEB Liability
The changes in the net OPEB liability for the plan are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balances as of July 1, 2020 $ 535,900 $ - $ 535,900
Changes recognized for the measurement period:
Service Cost 18,521 - 18,521
Interest on total OPEB liability 13,536 - 13,536
Changes of benefit terms - - -
Difference between expected and actual experience - - - Changes of assumptions and other inputs 18,602 - 18,602 Employer contributions - - -
Active and inactive employee contributions - - -
Net investment income - - -
Benefit payments* (54,031) - (54,031)
Administrative expenses - - -
Other changes - - -
Net changes (3,372) - (3,372)
Balances as of June 30, 2021 $ 532,528 $ - $ 532,528
*Includes the Implicit Rate Subsidy
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or higher than the current rate, as of the measurement June 30, 2020 date:
Current
1% Decrease Discount Rate 1% Increase
(1.66%) (2.66%) (3.66%)
Net OPEB Liability $ 494,848 $ 532,528 $ 575,669
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement the period ended June 30, 2020:
Current
1% Decrease Discount Rate 1% Increase
(5.30%) (6.30%) (7.30%)
Net OPEB Liability $ 558,070 $ 532,528 $ 510,547
93 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
11. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued
OPEB Plan Fiduciary Net Position
As the City has not established an irrevocable trust to pay retiree health care benefits, the plan has a fiduciary net position of $0 as of June 30, 2021.
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense over an assumed expected average remaining service lifetime (EARSL) of 10.70 years.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB revenue of $18,133. As of the fiscal year ended June 30, 2021, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:
Net Deferred
Deferred Outflows Deferred Inflows Outflows /(Inflows)
of Resources of Resources of Resources
Differences between actual and
expected experiences $ 14,183 $ 8,461 $ 5,722
Changes in assumptions 40,707 17,274 23,433
Difference between expected and
actual earnings on OPEB
plan investments - - -
Total $ 54,890 $ 25,735 $ 29,155
As an irrevocable trust for payment of retiree health benefits has not been established, there are no contributions subsequent to the measurement date to report, which would otherwise be recognized as a reduction of the net OPEB liability in the following fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Deferred
Fiscal Year Ending Outflows/(Inflows)
June 30 of Resources
2022 $ 4,111
2023 4,111
2024 4,111
2025 4,111
2026 4,111
Thereafter 8,600
Total $ 29,155
94 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
12. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES
Background
On June 28, 2011, the California State Legislature adopted two pieces of legislation - AB IX 26 and AB IX 27 (the Bill) - that eliminated redevelopment agencies and provided cities with the opportunity to preserve their redevelopment agency if they agreed to make certain payments to the County Auditor Controller. On behalf of cities and redevelopment agencies throughout the State, the League of California Cities and California Redevelopment Association requested a stay on the implementation of both pieces of legislation and filed a lawsuit with the California Supreme Court challenging both pieces of legislation. The stay was rejected and on December 29, 2011, the Supreme Court validated AB IX 26 and overturned AB IX 27. Further, the Supreme Court indicated that all redevelopment agencies in the State of California were to be dissolved and cease operations as a legal entity as of February 1, 2012.
Under the new law, redevelopment agencies in the State of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished project that were subject to legally enforceable contractual commitments).
In fiscal years subsequent to the statutory dissolution date, successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
The Bill directed the California State Controller to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller was required to order the available assets to be transferred to the public body designated as the Successor Agency by the Bill.
Amongst numerous requirements, AB IX 26 required the following:
i. Subject to the control of a newly established oversight board, assets of the former redevelopment agency must be disposed expeditiously and property tax revenue generated by a former redevelopment agency can only be used to pay enforceable obligations (i. e. debt obligations and other third party contractual obligations);
ii. Either the city or another unit of local government may agree to serve as the “Successor Agency” to hold the net position until they are distributed to units of state and local government; iii. Successor agencies may transfer housing functions of the former redevelopment agency to the appropriate entity; and
iv. Any property tax revenue in excess of enforceable obligations is to be distributed by county auditor controllers to taxing entities, which includes the City, as surplus property tax. 95 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
12. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES, Continued Background, Continued
As a result of the restrictions placed on the assets and liabilities of the former redevelopment agency, they were transferred to a private purpose trust fund on February 1, 2012. Prior to the transfer, the Redevelopment Agency was treated as a blended component unit of the City until the fiscal year ending June 30, 2012. On January 11, 2012, the City Council elected to become the Successor Agency to the former Redevelopment Agency in accordance with AB IX 26 as part of City resolution number 03-2012.
Subsequent to the adoption of AB IX 26 and AB IX 27, the California State Legislature adopted AB 1484 in June 2012. Among other things, AB 1484 required the following:
i. A process to transfer housing assets of the former redevelopment agency to the entity designated to receive these assets. In the case of the City, assets with a total value of $14,057,320 and liabilities with a total value of $10,999,595 were transferred to the Successor Agency from the former Redevelopment Agency.
ii. Requirements that the Successor Agency must complete due diligence reviews (DDRs) of the assets of the former Low and Moderate Income Housing Fund and all other funds of the former redevelopment agency. The DDRs of the Clayton Successor Agency were finalized and approved by the Oversight Board on October 9, 2014 via Resolution No. 2014-04 and 2014-05. These reports concluded that payments of $887,404 and $3,791,725 are required to be remitted to Contra Costa County by the Redevelopment Successor Agency and Successor Housing Agency respectively.
The California Department of Finance (DOF) completed their review of the low and moderate income housing funds and issued a final determination letter to the City dated April 24, 2015 with no modifications. The Successor Housing Agency issued the payment specified by the DOF’s low and moderate housing funds determination letter in the fiscal year ending June 30, 2015, resulting in a net extraordinary loss of $3,616,725 for the year then ended.
On November 30, 2015, the DOF issued their final determination letter approving the all other funds DDR report with modifications. The modifications required an additional payment of $230,983 to the County Auditor-Controller, which was reported as an Extraordinary Loss of the City’s General Fund in the fiscal year ending June 30, 2016. The Successor Agency issued the payment specified by the DOF’s final all other funds determination letter to the County AuditorController’s office in the fiscal year ending June 30, 2016, resulting in an extraordinary loss of $1,025,396 for the year then ended.
96 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
12. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES, Continued Background, Continued
Upon the DOF’s approval of the DDRs, and the distribution of unobligated funds, the Successor Agency is authorized to apply for a “Finding of Completion”. The Finding of Completion enables the Successor Agency to transfer and sell land and buildings of the former Redevelopment Agency, subject to the review and approval of a Property Management Plan by the State Department of Finance. In addition by receiving the Finding of Completion, the City may establish loans between the City and the former Redevelopment Agency as enforceable obligations. The Clayton Successor Received its finding of completion from the DOF on December 30, 2015.
Successor Agency Assets and Liabilities
Cash and Investments
The total cash and investments balance of $178,740 is presented in a format consistent with GASBS 31 and is presented at fair value. Pursuant to AB IX 26 and AB 1484, all unencumbered cash balances have been previously distributed to the County Auditor-Controller for distribution to taxing entitles. See Note 2 for further information and disclosures regarding the City’s pooled cash and investments.
Inter-Agency Loans
Notes Receivable transferred from former RDA to Successor Agency, effective February 1, 2012:
The former RDA provided assistance to special assessment districts within the City, to fund repairs and improvements. The High Street Permanent Road Division and Oak Street Sewer Assessment District received loans from the former RDA to finance necessary infrastructure improvements. These loans are secured by special assessment property tax levies within the District’s boundaries. As of June 30, 2021, the outstanding balance of the loans due to the Successor Agency was $61,705.
On May 10, 2011, the former Redevelopment Agency received a loan from the Low to Moderate Income Housing Fund in the amount of $592,412 to partially cover a demand from the California Department of Finance (DOF) for property tax revenues to K-12 schools during the fiscal year ending June 30, 2012 via the Supplemental Educational Revenue Augmentation Funds (SERAF). Pursuant to the DOF determination letter approving the 2017-18 Recognized Obligation Payment Schedule (ROPS) dated March 17, 2017, the loan will be repaid by the Successor Agency through the ROPS process in four (4) installments commencing in the fiscal year ending June 30, 2019. The loan is non-interest bearing and was paid in full as of June 30, 2021.
97 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
12. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES, Continued Long-Term Debt
The following is a summary of changes in long-term debt transactions for the year ended June 30, 2021:
Balance Balance Due in one
July 1, 2020 Additions Deletions June 30, 2021 year
2014 Tax Refunding
Allocation Bonds $ 1,925,000 $ - $ (780,000) $ 1,145,000 $ - Total $ 1,925,000 $ - $ (780,000) $ 1,145,000 $ -
In June 2021, the Successor Agency made the fiscal year 2021-22 debt service payment in advance. The next principal payment is due in fiscal year 2022-23
2014 Refunding Tax Allocation Bonds
Refunding Tax Allocation Bonds, Series 2014, in the principal amount of $3,790,000 were issued on June 25, 2014 by the Successor Agency. Principal payments are payable on August 1 of each year, beginning on August 1, 2015. Interest payments are payable semi-annually on February 1 and August 1. The bonds are special obligations of the Successor Agency and are secured by the Successor Agency’s tax increment revenue.
The 2014 refunding was exercised in order to take advantage of more favorable interest rates. The refunding decreased the City’s total debt service payments by approximately $601,895. The transaction resulted in economic gain (difference between present value of the debt service on the old and new bonds) of approximately $580,184. For the current year, principal and interest paid were $415,000 and $49,048, respectively.
The annual debt service requirements to amortize the Successor Agency’s 2014 Refunding Tax Allocation Bonds outstanding at June 30, 2021, were as follows:
Fiscal Year
Ending
June 30 Principal Interest Total
2022 $ - $ 13,168 $ 13,168
2023 375,000 22,023 397,023
2024 380,000 13,340 393,340
2025 390,000 4,484 394,484
Total $ 1,145,000 $ 53,015 $ 1,198,015
98 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
13. EQUITY BALANCES
Governmental Fund Balances
Fund balances are presented in the following categories: non-spendable, restricted, committed, assigned and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2021 is as follows:
Major Funds
Landscape Successor Capital Other
General Maintenance Housing Improvement Governmental
Fund Balance Classifcations Fund District Agency Program Funds Total
Nonspendable for:
Notes receivable $ 112,174 $ - $ - $ - $ - $ 112,174
Prepaid expenses 8,449 - - - - 8,449
Total 120,623 - - - - 120,623
Restricted for:
Affordable housing - - 5,430,243 - - 5,430,243
Public landscaping - 190,355 - - - 190,355
Grant-funded programs - - - - 258,808 258,808
The Grove Park (CFD 2006-1) - - - - 399,072 399,072
Stormwater compliance - - - - 20,203 20,203
Neighborhood street lighting - - - - 15,294 15,294
Transportation - - - - 970,024 970,024
Total - 190,355 5,430,243 - 1,663,401 7,283,999
Committed for:
Rainy Day 177,496 - - - - 177,496
Presley Settlement - - - - 18,284 18,284
Geological hazard prevention
and repair - - - - 63,193 63,193
Development impact - - - - 561,984 561,984
Total - - - - 643,461 820,957
Assigned for:
Next year’s budget - 895,531 - - 440,962 1,336,493
Capital projects - - - 1,924,746 - 1,924,746
Total - 895,531 - 1,924,746 440,962 3,261,239
Unassigned 5,810,862 - - - - 5,810,862
Total Fund Balance $ 6,108,981 $ 1,085,886 $ 5,430,243 $ 1,924,746 $ 2,747,824 $ 17,297,680 During the year ended June 30, 2021, the City established a Rainy Day Fund. This fund was established to capture any annual surplus identified through the annual financial audit that the City Council wishes to earmark for future allocation to one-time purposes. Funds are tracked and shown as committed in the General Fund.
