Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued ou r report dated December 21, 2021, on our consideration of the City ’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on effectiveness of the City’s internal control over financial reporting or on complianc e. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 21, 2021
3
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Concord issues its financial statements in the format prescribed by generally accepted accounting principles. The Management’s Discussion and Analysis provides an overview of the City’s financial activities for the fiscal year, which should be read in conjunction with the accompanying Transmittal Letter and Basic Financial Statements.
FISCAL 2021 FINANCIAL HIGHLIGHTS
Financial
highlights of the year include the following:
Government-Wide
• The City’s total net position w as up $1 million, from $581 million at June 30, 2020 to $582 million at June 30, 2021. Of this total, $498 million was governmental activities net position and $84 million was business-type activities net position. • Government-wide governmental revenues included program revenues of $31 million and general revenues of $111 million for a total of $142 million, an increase of $4 million from the prior year’s total.
• Total government-wide governmental activities expenses were $146 million, down $7 million from the prior year.
• Government-wide business-type activities revenues were $43 million while expenses were $37 million.
Fund Level
• Governmental Fund balances increased $133 million in fiscal 2021 to $254 million. • Governmental Fund revenues increased $4 million in fiscal 2021 to $141 million. • Governmental Fund expenditures increased to $133 million in fiscal 2021, up $1 million from the prior year.
• General Fund revenues of $118 million in fiscal 2021 reflected an increase of $5 million from the prior year.
• General Fund expenditures of $98 million reflected a decrease of $6 million when compared to the prior year.
• General Fund balance of $59 million at June 30, 2021 was the $16 million more than June 30, 2020.
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This A
nnual Comprehensive Financial Report is in five parts:
1. Introductory section, which includes the Transmittal Letter and general information;
2. Management’s Discussion and Analysis (this part);
3. The Basic Financial Statements, which include the Government-Wide and the Fund financial statements, along with the Notes to these financial statements;
4. Supplemental Information for Non -Major Governmental Funds and Internal Service Funds; and
5. Statistical information and other schedules.
5
THE BASIC FINANCIAL STATEMENTS
The Bas
ic Financial Statements comprise the Government-Wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.
The G
overnment-Wide Financial Statements provide a longer-term view of the City’s activities as a whole, and comprise the Statement of Net position and the Statement of Activities. The Statement of Net position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations.
The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses for each of the City’s programs. The Statement of Activities explains in detail the change in n et position for the year.
All
of the City’s activities are grouped into Governmental Activities and Business-Type Activities, as explained below. All the amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental Activities and Business -Type Activities in order to provide a summary of these two activities of the City as a whole.
The Fund
Financial Statements report the City’s operations in more detail than the Government- Wide Statements and focus primarily on the short-term activities of the City’s General Fund and other Major Funds. The Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt and other long-term amounts.
Major Funds
account for the major financial activities of the City and are presented individually, while the activities of Non-Major Funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major Funds are explained below.
The fi
duciary statements provide financial information about the activities of the Concord Retirement System Pension Trust Fund, the Custodial Fund and the Redevelopment Successor Agency (SA), for which the City acts solely as agent.
The Government-Wide Financial Statements
The St
atement of Net Position and the Statement of Activities present information about the following:
• Governm
ental Activities - All of the City’s basic se rvices are considered to be Governmental Activities, including General Government; Public Safety; Public Works; Economic Development and Base Reuse; Community Development; and Parks and Recreation Services. These services are supported by general City revenues such as taxes, and by specific program revenues such as developer fees.
The Cit
y’s G overnmental Activities include the activities of two separate legal entities : the Concord Pleasant Hill Health Care District and the City of Concord Joint Powers Financing Authority. The City is financially accountable for these entities. • Business-
Type Activities - The City’s two enterprise activities, the sewer and the golf course, are reported here. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.
Governm
ent-Wide Financial Statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. 6
Fund Financi
al Statements
The Fund Financi
al Statements provide detailed information about each of the City’s most significant funds, called Major Funds. The concept of major funds and the determination of which funds are major funds were established by GASB 34 and replace the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, with all Non-M ajor Funds summarized and presented in a single column. Subordinate schedules present the detail of these Non-Major Funds. Major Funds present the major activities of the City for the year, and may change from year to year because of changes in the pattern of City’s activities.
Major
funds for the City are General Fund, Concord Housing Fund, ARPA (American Rescue Plan Act) Fund, General Projects Fund, and the 2021 COP Projects Fund.
Fund Financi
al Statements include Governmental, Proprietary and Custodial Funds as discussed below.
Governm
ental Fund Financial Statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.
Propri
etary Fund Financial Statements are prepared on the full accrual basis, and include all their assets and liabilities, current and long-term.
Since t
he City’s Internal Service Funds provide goods and services only to the City’s Governmental and Business-Type Activities, their activities are reported only in total at the Fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City Funds.
These revenues are eliminated in the Government-Wide Financial Statements and any related profits or losses are returned to the Activities that created them, along with any residual net position of the Internal Service Funds.
Compari
sons of Budget and Actual financial information are presented for the General Fund, Concord Housing Fund, ARPA Fund, Special Revenue Funds and Debt Service Funds.
Fiduciary Fund Statements
The
City’s fiduciary fund activities are reported in the separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. Fiduciary funds include the City of Concord Retirement System Pension Trust Fund, the Successor Agency Private Purpose Trust Fund (SAPPTF) and the Custodial Fund. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations.
FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
The analyses pr
esented below focus on the net position (Table 1) and changes in net position (Table 2) of the City as a whole. The information summarizes the Citywide Statement of Net P osition and Statement of Activities stated more fully in the Financial Section of this report. 7
Table 1: Citywide Net Position
As of June 30, 2021 and 2020 (Dollars in Millions)
Governmental Business-Type Tota l
Activities Activities
2021 2020 2021 2020 2021 2020
Cash and Investments $293.6 $148.2 $58.5 $55.0 $352.1 $203.2 Other Assets 56.0 50.3 1.4 2.0 57.4 52.3
Current and Other Assets 349.60 198.50 59.90 57.00 409.50 255.50 Capital Assets, net of depreciation 558.9 581.1 63.2 64.1 622.1 645.2 Total Assets 908.5 779.6 123.1 121.1 1,031.6 900.7
Deferred Outflows of Resources 38.4 40.9 38.4 40.9
Current and Other Liabilities 43.8 30.8 27.4 29.8 71.2 60.6 Noncurrent Liabilities 400.5 283.0 11.7 12.9 412.2 295.9 Total Liabilities 444.3 313.8 39.1 42.7 483.4 356.5
Deferred Inflows of Resources 4.3 4.0 4.3 4.0
Net Position:
Net Investment in Capital Assets 541.7 561.2 50.5 50.3 592.2 611.5 Restricted 66.9 65.1 66.9 65.1
Unrestricted (110.3) (123.6) 33.5 28.1 (76.8) (95.5)
Total Net Position $498.3 $502.7 $84.0 $78.4 $582.3 $581.1 8
Table 2: Citywide Changes in Net Position
For the Years Ended June 30, 2021 and 2020 (Dollars in Millions) The analyses bel
ow focus on the net position and changes in net position of the City's Governmental Activities (Table 3, 4 and 5) and Business-Type Activities (Table 6 and 7) presented in the Citywide Statement of Net position and Statement of Activities that follow.
Governmental Business-Type Tota l
Activities Activities
2021 2020 2021 2020 2021 2020
EXPENSES
General Government $39.0 $39.8 $39.0 $39. 8
Public Safety 66.3 72.5 66.3 72. 5
Public Works 13.6 14.5 13.6 14. 5
Community Development 15.4 17.8 15.4 17. 8
Economic Development and Base Reuse 4.2 0.0 4.2 0 .0
Parks and Recreation Services 6.0 7.1 6.0 7 .1
Interest on Long-Term Debt 1.5 0.9 1.5 0 .9
Sewer $35.3 $36.6 35.3 36.6
Golf Course 1.7 1.6 1.7 1.6
Total Expenses 146.0 152.6 37.0 38.2 183.0 190.8
REVENUES
Program Revenues:
Charges for Services 12.4 15.0 42.3 40.0 54.7 55.0
Operating Contributions and Grants 5.2 4.0 5.2 4.0
Capital Grants 13.4 11.9 13.4 11.9
Total Program Revenues 31.0 30.9 42.3 40.0 73.3 70.9
General Revenues:
Taxes:
Property Taxes 24.1 23.2 24.1 23.2
Sales Taxes 40.3 34.7 40.3 34.7
Measure Q Sales Taxes 11.1 13.3 11.1 13.3
Measure V Sales Taxes 7.4 0.0 7.4 0.0
Other Taxes 14.2 15.4 14.2 15.4
Motor Vehicle in Lieu 12.8 12.2 12.8 12.2
Investment Earnings 0.7 6.7 0.3 1.2 1.0 7.9
Misc. Revenues and Transfers 0.0 1.1 0.0 1.1
Total General Revenues 110.6 106.6 0.3 1.2 110.9 107.8
Total Revenues 141.6 137.5 42.6 41.2 184.2 178.7
Change in Net Position (4.4) (15.1) 5.6 3.0 1.2 (12.1)
Beginning Net Position 502.7 517.8 78.4 75.4 581.1 593.2 Ending Net Position $498.3 $502.7 $84.0 $78.4 $582.3 $581.1 9
Governmental Activities
Table 3:
Governmental Net Position
As of June 30, 2021 and 2020 (Dollars in Millions)
The City’s net position from Governmental Activities decreased $4.4 million to $498.3 million in 2021.
The decrease in Governmental Net position is due primarily to the increase in the City’s net pension liability.
• Current
and other assets increased $151.1 million, $114.3 million of which is attributable to new certificates of participation debt issued by the City in 2021 and $12 million is attributable to receiving new ARPA funding. In addition, General Fund assets increased by $15 million over prior year: sales tax receivable increased $3 mil lion over the prior year, Use and Transaction Taxes Receivable increased $4 million over the prior year, and cash increased $8 million.
• Capital
assets, net of depreciation, decreased $22.2 million, primarily due to depreciation.
The majority of the depreciation decrease is from the City’s streets and storm drains .
Although the City capitalized $5.5 million in street assets in fiscal year 2021, $16.4 million of the existing street assets were depreciated. Storm drain assets recognized $4. 4 million in depreciation. For more on Capital Assets see Note 6.
• Noncurr
ent liabilities increased $117.5 million due to the new Certificates of Participation, which added $124.8 million to the City’s long-term debt liability. • The reduc
tion in Capital Assets resulted in the decrease of net investment in capital assets by $19.5 million.
• Restr
icted net position increased $1.8 million from the prior fiscal year. • Unrest
ricted net position reflects the resources that can be used to finance day -to-day operations. Unrestricted net position increased $1 3.3 million from the prior fiscal year to negative $110.3 million at June 30, 2021.
2021 2020
Current and other assets $349.6 $198.5
Capital Assets, net of depreciation 558.9 581.1
Tota l Asse ts 908.5 779.6
Deferred Outflows of Resources 38.4 40.9
Current and Other Liabilities 43.8 30.8
Noncurrent Liabilities 400.5 283.0
Total Liabilities 444.3 313.8
Deferred Inflows of Resources 4.3 4.0
Net Position:
Net investment in Capital Assets 541.7 561.2
Restricted 66.9 65.1
Unrestricted (110.3) (123.6)
Total Net Position $498.3 $502.7
Governmental
Activities
10
Governmental Activities - Sources of Revenues
For the Year Ended June 30, 2021 (see Table 4)
As t
he Sources of Revenues Chart above shows, 42%, or $ 58.8 million, of the City’s fiscal 2021 governmental activities revenue came from sales taxes; 17%, or $24.1 million, came from property taxes; 10%, or $14.2 million, came from other taxes; 9%, or $13.4 million, came from capital grants; 9%, or $12.8 million, came from motor vehicle in lieu; and 9%, or $12.4 million, came from charges for services . The remaining 4 % came primarily from two sources – operating grants and contributions, and investment earnings.
11
Governmental Activities - Functional Expenses
For the Year Ended June 30, 2021 (see Table 4)
The
Functional Expenses Chart above includes only current year expenses, which are discussed in detail below. Public Safety accounted for $66.3 million or 45% of expenses, while General Government accounted for $39.0 million or 27% of expenses, followed by Community Development, which accounted for $1 5.4 million or 11 % of expenses. The remaining 13 % was spread among Public Works , Parks and Recreation Services , Economic Development and Base Reuse, and Interest Expense.
The expenses reflected above do not include capital outlay, which is added to the City’s capital assets on the Government -Wide Financial Statements. In 2021, the City capitalized $6.9 million dollars in infrastructure and equipment. The details of the changes in capital assets are discussed in Note 6.
The
Statement of Activities presents program revenues and expenses and general revenues in detail. These are elements in the Changes in Governmental Net Position, which summarized below:
12
Table 4: Changes in Governmental Net Position
For the Years Ended June 30, 2021 and 2020 (Dollars in Millions) Total
g overnmental expenses were $ 146.0 million in fiscal year 2021 , reflecting a $ 6.6 million decrease from the prior year. This decrease is due to a decrease of $6.2 million in Public Safety spending caused by a decrease personnel costs. Parks and Recreation decreased $1.1 million, Public Works decreased $0.9 million, and General Government decreased $0.8 million. The Community and Economic Development department was split into two departments in 2021 : the Community Development department and the Economic Development and Base Reuse department combined for expenditures of $19.6 million, an increase of $1.8 million from last year.
Total
governmental revenues increased $4.1 million to $141.6 million in fiscal 2021 . Sales tax increased $10.8 million primarily due to the passage of Measure V and recovery from the COVID-19 pandemic. Investment earnings decreased $6.0 million from the prior year due to the steady increase in net taxable assessed property values noted in the City.
Governmental
Activities
2021 2020
EXPENSES
General Government $39.0 $39.8
Public Safety 66.3 72.5
Public Works 13.6 14.5
Community Development 15.4 17.8
Economic Development and Base Reuse 4.2 0.0
Parks & Recreation Services 6.0 7.1
Interest on Long-Term Debt 1.5 0.9
Total Expenses 146.0 152.6
REVENUES
Program Revenues:
Charges for Services 12.4 15.0
Operating Contributions and Grants 5.2 4.0
Capital Grants 13.4 11.9
Total Program Revenues 31.0 30.9
General Revenues:
Taxes:
Property Taxes 24.1 23.2
Sales Taxes 40.3 34.7
Measure Q 11.1 13.3
Measure V 7.4 0.0
Other Taxes 14.2 15.4
Motor Vehicle in Lieu 12.8 12.2
Investment Earnings 0.7 6.7
Miscellaneous Revenues 0.0 1.1
Total General Revenues 110.6 106.6
Total Revenues 141.6 137.5
Change in Net Position ($4.4) ($15.1)
13
Governmental Activities
Tabl
e 5 presents the net expense of each of the City’s programs. Net expense is defined as total program cost offset by revenues generated by those specific activities. Overall, the City’s net expense declined $6.6 million compared to the prior year. Impacts from the COVID -19 pandemic continued to impact operations during fiscal year 2021. Various City programs were not able to operate at full capacity, and personnel costs were down due to budget reductions and position vacancies. Partially offsetting reductions in net expense were new programs that were offered in response to the pandemic. The biggest contributor to the reduction in net program expense is the decrease in Public Safety personnel costs.
Tabl
e 5: Governmental Activities Net Program Expense
As of June 30, 2021 and 2020 (Dollars in Millions)
Business-Type Activities
Th
e net position of Business-Type Activities increased to $84.0 million in fiscal 2021, up $5.6 million from $78.4 million from the prior year. There are various reasons for this increase: (1) Golf Course revenue increased $1 million during the fiscal year ; (2) Sewer rates and sewer connection fees increased $1.3 million to help fund future capital improvement projects ; (3) Repayments on Long- Term Debt reduced the long-term liabilities by $1.2 million; and (4) Sewer fund’s contracts payable liability was $2.4 million lower than the previous year. Business-Type activities include the Sewer Fund and the Golf Course Fund with net positions of $81.1 million and $2.9 million, respectively.