99 City of Clayton
Notes to Basic Financial Statements
For the year ended June 30, 2021
13. EQUITY BALANCES, Continued
Net Position
The restricted component of net position includes assets subject to constraints either (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (2) imposed by law through constitutional provisions or enabling legislation. The restricted component of net position at June 30, 2021 for governmental activities includes:
Restricted for community and economic development:
Affordable housing $ 11,302,914
Restricted for public works:
Public landscaping (CFD 2007-1) 190,355
Stormwater state mandate compliance 20,203
Neighborhood street lighting 15,294
Transportation 970,024
Restricted for general government:
Grant-funded programs 212,425
Restricted for parks and recreation:
The Grove Park (CFD 2006-1) 399,072
Restricted for public safety:
Grant-funded programs 46,383
Total restricted net position $ 13,156,670
100
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101
REQUIRED SUPPLEMENTARY INFORMATION
102
City of Clayton
Required Supplementary Information
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes $2,610,104 $2,610,104 2,722,905 $ $ 112,801 Sales and use taxes 467,527 467,527 510,029 42,502
Business licenses 149,926 149,926 90,872 (59,054)
Permits, licenses and fees 124,387 124,387 112,867 (11,520) Fines, forfeitures and penalties 90,815 90,815 118,766 27,951 Intergovernmental 108,635 108,635 117,286 8,651
Other in-lieu fees 170,969 170,969 171,029 60
Franchise fees 550,252 550,252 567,350 17,098
Service charges 327,335 327,335 297,393 (29,942)
Use of money and property 100,000 100,000 66,374 (33,626) Other revenue 23,250 23,250 30,657 7,407
Total Revenues $4,723,200 4,723,200 4,805,528 82,328
EXPENDITURES
Current:
General government 1,301,163 1,301,163 1,397,917 (96,754) Public works 329,083 329,083 330,983 (1,900)
Parks and recreation services 429,843 429,843 273,021 156,822 Community and economic development 344,161 344,161 290,222 53,939 Public safety 2,525,923 2,525,923 2,374,819 151,104
Capital Outlay - - - -
Total Expenditures 4,930,173 4,930,173 4,666,962 263,211 Revenues Over (Under) Expenditures (206,973) (206,973) 138,566 345,539
OTHER FINANCING SOURCES (USES)
Transfers in 121,030 121,030 135,845 14,815
Transfers out (364,615) (364,615) (330,000) 34,615
Total Other Financing Sources (Uses) (243,585) (243,585) (194,155) 49,430 Change in fund balance $ (450,558) (450,558) $ (55,589) 394,969 $
FUND BALANCE
Beginning of year 6,164,570
End of year $ 6,108,981
Budgetary Comparison Schedule - General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance 103
City of Clayton
Required Supplementary Information
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Special parcel tax $ 1,168,107 $ 1,168,107 $ 1,657 1,169,764 $ Use of money and property 24,000 24,000 14,054 (9,946)
Other revenue - - -
Total Revenues 1,192,107 1,192,107 1,183,818 (8,289)
EXPENDITURES
Current:
Public works 1,429,487 1,429,487 1,067,386 362,101
Capital Outlay 222,000 222,000 53,813 168,187
Total Expenditures 1,651,487 1,651,487 1,121,199 530,288 Revenues Over (Under) Expenditures (459,380) (459,380) 62,619 521,999
OTHER FINANCING SOURCES (USES)
Transfers out (40,320) (40,320) (40,320) -
Total Other Financing Sources (Uses) (40,320) (40,320) (40,320) - Change in fund balance $ (499,700) $ (499,700) 22,299 $ 521,999
FUND BALANCE
Beginning of year 1,063,587
End of year $ 1,085,886
Budgetary Comparison Schedule - Landscape Maintenance District Schedule of Revenues, Expenditures and Changes in Fund Balance 104
City of Clayton
Required Supplementary Information
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Program income $ 106,400 106,400 $ 106,400 $ - $
Use of money and property 20,000 20,000 23,567 3,567
Total Revenues 126,400 126,400 129,967 3,567
EXPENDITURES
Current:
Community and economic development 45,000 45,000 27,951 17,049 Total Expenditures 45,000 45,000 27,951 17,049
Revenues Over (Under) Expenditures 81,400 81,400 102,016 20,616
OTHER FINANCING SOURCES (USES)
Unrealized gains (losses) - - 370,275 370,275
Total Other Financing Sources (Uses) - 370,275 - 370,275 Change in fund balance $ 81,400 $ 81,400 472,291 $ 390,891
FUND BALANCE
Beginning of year 4,957,952
End of year $ 5,430,243
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Successor Housing Agency 105
City of Clayton
Required Supplementary Information
For the Year Ended June 30, 2021
Schedule of Proportionate Share of Net Pension Liability Last 10 Years*
Fiscal Year Ending June 30*
2021 2020 2019 2018 2017 2016 2015
Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Plan’s Proportion of the Net Pension Liability/(Asset) 0.048970% 0.047570% 0.048490% 0.049420% 0.051003% 0.052357% 0.030626% Plan’s Proportionate Share of the Net Pension Liability/(Asset) $ 5,328,676 $ 4,874,908 $ 4,672,754 $ 4,901,330 $ 4,413,357 $ 3,593,771 $ 3,693,394 Plan’s Covered-Employee Payroll** $ 2,064,898 $ 2,016,021 $ 1,995,400 $ 1,931,042 $ 1,820,066 $ 1,706,509 $ 1,963,054 Plan’s Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 258.06% 241.81% 234.18% 253.82% 242.48% 210.59% 188.15% Plan’s Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 75.10% 75.26% 76.24% 73.86% 74.06% 78.40% 77.60% * Fiscal year ending June 30, 2015 was the 1st year of implementation, future years' information will be displayed up to 10 years, as information becomes available. ** For the year ending on the measurement date.
106
City of Clayton
Required Supplementary Information
For the Year Ended June 30, 2021
Schedule of Pension Plan Contributions
Last 10 Years*
June 30,
2021 2020 2019 2018 2017 2016 2015
Actuarially determined contributions* $ 412,971 $ 577,734 $ 530,067 $ 612,898 $ 573,677 $ 530,677 $ 375,647 Contributions in relation to the actuarially determined contribution 412,971 577,734 530,067 612,898 573,677 530,677 375,647 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - Covered-employee payroll** $ 2,244,193 $ 2,064,898 $ 2,016,021 $ 1,995,400 $ 1,931,042 $ 1,820,066$- $ 1,706,509 Contributions as a percentage of covered
employee payroll 18.40% 27.98% 26.29% 30.72% 29.71% 29.16% 22.01% * Excludes employer-paid member contributions (EPMC)
** For the fiscal year ending on the date shown
Actuarially determined contribution assumptions:**
Valuation Date June 30, 2018
Actuarial cost method Entry age normal cost method
Amortization method Level percent of pay, direct rate smoothing Remaining amortization periods Differs by employer rate plan but not more than 30 years Asset valuation method Market value of assets
Inflation 2.50%
Salary increases Varies by entry age and service
Discount rate*** 7.00% (net of administrative expenses) Mortality Derived using CalPERS' Membership Data for all Funds. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.
* Fiscal year ending June 30, 2015 was the 1st year of implementation, future years' information will be displayed, up to 10 years, as information becomes available. ** From the CalPERS reports found at:
https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-miscellaneous-2017.pdf https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-safety-2017.pdf *** The discount rate used for Actuarially Determined Contributions (ARC) is different from the one used for Total Pension Liability. 107
City of Clayton
Required Supplementary Information
For the Year Ended June 30, 2021
Fiscal Year
Ended
June 30, 2021
Fiscal Year
Ended
June 30, 2020
Fiscal Year
Ended
June 30, 2019
Fiscal Year
Ended
June 30, 2018
Measurement Date 6/30/2020 6/30/2020 6/29/2019 6/29/2018 Total OPEB Liability:
Total OPEB liability - Beginning $ 535,900 $ 570,116 $ 545,327 $ 464,490 Changes recognized for the measurement period:
Service cost 18,521 21,745 28,428 27,530
Interest on total OPEB liability 13,536 15,090 15,783 15,800 Changes of benefit terms - - - 45,605
Difference between expected and actual experience - (11,405) - 22,654 Changes of assumptions and other inputs 18,602 (4,186) 9,159 16,307 Benefit payments1 (54,031) (58,507) (31,408) (30,226)
Other changes - 3,047 2,827 (16,833)
Net change in total OPEB liability (3,372) (34,216) 24,789 80,837 Total OPEB liability - Ending 532,528 535,900 570,116 545,327 Plan Fiduciary Net Position:
Plan fiduciary net position - Beginning -$ -$ $ - -$
Changes recognized for the measurement period:
Contributions - Employer - - - -
Net investment income - - - -
Benefit payments - - - -
Administrative expense - - - -
Net change in plan fiduciary net position - - - -
Plan fiduciary net position - Ending2 - - - -
Net OPEB Liability - Ending $ 532,528 $ 535,900 $ 570,116 $ 545,327 Plan Fiduciary net position as a percentage of the
total OPEB liability 0.00% 0.00% 0.00% 0.00%
Covered-employee payroll $ 2,244,193 $ 2,307,289 $ 2,016,021 $ 1,995,400 Net OPEB liability as a percentage of covered
employee payroll 23.73% 23.23% 28.28% 27.33%
of OPEB plan benefits.
1 Includes the implicit rate subsidy.
2 As of the year ended June 30, 2021 the City had not established an irrevocable trust for payment Schedule of Changes in the Net OPEB Liability and Related Ratios Last 10 Years*
* Fiscal year ending June 30, 2018 was the 1st year of implementation, future years' information will be displayed, up to 10 years, as information becomes available.
108
City of Clayton
Required Supplementary Information
For the Year Ended June 30, 2021
Fiscal Year
Ended
June 30, 2021
Fiscal Year
Ended
June 30, 2020
Fiscal Year
Ended
June 30, 2019
Fiscal Year
Ended
June 30, 2018
Actuarially determined contributions (ADC)1 $ - - $ - $ - $ Contributions in relation to the ADC - - - -
Contribution deficiency (excess) $ - - $ - $ - $
Covered-employee payroll2 $ 2,244,193 $ 2,307,289 $ 2,016,021 $ 1,995,400 Contributions as a percentage of covered-employee payroll 0.00% 0.00% 0.00% 0.00% Schedule of OPEB Plan Contributions
Last 10 Years*
1 As of the year ended June 30, 2021 the City had not established an irrevocable trust for payment of OPEB plan benefits. 2 For the fiscal year ending on the date shown
* Fiscal year ending June 30, 2018 was the 1st year of implementation, future years' information will be displayed up to 10 years, as information becomes available.
109
City of Clayton
Notes to the Required Supplementary Information
For the year ended June 30, 2021
1. BUDGETARY PRINCIPLES
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
By June 30, the City Manager submits to the City Council a proposed operating budget for the year commencing July 1. The operating budget includes proposed expenditures and the means of financing them. Continuing appropriations are re-budgeted by the City Council as part of the adoption of subsequent year's budgets.
Public hearings are conducted to obtain taxpayer comments. The budget is legally enacted through passage of a resolution during a City Council meeting in the month of June.
The City Manager is authorized to transfer budgeted amounts within an activity, within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council.
Formal budgeting is employed as a management control device during the year for the general, certain special revenue and debt service funds. The Presley Settlement, Stormwater Treatment District Assessment, and Clayton Development Impact Fees funds are not budgeted for and thus do not have budget to actual comparison statements.
Budgets for the general, certain special revenue and debt service funds are adopted on a basis consistent with generally accepted accounting principles (US GAAP). Budgets for capital projects funds are adopted on a project-life basis.
Budgeted amounts are as originally adopted or as amended by the City Council. Budget amendments were not material in relation to the original appropriations.
2. PENSION AND OTHER POSTEMPLOYMENT BENEFITS
This information is intended to help users assess the City’s Pension and Other Postemployment Benefits (OPEB) plan’s status on a going-concern basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons with other public employers. 110
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111
SUPPLEMENTARY INFORMATION
112
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113
City of Clayton
Supplementary Information
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 1,018,000 1,018,000 $ 201 $ $ (1,017,799) Program income - - - -
Use of money and property 28,880 28,880 14,921 (13,959) Total Revenues 1,046,880 1,046,880 15,122 (1,031,758)
EXPENDITURES
Capital outlay 1,441,719 1,441,719 110,915 1,330,804
Total Expenditures 1,441,719 1,441,719 110,915 1,330,804 Revenues Over (Under) Expenditures (394,839) (394,839) (95,793) 299,046
OTHER FINANCING SOURCES (USES)
Transfers in 793,877 793,877 357,172 (436,705)
Transfers out - - - -
Total Other Financing Sources (Uses) 793,877 793,877 357,172 (436,705) Change in fund balance $ 399,038 $ 399,038 261,379 $ (137,659)
FUND BALANCE
Beginning of year 1,663,367
End of year $ 1,924,746
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Capital Improvement Program 114
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115
NON-MAJOR GOVERNMENTAL FUNDS
Non-Major Special Revenue Funds:
Development Impact Fees - Accounts for projects funded with the development impact fees.
Gas Tax HUTA - Accounts for taxes raised under Street and Highway Code Sections 2106, 2107 and 2107. 5, used for the maintenance and construction of City streets.
Gas Tax RMRA - Accounts for taxes raised under Road Maintenance and Rehabilitation Account (SB1), used for the maintenance and construction of City streets.
Grants - Accounts for grants received for specific programs and projects.
The Grove Park District - Accounts for voter-approved real property special parcel taxes restricted for the operation, maintenance, repair and replacement landscaping, irrigation, hardscaping, lighting, public restroom, gazebo, and playground equipment for “The Grove Park” in the downtown area.
Measure J - Accounts for a $0. 05 sales tax extended by voters in 2004 to provide transportation and street improvements, a growth management process, and a regional planning process to address quality of life issues. A portion of their county wide voter-approved tax is returned to local governments.
Neighborhood Street Lighting District - Accounts for assessments collected to maintain residential street lighting within the defined benefit assessment district boundaries.
Oakhurst Geological Hazard Abatement District - Accounts for voter-approved real property assessments collected from Oakhurst parcels to provide preventive maintenance measures and to mitigate potential landslides and other hazardous geological conditions within the benefit assessment district boundaries.
Presley Settlement - Accounts for litigation settlement proceeds restricted for specific programs and projects.
Stormwater Assessment District - Accounts for real property assessments collected to comply with the National Pollution Discharge Elimination System (NPDES).
Stormwater Treatment Assessment District - This fund was formed to provide a mechanism for the levying of private development (property) benefit assessments to fund the cost of inspections, maintenance and capital improvements related to the stormwater treatment requirements imposed upon the City by the Regional Water Quality Control Board as part of the City's General Stormwater Discharge Permit.
116
City of Clayton
Supplementary Information
Combining Balance Sheets - Non-major Governmental Funds June 30, 2021
The Grove
Development Gas Tax Gas Tax Park
Impact Fees HUTA RMRA Grants District
ASSETS
Cash and investments 574,020 $ 514,170 $ 600,429 $ 259,360 $ 470,028 $ Accounts receivable - - 20,488 3,560 -
Total Assets $ 514,170 574,020 $ 620,917 $ 262,920 $ 470,028 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 12,036 $ 4,398 -$ $ 4,112 $ 4,983
Other payables - - - - -
Due to other funds - - - - -
Advance from other funds - - - - -
Total Liabilities 12,036 4,398 - 4,112 4,983
Fund Balance:
Restricted - 485,877 397,904 258,808 399,072
Committed 561,984 - - - -
Assigned 23,895 - 223,013 - 65,973
Unassigned - - - - -
Total Fund Balance 561,984 509,772 620,917 258,808 465,045 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 514,170 574,020 $ 620,917 $ 262,920 $ 470,028 $ Special Revenue
117
City of Clayton
Supplementary Information
Combining Balance Sheets - Non-major Governmental Funds June 30, 2021
Oakhurst
Geological
Neighborhood Hazard Total Other
Street Lighting Abatement Presley Stormwater Governmental Measure J District District Settlement Assessment Funds $ 86,243 $ 60,633 $ 52,675 $ 113,472 $ 40,039 $ 2,771,069 - - - - 17,799 41,847
$ 60,633 86,243 $ 52,675 $ 113,472 $ 57,838 $ 2,812,916 $ $ 9,764 - $ 21,024 $ -$ $ 8,775 $ 65,092
- - - - - -
- - - - - -
- - - - - -
9,764 - 21,024 - 8,775 65,092
15,294 86,243 - - 20,203 1,663,401
- - 63,193 18,284 - 643,461
35,575 - (31,542) 95,188 28,860 440,962
- - - - - -
50,869 86,243 31,651 113,472 49,063 2,747,824
$ 60,633 86,243 $ 52,675 $ 113,472 $ 57,838 $ 2,812,916 $ Special Revenue
118
City of Clayton
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - For the year ended June 30, 2021 The Grove
Development Gas Tax Gas Tax Park
Impact Fees HUTA RMRA Grants District
REVENUES
Special parcel taxes and assessments $ 42,163 - $ - $ - $ 139,609 $ Permits, licenses and fees - - - - -
Intergovernmental 254,662 - 192,360 316,155 -
Use of money and property 549 7,505 58 2,930 3,783
Other revenue - - - - -
Total Revenues 7,505 297,374 192,418 319,085 143,392
EXPENDITURES
Current:
General government - - - 149,402 -
Public works - 147,566 - - -
Parks and recreation services - - - - 76,833
Community and economic development - - - - -
Public safety - - - 230,284 -
Capital outlay - - - 47,175 -
Total Expenditures 147,566 - 426,861 - 76,833
Revenues Over (Under) Expenditures 149,808 7,505 192,418 (107,776) 66,559
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - (35,323) - (14,814) (7,970)
Total Other Financing Sources (Uses) (35,323) - - (14,814) (7,970) Net change in fund balances 114,485 7,505 192,418 (122,590) 58,589
FUND BALANCES
Beginning of year 395,287 554,479 428,499 381,398 406,456 End of year $ 509,772 561,984 $ 620,917 $ 258,808 $ 465,045 $ Special Revenue
119
City of Clayton
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - For the year ended June 30, 2021 Oakhurst
Geological
Neighborhood Hazard Total Other
Street Lighting Abatement Presley Stormwater Governmental Measure J District District Settlement Assessment Funds $ 125,991 - $ 42,778 $ - $ 86,401 $ 436,942 $
- - - - 59,430 59,430
- 30,576 - - - 793,753
(3,233) 674 (312) 1,319 602 13,875
- - - - - -
27,343 126,665 42,466 1,319 146,433 1,304,000
- - - - 149,402 -
24,501 147,773 57,850 132,232 - 509,922
- - - - - 76,833
- - - - - -
- - - - 230,284 -
- 1,707 - - - 48,882
24,501 147,773 59,557 132,232 - 1,015,323
2,842 (21,108) (17,091) 1,319 14,201 288,677
- - - 1,130 - 1,130
(4,890) (12,530) (7,870) - (40,430) (123,827)
(4,890) (12,530) (7,870) (39,300) - (122,697)
(2,048) (33,638) (24,961) 1,319 (25,099) 165,980
88,291 84,507 56,612 112,153 74,162 2,581,844
$ 86,243 $ 50,869 $ 31,651 $ 113,472 $ 49,063 $ 2,747,824 Special Revenue
120
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Permits, licenses and fees -$ -$ $ - $ -
Use of money and property 12,000 12,000 7,505 (4,495)
Total Revenues 12,000 12,000 7,505 (4,495)
EXPENDITURES
Current:
Public safety - - - -
Capital Outlay - - - -
Total Expenditures - - - -
Revenues Over (Under) Expenditures 12,000 12,000 7,505 (4,495)
OTHER FINANCING SOURCES (USES)
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Change in fund balance $ 12,000 12,000 $ 7,505 (4,495) $
FUND BALANCE
Beginning of year 554,479
End of year $ 561,984
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Development Impact Fees 121
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Special parcel taxes and assessments $ 41,200 41,200 $ 42,163 $ 963 $ Intergovernmental 276,638 242,995 254,662 (21,976)
Use of money and property 3,000 3,000 549 (2,451)
Other revenue - - - -
Total Revenues 287,195 320,838 297,374 (23,464)
EXPENDITURES
Public works 212,143 212,143 147,566 64,577
Total Expenditures 212,143 212,143 147,566 64,577
Revenues Over (Under) Expenditures 108,695 75,052 149,808 41,113
OTHER FINANCING SOURCES (USES)
Transfers out (474,724) (501,898) (35,323) 466,575
Total Other Financing Sources (Uses) (501,898) (474,724) (35,323) 466,575 Change in fund balance $ (399,672) $ (393,203) 114,485 $ 507,688
FUND BALANCE
Beginning of year 395,287
End of year $ 509,772
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Gas Tax HUTA
122
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes $ - $ - $ - $ -
Intergovernmental 207,959 178,271 192,360 (15,599)
Use of money and property 4,200 1,000 58 (4,142)
Total Revenues 179,271 212,159 192,418 (19,741)
EXPENDITURES
Public works - - - -
Total Expenditures - - - -
Revenues Over (Under) Expenditures 212,159 179,271 192,418 (19,741)
OTHER FINANCING SOURCES (USES)
Transfers out (359,147) (359,147) - 359,147
Total Other Financing Sources (Uses) (359,147) (359,147) - 359,147 Change in fund balance $ (179,876) $ (146,988) 192,418 $ 339,406
FUND BALANCE
Beginning of year 428,499
End of year $ 620,917
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Gas Tax RMRA
123
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 120,200 120,200 $ 316,155 $ 195,955 $ Use of money and property 7,100 7,100 2,930 (4,170)
Total Revenues 127,300 127,300 319,085 191,785
EXPENDITURES
Current:
General government 27,300 27,300 149,402 (122,102)
Public safety 121,997 121,997 230,284 (108,287)
Capital outlay 65,621 65,621 47,175 18,446
Total Expenditures 214,918 214,918 426,861 (211,943)
Revenues Over (Under) Expenditures (87,618) (87,618) (107,776) (20,158)
OTHER FINANCING SOURCES (USES)
Transfers out - - (14,814) (14,814)
Total Other Financing Sources (Uses) - - (14,814) (14,814) Change in fund balance $ (87,618) (87,618) $ (122,590) (34,972) $
FUND BALANCE
Beginning of year 381,398
End of year $ 258,808
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Grants
124