Table 6: Business-Type Activities Net Position
As of June 30, 2021 and 2020 (Dollars in Millions)
Net (Expense) Revenue from Services
2021 2020
General Government ($37.4) ($37.8)
Public Safety (64.0) (69.1)
Public Works (3.0) (2.7)
Community Development (4.2) (6.4)
Economic Development and Base Reuse (0.6) 0.0
Parks & Recreation Services (4.4) (4.8)
Interest on Long-Term Debt (1.4) (0.9)
Total ($115.0) ($121.7)
Business-Type
Activities
2021 2020
Current and Other Assets $59.9 $57.0
Capital Assets, net of depreciation 63.2 64.1
Total Assets 123.1 121.1
Current and Other Liabilities 27.4 29.8
Long-Term Debt Outstanding 11.7 12.9
Total Liabilities 39.1 42.7
Net Position:
Net investment in Capital Assets 50.5 50.3
Unrestricted 33.5 28.1
Total Net Position $84.0 $78.4
14
Table 7: Changes in Business-Type Activities Net Position As of June 30, 2021 and 2020 (Dollars in Millions)
The Sewer Fund
generated service fee revenues of $39.7 million in fiscal 2021, reflecting a $1.3 million increase over the prior year. Operating expenses decreased by $1.2 million, to $34.9 million.
As a result, the Sewer Fund experienced a $4.4 million operating gain for the year while the Golf Course Fund realized a $0.9 million gain in fiscal year 2021.
THE CITY’S FUND FINANCIAL STATEMENTS
Governmental Funds
At June 30,
2021, the City’s governmental funds reported combined fund balances of $253.9 million, a $132.8 million increase when compared with last year’s combined fund balance of $121.1 million.
There were two governmental funds created during 2021 . The American Recovery Plan Act fund was created to account for funds received and expended as part of the American Recovery Plan Act of 2021. The 2021 Certificates of Participation projects fund was cr eated to track money received from the issuance of long-term debt and it ended the year with a fund balance of $114.3 million. See Note 7 for more information on long- term debt. General fund balance increased $15.9 million and General Projects fund balance decreased by $1.9 million. T he Concord Housing fund balance increased $0.2 million, and Other Governmental fund balances increased $4.2 million.
Governm
ental fund revenues increased $4.2 million this year to $141.2 million from $137.0 million in the prior year . This increase is due to: General Fund revenues in creased $5.2 million; Concord Housing Fund revenues declined $0.3 million; General Project revenues increased $1.1 million; and Other Governmental fund revenues decreased $3.5 million. The ARPA fund had revenue of $1.6 million this year.
Governm
ental expenditures increased $1.7 million this year to $133.4 million from $131.7 million in the prior year. This increase is due to the changes noted in the following funds: Other Government Funds increased by $7.1 million; the two new funds combined to increase expenditures by $2.4 million; and Concord Housing Fund expenditures remained consistent from the prior year . These increases were mitigated by the General Fund expenditures decrease of $6.4 million to $97.7 million and the General Project expenditures decrease of $1.5 million Other Financing Sources (Uses) are primarily comprised of issuances of long-term debt and transfers among the various funds in the City. During fiscal year 2021, the 2021 COP Projects fund recorded $124.8 million in issuance of long-term debt and bond sale premiums. The General Fund transferred out $5.1 million to fund capital projects and debt service. Additional information regarding these transfers can be found in Note 4.
Business-Type
Activities
2021 2020
Net Revenues/(Expense) from Business-Type Activities:
Sewer Fund $4.4 $1.8
Golf Course Fund 0.9 0.0
General Revenues:
Investment Earnings 0.3 1.2
Other 0.0 0.0
Total $5.6 $3.0
15
Propri
etary Funds
Enterpr
ise fund net position increased to $ 84.0 million in fiscal 2021, up $5.6 million from $ 78.4 million in the prior year. Enterprise operating revenues were $42.3 million this year, up $2.3 million from last year . Enterprise Fund operating expenses were $ 36.6 million in fiscal 2021 , down $1.2 million from $37.8 million in the prior year. The net position increase is due to two factors: an increase in sewer service rates and a decrease in sewer operating costs. The additional revenue will be used to fund capital projects.
Inter
nal service fund net position increased to $50.7 million in fiscal 2021, up $1.7 million from the net position of $49 .0 million at the end of the prior year. This increase is due largely in part to an increase of $1.4 million in net position in the IT Replacement Fund and additional $0.8 million increase to the Fleet Maintenance fund net position.
ANALYSES OF MAJOR GOVERNMENTAL FUNDS
General Fund
General Fund revenues totaled $118.3 million, reflecting an increase of $5.2 million, or 4.6%, over the prior fiscal year. Sales tax revenue increased $10.8 million due to the passage of Measure V and economic recovery from the COVID-19 pandemic. Property tax revenue increased $0.8 million, and in lieu property tax revenue increased $0. 6 million, both due to an increase in taxable assessed property values. These increases were offset slightly by a decrease of $3.8 million for the fair market value of investments adjustment within the Use of Money Property category. General Fund operating expenditures decreased $6.4 million primarily due to a $2.8 million decrease in Public Safety mainly due to decre ased personnel costs. Community Development decreased $1.5 million and Public Works decreased $1.4 million due to a decrease in personnel costs. 16
Table 8: Changes in General Fund
As of June 30, 2021 and 2020 (Dollars in Millions)
At June 30
, 2021, the General Fund balance totaled $58.6 million compared to $42.8 million in the prior year. The increase of $15.8 million in fund balance was primarily due to sales tax and property tax revenue outperforming prior year values. Expenditures were also less than initially projected.
Fiscal
year 2021 had transfers out of $ 5.1 million, which mainly supported debt service payments and construction projects. Details of the City’s transfers can be found in Note 4. This year’s ending fund balance consisted of $11.8 million categorized as non-spendable, $3.3 million as assigned and $42.6 million as unassigned. Refer to Note 8 for more information regarding the fund balance details. 2021 2020
REVENUES
Taxes:
Property Taxes $20.0 $19.1
Sales Taxes 40.3 34.7
Measure Q Sales Taxes 11.1 13.3
Measure V Sales Taxes 7.4 0.0
Other Taxes 13.8 14.5
Motor Vehicle In Lieu, Unrestricted 12.8 12.2
Licenses and Permits 2.2 1.9
Intergovernmental 1.5 1.4
Charges for Services 6.8 7.1
Investment Earnings 0.0 4.7
Miscellaneous Revenues 2.4 4.2
Total Revenues 118.3 113.1
EXPENDITURES
General Government 15.4 16.2
Public Safety 58.6 61.4
Public Works 8.2 9.6
Community Development 9.4 10.8
Economic Development and Base Reuse 0.8 0.0
Parks and Recreation Services 4.9 5.7
Interest on Long-Term Debt 0.4 0.4
Total Expenditures 97.7 104.1
Excess (Deficiency)
of Revenues Over Expenditures 20.6 9.0
OTHER FINANCING SOURCES (USES)
Proceeds from Sale of property 0.0 1.1
Transfers In 0.4 0.3
Transfers Out (5.1) (10.2)
Total Other Financing Sources (Uses) (4.8) (8.8)
Net Change in Fund Balance 15.8 0.2
Fund Balance at Beginning of Year 42.8 42.6
Ending Fund Balance $58.6 $42.8
General Fund
Revenues and Expenditures
17
Concord Housing Fund
The
Concord Housing Fund accounts for the activities related to the assets assumed by the City of Concord as the Housing Successor to the housing activities of the former Redevelopment Agency.
The Total Fund Balance as of June 30, 2021 was $34.2 million, an increase of $0.2 million over last year’s fund balance of $34.0 million. The increase in fund balance was mainly attributable to revenue from interest and loan repayments exceeding expenditures.
Gen
eral Projects Fund
Thi
s fund tracks capital project costs funded by general fund money or that are reimbursable from grants. The fund’s revenues were $4.8 million in fiscal 2021, an increase of $1.1 million from fiscal 2020. Fund expenditures were $8.4 million in fiscal 2021 compared to $9.9 million in fiscal 20 20.
The fund balance decreased by $1.9 million to -$0.1 million primarily due to the timing of grant reimbursements.
ARPA
Thi
s fund accounts for Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan Act of 2021. The City received $13.5 million in ARPA funds during 2021. The fund’s revenues were $1.6 million and fund expenditures were $1.6 million in fiscal 2021 . The remaining $11.9 million received is Unearned Revenue to be recognized in future years. 2021 COP Projects
Thi
s fund tracks proceeds from the issuance of the 2021 Capital Improvement Project Certificates of Participation to be used to finance the cost of various capital projects and to prepay the 2015 Lease Revenue Financing Agreement. See Note 7 for more information on this debt issuance.
Other Governmental Funds
Thes
e funds are not presented separately in the Basic Financial Statements, but are individually presented as non-major governmental funds in the Supplementary Information section.
ANALYSES OF MAJOR PROPRIETARY FUND
Sewer Fund
Net
position of the Sewer Fund at fiscal year -end was $81.1 million, an increase of $4.7 million compared to $76.4 million at June 30, 2020. Net investment in capital assets was $48.8 million and unrestricted net position was $32.3 million at June 30, 2021. As mentioned previously, this increase in the net position is mainly due to an increase in sewer rates, which will be used to fund capital projects.
CAPITAL ASSETS
GA
SB 34 requires the City to record all its capital assets , including infrastructure, in its financial statements. Infrastructure includes roads, bridges, signals, storm drains and other similar assets.
In ac
cordance with GASB 34, in fiscal 2002, the City recorded the cost of all its infrastructure assets and computed the amount of accumulated depreciation for these assets based on their original 18Page 49 of 221
acquisition dates. At the end of fiscal 2021, the cost of infrastructure and other capital assets recorded on the City’s financial statements was as shown in Table 9 below:
Table 9: Capital Assets
For the Years Ended June 30, 2021 and 2020 (Dollars in Millions) The principal additions to governmental capital assets in fiscal 2021 were in the streets asset group, which included $ 1.7 million for the Commerce Avenue Pavement Rehabilitation project and rehabilitation of numerous streets throughout the City . Business-Type Activities experienced an increase of $3.4 million in construction in progress, due to sewer projects still in progress as of June 30, 2021. The City depreciates all its capital assets over their estimated useful lives, as required by GASB 34. The purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that an allocable portion of the cost of the asset is borne by all users. Further detail on capital assets, current year additions, construction in progress and depreciation can be found in Note
6. Balance at Balance at
June 30, 2021 June 30, 2020
Governmental Activities
Land $26.4 $26.4
Construction in Progress 9.1 8.6
Ground Improvements 23.8 23.7
Buildings and Improvements 81.7 81.7
Machinery and Equipment 24.9 24.9
Vehicles 12.5 12.6
Streets 486.1 480.6
Sidewalks 61.6 61.4
Storm Drains/Catch Basins 443.6 443.6
Street Lights 5.8 5.8
Traffic Signals 31.6 31.4
Less: Accumulated Depreciation (648.2) (619.6)
Governmental Activities Capital Assets, Net $558.9 $581.1 Business-Type Activities
Land $0.4 $0.4
Construction in Progress 17.2 13.8
Buildings and Improvements 8.7 8.7
Machinery and Equipment 0.4 0.4
Sewer Lines 219.8 219.5
Less: Accumulated Depreciation (183.3) (178.7)
Business-Type Activities Capital Assets, Net $63.2 $64.1 19
DEBT ADMINISTRATION
The City made all scheduled debt service payments. Each of the City’s debt issues is discussed in detail in Note 7 to the Financial Statements. At June 30, 2021, the City’s debt was comprised of the following issues:
Table 10: Outstanding Debt
As of June 30, 2021 and 2020 (Dollars in Millions)
Total Governmental Activities increased by $111.6 million due to the new 2021 Certificates of Participation debt issuance. Business-Type Activit ies Debt decreased slightly over prior year because of the scheduled pay down of outstanding debt.
ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The ec
onomy of the City and its major initiatives for fiscal year 2020/2021 are discussed in detail in the accompanying Transmittal Letter.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This C
omprehensive Annual Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this Report should be directed to the Finance Department, at 1950 Parkside Drive, Concord, CA 94519-2578.
June 30, 2021 June 30, 2020 Net Change
Governmental Activities Debt:
Revenue Bonds:
1995 Lease Revenue Bonds, 6.33 - 8.24%, due 8/1/20 $0.0 $0.3 ($0.3) Lease Revenue Financing Agreement
1.912 % due 3/1/25 0.0 11.9 ($11.9)
2021 Certificates of Participation
2-4%, due 4/1/41 109.5 0.0 109.5
Plus premium on bonds 15.3 0.0 15.3
Lease Purchase Agreement
2.78%, due 12/01/26 4.6 5.3 (0.7)
Capital Lease:
Motorola Lease Agreement, due 11/15/26 2.2 2.5 (0.3)
Total Governmental Activities Debt $131.6 $20.0 $111.6
Business-Type Activities Debt:
Enterprise Long Term Debt:
2012 - Wastewater Revenue Refunding Bonds, 1.50-4.00%,
due 2/1/29 $5.3 $5.9 ($0.6)
2018 - Wastewater Revenue Refunding Bonds, 1.25-3.24%,
due 2/1/32 7.4 7.9 (0.5)
Total Business-Type Activities Debt $12.7 $13.8 ($1.1)
20
CITY OF CONCORD JUNE 30, 2021
BASIC FINANCIAL STATEMENTS
CITY OF CONCORD JUNE 30, 2021
STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City's financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City's transactions is taken in to account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.
The Statement of Net Position report s the difference between the City's total assets, deferred outflows of resources and the City's total liabilities, deferred inflows of resources including all the City's capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all the City's Governmental Activities in a single column, and the financial position of all the City's Business-Type Activities in a single column; these columns are foll owed by a Total column that presents the financial position of the entire City.
The City's Governmental Activities include the activitie s of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Si nce the City's Internal Service Funds service these Funds, their activities are consolidated with Govern mental Activities, after eliminating inter-fund transactions and balances. The City's Business-Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City's Net Position. It is also prepared on the full accrual basis, which means it includes all th e City's revenues and all its expenses, regardless of when cash changes hands. This di ffers from the “modified accrual” ba sis used in the Fund financial statements, which reflect only current assets, curre nt liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City's expenses, first, listed by program, and follows these with the expenses of its Business-Type Activities. Prog ram revenues—that is, reve nues which are generated directly by these programs—are then deducted from prog ram expenses to arrive at the net expense of each governmental and business-type program. The City's general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, Concord/Pleasant Hill Health Care District and the City of Concord Joint Powers Financing Aut hority, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for the component units' activities.