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Special parcel taxes and assessments $ 142,230 142,230 $ 139,609 $ $ (2,621) Permits, licenses and fees 1,200 1,200 - (1,200)
Use of money and property 6,400 6,400 3,783 (2,617)
Other revenue - - - -
Total Revenues 149,830 149,830 143,392 (6,438)
EXPENDITURES
Current:
Parks and recreation services 121,532 121,532 76,833 44,699 Capital Outlay 6,500 6,500 - 6,500
Total Expenditures 128,032 128,032 76,833 51,199
Revenues Over (Under) Expenditures 21,798 21,798 66,559 44,761
OTHER FINANCING SOURCES (USES)
Transfers out (7,970) (7,970) (7,970) -
Total Other Financing Sources (Uses) (7,970) (7,970) (7,970) - Change in fund balance $ 13,828 13,828 $ 58,589 44,761 $
FUND BALANCE
Beginning of year 406,456
End of year $ 465,045
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - The Grove Park District 125
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $ 242,186 242,186 $ 30,576 $ $ (211,610) Use of money and property 2,000 2,000 (3,233) (5,233)
Total Revenues 244,186 244,186 27,343 (216,843)
EXPENDITURES
Current:
Public works 32,000 32,000 24,501 7,499
Total Expenditures 32,000 32,000 24,501 7,499
Revenues Over (Under) Expenditures 212,186 212,186 2,842 (209,344)
OTHER FINANCING SOURCES (USES)
Transfers out (324,043) (324,043) (4,890) 319,153
Total Other Financing Sources (Uses) (324,043) (324,043) (4,890) 319,153 Change in fund balance $ (111,857) $ (111,857) (2,048) $ 109,809
FUND BALANCE
Beginning of year 88,291
End of year $ 86,243
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Measure J
126
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Special parcel taxes and assessments $ 125,991 125,991 $ 125,991 $ -$ Use of money and property 1,800 1,800 674 (1,126)
Total Revenues 127,791 127,791 126,665 (1,126)
EXPENDITURES
Current:
Public works 153,480 153,480 147,773 5,707
Total Expenditures 153,480 153,480 147,773 5,707
Revenues Over (Under) Expenditures (25,689) (25,689) (21,108) 4,581
OTHER FINANCING SOURCES (USES)
Transfers out (12,530) (12,530) (12,530) -
Total Other Financing Sources (Uses) (12,530) (12,530) (12,530) - Change in fund balance $ (38,219) (38,219) $ (33,638) 4,581 $
FUND BALANCE
Beginning of year 84,507
End of year $ 50,869
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Neighborhood Street Lighting District 127
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Special parcel taxes and assessments $ 43,250 43,250 $ 42,778 $ $ (472) Use of money and property 200 200 (312) (512)
Total Revenues 43,450 43,450 42,466 (984)
EXPENDITURES
Current:
Public works 25,790 25,790 57,850 (32,060)
Capital outlay 63,193 63,193 1,707 61,486
Total Expenditures 88,983 88,983 59,557 29,426
Revenues Over (Under) Expenditures (45,533) (45,533) (17,091) 28,442
OTHER FINANCING SOURCES (USES)
Transfers out (7,870) (7,870) (7,870) -
Total Other Financing Sources (Uses) (7,870) (7,870) (7,870) - Change in fund balance $ (53,403) (53,403) $ (24,961) 28,442 $
FUND BALANCE
Beginning of year 56,612
End of year $ 31,651
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Oakhurst Geological Hazard and Abatement District 128
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Use of money and property $ 2,200 2,200 $ 1,319 $ $ (881) Total Revenues 2,200 2,200 1,319 (881)
EXPENDITURES
Current:
Public works - - - -
Capital outlay - - - -
Total Expenditures - - - -
Revenues Over (Under) Expenditures 2,200 2,200 1,319 (881) Change in fund balance $ 2,200 2,200 $ 1,319 (881) $
FUND BALANCE
Beginning of year 112,153
End of year $ 113,472
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Presley Settlement
129
City of Clayton
Supplementary Information
Non-Major Governmental Funds
For the year ended June 30, 2021
Variance from
Final Budget
Adopted Final Positive
Budget Budget Actual (Negative)
REVENUES
Special parcel taxes and assessments $ 73,492 73,492 $ 86,401 $ 12,909 $ Permits, licenses and fees 60,920 60,920 59,430 (1,490) Use of money and property 1,000 1,000 602 (398)
Total Revenues 135,412 135,412 146,433 11,021
EXPENDITURES
Current:
Public works 150,118 150,118 132,232 17,886
Total Expenditures 150,118 150,118 132,232 17,886
Revenues Over (Under) Expenditures (14,706) (14,706) 14,201 28,907
OTHER FINANCING SOURCES (USES)
Transfers in 1,130 1,130 1,130 -
Transfers out (40,430) (40,430) (40,430) -
Total Other Financing Sources (Uses) (39,300) (39,300) (39,300) - Change in fund balance $ (54,006) (54,006) $ (25,099) 28,907 $
FUND BALANCE
Beginning of year 74,162
End of year $ 49,063
Schedule of Revenues, Expenditures and Changes in Fund Balance Budgetary Comparison Schedule - Stormwater Assessment District 130
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131
INTERNAL SERVICE FUNDS
Internal service funds account for activities that provide goods or services to other City funds or department on a cost reimbursement basis. The following are the City’s internal service funds:
Capital Equipment Replacement Fund (CERF) - This fund accounts for the operation, maintenance, depreciation, and replacement of City vehicles and equipment.
Self-Insurance Fund - This fund accounts for the administration of the City’s self-insurance program and payment of workers’ compensation and liability claims.
Pension Rate Stabilization Fund - This fund stabilizes major fluctuations in annual employer pension costs driven by market factors and actuarial changes. 132
City of Clayton
Supplementary Information
Combining Statement of Net Position - Internal Service Funds June 30, 2021
Capital
Equipment
Replacement
Pension Rate
Stabilization
SelfInsurance Total
ASSETS
Current assets:
Cash and investments $ 197,749 $ 289,094 $ 31,028 $ 517,871 Noncurrent assets:
Depreciable assets, net 487,851 - - 487,851
Total Asset 685,600 289,094 31,028 1,005,722
LIABILITIES
Current liabilities:
Accounts payable - - 180 180
Total Liabilities - - 180 180
NET POSITION
Net investment in capital assets 487,851 - - 487,851
Unrestricted 197,749 289,094 30,848 517,691
Total Net Position $ 685,600 $ 289,094 $ 30,848 $ 1,005,542 133
City of Clayton
Supplementary Information
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds - For the year ended June 30, 2021 Capital
Equipment
Replacement
Pension Rate
Stabilization
SelfInsurance Total
OPERATING REVENUES
Charges for current services $ 111,900 -$ -$ $ 111,900
Total Operating Revenues 111,900 - - 111,900
OPERATING EXPENSES
General and administrative 8,851 - 2,672 11,523
Depreciation and amortization 99,979 - - 99,979
Total Operating Expenses 108,830 - 2,672 111,502
Operating Income (Loss) 3,070 - (2,672) 398
NONOPERATING REVENUES (EXPENSES)
Gain (loss) on disposal of assets 1,741 - - 1,741
Investment income (loss) 1,313 3,762 113 5,188
Total Nonoperating Revenues (Expenses) 3,054 3,762 113 6,929 Net (loss) Before Contributions and 6,124 3,762 (2,559) 7,327 Operating Transfers
Capital contributions - - - -
Transfers in - - - -
Change in Net Position 6,124 3,762 (2,559) 7,327
NET POSITION:
Beginning of fiscal year 679,476 285,332 33,407 998,215 End of fiscal year $ 685,600 $ 289,094 $ 30,848 $ 1,005,542 134
City of Clayton
Supplementary Information
Combining Statement of Cash Flows - Internal Service Funds For the year ended June 30, 2021
Capital
Equipment
Replacement
Pension Rate
Stabilization
SelfInsurance Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 111,900 -$ -$ $ 111,900
Supplies and equipment purchased (8,851) - - (8,851)
Claims paid - - (2,492) (2,492)
Net cash provided (used) by operating activities - 103,049 (2,492) 100,557
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers in - - - -
Net cash provided (used) by noncapital financing - - - - activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets (94,283) - - (94,283)
Proceeds from the sale of capital assets 1,741 - - 1,741 Net cash provided (used) by capital and related (92,542) - - (92,542) financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments 1,313 3,762 113 5,188
Net Cash provided (used) by investing activities 3,762 1,313 113 5,188 Net increase (decrease) in cash and cash equivalents 3,762 11,820 (2,379) 13,203 CASH AND CASH EQUIVALENTS:
Beginning of fiscal year 185,929 285,332 33,407 504,668 End of fiscal year $ 197,749 $ 289,094 $ 31,028 $ 517,871
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:
Operating income (loss) $ -$ 3,070 $ (2,672) $ 398
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation and amortization - 99,979 - 99,979
Changes in current assets and liabilities:
Increase (decrease) in accounts payable - - 180 180
Net cash provided (used) by operating activities $ 103,049 -$ $ (2,492) $ 100,557 135
AGENCY FUNDS
Agency Funds are used to account for assets held by the City in a fiduciary capacity or as an agent for individuals, government entities and other non-public organizations. The following are reported as agency funds:
Clayton Financing Authority - Accounts for projects related to the Financing Authority.
Clayton Financing Authority 2007 Refunding Bonds - Accounts for the refunding of the Authority's 1997 Special Tax Revenue Refunding Bonds payable from revenues received by the Authority as the result of payment of debt service on the local obligations of the Middle School CFD 1990-1 Bonds.
Deposits– Represents funds held for: performance deposits, Clayton Community Gym donation deposits, refundable rental security deposits, planning services deposits, engineering plan check deposits, and other various deposits.
Diablo Estates Benefit Assessment District – Accounts for parcel owner approved real property assessments collected to maintain certain infrastructure components (including street lighting) for the Diablo Estates development.
High Street Bridge Benefit Assessment District – Accounts for real property assessments collected to maintain bridges.
Lydia Lane Sewer Benefit Assessment District – Accounts for real property assessments to be collected for construction of a sewer system.
Middle School Community Facilities District – Accounts for special parcel taxes restricted to repay indebtedness of the Middle School Community Facilities District No. 1990-1.
Oak Street Bridge Benefit Assessment District – Accounts for real property assessments collected to maintain bridges.
Oak Street Sewer Benefit Assessment District – Accounts for real property assessments to be collected for construction of a sewer system.
136
City of Clayton
Supplementary Information
Combining Statement of Changes in Assets and Liabilities - Agency Funds For the year ended June 30, 2021
Balance
July 1, 2020 Additions Deductions
Balance
June 30, 2021
Clayton Financing Authority
Assets:
Cash and investments 590,288 $ 13,941 $ $ (5,973) $ 598,256 Total Assets $ 590,288 $ 13,941 $ (5,973) $ 598,256
Liabilities:
Other liabilities $ 590,288 $ 13,941 $ (5,973) $ 598,256 Total Liabilities $ 590,288 $ 13,941 $ (5,973) $ 598,256 Clayton Financing Authority 2007 Refunding Bonds
Assets:
Cash and investments 106,864 $ 412,656 $ $ (458,288) $ 61,232 Cash with fiscal agent 355,272 469,135 (504,331) 320,076 Accounts receivable 28,460 - (8,860) 19,600
Prepaid expenses 2,541 - (2,541) -
Investments in bonds 1,313,000 434,000 (843,000) 904,000 Total Assets $ 1,806,137 $ 1,315,791 $ (1,817,020) $ 1,304,908 Liabilities:
Accounts payable $ 2,541 $ 3,228 $ (5,769) $ -
Other liabilities 613,596 489,795 (613,483) 489,908
Due to bondholders 1,190,000 395,000 (770,000) 815,000
Total Liabilities $ 1,806,137 $ 888,023 $ (1,389,252) $ 1,304,908 Deposits
Assets:
Cash and investments 785,285 $ 302,807 $ $ (505,737) $ 582,355 Total Assets $ 785,285 $ 302,807 $ (505,737) $ 582,355
Liabilities:
Deposits payable $ 785,285 $ 124,279 $ (327,209) $ 582,355 Total Liabilities $ 785,285 $ 124,279 $ (327,209) $ 582,355 Diablo Estates Benefit Assessment District
Assets:
Cash and investments 182,239 $ 96,794 $ $ (77,759) $ 201,274 Total Assets $ 182,239 $ 96,794 $ (77,759) $ 201,274
Liabilities:
Accounts payable $ 6,232 $ 91,003 $ (75,075) $ 22,160
Other liabilities 176,007 97,491 (94,384) 179,114
Total Liabilities $ 182,239 $ 188,494 $ (169,459) $ 201,274 137
City of Clayton
Supplementary Information
Combining Statement of Changes in Assets and Liabilities - Agency Funds For the year ended June 30, 2021
Balance
July 1, 2020 Additions Deductions
Balance
June 30, 2021
High Street Bridge Benefit Assessment District
Assets:
Cash and investments 7,054 $ 1,869 $ $ (126) $ 8,797
Assessments receivable 9,842 590 (1,454) 8,978
Total Assets $ 16,896 $ 2,459 $ (1,580) $ 17,775
Liabilities:
Accounts payable $ - $ 2,010 -$ $ 2,010
Notes payable 9,842 590 (1,454) 8,978
Due to bondholders 7,054 1,870 (2,137) 6,787
Total Liabilities $ 16,896 $ 4,470 $ (3,591) $ 17,775
Lydia Lane Sewer Benefit Assessment District
Assets:
Cash and investments 69,010 $ 17,860 $ $ (18,362) $ 68,508 Cash with fiscal agent 12,892 9,370 (9,458) 12,804
Assessments receivable 148,325 - (5,000) 143,325
Total Assets $ 230,227 $ 27,230 $ (32,820) $ 224,637
Liabilities:
Other liabilities $ 81,902 $ 19,923 $ (20,513) $ 81,312 Due to bondholders 148,325 - (5,000) 143,325
Total Liabilities $ 230,227 $ 19,923 $ (25,513) $ 224,637 Middle School Community Facilities District
Assets:
Cash and investments 270,468 $ 389,380 $ $ (453,095) $ 206,753 Assessments receivable 1,313,000 - (409,000) 904,000
Total Assets $ 1,583,468 $ 389,380 $ (862,095) $ 1,110,753 Liabilities:
Accounts payable $ 12,031 68 $ $ (12,099) $ -
Other liabilities 270,400 389,380 (453,027) 206,753
Due to bondholders 1,313,000 - (409,000) 904,000
Total Liabilities $ 1,583,468 $ 401,411 $ (874,126) $ 1,110,753 138
City of Clayton
Supplementary Information
Combining Statement of Changes in Assets and Liabilities - Agency Funds For the year ended June 30, 2021
Balance
July 1, 2020 Additions Deductions
Balance
June 30, 2021
Oak Street Bridge Benefit Assessment District
Assets:
Cash and investments 20,589 $ 2,075 $ $ (599) $ 22,065
Total Assets $ 20,589 $ 2,075 $ (599) $ 22,065
Liabilities:
Accounts payable $ - $ 1,645 -$ $ 1,645
Other liabilities 20,589 2,075 (2,244) 20,420
Total Liabilities $ 20,589 $ 3,720 $ (2,244) $ 22,065
Oak Street Sewer Benefit Assessment District
Assets:
Cash and investments 2,206 $ 11,410 $ $ (11,689) $ 1,927 Assessments receivable 60,909 - (8,183) 52,726
Total Assets $ 63,115 $ 11,410 $ (19,872) $ 54,653
Liabilities:
Accounts payable $ - $ 1,433 $ (48) $ 1,385
Other liabilities 2,206 11,410 (13,074) 542
Notes payable 60,909 - (8,183) 52,726
Total Liabilities $ 63,115 $ 12,843 $ (21,305) $ 54,653 Total - All Agency Funds
Assets:
Cash and investments 2,034,003 $ 1,248,792 $ $ (1,531,628) $ 1,751,167 Cash with fiscal agent 368,164 478,505 (513,789) 332,880 Assessments receivable 1,532,076 590 (423,637) 1,109,029 Accounts receivable 28,460 - (8,860) 19,600
Prepaid expenses 2,541 - (2,541) -
Investments in bonds 1,313,000 434,000 (843,000) 904,000 Total Assets $ 5,278,244 $ 2,161,887 $ (3,323,455) $ 4,116,676 Liabilities:
Accounts payable $ 8,841 $ 111,350 $ (92,991) $ 27,200
Other liabilities 1,754,988 1,024,015 (1,202,698) 1,576,305 Deposits payable 785,285 124,279 (327,209) 582,355
Notes payable 70,751 590 (9,637) 61,704
Due to bondholders 2,658,379 396,870 (1,186,137) 1,869,112 Total Liabilities $ 5,278,244 $ 1,657,104 $ (2,818,672) $ 4,116,676 139
STATISTICAL SECTION
140
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141
STATISTICAL SECTION
TABLE OF CONTENTS
This part of the City’s Annual Comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City.
Page
Financial Trends 143
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
Revenue Capacity 151
These schedules contain information to help the reader assess the City’s most significant local revenue sources.
Debt Capacity 159
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information 164
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
Operating Information 165
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.
142
City of Clayton
Statistical Section
Net Position by Component - Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ending June 30
2011 2012 2013 2014
Governmental activities:
Net investment in capital assets $ 28,330,852 $ 29,988,389 $ 29,344,437 $ 28,653,515 Restricted 6,775,688 5,071,942 3,470,831 2,024,193
Unrestricted 5,034,855 4,829,960 6,306,416 4,781,508
Total governmental activities net position 40,141,395 39,890,291 39,121,684 35,459,216 Business-type activities:
Net investment in capital assets 1,358,883 1,322,815 1,286,748 1,250,681 Restricted - - - -
Unrestricted (121,193) (130,382) (49,038) (44,572)
Total business-type activities net position 1,237,690 1,192,433 1,237,710 1,206,109 Primary government:
Net investment in capital assets 29,689,735 31,311,204 30,631,185 29,904,196 Restricted 6,775,688 5,071,942 3,470,831 2,024,193
Unrestricted 4,913,662 4,699,578 6,257,378 4,736,936
Total primary government net position $ 41,379,085 $ 41,082,724 $ 40,359,394 $ 36,665,325 Source: City of Clayton Finance Department.
143
City of Clayton
Statistical Section
Net Position by Component - Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ending June 30
2015 2016 2017 2018 2019 2021
$ 28,929,140 $ 29,349,667 $ 28,976,510 $ 29,790,706 $ 29,780,115 $ 28,793,685 7,783,815 7,731,727 12,059,042 11,915,594 12,046,964 13,156,670 7,028,670 7,835,030 3,836,715 3,009,835 3,433,238 2,492,751 43,741,625 44,916,424 44,872,267 44,716,135 45,260,317 44,443,106 1,221,999 1,184,742 1,147,485 1,110,485 1,073,743 1,038,076 - - - - - -
(56,305) (64,190) (75,944) (72,753) (74,819) (114,090)
1,165,694 1,120,552 1,071,541 1,037,732 998,924 923,986 30,151,139 30,534,409 30,123,995 30,901,191 30,853,858 29,831,761 7,783,815 7,731,727 12,059,042 11,915,594 12,046,964 13,156,670 6,972,365 7,770,840 3,760,771 2,937,082 3,358,419 2,378,661 $ 44,907,319 $ 46,036,976 $ 45,943,808 $ 45,753,867 $ 46,259,241 $ 45,367,092 144
City of Clayton
Statistical Section
Changes in Net Position - Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2012 2013 2014 2015
Expenses
Governmental activities:
General government $ 1,201,323 $ 1,186,567 $ 1,249,238 $ 1,119,567 Public works 1,104,503 1,346,320 2,118,015 2,139,918
Parks and recreation services 1,066,617 1,100,584 352,498 339,894 Community and economic development 530,687 446,259 410,413 405,941 Public safety 1,972,460 1,925,266 2,016,145 2,006,052
Interest and fiscal charges 129,047 - - -
Total governmental activities expenses 6,004,637 6,004,996 6,146,309 6,011,372 Business-type activities:
Community gym 18 - - -
Endeavor Hall 61,497 60,117 65,351 66,606
Total business-type activities expenses 61,515 60,117 65,351 66,606 Total primary government expenses $ 6,066,152 $ 6,065,113 $ 6,211,660 $ 6,077,978 Program revenues
Governmental activities:
Charges for services:
General government $ 421,866 $ 352,124 $ 567,663 $ 643,070 Public works 148,828 315,230 296,974 418,498
Parks and recreation services 183,031 - 608 14,337
Community and economic development 319,268 137,795 54,013 25,990 Public safety 64,364 36,899 14,631 13,862
Operating grants and contributions 884,026 587,384 683,492 157,397 Capital grants and contributions - - - -
Total governmental activities program revenues 2,021,383 1,429,432 1,617,381 1,273,154 Business-type activities:
Charges for services:
Community gym - - - -
Endeavor hall 16,294 14,860 19,545 25,818
Operating grants and contributions - - - -
Total business-type program revenues 16,294 14,860 19,545 25,818 Net revenues (expenses)
Governmental activities $ (3,983,254) $ (4,575,564) $ (4,528,928) $ (4,738,218) Business-type activities (45,221) (45,257) (45,806) (40,788) Total primary government net expense $ (4,028,475) $ (4,620,821) $ (4,574,734) $ (4,779,006) General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes $ 4,488,417 $ 1,691,803 $ 1,862,734 $ 2,302,278 Special parcel taxes 1,071,632 1,093,213 1,122,349 1,155,141 Sales and use taxes 307,887 353,525 370,330 397,544
Business license taxes - - - -
Other taxes 792,726 802,651 865,752 1,339,537
Franchise fees - - - -
Payments in lieu of taxes - - - -
Investment income 242,539 80,622 64,319 82,909
Miscellaneous 1,249,897 139,161 175,082 91,230
Gain/(loss) on sale of assets (116,339) (7,817) - 624
Transfers 250,000 250,456 (688,709) 88,793
Total governmental activities 8,286,759 4,403,614 3,771,857 5,458,056 Business type activities:
Investment income/(loss) (359) - 393 175
Miscellaneous - - - 4,316
Transfers - - - (88,793)
Total business-type activities (359) - 393 (84,302)
Extraordinary and Special Items
Governmental activities:
Extraordinary gain/(loss) (6,100,352) - - (200,000)
Business-type activities:
Special item gain/(loss) - - - 93,489
Total primary government changes in net position
Governmental activities (1,796,847) (171,950) (757,071) 519,838 Business-type activities (45,580) (45,257) (45,413) (31,601) Total primary government $ (1,842,427) $ (217,207) $ (802,484) $ 488,237 Source: City of Clayton Finance Department.
145
City of Clayton
Statistical Section
Changes in Net Position - Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019 2020 2021
$ 1,051,461 $ 1,174,069 $ 1,305,562 $ 1,457,326 $ 2,781,523 $ 1,796,454 1,975,653 2,221,835 2,509,147 2,825,969 1,988,766 2,909,710 583,120 676,790 667,687 718,267 452,535 592,433
362,248 287,775 329,418 367,682 296,372 357,133
2,060,621 2,075,082 2,538,912 2,536,880 2,521,690 2,980,000 - - - - - -
6,033,103 6,435,551 7,350,726 7,906,124 8,040,886 8,635,730 - - - - - -
67,668 67,393 76,901 58,455 63,631 73,117
67,668 67,393 76,901 58,455 63,631 73,117
$ 6,100,771 $ 6,502,944 $ 7,427,627 $ 7,964,579 $ 8,104,517 $ 8,708,847 $ 355,391 $ 349,220 $ 397,668 $ 397,436 $ 438,906 $ 430,894 321,544 324,308 355,625 356,347 338,877 328,731
73,501 70,394 66,868 71,681 43,635 17,622
100,612 113,336 127,487 96,596 113,600 133,404
49,326 52,497 44,545 41,195 65,674 51,259
836,833 813,168 900,239 825,018 1,024,732 893,718
22,200 885,398 526,452 570,049 559,220 42,363
1,759,407 2,608,321 2,418,884 2,358,322 2,584,644 1,897,991 - - - - - -
27,253 22,251 27,890 24,642 24,702 (1,442)
- - - - - -
27,253 22,251 27,890 24,642 24,702 (1,442)
$ (4,273,696) $ (3,827,230) $ (4,931,842) $ (5,547,802) $ (5,456,242) $ (6,737,739) (40,415) (45,142) (49,011) (33,813) (38,929) (74,559)
$ (4,314,111) $ (3,872,372) $ (4,980,853) $ (5,581,615) $ (5,495,171) $ (6,812,298) $ 2,256,780 $ 2,339,221 $ 2,345,067 $ 2,463,898 $ 2,587,812 $ 2,722,906 1,185,651 1,220,427 1,254,911 1,256,011 1,295,034 1,309,373 372,705 455,387 436,560 483,741 512,868 510,029
133,943 135,866 154,397 175,153 140,620 90,872
- - - - - -
516,607 541,138 547,765 523,129 565,893 567,350
154,852 157,949 161,108 164,331 167,677 171,029
295,904 119,201 287,595 255,272 684,244 508,256
58,694 31,216 23,118 39,211 40,516 38,972
792 1,624 (893) 30,924 5,760 1,741
- - - - - -
4,975,928 5,002,029 5,209,628 5,391,670 6,000,424 5,920,528 - - - 4 121 (379)
- - - - - -
- - - - - -
- - - 4 121 (379)
(230,786) - - - - -
- - - - - -
471,446 1,174,799 277,786 (156,132) 544,182 (817,211)
(40,415) (45,142) (49,011) (33,809) (38,808) (74,938)
$ 431,031 $ 1,129,657 $ 228,775 $ (189,941) $ 505,374 $ (892,149) Fiscal Year
146
City of Clayton
Statistical Section
Fund Balances of Governmental Funds - Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
Fiscal Year Ending June 30
2012* 2013 2014 2015
General fund:
Nonspendable $ - $ - $ 1,242,346 $ 1,029,377
Restricted - - - -
Committed - - - -
Assigned 46,704 182,671 34,542 -
Unassigned 5,229,784 5,199,914 3,871,849 4,509,255
Total general fund 5,276,488 5,382,585 5,148,737 5,538,632 All other governmental funds:
Nonspendable - - - -
Restricted - - 1,399,064 1,303,081
Committed - 5,071,942 829,421 721,112
Assigned 12,489,782 - 2,354,314 3,309,135
Unassigned - (425,380) (2,550) (2,550)
Total other governmental funds 12,489,782 4,646,562 4,580,249 5,330,778 Total governmental funds $ 17,766,270 $ 10,029,147 $ 9,728,986 $ 10,869,410 Source: City of Clayton Finance Department.