22
CITY OF CONCORD
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental Business-T ype
Activities Activities Total
ASSETS
Cash and Investments (Note 3) 179,287,109 $ 58,477,460 $ 237,764,569 $ Cash with Fiscal Agents (Note 3) 114,333,765 7 114,333,772 Receivables (Net of Allowances for Uncollectibles):
Accounts 7,851,999 84,195 7,936,194
Due from Other Governments 19,233,698 - 19,233,698 Interest 5,068,195 27,107 5,095,302
Loans and Notes (Note 5) 25,054,351 - 25,054,351 Inventories 99,674 - 99,674
Internal Balances (Note 4) (1,337,079) 1,337,079 - Capital Assets (Note 6):
Nondepreciable Capital Assets 35,431,799 17,558,720 52,990,519 Depreciable Capital Assets, Net of Accumulated Depreciation 523,512,168 45,651,959 569,164,127 Total Assets 908,535,679 123,136,527 1,031,672,206
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pension - CalPERS (Note 12) 33,145,371 - 33,145,371 Deferred Outflows Related to OPEB - (Note 13) 5,242,297 - 5,242,297 Total Deferred Outflows of Resources 38,387,668 - 38,387,668
LIABILITIES
Accounts, Deposits and Contracts Payable 8,600,088 26,046,003 34,646,091 Accrued Liabilities 4,619,420 73,151 4,692,571 Interest Payable 118,970 185,950 304,920 Refundable Deposits 6,376,248 - 6,376,248
Unearned Revenue 13,044,435 - 13,044,435
Compensated Absences (Note 7):
Due in Less Than One Year 2,545,228 50,238 2,595,466 Due in More Than One Year 3,072,393 92,988 3,165,381 Claims Payable (Note 15):
Due in Less Than One Year 3,259,032 - 3,259,032 Due in More Than One Year 14,453,373 - 14,453,373 Long-Term Debt (Note 7):
Due in Less Than One Year 5,263,519 1,075,000 6,338,519 Due in More Than One Year 126,307,776 11,585,172 137,892,948 Net OPEB Liability, Due in More Than One Year (Note 13) 34,061,177 - 34,061,177 Net Pension Liability CCRS, Due in More Than One Year (Note 10) 19,950,558 - 19,950,558 Net Pension Liability CalPERS, Due in More Than One Year (Note 12) 202,621,443 - 202,621,443 Total Liabilities 444,293,660 39,108,502 483,402,162
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pension - CalPERS (Note 12) 583,232 - 583,232 Deferred Inflows Related to Pension - CCRS (Note 10) 2,396,560 - 2,396,560 Deferred Inflows Related to OPEB (Note 13) 1,366,393 - 1,366,393 Total Deferred Inflows of Resources 4,346,185 - 4,346,185 NET POSITION (Note 1)
Net Investment in Capital Assets 541,706,437 50,550,507 592,256,944 Restricted for:
Capital Projects 15,873,286 - 15,873,286
Debt Service 19,826 - 19,826
Community Development Projects 50,946,492 - 50,946,492 Total Restricted Net Position 66,839,604 - 66,839,604 Unrestricted Net Position (110,262,539) 33,477,518 (76,785,021) Total Net Position 498,283,502$ 84,028,025$ 582,311,527$ See accompanying notes to basic financial statements
23
CITY OF CONCORD
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:
General Government 39,002,810 $ 908,898 $ 758,608 $ - $ Public Safety 66,267,792 723,768 1,514,078 - Public Works 13,593,654 1,350,050 1,690,237 7,464,511 Economic Development and Base Reuse 4,211,689 2,709 52,500 - Community Development 15,430,089 7,857,293 1,068,899 5,916,316 Parks & Recreation Services 6,041,570 1,577,804 79,518 37,185 Interest on Long-Term Debt 1,439,649 - - - Total Governmental Activities 145,987,253 12,420,522 5,163,840 13,418,012 Business-type Activities:
Sewer 35,308,937 39,723,870 - -
Golf Course 1,676,402 2,610,973 - - Total Business-type Activities 36,985,339 42,334,843 - - Total 182,972,592$ 54,755,365$ 5,163,840$ 13,418,012$ General Revenues:
Taxes:
Property taxes
Sales taxes
Sales taxes - Transaction Use Tax
Transient Occu
pancy Taxes
Business License Taxes
Franchise Fees
Motor Vehicle In Lieu, Unrestricted
Investment Earnin
gs
Transfers, Net
Total General Revenues
Change in Net Position
Net Position - Beginning
Net Position - Ending
See accompanying notes to basic financial statements
24
Governmental Business-t ype
Activities Activities Total
(37,335,304)$ (37,335,304)$
(64,029,946) (64,029,946)
(3,088,856) (3,088,856)
(4,156,480) (4,156,480)
(587,581) (587,581)
(4,347,063) (4,347,063)
(1,439,649) (1,439,649)
(114,984,879) (114,984,879)
- 4,414,933$ 4,414,933
- 934,571 934,571
- 5,349,504 5,349,504
(114,984,879) 5,349,504 (109,635,375) 24,115,482 - 24,115,482
40,265,253 - 40,265,253
18,530,513 - 18,530,513
1,960,534 - 1,960,534
3,685,324 - 3,685,324
8,592,910 - 8,592,910
12,784,112 - 12,784,112
666,435 270,789 937,224
(5,575) 5,575 -
110,594,988 $276,364 110,871,352
(4,389,891) 5,625,868 1,235,977 502,673,393 78,402,157 581,075,550
498,283,502$ 84,028,025$ 582,311,527$
Net (Expense) Revenue and
Changes in Net Position
25
This Page Left Intentionally Blank
CITY OF CONCORD JUNE 30, 2021
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal year 2021. Individual non- major governmental funds are aggregated and titled “Other Governmental Funds”.
General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The major revenue sources for this Fund are property taxes, sales taxes, unrestricted revenues from the St ate, charges for services, and interest income. Expenditures are made for public safety, most street work and other services not required to be accounted for in another fund.
Concord Housing – The Concord Housing Special Revenue Fu nd accounts for the activities related to the assets assumed by the City of Concord as the Housing Successor to the housing activities of the former Redevelopment Agency of the City of Concord.
ARPA – The ARPA Special Revenue Fund accounts for Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan.
General Projects Fund – This capital projects fund accounts for all general capital improvement projects not funded from proprietary funds.
2021 COP Projects Fund – This capital projects fund accounts for the projects that will be funded with the proceeds from the issuance of the 2021 Certificates of Participation Bonds. 27
Other Total
Concord General 2021 COP Governmental Governmental
General Housing ARPA Projects Projects Funds Funds
ASSETS:
Cash and Investments (Note 3) 48,660,684$ 12,905,305$ $11,943,889 14,111,201$ -$ 45,598,966$ 133,220,045$ Cash with Fiscal Agents (Note 3) - - - 114,333,765 - 114,333,765 Receivables (Net of Allowances for Uncollectible):
Accounts 3,387,835 1,666 - 69,388 - 160,404 3,619,293 Due from Other Governments 14,575,931 - - 2,022,113 - 2,635,654 19,233,698 Interest 55,294 4,885,483 - - - 127,418 5,068,195 Due from Other Funds (Note 4) 3,927,328 - - - - - 3,927,328 Loans and Notes (Note 5) - 23,343,524 - - - 1,710,827 25,054,351 Inventories 99,674 - - - - - 99,674
Advances to Other Funds (Note 4) 11,704,631 2,188,875 - - - - 13,893,506 Total Assets 82,411,377$ 43,324,853$ 11,943,889$ 16,202,702$ 114,333,765$ 50,233,269$ 318,449,855$ LIABILITIES:
Accounts, Deposits and Contracts Payable 7,608,135$ -$ - 171,515$ - 806,343$ 8,585,993$ Accrued Liabilities 3,761,866 13,658 - 23,102 - 643,283 4,441,909 Refundable Deposits 6,347,363 - - - - 28,885 6,376,248 Unearned Revenue 316,751 - 11,920,452 737,232 - 70,000 13,044,435 Due to Other Funds (Note 4) - - - - 1,135 - 1,135 Advances from Other Funds (Note 4) 5,761,140 - - 14,080,983 - - 19,842,123 Total Liabilities 23,795,255 13,658 11,920,452 15,012,832 1,135 1,548,511 52,291,843 DEFERRED INFLOWS OF RESOURCES:
Unavailable Revenue - 9,056,717 - 1,241,782 - 1,953,064 12,251,563 FUND BALANCES:
Fund Balances (Note 8):
Nonspendable 11,804,305 - - - - - 11,804,305
Restricted 872,011 34,254,478 23,437 - 114,332,630 39,176,724 188,659,280 Assigned 3,304,968 - - - - 7,556,051 10,861,019 Unassigned 42,634,838 - - (51,912) - (1,081) 42,581,845 Total Fund Balances 58,616,122 34,254,478 23,437 (51,912) 114,332,630 46,731,694 253,906,449 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 82,411,377$ 43,324,853$ 11,943,889$ 16,202,702$ 114,333,765$ 50,233,269$ 318,449,855$
CITY OF CONCORD
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2021
See accompanying notes to basic financial statements
28
CITY OF CONCORD
RECONCILIATION OF THE GOVERNMENTAL
FUNDS BALANCE SHEET TO THE
STATEMENT OF NET POSITION
JUNE 30, 2021
TOTAL FUND BALANCES -- TOTAL GOVERNMENTAL FUNDS 253,906,449$ Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in governmental activities are not financial resources an, therefore, are not reported in the funds. 533,522,504
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance, to individual governmental funds. The net position and liabilities of the internal service funds are therefore included in governmental activities in the statement of net position. 50,656,716
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 are taken into revenue in the Statement of Activities. 12,251,563
DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO PENSION The deferred accounts below are related to the net pension liability and are not due and payable in the current period and therefore are not reported in the Funds:
Deferred outflows of resources related to pension - CalPERS 33,145,371 Deferred outflows resources related to OPEB 5,242,297
Deferred inflows of resources related to pension - CCRS (2,396,560) Deferred inflows of resources related to pension - CalPERS (583,232) Deferred inflows of resources related to OPEB (1,366,393)
LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Long-Term Debt (129,397,187)
Interest Payable (64,848)
Net Pension Liability CCRS (19,950,558)
Net Pension Liability CalPERS (202,621,443)
Net OPEB Liability (34,061,177)
NET POSITION OF GOVERNMENTAL ACTIVITIES 498,283,502$
See accompanying notes to basic financial statements
29
Other Total
Concord General 2021 COP Governmental Governmental
General Housing ARPA Projects Projects Funds Funds
REVENUES
Taxes:
Property 19,974,856$ -$ -$ -$ -$ 4,140,626$ 24,115,482$ Sales Tax:
Sales Tax 40,265,253 - - - - - 40,265,253
Sales Tax - Transaction Use Tax 18,530,513 - - - - - 18,530,513 Transient Occupancy 1,960,534 - - - - - 1,960,534 Franchise Fees 8,123,704 - - - - 396,111 8,519,815 Business License 3,685,324 - - - - - 3,685,324
Motor Vehicle In Lieu, Unrestricted 12,784,112 - - - 12,784,112 Licenses and Permits 2,210,837 - - - - 1,103,882 3,314,719 Intergovernmental 1,529,450 - 1,599,990 4,638,759 - 8,577,317 16,345,516 Charges for Services 6,821,794 - - - - 1,144,112 7,965,906 Fines, Forfeitures and Penalties 294,925 - - - - - 294,925 Parks and Recreation 1,329,657 - - - - - 1,329,657 Use of Money and Property (39,463) 312,534 $23,437 (203,191) ($1,135) 595,230 687,412 Special Assessment Collections 6,033 - - - - - 6,033 Other 870,649 108,170 - 334,768 - 118,665 1,432,252 Total Revenues 118,348,178 420,704 1,623,427 4,770,336 (1,135) 16,075,943 141,237,453
EXPENDITURES
Current:
General Government 15,467,963 - - 61,088 - 332,522 15,861,573 Public Safety 58,593,292 - - 175,114 - 92,215 58,860,621 Public Works 8,189,119 - 599,990 22,175 - 4,723,155 13,534,439 Economic Development and Base Reuse 817,216 - 1,000,000 2,396,290 - - 4,213,506 Community Development 9,375,734 180,043 - 2,603,443 - 3,417,303 15,576,523 Parks & Recreation Services 4,933,881 - - - - - 4,933,881 Capital outlay 618 - - 3,157,438 - 2,896,837 6,054,893 Debt Service:
Principal - - - - - 12,790,000 12,790,000
Interest and Fiscal Charges 359,700 - - - 823,552 412,332 1,595,584 Total Expenditures 97,737,523 180,043 1,599,990 8,415,548 823,552 24,664,364 133,421,020
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 20,610,655 240,661 23,437 (3,645,212) (824,687) (8,588,421) 7,816,433
OTHER FINANCING SOURCES (USES)
Issuance of long-term debt - - - - 99,870,130 9,609,870 109,480,000 Bond issuance premium - - - - 15,287,187 - 15,287,187 Transfers in (Note 4) 384,835 - - 1,887,934 - 3,836,204 6,108,973 Transfers (Out) (Note 4) (5,148,626) - - (112,299) - (658,546) (5,919,471) Total Other Financing Sources (Uses) (4,763,791) - - 1,775,635 115,157,317 12,787,528 124,956,689 NET CHANGES IN FUND BALANCES 15,846,864 240,661 23,437 (1,869,577) 114,332,630 4,199,107 132,773,122
FUND BALANCES
AT BEGINNING OF YEAR 42,769,258 34,013,817 - 1,817,665 - 42,532,587 121,133,327
FUND BALANCES
AT END OF YEAR 58,616,122$ 34,254,478 $ 23,437 $ (51,912) $ 114,332,630$ 46,731,694 $ 253,906,449 $
CITY OF CONCORD
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
See accompanying notes to basic financial statements
30
CITY OF CONCORD
RECONCILIATION OF THE
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
TO THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 132,773,122$ Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSETS 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.
Capitalized expenditures are therefore added back to fund balance 6,056,051 Retirements of capital assets are deducted from fund balance - Depreciation expense is deducted from the fund balance (24,846,758) (Depreciation expense is net of internal service fund depreciation of $4,277,038 which has already been allocated to the internal service funds.) Contribution of assets to Internal Service Funds are deducted from fund balance (5,980)
LONG-TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuin g debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond principal is an expenditure in the Governmental Funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal 12,790,000
Issuance of long-term debt (109,480,000)
Bond premium issuance (15,287,187)
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Pension expense CCRS 878,717
Pension expense CalPERS (11,703,492)
OPEB expense 1,764,467
Deferred inflow of resources - Unavailable revenues 986,065 Interest Payable 33,821
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with Governmental Funds is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds, less contributions from Governmental Funds 1,651,283
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (4,389,891)$ See accompanying notes to basic financial statements
31
CITY OF CONCORD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Taxes:
Property 19,183,000 $ 18,713,000 $ 19,974,856 $ 1,261,856 $ Sales Tax:
Sales Tax 35,438,000 34,138,000 40,265,253 6,127,253 Sales Tax - Transaction Use Tax 13,726,031 15,926,031 18,530,513 2,604,482 Transient Occupancy 3,220,000 1,520,000 1,960,534 440,534 Franchises 7,880,000 7,620,000 8,123,704 503,704 Business License 4,193,903 3,193,903 3,685,324 491,421 Motor Vehicle In Lieu, Unrestricted 12,354,000 12,354,000 12,784,112 430,112 Licenses and Permits 2,079,620 1,764,620 2,210,837 446,217 Intergovernmental 1,051,000 1,051,000 1,529,450 478,450 Charges for Services 7,356,693 6,463,283 6,821,794 358,511 Fines, Forfeitures and Penalties 530,000 430,000 294,925 (135,075) Parks and Recreation 3,110,029 864,029 1,329,657 465,628 Use of Money and Property 2,308,917 1,814,917 (39,463) (1,854,380) Special Assessment Collections - - 6,033 6,033
Other 798,415 963,925 870,649 (93,276) Total Revenues 113,229,608 106,816,708 118,348,178 11,531,470 EXPENDITURES:
Current:
General Government:
Council 562,093 530,499 464,441 66,058 Manager 3,770,675 3,084,236 2,966,328 117,908 Attorney 1,535,420 1,545,936 1,510,387 35,549 Human Resources 2,463,030 2,334,134 2,049,450 284,684 Finance 10,005,342 8,850,841 8,477,357 373,484 Total General Government 18,336,560 16,345,646 15,467,963 877,683 Public Safety 63,524,561 61,091,659 58,593,292 2,498,367 Public Works 9,723,615 7,603,189 8,189,119 (585,930) Economic Development and Base Reuse - 1,368,443 817,216 551,227 Community Development 12,073,133 10,254,587 9,375,734 878,853 Parks & Recreation Services 6,570,317 5,531,433 4,933,881 597,552 Capital Outlay - 968,297 618 967,679
Debt Service:
Interest and Fiscal Charges 271,771 271,771 359,700 (87,929) Total Expenditures 110,499,957 103,435,025 97,737,523 5,697,502
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 2,729,651 3,381,683 20,610,655 17,228,972
OTHER FINANCING SOURCES (USES)
Transfers In 399,415 443,807 384,835 (58,972) Transfers (out) (4,416,840) (6,304,008) (5,148,626) 1,155,382 Total Other Financing Sources (Uses) (4,017,425) (5,860,201) (4,763,791) 1,096,410 NET CHANGE IN FUND BALANCE (1,287,774)$ (2,478,518)$ 15,846,864 18,325,382$ FUND BALANCE AT BEGINNING OF YEAR 42,769,258
FUND BALANCE AT END OF YEAR 58,616,122$
See accompanying notes to basic financial statements
32
CITY OF CONCORD
CONCORD HOUSING SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Use of Money and Property 169,647 $ 169,647$ 312,534$ 142,887$ Other 818,000 818,000 108,170 (709,830) Total Revenues 987,647 987,647 420,704 (566,943) EXPENDITURES:
Current:
Community and Economic Development 273,588 300,939 180,043 120,896 Total Expenditures 273,588 300,939 180,043 120,896
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 714,059 686,708 240,661 (446,047)
OTHER FINANCING SOURCES (USES)
Transfers In 169,888 169,888 - (169,888) Total Other Financing Sources (Uses) 169,888 169,888 - (169,888) NET CHANGE IN FUND BALANCE 883,947$ 856,596$ 240,661 (615,935)$ FUND BALANCE AT BEGINNING OF YEAR 34,013,817
FUND BALANCE AT END OF YEAR 34,254,478$
See accompanying notes to basic financial statements
33
CITY OF CONCORD
ARPA SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Intergovernmental - $ 13,520,442$ 1,599,990$ (11,920,452)$ Use of Money and Property - - 23,437 23,437 Total Revenues - 13,520,442 1,623,427 (11,897,015) EXPENDITURES:
Current:
Economic Development and Base Reuse -
600,000 599,990 10
Community and Economic Development - 1,000,000 1,000,000 - Total Expenditures - 1,600,000 1,599,990 10
NET CHANGE IN FUND BALANCE -$ 11,920,442$ 23,437 (11,897,005)$
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR 23,437$
See accompanying notes to basic financial statements
34
CITY OF CONCORD JUNE 30, 2021
PROPRIETARY FUNDS
Proprietary funds account for City operations financ ed and operated in a manner similar to a private business enterprise. The intent of the City is that th e cost of providing goods and services be financed primarily through user charges.
The concept of major funds extends to Proprietary Funds. Generally accepted accounting principles do not provide for the disclosure of budget vs. actual comp arisons regarding proprietary funds. The City reports the Sewer Enterprise Fund as a major fund:
Sewer Fund. To account for activities associated with sewage transmission and treatment The City reports the Golf Course Fund as a non-major fund.
Golf Course Fund. To account for activities associated with the development, operation and maintenance of the Diablo Creek Golf Course.
35
CITY OF CONCORD
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2021
Business-type Activities-Enterprise Funds Governmental
Non-Major Activities-
Enterprise/ Internal Service
Sewer Golf Course Total Funds
ASSETS:
Current Assets:
Cash and Investments (Note 3) 56,557,442$ 1,920,018$ 58,477,460$ 46,067,064$ Cash with Fiscal Agents (Note 3) 7 - 7 -
Accounts Receivable 647 83,548 84,195 4,232,706 Interest Receivable 27,107 - 27,107 -
Loans and Notes Receivable (Note 5) - - - -
Total Current Assets 56,585,203 2,003,566 58,588,769 50,299,770 Non-Current Assets:
Advances to Other Funds (Note 4) 2,110,727 - 2,110,727 4,611,538 Capital Assets (Note 6):
Land 334,838 60,344 395,182 - Construction In Progress 17,163,538 - 17,163,538 2,559,048 Buildings and Improvements 2,832,944 5,876,042 8,708,986 48,362,156 Machinery and Equipment 320,142 136,177 456,319 37,400,220 Sewer Collection System 219,772,435 - 219,772,435 - Less: Accumulated Depreciation (178,933,805) (4,351,976) (183,285,781) (62,899,961) Net Capital Assets 61,490,092 1,720,587 63,210,679 25,421,463 Total Non-Current Assets 63,600,819 1,720,587 65,321,406 30,033,001 Total Assets 120,186,022 3,724,153 123,910,175 80,332,771 LIABILITIES:
Current Liabilities (Payable from Current Assets):
Accounts and Contracts Payable $26,045,816 $187 26,046,003 14,095 Accrued Liabilities 67,696 5,455 73,151 177,511 Due to Other Funds (Note 4) - - - 3,926,193
Interest Payable 185,950 - 185,950 54,122
Compensated Absences Payable (Note 7) 50,238 - 50,238 2,545,228 Capital Lease Payable (Note 7) - - - 338,519
Revenue Refunding Bonds (Note 7) 1,075,000 - 1,075,000 - Claims Payable (Note 15) - - - 3,259,032
Total current liabilities 27,424,700 5,642 27,430,342 10,314,700 Noncurrent Liabilities:
Compensated Absences Payable (Note 7) 92,988 - 92,988 3,072,393 Advance from Other Funds (Note 4) - 773,648 773,648 -
Long-Term Debt
Due in More Than One Year (Note 7) 11,585,172 - 11,585,172 1,835,589 Claims Payable (Note 15) - - - 14,453,373
Total Noncurrent Liabilities 1
1,678,160 773,648 12,451,808 19,361,355 Total Liabilities 39,102,860 779,290 39,882,150 29,676,055 NET POSITION:
Net Investment in Capital Assets 48,829,920 1,720,587 50,550,507 23,247,355 Unrestricted 32,253,242 1,224,276 33,477,518 27,409,361 Total Net Position 81,083,162$ 2,944,863$ 84,028,025$ 50,656,716$ See accompanying notes to basic financial statements
36
CITY OF CONCORD
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
Business-type Activities-Enterprise Funds Governmental
Non-Major Activities-
Enterprise/ Internal Service
Sewer Golf Course Totals Funds
OPERATING REVENUES
Service Fees 39,674,758$ -$ 39,674,758 $ -$
Charges for Services - - - 25,705,114
Golf Course Fees and Charges - 2,516,867 2,516,867 - Other 49,112 94,106 143,218 4,253,546 Total Operating Revenues 39,723,870 2,610,973 42,334,843 29,958,660
OPERATING EXPENSES
Operating and Maintenance 30,532,155 1,532,450 32,064,605 21,691,734 Cost of Sales and Services - - - 69,010
Depreciation (Note 6) 4,401,489 143,952 4,545,441 4,277,038 Claims and Judgments - - - 2,580,161
Total Operating Expenses 34,933,644 1,676,402 36,610,046 28,617,943 Operating Income (Loss) 4,790,226 934,571 5,724,797 1,340,717
NON-OPERATING REVENUES (EXPENSES)
Investment Income 250,620 20,169 270,789 620,581 Interest Expense (375,293) - (375,293) (122,114) Gain (Loss) from Disposition of Capital Assets - - - 1,196 Total Non-Operating Revenues (Expenses) (124,673) 20,169 (104,504) 499,663 Income (Loss) Before Contributions and Transfers 4,665,553 954,740 5,620,293 1,840,380 Capital Contributions - - - 5,980
Transfers In (Note 4) 5,575 - 5,575 -
Transfers Out (Note 4) - - - (195,077)
Net Contributions and Transfers 5,575 - 5,575 (189,097) Changes in Net Position 4,671,128 954,740 5,625,868 1,651,283 Total Net Position - Beginning 76,412,034 1,990,123 78,402,157 49,005,433 Total Net Position - Ending 81,083,162$ 2,944,863$ 84,028,025$ 50,656,716$ See accompanying notes to basic financial statements
37
CITY OF CONCORD
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
Business-type Activities-Enterprise Funds Governmental
Non-Major Activities-
Enterprise/ Internal Service
Sewer Golf Course Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 39,750,523$ 2,649,183$ 42,399,706$ 24,026,381$ Payments to Suppliers (30,853,963) (1,394,590) (32,248,553) (11,693,764) Payments to Employees (2,107,784) (133,703) (2,241,487) (4,162,745) Claims Paid - - - (1,998,389)
Net Cash Provided by (Used for) Operating Activities 6,788,776 1,120,890 7,909,666 6,171,483
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Borrowings of Advances From/(To) Other Funds 346,539 - 346,539 87,172 Transfers In 5,575 - 5,575 -
Transfers (Out) - - - (195,077)
Net Cash Provided by (Used for)
Non-Capital Financing Activities 352,114 - 352,114 (107,905)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (3,628,347) - (3,628,347) (889,964) Principal Paid on Debt (1,045,000) - (1,045,000) (329,570) Interest and Fiscal Charges Paid (482,092) - (482,092) (67,992) Proceeds from Sale of Capital Assets - - - 1,196
Net Cash Provided by (Used for) Capital and Related
Financing Activities (5,155,439) - (5,155,439) (1,286,330)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 340,940 20,169 361,109 620,581 Net Cash Provided by (Used for) Investing Activities 340,940 20,169 361,109 620,581 Net Increase (Decrease) in Cash and Cash Equivalents 2,326,391 1,141,059 3,467,450 5,397,829 Cash and Cash Equivalents at Beginning of Period 54,231,058 778,959 55,010,017 40,669,235 Cash and Cash Equivalents at End of Period 56,557,449$ 1,920,018$ 58,477,467$ 46,067,064$ Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:
Operating Income (Loss) 4,790,226$ 934,571 $ 5,724,797 $ 1,340,717 $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:
Depreciation 4,401,489 143,952 4,545,441 4,277,038 Change in assets and liabilities:
Receivables, Net 26,653 38,210 64,863 (36,184)
Accounts payable and other accrued expenses (2,422,302) (1,298) (2,423,600) (207,792) Accrued Liabilities 57,688 5,455 63,143 157,616
Compensated Absences (64,978) - (64,978) 58,316 Self Insurance Claims Payable - - - 581,772
Net Cash Provided by (Used for) Operating Activities 6,788,776$ 1,120,890$ 7,909,666$ 6,171,483$ NONCASH TRANSACTIONS:
Contributions of Capital Assets, Net -$ -$ -$ 5,980$ See accompanying notes to basic financial statements
38
CITY OF CONCORD JUNE 30, 2021
FIDUCIARY FUNDS
Trust funds are
used to account for assets held by the City as a trustee agent for individuals, private organizations, and other governments.
Custodial Funds are custodial in nature and do not involve measurement of results of operations. Such funds have no equity accounts since all assets are due to in dividuals or entities at some future time. These funds account for assets held by the City in a custodial capacity for individuals or other government units. The City reports one custodial fund, the Tourism Improvement District Fund.
The
financial activities of these funds are excluded from the City-wide financial statement, but are presented in separate Fiduciary Fund financial statements.
39
CITY OF CONCORD
FIDUCIARY FUNDS
STATEMENTS OF FIDUCIARY NET POSITION
JUNE 30, 2021
City of Concord Successor Tourism
Retirement Agency Improvemen t
System Private District
Pension Purpose Custodial
Trust Trust Fun d Fund
ASSETS:
Cash and Investments (Note 3)
U.S. Treasury Notes 5,458,368 $ - $ -$
U.S. Government Agencies Obligations 3,734,572 - - Medium-Term Corporate Notes 6,212,449 - -
Municipal Bonds 267,222 - -
Foreign Bonds 143,557 - -
Mutual Funds 15,305,194 - -
Pooled Investments 1,771,458 1,452,311 101,581 Cash with Fiscal Agents (Note 3) - 6,656 -
Total Cash and Investments 32,892,820 1,458,967 101,581 Receivables (Net of Allowances for Uncollectibles):
Account - 610,219 -
Interest on Notes and Loans Receivable - 424,350 -
Notes and Loans Receivable (Note 17) - 230,003 -
Total Assets 32,892,820 2,723,539 101,581 DEFERRED OUTFLOW OF RESOURCES:
Deferred Charge on Refunding - 355,231 -
LIABILITIES:
Accounts Payable and Due to Others - - 101,581
Accrued Liabilities - 1,595 -
Interest Payable - 173,717 -
Long-Term Debt (Note 17):
Due in One Year - 2,690,000 -
Due in More Than One Year - 9,722,446 -
Total Liabilities - 12,587,758 101,581
NET POSITION:
Net Position Restricted for Pension
Benefits and Held in Trust for Other Purposes 32,892,820 (9,508,988) - Total Net Position (Deficit) 32,892,820$ (9,508,988)$ -$ See accompanying notes to basic financial statements
40
CITY OF CONCORD
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
City of Concord Successor Tourism
Retirement Agency Improvement
System Private-Purpose District
Pension Purpose Custodial
Trust Trust Fund Fund
ADDITIONS
Employer Contributions 2,715,000$ -$ -$
Property Taxes, Net of Pass Through Payments - 5,355,695 - Investment Income 5,099,298 21,822 - Total Additions 7,814,298 5,377,517 -
DEDUCTIONS
Retirement and Other Benefits 5,290,086 - -
Management Expenses 143,728 - -
Economic Development and Base Reuse - 920,989 -
Community Planning and Economic Development - 12,347 -
Interest Expense - 230,933 -
Total Deductions 5,433,814 1,164,269 - NET CHANGES IN NET POSITION 2,380,484 4,213,248 - Net Position (Deficit) Held in Trust, Beginning of Year 30,512,336 (13,722,236) - Net Position (Deficit) Held in Trust, End of Year 32,892,820$ (9,508,988) $ - $ See accompanying notes to basic financial statements
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CITY OF CONCORD JUNE 30, 2021
NOTES TO THE BASIC FINANCIAL STATEMENTS
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Concord (City) was incorporated in 1905 and operates under the Council-Manager form of government. The City provides the following servi ces: public safety (police services and building inspection), highways and streets, sewer collection, recreation services, public improvements, planning and zoning, economic development and general administration services.
The financial statements and accounting policies of the City of Concord conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standard Board (GASB) is the accepted standard-setting body for establishi ng governmental accounting and financial reporting principles. The following is a summary of the more significant policies:
Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial ac tivities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City's operations (i.e. the City has operatio nal responsibility for the component unit) or a financial benefit / burden relationship exist, and are reported as an integral part of the City's financial statements.
The City's component units which are described below are all blended.
The City of Concord Joint Powers Financing Authority is a joint powers authority organized by the City of Concord and the former Concord Redevelopment Agency under the laws of the State of California. The Authority was organized to provide financial assistance to the City by financing real and personal properties and improvements for the benefit of the residents of the City and surrounding areas. Administrative and related normal business expenses incurred in the day- to-day operations of the Authority are provided by the City. Such expenses are insignificant to the Authority's operations. The Authority obtains financing for City and the former Agency sponsored projects using leases signed by the City or former Agency as collateral. The amounts of the leases are calculated to provide sufficient resources to repay the debt incurred to finance the projects.
The Concord/Pleasant Hill Health Care District is a local health care district organized under Local Hospital District Law, as set forth in the Health and Safety Code of the State of California and is governed by the City's Council. City staff provides management assistance to the District.
The City of Concord Retirement System is governed by the City's Retirement System Ordinance, Article II, Chapter 8 of the City of Concord Municipal C ode, and is used to account for contributions and investment income restricted to pay retirement and death benefits of genera l and police employees. The Plan's benefit provisions are frozen and retirement and death benefit payments are restricted to eligible employees who retired or left the City of Concord eligible for a pension prior to June 28, 1999. Contribution provisions are established by the City Council. Elig ibility, actuarial interest rates, administration and certain other tasks are the responsibility of the Retirement Board established by the above ordinance.
Financial statements for the City of Concord Joint Powers Financing Authority and the Concord/Pleasant Hill Health Care District can be obtained from the City of Concord, 1950 Parkside Drive, Concord, California 94519.
44
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Presentation
The City's basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
Government-wide Statements: The Statement of Net Position and th e Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, exce pt for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activ ities generally are financed through taxes, intergovernmental revenues, and other non-exchange tran sactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs , (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues th at are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and blen ded component units. Separate st atements for each fund category:
governmental, proprietary, and fiduciary, are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services , result from exchange transactions associated with the principal activit y of the fund. Exchange transactio ns are those in which each party receives and gives up essentially equal values. Operating expenses result from the cost of providing those services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Nonoperating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.
Major Funds
The City's major governmental and enterprise funds ar e identified and presented separately in the fund financial statements. All other governmental and ente rprise funds, called non-major funds, are combined and reported in single columns.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund – The General Fund is the genera l operating fund of the City. It is used to account for all financial resources except those required to be acco unted for in another fund. The major revenue sources for this Fund are property taxes, sales taxes, unrestricted revenues from the State, charges for services and interest income. Expenditures are made for public safety, public works and other services not required to be accounted for in another fund.
45
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Major Funds (Continued)
Concord Housing – The Concord Housing special revenue fund accounts for the activities related to the assets assumed by the City of Concord as the Hous ing Successor to the housing activities of the former Redevelopment Agency of the City of Concord.
ARPA – The ARPA Special Revenue Fund accounts for Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan.
General Projects Fund – This capital projects fund accounts for all general capital improvement projects not funded from proprietary funds.
2021 COP Projects Fund – This capital projects fund accounts for the projects that will be funded with the proceeds from the issuance of the 2021 Certificates of Participation Bonds.
The City reported the following enterprise fund as a major fund in the accompanying financial statements:
Sewer Fund – To account for activities associated with sewage collection, transmission and treatment.
The City also reports the following fund types:
Internal Service Funds – These funds account for workers' compensation costs, non-reimbursable portion of insurance claims, post-employment health care benefits, City facilities' maintenance expenses, maintenance and replacement costs of City licensed vehicles, motorized equipment, technology equipment and office equipment and funding for compensated abse nces balances; all of wh ich are provided to other departments on a cost-reimbursement basis.
Fiduciary Funds – Fiduciary Funds account for assets held by the City as trustee agent for other governmental units, private organizations or individuals. The City of Concord Retirement System (CCRS) Pension Trust Fund, accounts for accumulation of resources to be used for retirement annuity payments at appropriate amounts and times in the future. The Successor Agency to the Redevelopment Agency of the City of Concord is reported in a Private Purpose Trust Fund that is used to account for the activities of the Successor Agency. The Custodial Fund accounts for charges collected by the government on behalf of other governments. The financial activities of these funds are excluded from the City-wide financial statement, but are presented in separate Fiduciary Fund financial statements.
Basis of Accounting
The government-wide, proprietary, CCRS pension trust, and private purpose trust fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting.