* The City of Clayton Redevelopment Agency was dissolved in the fiscal year ended June 30, 2012 in accordance with California state law (ABx1 26).
147
City of Clayton
Statistical Section
Fund Balances of Governmental Funds - Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
2016 2017 2018 2019 2020 2021
$ 308,064 $ 72,518 $ 81,790 $ 320,232 $ 100,163 $ 120,623 - - - - - -
- - - - - 177,496
278,853 415,239 281,930 102,228 409,482 -
5,031,142 5,429,524 5,302,751 5,337,685 5,654,925 5,810,862 5,618,059 5,917,281 5,666,471 5,760,145 6,164,570 6,108,981 3,633,951 3,696,238 - - - -
2,150,476 2,122,471 6,293,306 6,403,413 6,452,671 7,283,999 667,134 494,241 571,915 647,611 669,841 643,461
2,684,533 3,026,942 3,542,680 2,744,642 3,167,804 3,261,239 (2,550) (2,550) (2,550) (223,171) (23,566) -
9,133,544 9,337,342 10,405,351 9,572,495 10,266,750 11,188,699 $ 14,751,603 $ 15,254,623 $ 16,071,822 $ 15,332,640 $ 16,431,320 $ 17,297,680 Fiscal Year Ending June 30
148
City of Clayton
Statistical Section
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
Fiscal Year
2012 2013 2014 2015
Revenues
Property taxes $ 4,488,417 $ 1,691,803 $ 1,862,734 $ 2,302,278 Program income 72,870 10,546 10,668 10,063
Special parcel taxes and assessments 1,220,460 1,232,280 1,260,823 1,287,748 Sales and use taxes 307,887 353,525 370,330 397,544
Business license taxes and fees - - - -
Permits, licenses and fees 534,446 402,661 290,598 306,545 Fines, forfeitures and penalties 114,313 93,328 78,173 72,635 Intergovernmental 1,986,471 836,041 967,729 1,066,757
Motor vehicle in-lieu fees 11,074 - 4,703 4,590
Other in-lieu fees 143,060 145,921 148,839 151,816
Franchise fees 454,871 479,765 504,867 501,597
Service charges 131,053 125,387 338,626 366,080
Use of money and property 241,199 80,579 62,642 81,408
Other revenue 27,954 138,528 175,538 91,131
Total revenues 9,734,075 5,590,364 6,076,270 6,640,192
Expenditures
Current
General government 1,028,719 957,680 1,118,026 1,018,852 Public works 1,251,908 1,502,599 1,293,402 1,342,373
Parks and recreation services 345,345 356,445 352,498 349,862 Community and economic development 530,687 446,259 410,413 410,972 Public safety 1,916,002 1,867,432 1,950,034 2,005,607
Capital outlay 1,531,977 2,370,825 393,505 260,895
Debt service
Principal 610,000 - - -
Interest and fiscal charges 323,451 - - -
Total expenditures 7,538,089 7,501,240 5,517,878 5,388,561 Revenues over (under) expenditures 2,195,986 (1,910,876) 558,392 1,251,631 Other financing sources (uses)
Unrealized gains (losses) - - - -
Transfers in 2,038,931 2,221,820 524,187 600,458
Transfers out (1,788,931) (1,971,364) (603,341) (511,665) Total other financing sources (uses) 250,000 250,456 (79,154) 88,793 Revenues and other financing sources over (under)
expenditures and other financing uses 2,445,986 (1,660,420) 479,238 1,340,424 Special and extraordinary items
Special item gain (loss) 53,930 - (90,690)
Extraordinary gain (loss) (8,299,982) - - (200,000)
Total special and extraordinary items (8,246,052) - (90,690) (200,000) Change in fund balances $ (5,800,066) $ (1,660,420) $ 388,548 $ 1,140,424 Ratio of Total Debt Service Expenditures to
Noncapital Expenditures 0.18 0.00 0.00 0.00
Source: City of Clayton Finance Department
149
City of Clayton
Statistical Section
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
2016 2017 2018 2019 2020 2021
$ 2,256,780 $ 2,339,221 $ 2,345,067 $ 2,463,898 $ 2,463,898 $ 2,722,905 81,400 86,400 91,400 146,400 146,400 106,400
1,437,156 1,465,905 1,522,187 1,546,399 1,546,399 1,606,706 372,705 455,387 436,560 483,741 483,741 510,029
133,943 135,866 154,397 175,153 175,153 90,872
194,261 209,026 356,052 212,242 212,242 172,297
84,270 92,662 110,787 82,375 82,375 118,766
964,539 1,706,688 1,178,659 1,312,528 1,312,528 911,240 4,554 - - - - -
154,852 157,949 161,108 164,331 164,331 171,029
516,607 541,138 547,765 523,129 523,129 567,350
342,308 311,796 329,164 325,078 325,078 297,393
290,966 118,210 274,244 385,696 385,696 132,791
48,517 40,186 23,168 35,723 35,723 30,657
6,882,858 7,660,434 7,530,558 7,856,693 7,856,693 7,438,435 1,068,970 1,194,606 1,183,609 1,317,973 1,317,973 1,547,319 1,237,683 1,519,992 1,592,903 1,621,629 1,621,629 1,908,291 375,554 458,294 433,764 477,266 477,266 349,854
379,162 309,048 317,284 352,163 352,163 318,173
2,281,621 2,265,845 2,363,298 2,365,339 2,365,339 2,605,103 1,275,563 1,409,599 654,531 2,146,778 2,146,778 213,610 - - - - - -
- - - - - -
6,618,553 7,157,384 6,545,389 8,281,148 8,281,148 6,942,350 264,305 503,050 985,169 (424,455) (424,455) 496,085
- - - (214,727) (214,727) 370,275
1,026,538 497,960 481,974 1,261,171 1,261,171 494,175
(1,177,781) (497,960) (649,974) (1,361,171) (1,361,171) (494,175) (151,243) - (168,000) (314,727) (314,727) 370,275
113,062 503,050 817,169 (739,182) (739,182) 866,360
- - - - - -
(230,786) - - - - -
(230,786) - - - - -
$ (117,724) $ 503,050 $ 817,169 $ (739,182) $ (739,182) $ 866,360
0.00 0.00 0.00 0.00 0.00 0.00
Fiscal Year
150
City of Clayton
Statistical Section
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year
Ended June 30
Total Tax Levy for
Fiscal Year1 Amount
Percentage of
Levy Amount
Percentage of
Levy
2012 2,785,016 2,785,016 100% 2,785,016 100%
2013 2,985,083 2,985,083 100% 2,985,083 100%
2014 3,457,419 3,457,419 100% 3,457,419 100%
2015 3,442,431 3,442,431 100% 3,442,431 100%
2016 3,559,648 3,559,648 100% 3,559,648 100%
2017 3,599,978 3,599,978 100% 3,599,978 100%
2018 3,719,909 3,719,909 100% 3,719,909 100%
2019 3,882,846 3,882,846 100% 3,882,846 100%
2020 4,170,045 4,170,045 100% 4,170,045 100%
2021 4,329,611 4,329,611 100% 4,329,611 100%
Source: City of Clayton Finance Department
Collected within the Fiscal Year
of the Levy Total Collections to Date
1 Property tax levies above include secured and unsecured general ad valorem property taxes, restricted local special parcel taxes, and property taxes pertaining to the Redevelopment Property Tax Trust Fund. 2 The City is enrolled in the "Teeter" Plan, where the County remits the entire amount levied and handles all delinquencies, retaining the interest and penalties.
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Years
Property Tax Collections
151
City of Clayton
Statistical Section
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Ended
June 30 Secured Unsecured SBE Nonunitary
Net Total Assessed
Valuation
Total Direct
Tax Rate2
2012 1,659,424,975 13,098,203 - 1,672,523,178 34.460%
2013 1,592,441,490 12,107,626 - 1,604,549,116 34.145%
2014 1,724,741,279 12,046,811 - 1,736,788,090 6.992%
2015 1,855,952,809 10,423,772 - 1,866,376,581 6.587%
2016 1,966,021,862 24,268,730 - 1,990,290,592 6.627%
2017 2,052,672,378 24,551,781 - 2,077,224,159 6.642%
2018 2,138,664,468 22,857,474 - 2,161,521,942 6.650%
2019 2,238,046,407 24,573,625 - 2,262,620,032 6.667%
2020 2,335,781,999 28,167,199 - 2,363,949,198 6.684%
2021 2,419,252,507 28,191,208 - 2,447,443,715 6.697%
Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls 1 In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 2 City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City.
Tax Rate Area 13-015 is represented here for this report.
Net Taxable Assessed Value
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$-
$500
$1,000
$1,500
$2,000
$2,500 Millions
Fiscal Years
152
City of Clayton
Statistical Section
Taxable Assessed Value By Source
Last Ten Fiscal Years
Fiscal Year Ending June 30
Category 2012 2013 2014 2015
Residential ¹ $ 1,587,781,869 $ 1,525,145,282 $ 1,664,638,727 $ 1,797,596,765 Commercial 39,281,102 42,498,296 39,271,189 38,942,508
Dry Farm
Gov't Owned
Institutional 2,412,183 2,460,428 2,509,634 2,521,025
Irrigated 124,224 126,707 129,240
Miscellaneous 477,430 764,183 197,555 198,449
Recreational 12,300,848 5,364,139 5,364,585 5,364,688
Vacant 17,047,319 16,082,455 12,630,349 11,329,374
Unsecured 13,098,203 12,107,626 12,046,811 10,423,772
Exempt ² (24,066,321) (24,547,599) (25,038,500) (26,156,667) Unknown - - - -
Totals $ 1,672,523,178 $ 1,604,549,116 $ 1,736,788,090 $ 1,866,376,581 Total Direct Rate 0.34460 0.34145 0.06992 0.06587
Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls 1 In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 2 Exempt values are not included in total.
2 California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1.0% and allocates a portion of that amount by an annual calculation to all the taxing entities within a tax rate area. The City of Clayton encompasses ten (10) tax rate areas.