Custodial Funds, included in the fi duciary fund financial statements, ar e also reported using the accrual basis of accounting, however they are not reported using a measuremen t focus because only assets and liabilities are presented. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. 46
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting (Continued)
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
The City considers all revenues reported in the gove rnmental funds to be available if the revenues are collected within sixty days after year-end, except for sales tax reve nue which has a 90 day period of availability. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, sales tax, grants entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.
Other revenues susceptible to accrual include intergovernmental revenues, interest and charges for services.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted Net Position may be available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include accumulated unpaid vacation, sick pay and other employee amounts which are recognized as expenditures to the extent they have matured, and principal and interest on general long-term debt which is reco gnized when due. Financial resources usually are appropriated in other funds for transfer to a debt service fund in the period in which maturing debt principal and interest must be paid. Such amounts thus are not current liabilities of the debt service fund, as their settlement will not require expenditure of existing fund assets.
Inventory and Prepaid Items
Inventories are valued at cost (on the first-in, first- out basis). Inventories of the General Fund consist of expendable supplies held for consumpt ion. The cost is recorded as an expenditure in the General Fund at the time individual inventory items are consumed. Reported General Fund inventories are equally offset by amounts included in Nonspendable Fund Balance whic h indicates that they do not constitute available spendable resources even though they are a component of net position.
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 in Nonspendable Fund Ba lance which indicates that they do not constitute available spendable resources even though they are a component of net position. 47
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property Taxes and Special Assessment Revenue
The County of Contra Costa levies, bills and collect s property taxes for the City; the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.
Secured property tax is due in two installments, on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 a nd April 10, respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31.
Sales Tax
Since 1956 the Bradley Burns Uniform Local Sales and Use Tax Law has imposed a tax (Bradley Burns tax) on the retail sale of merchandise or goods within the State of California. In order to provide for uniform administration, reporting, sales and use tax rates and, collection of local sales and use taxes, the State collects the Bradley Burns tax on beha lf of cities and counties, and distributes the revenue to those local governments. On September 27, 1956, the City adopted Ordinance No. 354 to contract with the State of California to provide for the collection and administration of City’s sales and use taxes under the Bradley- Burns Uniform Local Sales and Use Tax Law.
Compensated Absences
In governmental funds, Compensate d Absences (unpaid vacation and sick leave) are recorded as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or sick leave at June 30 from future resources rather than currently avai lable expendable resources. The City's liability for Compensated Absences is determined annually. For al l governmental funds, amounts expected to be paid out for permanent liquidation are recorded as fund liabi lities; the long term portion is recorded in the Statement of Net Position.
Compensated Absences are included in accrued liabilities. Compensate d Absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund. Compensated Absences are accounted for by Proprietary funds as expenditures in the year earned. The changes in Compensated Absences of governmental and business- type activities are summarized in Note 7.
Capital Assets
All capital assets are valued at historical cost or estim ated historical cost if act ual historical cost is not available. Contributed capital assets are valued at their acquisition value on the date contributed. The City's policy is to capitalize all assets wi th costs exceeding certain minimum thresholds and with useful lives exceeding two years.
The City has recorded all its public domain (infrastructure) capital asse ts, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems in the government-wide financial statements.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets.
The amount charged to depreciation expense each year repr esents that year's pro rata share of the cost of capital assets.
48
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital Assets (Continued)
Depreciation of capital assets in service is provided using the straight line method which means the cost of the asset is divided by its expected useful life in year s and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives and capitalization thresholds listed below to capital assets.
Capitalization
Useful Lives Threshold
G round im provem ents 33 Y ears 100,000$
Buildings and improvements 33 Years 100,000
Machinery and equipment 10 Y ears 7,500
V ehicles 5 Y ears 7,500
Streets 30 Years 100,000
Sidewalks 50 Years 100,000
Storm drains/catch basins 100 Years 100,000
Traffic signals 30 Years 100,000
Sewer lines 50 Years 100,000
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position and Statement of Fiduciary Net Position may report a separate section for deferred outflows of resources. Th is separate financial statement element represents a consumption of net position that appl ies to a future period(s) and so will not be recognized as an expense/expenditure until then.
In addition to liabilities, the Statement of Net Positi on and the balance sheet of the governmental funds reports a separate section for deferred inflows of re sources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as revenue until that time. The governmental funds have only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the gove rnmental funds balance sheet. The governmental funds
report unavailable revenues from two sources: interg overnmental revenue and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
Net Position and Fund Balances
Net Position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.
Net Position is the excess of all the City's assets and deferred outflows of resources over all its liabilities and deferred inflows of resources. Net Position is divided into three captions, and is described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City's capital assets, less the ou tstanding balance of any debt issued to finance these assets.
49
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Net Position and Fund Balances (Continued)
Restricted describes the portion of Net Position which are re stricted as to use by the terms and conditions of agreements with outside parties, governmental re gulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements.
Unrestricted describes the portion of Net Position which are not restricted as to use.
The City's fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sour ces, the City prioritizes and expe nds funds in the following order:
Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are incl uded. However, if proceeds realiz ed from the sale or collection of nonspendable assets are restricted, committed or assi gned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions impose d by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires th e resources to be used only for a specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by City Council resolution which may be altered only by resolution of the City Council. This category may include encumbrances.
Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expre ssed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. City policy and procedure No. 168 delegates the authority to assign to the City Manager. This ca tegory may include encumbra nces and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned.
This includes the residual general fund balance and re sidual fund deficits, if any, of other governmental funds. The general fund is the only fund that reports a positive unassigned fund balance amount. 50
CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Minimum Fund Balance Policy
To address financial uncertainties, the City maintains various General Fund reserves and contingency funds that, when combined, total not le ss than 17 percent of the General Fund’s operating expenditures. The reserve and contingency funds include: the General Fund Operating Contingency Reserve fund; the Benefit Reserve fund; the Capital Maintenance Reserve fund; the Economic Contingency Reserve fund; and the Unforecasted Reserve fund. The total combined unassigned fund balance for these funds was $43.5 million or 44% percent of General Fund Operating Expenditu res. These funds, along with the Pavilion Fund, SLEFS Fund, Community Court Fund, and Forfeited De posit Fund are included within the financial statements as the “General Fund”. Including these additional funds, and the Pavilion Fund, the total combined unassigned fund balance was $42,634,838.
Use of Estimates
The preparation of financial statements in confor mity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at th e date of the financial statements and the reported amounts of revenues and expenses duri ng the reporting period. Actual results could differ from those estimates.
Pensions
For purposes of measuring the net pension liability and deferred inflows/outflows of resources related to pensions, and pensions expense, information about the fiduciary net position of the miscellaneous plan and the safety plan of the City of Concord, an ag ent multiple-employer defined benefit pension plan participating in the California Public Employees’ Retirement System (CalPERS) plan and Concord Retirement System (CCRS) plan and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reporte d 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.
Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability and deferred inflows/outflows of resources related to OPEB, and OPEB expense, information about the fiduciar y net position of the OPEB plans of the City of Concord, an agent multiple-employer defined benefit pension plan partic ipating in the California Public Employees’ Retirement System (CalPERS) plan 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 contri butions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fair Value Measurement
The City categorizes the fair value measuremen ts of its investments based on the hierarchy established by generally accepted accounting principles . The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
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CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) New Effective Accounting Pronouncements
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the iden tification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement is effective for reporting periods begi nning after December 15, 2019. The City implemented the provisions of GASB Statement No. 84 for the fiscal year ended June 30, 2021. As a result of the implementation, the Tourism Improvement District Fund, previously reporte d as an Agency Fund, is reported as a custodial fund in fiscal year 2020-2021.
GASB Statement No. 90 – In June 2018, GASB issued Statement No. 90, Majority Equity Interests – An Amendment of GASB Statements No. 14 and No. 61 . The objective of this Statements are to improve the consistency and comparab ility of a reporting a government’s majority equity interest in a legally separate organization and to improve the rele vance of financial statement information for certain component units. This Statement is effective for reporting periods beginning after December 15, 2019.
GASB Statement No. 90 did not have an effect on the fiscal year 2021 financial statements.
Future Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) releases new accounting and financial reporting standards which may have a signifi cant impact on the City's financia l reporting process. Future new standards which may impact the City, include the following:
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases; enhancing the comparability of financial statements between governments; and also enhancing the relevance, reliability (representational faithfulness), and consistency of information about the leasing activitie s of governments. This Statement is effective for reporting periods beginning after June 15, 2021. The City has not determined the effect of this Statement.
GASB Statement No. 89 – In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period . The objectives of this Statement are to enhance the relevance and comparability of information about capita l assets and the cost of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period. This Statement is effective for reporting periods begi nning after December 15, 2020. The City has not determined the effect of this Statement.
GASB Statement No. 91 – In May 2019, GASB issued 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 associ ated with (1) commitment s extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The requirements of the statement are effective for reporting peri ods beginning after December 15, 2021. The City has not determined the effect of this Statement.
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CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020. The objectives of this Statement are to enhance comparability in accountin g 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. The requirements related to the effective date of Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. The remain ing requirements of the statement are effective for reporting periods beginning after June 15, 2021. The City has not determined the effect of this Statement.
GASB Statement No. 93 – In March 2020, GASB issu ed GASB Statement No. 93, Replacement of Interbank Offered Rates. Some governments have entered into ag reements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, th e London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, as amended, requires a go vernment to terminate hedge accounting when it renegotiates or amends a critical term of a hedging deri vative instrument, such as the reference rate of a hedging derivative instrument’s variable payment. In addition, in accordance with Statement No. 87, Leases, as amended, replacement of the rate on which variable payments depend in a lease contract would require a government to apply the provisions for lease modifications, including remeasurement of the lease liability or lease receivable. The objective of this Statement is to address th ose and other accounting and financial reporting implications that result from the replacement of an IBOR. The requirements of this Statement, except for paragraphs 11b, 13, and 14 are effective for reporting periods beginning after June 15, 2020. The requirement of this Statement, except for paragraph 11b, are effective for reporting periods beginning after June 15, 2021. The requirement in paragraph 11b is effective for reporting periods ending after December 31, 2021. Earlier application is encouraged. The City has not determined the effect of this Statement.
GASB Statement No. 94 – In March 2020, GASB issu ed 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). This Statement also provides guidance for accounting and financial reporting for availability payment a rrangements (APAs). The requirement s of the statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The City has not determined the effect of this Statement.
GASB Statement No. 96 – In May 2020, GASB issued 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) de fines a SBITA; (2) establishes that a SBITA results in a right to use subscription asset – an intangible asset – and a corresponding subscrip tion liability; (3) provides the capitalization criteria for outlays ot her than subscription payments, in cluding implementation costs of a SBITA; and (4) requires note disclosures regardi ng a SBITA. The requirements of the statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The City has not determined the effect of this Statement.
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CITY OF CONCORD JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) GASB Statement No. 97 – In June 2020, GASB issued GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting fo r 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 co mponent units in circumstan ces in which a potential component unit does not have a govern ing board and the primary governme nt 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 ot her 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 repor ting 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 in (1) paragraph 4 of this Statement as it applies to defined contribution pension plans, define d contribution OPEB plans, and ot her employee benefit plans and (2) paragraph 5 of this Statement are effective immediately. The City does not have such plans, thus there was no significant impact of this Statement in fiscal year 2020-2021. The requirements in paragraphs 6-9 of this Statement are effective for fiscal years beginning after June 15, 2021. All other requirements of this Statement are effective for reporting periods begi nning after June 15, 2021. Earlier application is encouraged and is permitted by certa in requirements in the Statement. The City has not determined the effect of this Statement.
New Funds
The ARPA Special Revenue Fund was established duri ng the fiscal year ended June 30, 2021 to account for Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan. In addition, the 2021 COP Projects Fund was established during the fiscal year ended June 30, 2021 to account for the projects that will be funded with the proceeds from the issuance of the 2021 Certificates of Participation Bonds.
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council proposed biennial operating budget by June. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of separate resolutions for the City.
4. The City Manager is authorized to transfer budgeted amounts from one program, department or account to another within the same fund. All transfers of appropriations affecting Personnel Service type accounts require the Director of Human Resources and City Manager approval. Expenditures may not legally exceed budgeted appropriations at the fund level without City Council approval.
5. The City is required to adopt a biennial operating budget on or before June 30 for all funds on a basis consistent with generally accepted accounti ng principles. From the effective date of the budget, the amounts stated therein as proposed ex penditures become appropriations to the various funds. The City Council may amend the budget during the fiscal year.
6. All governmental fund type annual operating budgets are adopted on a basis consistent with generally accepted accounting principles, except for capital outlay expenditures for Special Revenue Funds which are budgeted on a project time frame rather than on an annual basis, in conjunction with #7 below. 54
CITY OF CONCORD JUNE 30, 2021
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
7. The City also adopts budgets for its Capital Projec ts, which are based on the project life rather than a fiscal year. Therefore, capital project budgets ma y span several fiscal years. Project appropriations transfers of $20,000 or more require City Council approval.
Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary integration in the governmental funds. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.
Appropriation Lapses
Unexpended appropriations lapse at year end unless budgeted on a project basis.
NOTE 3 – CASH AND INVESTMENTS
The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except Cash with Fiscal Agents so that it can be safely invested at maximum yields.
Individual funds are able to make expenditures at any time during the year.
Policies
All investments are carried at fair value and as a general rule investment income is allocated among funds on the basis of average monthly cash and investment ba lances in these funds. Interest income on certain investments is allocated based on the source of the investment and legal requirements which apply.
California Law requires banks and savings and loan in stitutions to pledge government securities with a market value of 110 percent of the City's cash on deposit, or first trust deed mortgage notes with a market value of 150 percent of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution.
Cash and investments are used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.
Classification
Cash and investments are classified in the financial statements as shown below at June 30, 2021:
Internal
Governmental Enterprise Service Fiduciary
Funds Funds Funds Funds Total
Cash and investm ents 133,220,045$ 58,477,460$ 46,067,064$ 34,446,712$ 272,211,281$ Cash with fiscal agents 114,333,765 7 6,656 114,340,428 Total cash and investm ents 247,553,810$ 58,477,467$ 46,067,064$ 34,453,368$ 386,551,709$ 55
CITY OF CONCORD JUNE 30, 2021
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City's Investment Policy The City of Concord operates its investment activities under the prudent man rule. This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current statutes of the State of California. The Ci ty is authorized to invest in the following types of instruments, and the table also identifies certain provisions of the California Government Code, or the City's investment policy where it is more restrictive:
Minim um Max im um Max im um
Max im um Credit Percentage Investm ent
Authorized Investm ent Type Maturity Quality* of Portfolio in One Issuer U.S. Treasury Bills, Bonds and Notes 5 years None None None Obligations issued by United States 5 years None None/20%** None G overnment Agencies
State Obligations - CA & Others 5 years A 30% None
Bankers' Acceptances 180 days A 30% None
Commercial Paper 270 days A-1 25% 10%
Negotiable Certificates of Deposit 5 years A 30% None
Medium-Term Corporate Notes 5 years A 30% None
Money Market Mutual Funds N/A Top rating 20% No Lim it
California Local Agency Investm ent Fund (LAIF) N/A None $75 m illion $75 m illion Time Certificates of Deposit 5 years Satisfactory None 10% Supranationals 5 years AA 30% None
Shares of Beneficial Interest Issued by a Joint
Powers Authority (local governm ent investm ent Pursuant to G overnm ent pool such as CAMP) N/A Code Section 6509.7 None None
* At tim e of purchase
** Mortgage backed federal agency investments may not ex ceed 20% of the City's portfolio Under the City's Investment Policy, investments not described above are ineligible investments. In addition, the City may not invest any funds in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages in accord ance with the California Government Code. In addition, the City may not invest any funds in any security that could result in zero interest accrual if held to maturity. 56
CITY OF CONCORD JUNE 30, 2021
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trus tees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obli gations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authori zed for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:
Mi ni m um
Ma x i m um Cre di t
Authorized Investment Type Maturity Quality
Federal Agency Securities 5 years Top rating category
State of California Local Agency Investment Fund None None Commercial Paper 270 days Top rating category
Negotiable Certificates of Deposit 180 days Top rating category Bank Deposits None FDIC Insured
U.S. Government Treasury Obligations None None
State/Local Obligations None Top rating category
Federal Securities None Top rating category
Corporate Notes None Top rating category
Repurchase Agreements 1 year Top rating category
Mone y Ma rke t Mutua l Funds None Top ra ti ng c a te g ory Investment Agreements None Top rating category
Contra Costa County Investment Pool None None
Retirement System Authorized Investments
The System's investment policy authorizes the System to invest in financial instruments in three broad investment categories: equity, fixed income, and real estate. These fina ncial instruments can include, but are not limited to, corporate bonds, commercial paper, U.S. government securities, common and preferred stock, real estate investment trus ts, and mutual funds. Fixed income investments may include bonds and commercial paper in order to provide added flexibility in managing the fixed income portfolio.