Taxable Assessed Value By Source
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
$2,100
$2,200
$2,300
$2,400
$2,500
Millions
Fiscal Year Ending June 30
Category Residential ¹ Commercial Dry Farm Gov't Owned
Institutional Irrigated Miscellaneous Recreational Vacant Unsecured Exempt ² Unknown
153
City of Clayton
Statistical Section
Taxable Assessed Value By Source
Last Ten Fiscal Years
Fiscal Year Ending June 30
2016 2017 2018 2019 2020 2021
$ 1,904,368,929 $ 1,988,952,192 $ 2,067,562,369 $ 2,165,479,800 $ 2,266,477,116 $ 2,348,456,415 41,544,210 41,858,935 47,590,673 47,779,713 48,208,120 49,037,518 11,134,894 11,399,590 11,865,579
2,571,392 2,610,603 2,662,812 3,253,330 2,729,354 2,783,939 202,412 205,496 209,603 129,549 140,719 143,532
5,365,145 6,302,648 7,403,121 7,402,753 4,957,742 5,058,784 11,969,774 12,742,504 13,235,890 2,866,368 1,869,358 1,906,740 24,268,730 24,551,781 22,857,474 24,573,625 28,167,199 28,191,208 (26,679,230) (27,086,036) (27,627,706) (28,243,119) (28,807,933) (29,384,046) - - - - - -
$ 1,990,290,592 $ 2,077,224,159 $ 2,161,521,942 $ 2,262,620,032 $ 2,363,949,198 $ 2,447,443,715
0.06627 0.06642 0.06650 0.06667 0.06684 0.06697
154
City of Clayton
Statistical Section
Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years (Rate per $100 of Assessed Value) Fiscal Year Ending June 30
2012 2013 2014 2015
City Direct Rates:
City of Clayton General Fund10.06628 0.06628 0.06628 0.06628 Clayton Light Maintenance District No. 120.01039 0.01039 0.01039 0.01039 Direct and Overlapping Rates:
Basic Levy31.00000 1.00000 1.00000 1.00000
Bay Area Rapid Transit (BART) Bond 0.00410 0.00430 0.00750 0.00450 Contra Costa Community College Bond 0.01440 0.00870 0.01330 0.02520 Contra Costa Water Land Levy 0.00510 0.00450 0.00420 0.00370 East Bay Regional Park Bond 0.00710 0.00510 0.00780 0.00850 Mt. Diablo School Bond 0.06120 0.08710 0.07400 0.08530
Total Direct and Overlapping Rates 1.09190 1.10970 1.10680 1.12720 City's Share of 1% Levy Per Prop 13 ³ 0.06628 0.06628 0.06628 0.06628 Redevelopment Rate 1.01220 - - -
Total Direct Rate 0.34460 0.34145 0.06992 0.06587
Source: HdL, Coren & Cone, Contra Costa County Assessor 2010-11 to 2019-20 tax rate table. 1 City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Tax Rate Area 13-015 is represented here for this report. 2 City's share of 1.0% basic levy is based on the City's share of the Light Maintenance District No. 1 tax rate area with the largest net taxable value within the City. Tax Rate Area 13-002 is represented here for this report. 3 In 1978, California voters passed Proposition 13 which caps the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of voter approved bonds from various agencies. Redevelopment rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years thereafter. Total direct rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013-14 the total direct rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
155
City of Clayton
Statistical Section
Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years (Rate per $100 of Assessed Value) Fiscal Year Ending June 30
2016 2017 2018 2019 2020 2021
0.06628 0.06628 0.06628 0.06628 0.06628 0.06628
0.01039 0.01039 0.01039 0.01039 0.01039 0.01039
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.00260 0.00800 0.00840 0.00700 0.01200 0.01390
0.02200 0.01200 0.01140 0.01100 0.01880 0.01610
0.00350 0.00320 0.00300 0.00280 0.00260 0.00250
0.00670 0.00320 0.00210 0.00210 0.00940 0.00140
0.08120 0.07640 0.07900 0.09250 0.09080 0.09090
1.11600 1.10280 1.10390 1.11540 1.13360 1.12480
0.06628 0.06628 0.06628 0.06628 0.06628 0.06628
- - - - - -
0.06627 0.06642 0.06650 0.06667 0.06684 0.06697
156
City of Clayton
Statistical Section
Principal Property Tax Payers
Current Year and Nine Years Ago
Property Owner
Fiscal Year Ending June 30, 2012
Secured
Primary Use, Primary Agency Parcels Value % of Net AV
1) NGP Realty Sub Recreational, Successor Agency 17 $ 12,299,695 0.74% 2) Safeway Stores, Inc ¹ Commercial, Successor Agency 1 10,781,143 0.64% 3) Clayton Station Shopping Center ¹ Commercial, Successor Agency 4 9,231,787 0.55% 4) Albert D. Jr. & Sandra Seeno Trust Dry Farm, Clayton General Fund 1 7,823,796 0.47% 5) Comcast Unsecured, Successor Agency - - -
6) Toll California XIX LP Vacant, Successor Agency 25 4,360,000 0.26% 7) Endashiian LLC Commercial, Successor Agency 1 3,325,680 0.20% 8) Village Oaks LLC Commercial, Successor Agency 2 2,694,870 0.16% 9) Diamond Terrace Investors Commercial, Successor Agency 1 2,595,991 0.16% 10) Ocean West Nevada Corporation Commercial, Successor Agency 1 2,290,848 0.14% Top Ten Total 53 $ 55,403,810 3.32%
City Total $ 1,659,424,975
Property Owner
Fiscal Year Ending June 30, 2021
Secured
Primary Use, Primary Agency Parcels Value % of Net AV
1) Comcast Unsecured, Clayton General Fund - $ - -
2) Safeway Stores, Inc ¹ Commercial, Successor Agency 1 11,408,170 0.47% 3) Clayton Station Shopping Center ¹ Commercial, Successor Agency 4 10,814,771 0.45% 4) Albert D. Jr. & Sandra Seeno Trust Dry Farm, Clayton General Fund 1 8,500,000 0.35% 5) Empire Acres LLC Recreational, Successor Agency 19 5,066,188 0.21% 6) Elaine HOM Commercial, Successor Agency 1 4,626,866 0.19% 7) 1026 Oak LLC Commercial, Successor Agency 1 4,228,000 0.17% 8) Endashiian LLC Commercial, Successor Agency 1 3,826,861 0.16% 9) William Patrick Jordan Trust Residential, Successor Agency 4 3,176,503 0.13% 10) Village Oaks LLC Commercial, Successor Agency 2 3,156,958 0.13% Top Ten Total 34 $ 54,804,317 2.26%
City Total $ 2,419,252,507
Source: HdL, Coren & Cone, Contra Costa County Assessor 2011-12 & 2020-21 Combined Tax Rolls & the SBE Non-Unitary Tax Roll 1 Pending appeals on parcels
157
City of Clayton
Statistical Section
Principal Property Tax Payers
Current Year and Nine Years Ago
Fiscal Year Ending June 30, 2012
Unsecured Combined
Parcels Value % of Net AV Value % of Net AV
- $ - - $ 12,299,695 0.74%
- - - 10,781,143 0.64%
- - - 9,231,787 0.55%
- - - 7,823,796 0.47%
4 4,642,282 35.44% 4,642,282 0.28%
- - - 4,360,000 0.26%
- - - 3,325,680 0.20%
- - - 2,694,870 0.16%
- - - 2,595,991 0.16%
- - - 2,290,848 0.14%
4 $ 4,642,282 33.77% $ 60,046,092 3.60%
$ 13,098,203 $ 1,672,523,178
Fiscal Year Ending June 30, 2021
Unsecured Combined
Parcels Value % of Net AV Value % of Net AV
5 $ 19,703,004 69.89% $ 19,703,004 0.81%
- - - 11,408,170 0.47%
- - - 10,814,771 0.44%
- - - 8,500,000 0.35%
- - - 5,066,188 0.21%
- - - 4,626,866 0.19%
- - - 4,228,000 0.17%
- - - 3,826,861 0.16%
- - - 3,176,503 0.13%
- - - 3,156,958 0.13%
5 $ 19,703,004 69.89% $ 74,507,321 3.06%
$ 28,191,208 $ 2,447,443,715
158
City of Clayton
Statistical Section
Ratios of Debt Outstanding
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
Tax Allocation
Bonds1
Percentage of Total
Assessed Value
Percent of
Personal Income Per Capita
2012 - 0.000% 0.000% -
2013 - 0.000% 0.000% -
2014 - 0.000% 0.000% -
2015 - 0.000% 0.000% -
2016 - 0.000% 0.000% -
2017 - 0.000% 0.000% -
2018 - 0.000% 0.000% -
2019 - 0.000% 0.000% -
2020 - 0.000% 0.000% -
2021 - 0.000% 0.000% -
Source: City of Clayton Finance Department.
1 The balance of Tax Allocation Bonds was transferred to the Redevelopment Successor Agency as of February 1, 2012.
Total Outstanding Debt
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
-
0 0
0 0
1 1
1 1
1 1
Fiscal Year
159
City of Clayton
Statistical Section
Computation of Direct and Overlapping Debt
June 30, 2021
Overlapping Debt
Gross Bonded Debt
Balance
Percent
Applicable
to City
Net
Bonded Debt
100300 County General $ 393,729,873 1.081 $ 3,618,458
202000 Contra Costa Fire 26,670 2.343 624,792
400800 San Francisco Bay Area Rapid Transit District 328,172,932 1.081 3,547,575 402700 East Bay Regional Park District 125,395,149 1.081 1,355,531 759500 Mt. Diablo 2002 Bond 244,095,000 5.282 12,893,046 759600 Mt. Diablo 2010 Bond 269,216,615 5.282 14,219,964 759708 Mt. Diablo 2018 Bond 14,538,000 5.282 767,894
792100 Contra Costa Community College 2002 Bond 311,230,151 1.085 3,375,718 792200 Contra Costa Community College 2006 Bond 354,509,849 1.085 3,845,146 792300 Contra Costa Community College 2014 Bond 274,130,000 1.085 2,973,316 Total Overlapping Debt $ 47,221,440
2020-21 Assessed Valuation: $1,637,152,379 after deducting $810,291,336 incremental value.
Debt to Assessed Valuation Ratios: Direct Debt 0.00%
Overlapping Debt 2.88%
Total Debt 2.88%
Source: HdL, Coren & Cone, Contra Costa County Assessor & Auditor combined 2020-21 lien date tax rolls.
This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation.
Overlapping governments are those that coincide at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value. 160
City of Clayton
Statistical Section
Legal Debt Margin
Last Ten Fiscal Years
Fiscal Year Ending
2012 2013 2014 2015
Assessed valuation $ 1,648,456,857 $ 1,580,001,517 $ 1,711,749,590 $ 1,840,219,914 Add back exempted real property 24,066,321 24,547,599 25,038,500 26,156,667 Total assessed valuation $ 1,672,523,178 $ 1,604,549,116 $ 1,736,788,090 $ 1,866,376,581 Debt limit percentage13.75% 3.75% 3.75% 3.75%
Debt limit $ 62,719,619 $ 60,170,592 $ 65,129,553 $ 69,989,122 Total net debt applicable to limit $ - $ - $ - $ -
Legal Debt margin $ 62,719,619 $ 60,170,592 $ 65,129,553 $ 69,989,122 Total debt applicable to the limit as a
percentage of debt limit 0.00% 0.00% 0.00% 0.00%
Source: City of Clayton Finance Department.
1 The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the state's establishment of the limit.
161
City of Clayton
Statistical Section
Legal Debt Margin
Last Ten Fiscal Years
Fiscal Year Ending
2016 2017 2018 2019 2020 2021
$ 1,963,611,362 $ 2,050,138,123 $ 2,133,894,236 $ 2,234,376,913 $ 2,335,141,265 $ 2,418,059,669 26,679,230 27,086,036 27,627,706 28,243,119 28,807,933 29,384,046 $ 1,990,290,592 $ 2,077,224,159 $ 2,161,521,942 $ 2,262,620,032 $ 2,363,949,198 $ 2,447,443,715
3.75% 3.75% 3.75% 3.75% 3.75% 3.75%
$ 74,635,897 $ 77,895,906 $ 81,057,073 $ 84,848,251 $ 88,648,095 $ 91,779,139 $ - $ - $ - $ - $ - $ -
$ 74,635,897 $ 77,895,906 $ 81,057,073 $ 84,848,251 $ 88,648,095 $ 91,779,139
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
162
City of Clayton
Statistical Section
Bonded Debt Pledged Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal Year
Ended
June 30
Debt Service1
Tax Increment Principal Interest Coverage Ratio
2012 5,064,047 610,000 323,451 5.43
2013 - - - -
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
Source: City of Clayton Finance Department.
1 The balance of the tax allocation bonds was transferred to the Successor Agency as of February 1, 2012. Principal and interest payments are recorded through January 31, 2012. 163
City of Clayton
Statistical Section
Demographic and Economic Statistics
Last Ten Fiscal Years
Calendar Year
City
Population
Personal Income
(in Thousands)
Per Capita Personal
Income
Unemployment
Rate
Contra Costa County
Population1
City Population
% of County
2011 10,996 577,972 52,562 2.5% 1,056,064 1.04%
2012 11,093 562,914 50,745 1.7% 1,065,117 1.04%
2013 11,200 567,885 50,704 1.4% 1,074,702 1.04%
2014 11,209 581,063 51,839 5.4% 1,087,008 1.03%
2015 11,209 620,092 55,320 4.4% 1,102,871 1.02%
2016 11,284 628,783 55,723 3.9% 1,123,429 1.00%
2017 11,431 656,122 57,398 3.1% 1,149,363 0.99%
2018 11,653 694,323 59,583 1.8% 1,155,879 1.01%
2019 11,337 776,778 68,517 1.4% 1,153,561 0.98%
2020 11,268 817,954 72,590 5.3% 1,165,927 0.97%
1 Source: California State Department of Finance Price and Population Information letter to local governments.
Source of other information shown: HdL, Coren & Cone, Demographic and Economic Statistics Report.
City Population
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
10,600
10,800
11,000
11,200
11,400
11,600
11,800
Year ending December 31
Population
164
City of Clayton
Statistical Section
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
Fiscal Year Ending June 30
2012 2013 2014
Function:
General Government:
Management Services 2.00 2.00 2.00
Finance 2.30 2.30 2.30
City Clerk/Human Resources 1.00 1.00 1.00
5.30 5.30 5.30
Public Safety:
Sworn Officers 11.00 11.00 11.00
Non-Sworn/Administration 2.00 2.00 2.00
13.00 13.00 13.00
Public Works13.70 3.50 3.40
Parks & Recreation11.30 1.50 1.60
Community & Economic
Development:
Planning Services 1.60 1.60 1.60
Code Enforcement 0.30 0.30 0.30
1.90 1.90 1.90
Totals 25.20 25.20 25.20
Source: City of Clayton Finance Department, Adopted Budgets. 1 Full-time equivalent figure for maintenance
personnel allocated to public works and parks &
recreation functions based on actual historical labor
distributions.
165
City of Clayton
Statistical Section
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021
2.00 2.00 2.00 2.00 2.00 2.00 2.00
2.30 2.30 2.30 2.30 2.30 2.30 2.30
1.00 1.00 1.00 1.00 1.00 1.00 1.00
5.30 5.30 5.30 5.30 5.30 5.30 5.30
11.00 11.00 11.00 11.00 11.00 11.00 11.00
2.00 2.00 2.00 2.00 2.00 2.00 2.00
13.00 13.00 13.00 13.00 13.00 13.00 13.00
3.10 3.50 4.80 4.50 4.50 4.50 4.50
1.90 1.50 1.20 1.50 1.50 1.50 1.50
1.60 1.60 1.60 1.60 1.60 1.60 1.60
0.30 0.30 0.30 0.30 0.30 0.30 0.30
1.90 1.90 1.90 1.90 1.90 1.90 1.90
25.20 25.20 26.20 26.20 26.20 26.20 26.20
Fiscal Year Ending June 30
166
City of Clayton
Statistical Section
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year Ending
2012 2013 2014 2015
Function:
Police:
Police calls for service * 5,962 5,858 7,303
Parking violations * 125 40 53
Traffic citations * 585 664 653
Physical arrests 182 201 137 200
Public Works:
Storm drains inspected * * * *
Trees trimmed * * * *
Park maintenance (acres) * * * *
Street signs maintained * * * *
Traffic signals maintained * * * *
Streetlights maintained * * * *
Parks and Recreation Services:
Endeavor Hall rentals (days) * * * *
Hoyer Hall rentals * * * *
Ballfields (hours rented) * * * *
Community and Economic
Development:
Planning permits issued * * * *
Code enforcement cases closed * * * *
Building permits issued 182 201 376 430
General Government:
Business licenses issued * * 547 707
Home occupation applications * * *
Number of recruitments * * * *
Source: Clayton Finance Department, Contra Costa County Building Department, Clayton Planning Department, Clayton Police Department, Clayton Maintenance Department. * Fiscal year ending June 30, 2016 was the first year of ACFR implementation for the City, this historical data not readily available.
167
City of Clayton
Statistical Section
Operating Indicators by Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021
6,730 6,650 7,497 7,545 8,419 6,164
53 151 132 146 572 390
518 494 506 386 289 272
219 150 169 169 94 67
500 500 500 56 500 500
70 70 70 316 412 385
19.07 19.07 19.07 19.07 19.07 19.07
350 350 350 17 212 160
13 13 13 7 13 13
1,200 1,200 1,200 89 1,196 1,200
135 144 138 139 86 2
33 53 39 92 33 0
1,512 1,170 1,047 1,225 386 922
161 107 182 187 36 87
61 93 43 79 47 101
386 403 475 424 232 401
645 777 840 741 768 646
20 16 28 22 14 18
5 3 6 3 56
Fiscal Year Ending
168
City of Clayton
Statistical Section
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year Ending June 30
2011 2012 2013 2014
Function:
Public Safety:
Automated license plate readers 0 0 0 0
Police stations 1 1 1 1
Patrol units * * * *
Situational awareness traffic cameras 0 0 0 0
Trailers/Trucks * * * *
Public Works:
City owned parking lots 6 6 6 6
Community facilities * * * *
Curb lane miles * * * *
Manholes * * * *
Miles of storm drains * * * *
Number of catch basins * * * *
Number of street islands/medians * * * *
Miles of "v" ditches * * * *
Parking meters 0 0 0 0
Street signs * * * *
Streetlights (City owned) * * * *
Tractors/Trailers * * * *
Traffic signals (intersections) * * * *
Work trucks * * * *
Parks and Recreation Services:
Acres of city parks 19.07 19.07 19.07 19.07
Acres of landscaped area (excl. parks) 46 46 46 46
Acres of open space 515.51 515.51 515.51 515.51
Acres of parks and irrigation 50 50 50 50
Miles of creekside trails 7 7 7 7
Miles of open space trails 20 20 20 20
Number of city parks 7 7 7 7
Number of city trees 3,000 3,000 3,000 3,000
Number of pedestrian bridges 9 9 9 9
Number of children playgrounds 4 4 4 4
Number of playfields 4 4 4 4
169
City of Clayton
Statistical Section
Capital Asset Statistics by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021
0 0 0 6 6 6 6
1 1 1 1 1 1 1
8 10 11 10 10 10 10
0 0 0 4 4 4 4
2 2 2 2 2 2 2
6 6 6 6 6 6 6
3 3 3 3 3 3 3
* 82 82 82 82 82 82
* 162 162 162 162 162 162
* 32.479 32.479 32.479 32.479 32.479 32.479
* 968 968 968 968 968 968
* 50 50 50 50 50 50
* 15 15 15 15 15 15
0 0 0 0 0 0 0
* 2,000 2,000 2,000 2,015 2015 2015
* 500 500 500 500 500 500
11 12 13 13 14 14 14
13 13 13 13 13 13 13
8 8 8 8 7 8 8
19.07 19.07 19.07 19.07 19.07 19.07 19.07
46 46 46 46 46 46 46
515.51 515.51 515.51 515.51 515.51 515.51 515.51
50 50 50 50 50 50 50
7 7 7 7 7 7 7
20 20 20 20 20 20 20
7 7 7 7 7 7 7
3,000 3,000 3,000 3,000 3,000 3000 3000
9 9 9 9 9 9 9
4 4 4 4 4 4 4
4 4 4 4 4 4 4
Fiscal Year Ending June 30
170
General Information:
Date of Incorporation March 18, 1964
Form of Government Council-Manager
Number of authorized City employees 27
Population:
Population 12,265
Median age 46.3
Median household income $157,768
Registered voters 8,363
Area in square miles 4.3
Miles of Streets:
Lane miles 44.9
Pavement condition index 80/100 ["Very Good" rating]
Fire Protection (CalFire Services Clayton)
Number of stations 1
Police Protection
Number of stations 1
Number of patrol vehicles 10
Number of sworn personnel 11
Education
Elementary Schools: 1
Mt Diablo Elementary
Middle Schools: 1
Diablo View Middle School
Library (Contracted with Contra Costa County)
Number of libraries 1
Parks & Community Facilities
Park sites 7
Park acreage 19.07
Open space acreage 515.51
Open space trail miles 20
Creekside trail miles 7
Endeavor Hall 1
Hoyer Hall (in the library) 1
City Hall Conference Room 1
Source: City of Clayton Finance Department, Contra Costa County Library, City of Clayton City Clerk, HdL "Demographic and Economics Statistics" Report for calendar year 2018, US Census, DataUSA. 171
ADDITIONAL REPORTS
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INDEPENDENT AUDITORS’ 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 Clayton, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated -DQXDU\.
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.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, we did identify certain deficiencies in internal control that we consider to be material weaknesses.
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 entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies described below to be material weaknesses.
Continuity of Personnel
In the past few years, the City has had significant transition in management, particularly with the Finance Director position. Since the beginning of the fiscal year ended June 30, 2021, the City has gone from a Finance Director of a year, to an interim Finance Director, and to a new Finance Director.
With the change in management, some of the institutional knowledge and responsibilities that are essential for the smooth operation of the City have been lost. As a result, the audit noted a dozen general ledger accounts across multiple funds that were not properly closed which resulted in eight (8) material journal entries.
We recommend that management consider developing a succession plan in the event the Finance Director is unable to perform their duties for a length of time due to illness, attrition, or any other reason. The succession plan should outline procedures to be implemented and a redistribution of 174
174
responsibilities in the event of a temporary or permanent change. This plan will ensure that the organization will be able to conduct its operations in the orderly and efficient manner that has been the basic ingredient for its past success.
General Ledger Closing Procedures
The audit noted that periodic reconciliations and closings of books has not been happening which has resulted in additional hours to reconcile accounts (e.g. pooled cash) and to audit.
We recommend that reconciling and closing procedures include locking the accounting records at quarter-end so that the records remain relevant and reliable.
Notes Receivable and Payable
The audit noted material journal entries to the balances of notes receivable and payable. The accounting for these balances is complex because of the interfund relationships that occur with the balances.
We recommend that management document and define the reoccurring and required entries to record the movement of funds to and from outside sources and between City funds.
Fixed Asset Module
The audit noted that capital expenditures had not been properly captured in the fixed asset module. In addition, the balances in the fixed asset module were not reconciled with the general ledger.
We recommend that a reconciliation between the fixed asset module and the general ledger be made during the closing of books.
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. We consider the deficiencies described below to be significant deficiencies.
IT Review
During the year the City’s accounts were compromised and unauthorized funds were withdrawn.
Many frauds in government are the result of phishing and stealing of IDs and passwords.
We recommend that the City review and improve IT safeguards, procedures, and policies. Examples of IT improvements should include at a minimum:
- periodic required password updates
- remote access safeguards
- network access safeguards
- mobile device restrictions
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
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