The asset allocation ranges for the system are as follows:
Target M ix M inimum M aximum
Large/Medium Cap Domestic Equity 30% 20% 45%
International Equity 7.5% 2% 15%
Small Cap Equity 7.5% 2% 15%
Domestic Real Estate 0% 0% 10%
Domestic Fixed Income 50% 40% 60%
Cash 5% 0% 20%
Allocation Ranges
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NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturi ng or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's and Retirement System's investments (including investments held by bond trustees) to mark et interest rate fluctuations is provided by the following tables that show the distribution of the Ci ty's and Retirement System’s investments by maturity or earliest call date:
City and Fiscal Agents
Rem aining Maturity (in Months)
12 Months or 13 to 24 25 to 36 37 to 60
Less Months Months Months Total
Inves tment Type:
U.S Treasury Notes $ 429,330 $ 9,044,590 $ 14,859,636 $ 5,043,242 $ 29,376, 798 U.S. Government Agencies Obligations 7,135 288,277 6,997,529 4,709,669 12,002,610 Medium-Term Corporate Notes 1,115,664 408,480 2,555,843 7,686,752 11,766,739 Certificates of Deposit 1,166,629 2,852,581 - - 4,019,210 Supranationals 300,465 - 936,898 - 1,237,363
Municipal Bonds - - - 2,550,316 2,550,316 LAIF 224,511,054 - - - 224,511,054 CAMP 38,121,442 - - - 38,121,442
CalTrust 23,167,557 - - - 23,167,557 Money Market Mutual Funds 1,540,423 - - - 1,540,423 Total $ 290,359,699 $ 12,593,928 $ 25,349,906 $ 19,989,979 348,293,512 Cas h depos i ts wi th bank s and on hand 5,365,377
Total Cash and Investments $ 353,658,889
Retirement System Pension Trust Fund
Rem aining Maturity (in Months)
12 Months or 13 to 24 25 to 36 37 or More
Less Months Months Months Total
Inves tment Type:
U.S. Treasury Notes $ 342,634 $ 809,152 $ 349,591 $ 3,956,991 $ 5,458,368 U.S. Government Agencies Obligations 1,006 3,568 3,729,998 3,7 34,572 Medium-Term Corporate Notes 30,009 156,277 680,206 5,345,957 6,212,449 Municipal Bonds - - - 267, 222 267,222 Foreign Bonds - - - 143, 557 143,557 Total $ 373,649 $ 965,429 $ 1,033,365 $ 13,443,725 15,816,168 Non-Maturing Investments:
Pooled Cash and Accrued Incom e 1,771,458 Mutual Funds 15,305,194
Total Cash and Investments $ 32,892,820
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CITY OF CONCORD JUNE 30, 2021
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
The City and the Retirement System are participants in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are record ed on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mort gage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations.
Credit Risk
Credit risk is the risk that an issuer of an invest ment will not fulfill its obligat ion 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 actual rating as of June 30, 2021 for each investment type as provided by Standard & Poor's and Moody's for the City's investments and for the Retirement System’s investments.
City and Fiscal Agents
Investment Type AAA / AAAm AA+ / AA / AA- Aaf/Aa-f A+ / A / A- BBB+ Total U.S. G overnment Agencies Obligations -$ 12,002,610 $ -$ -$ -$ 12,002,610 $ Medium -Term Corporate Notes - 1,903,760 - 7,587,251 2,275,728 11,766,739 Supranationals 1,237,363 - - - - 1,237,363
Municipal Bonds 178,774 1,734,296 - 387,523 - 2,300,593 CAMP 38,121,442 - - - - 38,121,442
CalTrus t - - 23,167,557 - - 23,167,557
Money Market Mutual Funds 1,540,423 - - - - 1,540,423 Totals 41,078,002$ 15,640,666$ 23,167,557$ 7,974,774$ 2,275,728$ 90,136,727 Exempt from credit rating disclosure:
U.S. Treasury Notes 29,376,798
Not rated:
Certificates of Depos it 4,019,210
Municipal Bonds 249,723
(1)
LA IF 224,511,054
Cash deposits with banks and on hand 5,365,377
Total Investm ents 353,658,889$
(1) Credit ratings listed above are based on ratings provided by Stan dard & Poor's (S&P). Municipal Bonds listed as "Not Rated" abo ve have no rating per S&P, although is rated as "Aa2" per Moody's. 59
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NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Retirement System Pension Trust Fund
Inves tment Type AAA/AAAm AA+/AA/AA- A+/A/A- BBB+/BBB/BBB- BB+/BB- Total U.S. Government Agencies Obligations -$ 3,734,572$ -$ -$ -$ 3,734,572$ Medium-Term Corporate Notes 621,638 166,284 482,895 4,265,487 182,490 5,718,794 Municipal Bonds - 267,222 - - - 267,222
Foreign Bonds - - - 143,557 - 143,557
Totals 621,638$ 4,168,078$ 482,895$ 4,409,044$ 182,490$ 9,864,145 Exempt from credit rating disclosure:
U.S. Treasury Notes 5,458,368
Not rated:
Medium-Term Corporate Notes 493,655
(1)
Pooled Cash and Accrued Incom e 1,771,458
Mutual Funds 15,305,194
Total Investm ents 32,892,820$
(1) Credit ratings listed above are based on ratings provided by Standard & Poor's (S&P). Medium-Term Corporate Notes listed as "Not Rated" above have no rating per S&P, although are rate d as "Aaa", "Aa1" and "Baa3" per Moody's.
Concentration of Credit Risk
Investments in the securities of any individual issuer, other than U. S. Treasury securities, that represent 5 percent or more of total Retirement Trust Fund investments are as follows at June 30, 2021:
Retirement System Pension Trust Fund
Fund Issuer Type of Investm ents Am ount
Pension Trust Fund: Federal National Mortgage Association U.S. G overnm ent Agencies 2,823,315 $ Custodial Credit Risk
The custodial credit risk for deposits is the risk that the City will not be able to recover deposits or will not be able to recover collateral securities that are in possession of an outsid e party. This risk is mitigated in that the City’s bank deposits are insured by Fe deral Depository Insurance Corporation (FDIC). 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 and securities lending transactions: The California Government Code requires that a financial institution secure deposits made by state or local government unit by pledging securities in an undivided collateral pool held by depository regulate
d under state law. The market value of the pledged
securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. As of June 30, 2021, the City’s balance in the financial institutions was $6,798,778 of that amount, $250,000 was covered by FDIC insurance, and $6,548,778 was covered by collateral held in the pledging bank’s trust department.
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NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements
The City and the City’s Retirement Trust categorize th eir fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (L evel 3 measurements). The three leve ls of the fair value hierarchy are described as follows:
Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access.
Level 2 — Inputs to the valu ation methodology include:
• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principall y from or corroborated by observable market data by correlation or other means.
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best informat ion available in the circumstance s and may include the City's own data.
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
Deposits and withdrawals in governmental investment pools, such as LAIF and JPA Investment Pools are made on the basis of $1 and not fair value. Accordingly, the City’s pr oportionate share in these types of investments is uncategorized input not defined as a Level 1, Level 2, or Level 3 input.
The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. There have been no changes in the methods and assumptions used at June 30, 2021. The methods described may produce a fair va lue calculation that may no t be indicative of net realizable value or reflective of fu ture fair values. City management believes its valuation methods are appropriate and consistent with other market par ticipants. The use of diffe rent methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The City’s treasury pool asset market prices are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated market value. Prices that fall between data points are interpolated. Non-negotiable FDIC-insured bank certificates of deposit are priced at par.
61
CITY OF CONCORD JUNE 30, 2021
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
When available, quoted prices are used to determine fa ir value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy.
For investments classified within Level 2 of the fair value hierarchy, the City's custodians generally uses a multi- dimensional relational model. Inputs to their pr icing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker- dealer quotes, issuer spreads and benchmark secur ities, among others. The City does not have any investments that are measured using Level 3 inputs.
As of June 30, 2021, the City and the Retirement System have th e following recurring fair value measurements:
City and Fiscal Agents
Quoted Prices
in Activ e Significant
Markets for Other Significant
Identical Observ able U nobserv able
Assets Inputs Inputs
Inv estments by Fair Value Lev el Fair Value (Lev el 1) (Lev el 2) (Lev el 3) Debt securities:
U.S. Treasury Notes 29,376,798 $ 29,376,798 $ - $ -$ U.S. G overnment Agencies Obligations 12,002,610 - 12,002,610 - Medium -Term Corporate Notes 11,766,739 - 11,766,739 - Certificates of Deposit 4,019,210 - 4,019,210 - Municipal Bonds 2,550,316 - 2,550,316 -
Supranationals 1,237,363 - 1,237,363 -
Money Market Mutual Funds 1,528,995 - 1,528,995 - Total Investments Measured at Fair Value 62,482,031 29,376,798$ 33,105,233$ -$ Inv estments Measure at Net Asset Value Per Share:
CAMP 38,121,442
Inv estments Measured at Amortized Cost:
Money Market Mutual Funds 11,428
Inv estments Not Subject to Fair Value Hierarchy:
LAIF 224,511,054
CalTrust 23,167,557
Cash deposits with banks and on hand 5,365,377
Total Investm ents 353,658,889$
62
CITY OF CONCORD JUNE 30, 2021
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
Retirement System Pension Trust Fund
Quoted Prices
in Activ e Significant
Markets for Other Significant
Identical Observ able U nobserv able
As s ets Inputs Inputs
Inv estments b y Fair Value Lev el Fair Value (Lev el 1) (Lev el 2) (Lev el 3) Debt securities:
U.S. Treasury Notes 5,458,368$ 5,458,368$ -$ -$ U.S. G overnm ent Agencies Obligations 3,734,572 - 3,734,572 - Medium -Term Corporate Notes 6,212,449 - 6,212,449 - Municipal Bonds 267,222 - 267,222 -
Foreign Bonds 143,557 - 143,557 -
Equity Securities:
Mutual Funds 15,305,194 15,305,194 - - Total Investments Measured at Fair Value 31,121,362 20,763,562$ 10,357,800$ -$ Investments Not Subject to Fair Value Hierarchy:
Pooled Cash and Accrued Incom e 1,771,458
Total Investments 32,892,820$
63
CITY OF CONCORD JUNE 30, 2021
NOTE 4 – INTERFUND TRANSACTIONS
Internal Balances
Internal balances represent the net interfund receivables and payable remaining after the elimination of all such balances within governmental and business–type activities.
Current Interfund Balances
Current Interfund Balances arise out of short term ca sh flow needs and are due from one fund to another, all of which are expected to be repaid in the normal course of business. At June 30, 2021, the interfund balances are:
Due To Other Funds Due from Other Funds Am ount
2021 COP Projects Capital Projects Fund General Fund 1,135$ Post-Retirement Healthcare Benefit
Internal Service Fund G eneral Fund 3,926,193
3,927,328$
Long-Term Interfund Advances
At June 30, 2021, the funds below had made the following advances:
Amount of
Fund Receiving Advance Fund Making Advance Advance
General Fund Concord Housing Special Revenue Fund 2,188,875 $ (a) Sewer Enterprise Fund 1,708,804 (a)
Sewer Enterprise Fund 401,923 (b)
Workers' Compensation Internal Service Fund 1,461,538 (c) General Projects
Capital Projects Fund General Fund 10,930,983 (d) Workers' Compensation Internal Service Fund 3,150,000 (e) Non-Major Enterprise Fund:
Golf Course Enterprise Fund General Fund 773,648 (f) 20,615,771$
(a) This General Fund advance was made during fiscal year 20 09-2010 to fund the retirement of $8.2 million of the 1995 Lease Revenue Bonds. The advance bears interest at the LAIF rate plus 0.5 percent to be paid on a quarterly basis. As a result of this nonrecurring long-term advance, the City is no longer obligated to pay 8.24 percent interest on the retired bonds. The General Fund began making repayments in fiscal year 2014-2015, with a final payment expected in fiscal year 2030 and will pay approximately $1.9 million in interest over the life of the repayment. (b) This General Fund advance was made to fund start-up costs for the Pavilion Expansion. The General Fund began making repayments in fiscal year 2014-2015. The advance bears no interest. (c) This General Fund advance was made during the fiscal year 2009-2010 to fund the retirement of $8.2 million of the 1995 Lease Revenue Bonds and bears no interest. The General Fund began making repayment in fiscal year 2014-2015.
64
CITY OF CONCORD JUNE 30, 2021
NOTE 4 – INTERFUND TRANSACTIONS (CONTINUED)
(d) The General Projects Fund loan was to the Local Reuse Auth ority for the Naval Weapons Station project. The advance bears interest at the LAIF ra te and will be repaid with sale proceeds of undeveloped land.
(e) The General Projects Fund advance was made during fiscal year 2017-2018 to the Local Reuse Authority (LRA) to support reuse pl anning efforts for the former Na val Weapons Station. This loan will be repaid, with interest, from future proceeds as properties are sold. (f) The Golf Enterprise Fund advance was made during fiscal years 2007 and 2013 and will be factored into the next 10-year budget plan and repaid as business improves within the regional golf market.
Transfers between funds
With Council approval, resources may be transferred from one City fund to another without a requirement for repayment. Transfers between funds during the fiscal year ended June 30, 2021, were as follows:
Amount
Fund Receiving Transfers Fund Making Transfers Purpose Transferred Major Funds:
General Fund General Projects To Fund Capital Projects 44,392$ General Fund General Projects To Fund Capital Projects 15,108 General Fund General Projects To Fund Capital Projects 142 General Fund General Projects To Fund Capital Projects 111 General Fund Special Revenue - Storm Water Management Fund To Fund Operating Costs 163,930 General Fund Debt Service - ABAG Return Funding to Source 65,243 General Fund Debt Service - Performing Arts Revenue Bonds Return Funding to Source 95,909 General Projects Fund General Fund To Fund Capital Projects 297,168 General Projects Fund General Fund To Fund Capital Projects 1,590,000 General Projects Fund General Fund To Fund Capital Projects 766 Special Revenue Fund:
Storm Water Management Fund General Fund To Fund Street Sweeping 478,213 Debt Service Funds:
Energy Lease Fund General Fund To Fund Debt Service 284,488 Energy Lease Fund Special Revenue - Maintenance Districts Fund To Fund Debt Service 333,257 Energy Lease Fund Internal Service Fund - Building Maintenance Fund To Fund Debt Service 195,077 Infrastructure Lease Agreement Fund General Fund To Fund Debt Service 2,497,991 Capital Projects Funds:
Special Developers Fund General Projects Return Funding to Source 46,971 Intergovernmental Capital Projects Capital Projects - Special Developers Fund To Fund Capital Projects 207 Proprietary Funds:
Sewer Fund General Projects To Fund Capital Projects 5,575 6,114,548$
65
CITY OF CONCORD JUNE 30, 2021
NOTE 5 – LOANS AND NOTES RECEIVABLE
The City and former Redevelopment Agency (the Ag ency) engaged in programs designed to encourage business enterprises or construction or improvement in low-to-moderate income housing or other projects.
Under these programs, grants or loans are provided under favorable term s to businesses, home-owners or developers who agree to spend these funds in accordance with the City 's terms. Although these loans and notes are expected to be repaid in full, their bala nce has been offset by deferred revenue. With the dissolution of the Redevelopment Ag ency, the City agreed to become the Successor Agency and oversee the dissolution. The Successor Agency subsequently assigned the City assets of the Low and Moderate Income Housing Fund to the City, in cluding the loans and notes. They are not expected to be collected during fiscal year 2021. These loans and notes were comprised of the following at June 30, 2021:
Concord Housing Fund
Downtown Revitalization and
Low and Moderate Incom e Housing Rehabilitation 9,334,931 $ Concord Plaza Tower 4,171,235
Virginia Lane 4,795,858
Lakeside Apartments 2,391,500
Camara Circle 2,650,000
Total Concord Housing Fund 23,343,524
Non-major Gov ernmental Funds
Housing Conservation 862,189
Housing Assistance 50,000
Virginia Lane 473,193
Lakeside Apartments 325,445
Total Non-m ajor G overnm ental Funds 1,710,827
Total Loans and Notes Receivable 25,054,351 $
Downtown Revitalization and Low and Moderate Income Housing Rehabilitation Low and no interest loans were made by the form er Redevelopment Agency to provide businesses assistance for rehabilitating buildings in the downto wn area and to businesses or individuals for the rehabilitation of housing within the City of Concord owned and/or occupied by pers ons of low and moderate
income.
66
CITY OF CONCORD JUNE 30, 2021
NOTE 5 – LOANS AND NOTES RECEIVABLE (CONTINUED)
Successor Agency Loan
Beginning in 1986, the former Rede velopment Agency General Capital Pr ojects Fund had been required by the State to set aside 20 percent of property tax increments for low and moderate income housing.
However, under a transition rule, the Agency's General Capital Projects Fund has been allowed to use these set-asides for current capital projects as long as it had a written plan for repaying these amounts to the Concord Housing Special Revenue Fund. Pursuant to Health and Safety Code Section 33334.6, the former Redevelopment Agency was permitted to set aside less than 20 percent of the tax increment that it received to the extent that it spent the ta x increment revenue for the Agency’s debt incurred prior to 1986 or for Agency projects approved prior to 1986, as long as it had a written plan for repaying these amounts to the Concord Housing Special Revenue Fund.
With the dissolution of the former Redevelopment Agency effective February 1, 2012, the Successor Agency assumed the obligation to repay the above advance and has recorded a loan payable to the Concord Housing Fund. The loan did not bear interest was fully repaid as of June 30, 2021.
Concord Plaza Tower
In 1985, the City and the Former Redevelopment Agency of the City of Concord entered into various loan agreements to effectuate the development of the Co ncord Plaza Tower, a 96 unit low/moderate income senior housing project. On July 22, 2014, council ad opted Resolution 14-60 authorizing the restructure of the loans with Concord Plaza Tower, Inc. over a 55 year period at a 3% simple interest rate, which preserved the affordability of the project for low income senior s through 2069. The restructure loan requires annual payments. The outstanding loan receivable balance as of June 30, 2021 was $4,171,235.
Virginia Lane
In June 1999, the City and the former Redevelopmen t Agency entered into a $1,984,198 loan agreement with Virginia Lane Limited Partnership for the rehabilitation of Golden Glen and Maplewood Apartments. An additional loan of $4 50,000 was made in fiscal year 2007 which brought the loan total to $2,434,198. Of the $450,000, $100 ,000 was funded by Community Development Block Grant funds and $350,000 was funded by California Housing Finance Ag ency funds. The outstand ing balance of the loan bears interest at a rate of 3 percent per annum. The repayments on the loan sha ll be made from residual receipts. On July 15, 2016, the City amended and restated the promissory note of $2,434,198 to $3,470,394.
The City also issued a new promissory note of $1,300,000 on July 15, 2016. The City expects both loans to be repaid on July 15, 2071. At June 30, 2021, the loan receivable balance was $5,269,051.
Lakeside Apartments
The City and the Agency entered into a $3,433,945 loan agreement with Lakeside Apartments, L.P. for the acquisition and rehabilitation of Lakeside apartments. An additional loan of $283 ,000 was made in fiscal year 2007 which brought the loan total to $3,716,945. Of the $283,000, $110,000 was funded by Community Development Block Grants, $93,000 was funded by Redevelopment Agency, and $80,000 was funded by California State EAGR funds. The outstanding ba lance of the loan bears interest at a rate of 1 percent per annum. The City expects the loan to be repaid on November 5, 2058. At June 30, 2021, the loan receivable balance was $2,716,945.
67
CITY OF CONCORD JUNE 30, 2021
NOTE 5 – LOANS AND NOTES RECEIVABLE (CONTINUED)
Camara Circle
In 2000, the City and the Former Re development Agency of the City of Concord entered into two loan agreements for $2,650,000 for the acquisition of eleven properties, consisting of 52 apartment units on Camara Circle. The agreement was funded through the former Redevelopment Housing Set-Aside Fund, now known as the Concord Housing Fund. The loan is to be paid in full May 2056, bearing 3% simple interest. The outstanding loan receivable at June 30, 2021 was $2,650,000.
Housing Conservation
This program involves loans made to rehabilitate housing within the City of Concord which are funded by Community Development Block Grant and former Redevelopment Agency monies. The loans bear interest ranging from 0-3 percent with due dates varying from October 2014 through the sa le or transfer of the property. At June 30, 2021, the loan receivable balance was $862,189.
Housing Assistance
This program provides housing assistance to Concor d residents through a variety of housing programs.
These loans bear no interest and principal payment is due upon sale or transfer of the property. At June 30, 2021, the loan receivable balance was $50,000.
Golf Course Equipment
In 2018, the City and East Bay Golf Center entered into a loan agreement for $24,950 for the purchase of a Paragolfer, a specialized golf cart. The agreement was funded through the Golf Course Fund. The loan bore interest at an annual rate of 2.41%. The loan was fully repaid as of June 30, 2021. 68
CITY OF CONCORD JUNE 30, 2021
NOTE 6 - CAPITAL ASSETS
Capital asset transactions and balances comprise the following at June 30, 2021:
Balance at Balance at
June 30, 2020 Additions Retirements Transfers June 30, 2021 Governmental Activities
Capital Assets Not Being Depreciated:
Land 26,379,019$ -$ -$ -$ 26,379,019$ Construction in Progress 8,649,055 914,215 - (510,490) 9,052,780 Total Capital Assets Not Being Depreciated 35,028,074 914,215 - (510,490) 35,431,799 Capital Assets Being Depreciated:
G round Im provem ents 23,669,611 - - 153,039 23,822,650 Buildings and Im provem ents 81,658,978 - - 5,980 81,664,958 Machinery and Equipm ent 24,908,837 - - - 24,908,837 Vehicles 12,588,291 102,253 (550,632) 351,471 12,491,383 Streets 480,609,073 5,529,484 - - 486,138,557 Sidewalks 61,426,799 151,118 - - 61,577,917 Storm Drains/Catch Basins 443,639,096 - - - 443,639,096 Street Lights 5,804,240 - - - 5,804,240 Traffic Signals 31,368,054 248,945 - - 31,616,999 Tota
l Capital Assets Being Depreciated 1,165,672,979 6,031,800 (550,632) 510,490 1,171,664,637 Less Accumulated Depreciation For:
G round Im provem ents (12,873,732) (552,906) - - (13,426,638) Buildings and Im provem ents (51,249,058) (2,348,711) - - (53,597,769) Machinery and Equipm ent (17,910,193) (1,900,841) - - (19,811,034) Vehicles (11,203,520) (1,030,523) 550,632 - (11,683,411) Streets (343,370,055) (16,385,310) - - (359,755,365) Sidewalks (29,401,162) (1,228,687) - - (30,629,849) Storm Drains/Catch Basins (127,213,674) (4,436,391) - - (131,650,065) Street Lights (1,910,941) (193,474) - - (2,104,415) Traffic Signals (24,446,970) (1,046,953) - - (25,493,923) Total Accumulated Depreciation (619,579,305) (29,123,796) 550,632 - (648,152,469) G overnm ental Activities Capital Assets, Net 581,121,748$ (22,177,781)$ -$ -$ 558,943,967$ Balance at Balance at
June 30, 2020 Additions Retirem ents Transfers June 30, 2021 Business-Type Activities
Capital Assets Not Being Depreciated:
Land 395,182 $ -$ -$ -$ 395,182$
Construction in Progress 13,875,458 3,579,235 - (291,155) 17,163,538 Total Capital Assets Not Being Depreciated 14,270,640 3,579,235 - (291,155) 17,558,720 Capital Assets Being Depreciated:
Buildings and Im provem ents 8,708,986 - - - 8,708,986 Machinery and Equipment 407,207 49,112 - - 456,319 Sewer Lines 219,481,280 - - 291,155 219,772,435 Total Capital Assets Being Depreciated 228,597,473 49,112 - 291,155 228,937,740 Less Accumulated Depreciation For:
Buildings and Im provem ents (6,867,503) (146,270) - - (7,013,773) Machinery and Equipment (302,359) (18,340) - - (320,699) Sewer Lines (171,570,478) (4,380,831) - - (175,951,309) Total Accumulated Depreciation (178,740,340) (4,545,441) - - (183,285,781) Business-Type Activities Capital Assets, Net 64,127,773$ (917,094)$ -$ -$ 63,210, 679$ 69
CITY OF CONCORD JUNE 30, 2021
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Depreciation Allocation – Governmental Activities
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program was as follows:
Gov ernmental Activ ities
G eneral G overnm ent 23,320,053 $
Public Works 523,667
Parks and Recreation Services 1,003,037
Internal Service Funds 4,277,038
Total 29,123,796$
Business-Type Activities
Sewer 4,401,489$
Golf Course 143,952
Total 4,545,441$
NOTE 7 – LONG-TERM DEBT
Description and Activity
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.
The City's governmental activities long-term debt is recorded only in the government-wide financial statements. This debt will be repaid only out of governmental funds but is not accounted for in these funds because this debt does not require an appropriation or expenditure in this accounting period.
In governmental fund types, debt discounts and issu ance costs are recognized in the current period.
Debt discounts and issuance costs incurred by proprieta ry fund types are deferred and amortized over the term of the debt using the bonds-outstanding method, which approximates the effective interest method.
The City's debt issues and compen sated absence transactions are su mmarized on the next page and discussed in detail thereafter.
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CITY OF CONCORD JUNE 30, 2021
NOTE 7 – LONG-TERM DEBT (CONTINUED)
Current Year Transactions and Balances
Repaym ent Current
Source June 30, 2020 Additions Retirem ents June 30, 2021 Portion Gove r nme ntal Ac ti vi ti e s De bt:
2021 Certificates of Participation,
2.00-4.00% due 04/01/41 (a) - $ 109,480,000 $ -$ 109,480,000 $ 4,205,000$ Plus prem ium on bonds - 15,287,187 - 15,287,187 -
Direct Borrow ing:
Revenue Bonds:
1995 Perform ing Arts Lease Revenue Bonds,
6.33-8.24% due 08/01/20 (b) 270,000 - 270,000 - -
Direct Placement:
Lease Rev enue Financing Agreement
1.91% due 3/01/25 (c) 11,850,000 - 11,850,000 - -
Lease Purchase Agreement
2.78% due 12/01/26 (d) 5,300,000 - 670,000 4,630,000 720,000 Capital Lease:
Motorola Lease Agreement due 11/15/2026 (e) 2,503,678 - 329,570 2,174,108 338,519 Subtotal 19,923,678 124,767,187 13,119,570 131,571,295 5,263,519 Compensated Absences (c) 5,559,305 3,276,881 3,218,565 5,617,621 2,545,228 Total Governmental Activity Debt 25,482,983$ 128,044,068$ 16,338,135$ 137,188,916$ 7,808,747$ Business-type Activities Debt:
2012 - Wastewater Revenue Refunding Bonds,
1.50-4.00% due 02/01/29 (f) 5,910,000$ -$ 595,000$ 5,315,000$ 610,000$ Plus prem ium on refunding bonds 24,324 - 24,324 - - 2018 - Wastewater Revenue Refunding Bonds,
1.25-3.24% due 2/01/32 (f) 7,025,000 - 450,000 6,575,000 465,000 Plus prem ium on refunding bonds 840,188 - 70,016 770,172 - Subtotal 13,799,512 - 1,139,340 12,660,172 1,075,000 Compensated Absences (c) 208,204 65,299 130,277 143,226 50,238 T otal Business-T yp e Activ ity Deb t 14,007,716$ 65,299$ 1,269,617$ 12,803,398$ 1,125,238$ Repayments on the above debt are made from the following sources:
(a) Lease revenue received from the City’s General Fund revenues. (b) Lease revenues received by Live Nation and from general and operating revenues. (c) General Fund revenues.
(d) The City and the Public Property Financing Corpor ation entered into a direct borrowing Refunding Lease Agreement in the amount of $6,820,000 at the interest rate of 2.78 percent. The proceeds from the Agreement were used to retire the 2011 Equipment Lease/Purchase Agreement. (e) Operating revenues available for lease payment in the Information Technology Replacement Internal Service Funds.
(f) Operating revenues received by the Sewer Enterprise Fund. 71
CITY OF CONCORD JUNE 30, 2021
NOTE 7 – LONG-TERM DEBT (CONTINUED)
Debt Service Requirements
Debt service and capitalized lease requirements are shown below for all long-term debt:
For the Y ear
Ending June 30, Principal Interest Principal Interest Principal Interest 2022 4,205,000 $ 3,290,993 $ 1,058,519 $ 182,891 $ 5,263,519 $ 3,473,884 $ 2023 3,870,000 3,629,100 1,117,712 153,335 4,987,712 3,782,435 2024 4,025,000 3,474,300 1,182,155 122,138 5,207,155 3,596,438 2025 4,185,000 3,313,300 1,246,855 89,087 5,431,855 3,402,387 2026 4,350,000 3,145,900 1,321,817 54,243 5,671,817 3,200,143 2027-2031 24,510,000 12,975,700 877,050 17,322 25,387,050 12,993,022 2032-2036 29,695,000 7,789,700 - - 29,695,000 7,789,700 2037 -2041 34,640,000 2,847,519 - - 34,640,000 2,847,519 Total Requirem ents 109,480,000$ 40,466,512$ 6,804,108$ 619,016$ 116,284,108$ 41,085,528$ Plus unamortized premium 15,287,187 15,287,187
Total 124,767,187$ 131,571,295$
Total
G overnm ental Activities
Certificates of Participation Notes and Leases from Placement For the Year
Ending June 30, Principal Interest
2022 1,075,000$ 446,281$
2023 1,110,000 409,306
2024 1,145,000 369,307
2025 1,195,000 327,137
2026 1,235,000 282,126
2027 - 2031 5,385,000 689,450
2032 745,000 22,350
Total Requirements 11,890,000 2,545,957
Plus unam ortized prem ium 770,172 -
Total 12,660,172$ $2,545,957
B usi ness-Type Acti vi ti es
The City's bond indentures contain significant limitations and restrict ions regarding annual debt service requirements, maintenance of and flow of monies through various restricted accounts and minimum revenue bond coverage. City management believes the City is in compliance with all such indenture requirements.
Revenue Bonds
On August 1, 1995, the City of Concord Joint Powers Financing Authority issued Lease Revenue Bonds in the principal amount of $18,700,000, bearing interest at rates ranging from 6.33 percent to 8.24 percent due August 1, 2020. The Bonds are collateralized by revenue received from the City by the Authority under the Concord Pavilion lease agreement and by the Authority's interest in th e site and facilities lease. Proceeds from the Bonds were used to repay the Concord Performing Arts Center Authority's 1973 Revenue Bonds, due in 1999, and partially finance the renovation and expansion of Concord Pavilion which is leased by the City from the Authority.
72
CITY OF CONCORD JUNE 30, 2021
NOTE 7 – LONG-TERM DEBT (CONTINUED)
Revenue Bonds (Continued)
On September 21, 2009, the City issued a tender offer for the 1995 Performing Arts Lease Revenue Bonds for up to $8.5 million. As a result, the City purchased $8.235 million of the bonds at an 8 percent premium and made a payment to retire that portion of the bonds. As a result of this transaction, the City has lowered its interest liability from 8.24 pe rcent to bondholders to LAIF plus 0.5 percent interest to the Concord Housing Fund and the Sewer Enterprise Fund of the City. In the event of default, the outstanding balance of principal and interest due on the bonds shall be due and payable immediately. As of June 30, 2021, the principal debt outstanding on the lease was fully repaid.
On September 18, 2012, the City issued Wastewater Revenue Refunding Bonds, Series 2012 in the original principal amount of $10,080,000 at interest rates that range from 1.50 percent to 4.00 percent to provide for a refunding of the City's outstanding 2004 Certificat es of Participation Wastewater System Improvement Bonds. Principal payments are due annually on February 1, with interest payments payable semi-annually on August 1 and February 1 through February 1, 2 029. Repayment of these bond s is from a pledge of revenue from the Sewer Enterprise Fund. As of June 30, 2021, the principal balance outstanding was $5,315,000.
On February 27, 2018, the City issued Wastewater Revenue Refunding Bonds, Series 2018 in the original principal amount of $7,920,000 at interest rates that range from 2.00 percent to 5.00 percent to provide for a refunding of the City's outstanding 2007 Certificat es of Participation Wastewater System Improvement Bonds. Principal payments are paid annually on February 1. Interest is paid semi-annually on August 1 and February 1, through 2032. Repayment of these bonds is from a pledge of revenue from the Sewer Enterprise Fund. As of June 30, 2021, the principal balance outstanding was $6,575,000.
In the event of default, on the 2012 and 2018 Bonds, upon notice in wr iting to the City, the principal and accrued interest of all bonds outstanding will be due and payable immediately.
The City has pledged future wastewater customer reve nues, net of specified operating expenses, to repay the 2012 and 2018 Bonds through 2032. The Sewer Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $14,435,957. The Municipal Sewer Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $1,521,181 and $9,442,335, respectively.
Certificates of Participation
On April 28, 2021, the City through the Public Property Financing Corporation of California (Corporation) issued the 2021 Capital Improvement Project Certificates of Participation in the original principal amount of $109,480,000 at interest rates that range from 2.00 percent to 4.00 percent to finance the cost of various capital projects and to prepay the 2015 Lease Revenue Financing Agreement. The Bonds are collateralized by revenue received from the City by the Corporation under a lease ag reement and by the Corporation’s interest in the Concord Pavilion and the City’s Police Station through a site and facilities lease. Principal payments are paid annually on Apr il 1. Interest is paid semi-annua lly on October 1 and April 1, through 2041. Repayment of these bonds is from a pledge of lease payments from the City’s General Fund. As of June 30, 2021, the principal balance outstanding was $109,480,000.
In the event of default, the Corporation can use any and all remedies available, however there is no right to accelerate the lease payments or to declare any lease payments immediately due and payable. The Cit y shall continue to remain liable for the payment of the lease payments and any damages for breach of the lease agreement and the performance of all conditions contained in the lease agreement. 73
CITY OF CONCORD JUNE 30, 2021
NOTE 7 – LONG-TERM DEBT (CONTINUED)
Lease Revenue Financing Agreement
On March 1, 2015, the City entered into a direct placement lease financing ag reement with the Public Property Financing Corporation of California (Corpora tion) and assigned to the Bank of the West for the original principal amount of $22,635,0 00 at an interest rates of 1.91 percent to provide for street and infrastructure improvements in the City. Principal and interest payments are due annually on March 1 and September 1 through March 1, 2025. Repayment of these bonds is from a pledge of revenue from lease revenue. As of June 30, 2021, the principal debt outstanding was fully repaid with the issuance of the 2021 Certificates of Participation Bonds as discussed above.
Lease Purchase Agreement
On February 21, 2018, the City a nd the Public Property Financing Co rporation entered into a direct placement Refunding Lease Agreement in the amount of $6,820,000 at the interest rate of 2.78%. The proceeds from the Agreement were used to retire the 2011 Equipment Lease/Purchase Agreement. Principal and interest payments are paid semi- annually on Ju ne 1 and December 1, through 2026. As of June 30, 2021, the principal balance outstanding is $4,630,000.
In the event of default the Corporat ion may exercise any and all remedi es available under the law or the agreement. Those remedies include: enforcement of payments without termination, termination of the lease, proceedings at law or in equity, remedies under the site and facility lease.
Capital Lease
On October 16, 2019, the City entered into a direct placement lease agreement in the amount of $2,503,678 with Motorola Solutions, Inc., for the purchase of radio equipment. Th e City agreed to pay the lease in annual payments of $397,561 for seven years. Since the lease is in essence a financing agreement, the cost of the equipment and the amount of th e lease has been included in the Ci ty's financial statements. As of June 30, 2021, the principal debt outstanding on the lease was $2,174,108.
In the event of default, the lessor may exercise any of the following options: by written notice declare all amounts due and payable under the lease, discontinue the use of equipment and removal and return of the equipment to the lessor.
74
CITY OF CONCORD JUNE 30, 2021
NOTE 8 – FUND BALANCES
Detailed classifications of the City's Governmental Fund Balances, as of June 30, 2021, are below:
Major Funds
Special Revenue Funds Capital Projects Funds Other
General Concord General 2021 COP Governmental
Fund Balance Classifications Fund Housing ARPA Projects Projects Funds Total Nonspe ndable :
Items not in spendable form:
Advance 11,704,631$ - $ -$ -$ -$ -$ 11,704,631 $ Inventories 99,674 - - - - - 99,674
Total Nonspendable
Fund Balances 11,804,305 - - - - - 11,804,305 Restricted for:
Debt Service - - - - - 19,826 19,826 Capital Projects - - - - 114,332,630 9,402,105 123,734,735 Housing - 34,254,478 - - 2,747,273 37,001,751 Health Care District - - - - - 267,108 267,108 Transportation - - - - - 7,481,216 7,481,216 Development Services - - - - - 18,865,587 18,865,587 Asset Forfeiture - - - - - 345,884 345,884 Tree Maintenance - - - - - 47,725 47,725 Public Safety 838,321 - - - - - 838,321 Other 33,690 - 23,437 - - - 57,127
Total Restricted Fund Balances 872,011 34,254,478 23,437 - 114,332,630 39,176,724 188,659,280 - As
signed to:
Capital Projects - - - - 7,556,051 7,556,051 Other 3,304,968 - - - - - 3,304,968 Total Assigned Fund Balances 3,304,968 - - - - 7,556,051 10,861,019 Unassigned:
General Fund 42,634,838 - - - - - 42,634,838 Other Governmental Fund Deficit Residuals - - - (51,912) - (1,081) (52,993)
Total Unassigned Fund Balances 42,634,838 - - (51,912) - (1,081) 42,581,845
Total Fund Balances 58,616,122$ 34,254,478 $ 23,437 $ (51,912) $ 114,332,630$ 46,731,694 $ 253,906,449$ NOTE 9 – STEWA
RDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2021 exceeded the appropriations in the following funds:
Non-Major Governmental Funds
Expenditures in Excess of Appropriations Budget Actual Variance Health Care District Special Revenue Fund 353,215 $ 378,092 $ (24,877)$ Tree Special Revenue Fund 3,258 (3,258)
Infrastructure Lease Agreement Debt Service Fund 2,498,531 12,107,861 (9,609,330) With the exception of t
he Infrastructure Lease Agreement Debt Service fund, the excess expenditures were covered by revenue received during the fiscal year. The expenditur es in excess of appropriations in the Infrastructure Lease Agreement Debt Service Fund was due to the issuance of the 2021 Certificates of Participation Bonds, a portion of which was used to fully repay the infrastructure lease agreement. 75
CITY OF CONCORD JUNE 30, 2021
NOTE 9 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Fund Equity
As of June 30, 2021, the General Projects Capital Projects fund and the Assessment Districts Debt Service Fund had deficit fund balances of $51,912 and $1,081, respectively, whic h are expected to be eliminated by future revenues. The Successor Agency Private Purpose Trust Fund had deficit net position of $9,508,988 which is expected to continue until the debt service obligations are satisfied from future property tax allocations. In addition, the Risk Management/L iability Internal Service Fund and the Compensated Absences Internal Service Fund had deficit net positions of $394,737 an d $5,311,038, respectively which are expected to be eliminated by future cost reimbursements by City departments.
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN
Plan Description and Employees Covered
The City of Concord Retirement System Plan (the pl an) is a closed plan and is a single employer defined benefit pension plan covering all full-time employees of the City retired prior to June 28, 1999 or who left the employment of the City eligible for a pension. Participants are divided into two primary groups for coverage: general employees and police employees. Membership in the Retirement System comprised the following at June 30, 2021:
CCRS
Inactives currently receiving benefits 215
Inactives entitled to but not yet receiving benefits 20 Active em ployees 0
Total 235
On June 21, 1993, the City converted to the Public Employees Retirement System (PERS) as described in
Note 12.
Eligibility, administration, actuarial interest rates an d certain other tasks are the responsibility of the Retirement Board. The Retirement Board consists of eight members, selected as follows: Two members appointed by City Manager, Director of Human Reso urces, Director of Finance and one representative from each of the four employee organizations. The Plan does not issue separate financial statements.
During the year ended June 30, 1999, $56,300,000 was transferred from the Plan to PERS to purchase prior years' service credit for its active vested employees.
Benefits Provided
The plan provides retirement and death benefits fo r general and police employees as well as disability benefits for police employees. General employees are el igible for retirement benefits at age 55, provided the employee has completed 20 years of service or has accumulated cont ributions in excess of $500 and was employed before June 30, 1990 or has completed 5 years of service and was terminated after July 1, 1990. Sworn police employees are eligible for retirement at age 50, provided the employee has completed 20 years of service or has accumulated contributions exceeding $500. Retirement benefits are determined based on the employee's length of service, highest on e-year compensation upon retirement, and age at retirement.
76
CITY OF CONCORD JUNE 30, 2021
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Contributions
Prior to June 21, 1993, contributions were made to the Plan by both the City and the employee participants.
City contributions were actuarially determined annually to provide the Pl an with assets sufficient to pay basic benefits not provided for by employees' contributions. All general employees were required to contribute 6 percent, and all police employees were requ ired to contribute 8 percent of their base salary (decreased by a Social Security allowance) to the Plan. The City is funding the Unfunded Actuarial Accrued Liability with annual contributions from the General Fund.
The City contributed 4 percent to 8 percent of this percentage on behalf of general employees, depending upon job classification, and all of the contribution for sworn police employees.
The City maintains a program of death and disability benefits financed wholly by employer premium payments under a group term life insurance policy and group long-term disability insurance policy.
The pension liability was determined as part of an actuarial valuation at June 30, 2020. Significant actuarial assumptions used in determining the pension liability include: (a) a rate of return on the investment of present and future assets of 5.50 percent per year co mpounded annually, (b) inflation rate of 2.50 percent (c) annual post- employment increases at 5.5 percent per year. Required contributions are determined using the entry age normal actuarial cost method and are made on a level dollar basis. The plan is amortized using the CalPERS Mortality Table on a 15 year closed basis. The contribution amounts are established and may be amended by the City Council.
Rate of Return
For the year ended June 30, 2021, the annual money-weig hted rate of return on pension plan investments, net of pension plan investment ex pense, was 17.77%. The money-wei ghted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 77
CITY OF CONCORD JUNE 30, 2021
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Net Pension Liability
The City’s net pension liability was measured as of Ju ne 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 and rolled forward to June 30, 2021.
Actuarial Assumptions - The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:
CCRS
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 5.5% at June 30, 2021 and 6.0% at June 30, 2020 Investment Rate of Return 5.5% at June 30, 2021 and 6.0% at June 30, 2020 (1) General Inflation 2.5% annually
COLA 2% per annum
Salary Scale Not applicable
Mortality Improvement Mortality projected fully generational with Scale MP-2020 Retirement Age 100% at 59 for general and 54 for police (1) Net of pension plan investment expenses, including inflation Mortality rates were based on the CalPERS 1997-2015 Experience Study fully generational improvement projected based on Scale MP-2020.
The long-term expected rate of return on plan inve stments was determined using a building block method which best estimate ranges of expected future real ra tes of return (expected return, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
The table below reflects geometric average real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These geometric rates of return are net of administrative expenses.
Asset C lass
Target
Allocation
Ex pected Real
Rate of Return
Global Equity 48.25% 4.56%
Global Fixed Income 45.00% 0.78%
REITs 1.75% 4.56%
Cash 5.00% -0.50%
Total 100%
Assum ed Long-Term Rate of Inflation 2.50%
Ex pected Long-Term Net Rate of Return, Rounded 5.50%
78
CITY OF CONCORD JUNE 30, 2021
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Discount Rate – The discount rate used to measure the total pension liability was 5.50 percent for the plan.
The project of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City ’s contributions will be made at rates equal to the difference between actuarially determined contri bution rates and the employee rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to a ll periods of projected benefit payments to determine the total pension liability.
Changes in the Net Pension Liability
The changes in the net pension liability for the plan are as follows:
CCRS Plan
Increase (Decrease)
Total Pens ion
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 53,995,067$ 30,512,336 $ 23,482,731 $ Changes in the year:
Interest on the total pension liability 3,081,001 - 3,081,001 Differences between actual and ex pected ex perience (131,677) - (131,677) Changes i n assum ptions 1,188,841 - 1,188,841 Contribution - em ployer - 2,715,000 (2,715,000)
Contribution - em ployees - - -
Net investment income - 5,099,067 (5,099,067)
Adm inistrative ex penses - (143,729) 143,729
Benefit paym ents, including refunds of em ployee contributions (5,290,086) (5,290,086) - Net changes (1,151,921) 2,380,252 (3,532,173)
Balance at June 30, 2021 52,843,146$ 32,892,588$ 19,950,558$ Plan net position as a percentage of the total pension liability 62.2% Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City, calculated using th e discount rate of 5.50 percent as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage-point lower or 1- percentage-point higher than the current rate.
CCRS Plan
1% Decrease 4.50%
Net Pension Liability 24,284,032$
Current Dis count Rate 5.50%
Net Pension Liability 19,950,558$
1% Increase 6.50%
Net Pension Liability 16,182,481$
79
CITY OF CONCORD JUNE 30, 2021
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Pension expenses and deferred outflows/inflows of resources related to pensions For the fiscal year ending June 30, 2021, the City recognized pension expense of $1,836,283. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
CCRS Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Net differences between projected and actual earnings
on plan investm ents - $ (2,396,560)$
Total -$ (2,396,560)$
Amounts reported as deferred outflows and deferred in flows of resources related to pensions will be recognized in future pension expense as follows:
CCRS Plan
Year Ended Annual
June 30 Amortization
2022 (545,020)$
2023 (619,856)
2024 (569,325)
2025 (662,359)
Total (2,396,560)$
NOTE 11 – CITY OF CONCORD EARLY RETIREMENT PLANS
Plan Description and Provisions
On September 1, 2009, the City adopted a sole empl
oyer defined benefit plan to provide supplemental
retirement benefit payments to elig ible employees in addition to the benefit payments the employees will receive from the California Public Employees Retirement System (CalPERS).
The City joined Public Agency Retirement Servic es (PARS) and participates in two plans, the Supplementary Retirement Plan and the Excess Benefit Plan. The Excess Benefit Plan consists of the highly compensated members and the Supplementary Plan includes all other eligible employees. To be eligible to participate in the plan the employee must have been classified as a Miscellaneous or Safety employee of the City as of June 1, 2009, be at least 50 years of age as of September 1, 2009, have completed as least 5 years of employment with the City as of September 1, 2009, have terminated employment with the City on or before August 31, 2009, have a pplied for benefits under this plan and must have concurrently retired under CalPERS on or before September 1, 2009 and remains in retired status under CalPERS. A member is considered fully vested upon meeting the eligibilit y requirements listed above. Benefits payments are based on 7 percent of an employee's annual base pay as of June 1, 2009.
As of June 30, 2021, there were 17 members participating in these plans. 80
CITY OF CONCORD JUNE 30, 2021
NOTE 11 – CITY OF CONCORD EARLY RETIREMENT PLANS (CONTINUED) Contribution Requirements
The City established a plan within the PARS Trust. The cost of funding the Plan including management fees is roughly equivalent to one year of an employ ee's salary for each participating employee. The City funded the Plan over a period of 5 years, choosing to buy annuities to fund the Plan, and self-fund. The City used general fund salary savings to fund the Plan. The Supplementar y Retirement Plan was fully funded in September 2013. The Excess Benefit Plan has a proj ected actuarial liability in the amount of $251,621 at June 30, 2021. This estimate has not been accrued as a liability in the City’s Statement of Net Position.
NOTE 12 – PENSION PLAN
CalPERS Safety and Miscellaneous Employees’ Pension Plans Plan Description
On June 21, 1993, the City joined the California Public Employees Retirement System (CalPERS), an agent multiple-employer public employee retirement syst em which acts as a common investment and administrative agent for participating member employers.
The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple- employer defined benefit public employee retiremen t system that acts as a common investment and administrative agent for various local and state governm ental agencies within the State of California. The City’s Safety and Miscellaneous Plans are part of the Public Agency portion of CalPERS. The benefits for the public agencies are established by contract with CalPERS in accordance with the provisions of the Public Employees Retirement Law. CalPERS issues a publicly available financial report that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at:
https://www.calpers.ca.gov/page/employers/actuarial-services/employer-contributions/public-agency- actuarial-valuation-reports
The City joined PERS on a prospective basis and participates in two plans, the Safety (Police) Employees Plan and the Miscellaneous Employees Plan. All qu alified permanent and probationary employees are eligible to participate. CalPERS provides retirem ent and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. The City's employees participate in the separate Safety (police) and Miscellaneous (all other) Employee Plans.
Benefit provisions under both Plans are established by State statute and City resolution. Benefits are based on years of credited service, equal to one year of full time employment. Fund ing contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS; the City must contribute these amounts.
81
CITY OF CONCORD JUNE 30, 2021
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) Benefits Provided
The benefits in effect as of June 30, 2021, are summarized as follows:
Miscellaneous
Hire date
C l assi c Pri or to
November 29, 2010
Classic On or after
November 29, 2010
and Prior to
January 1, 2013
PEPRA On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit paym ents m onthly for life m onthly for life m onthly for life Retirement age 50 - 55 50 - 55 52 - 62
2.0% - 2.50% 1.426% - 2.418% 1.0% - 2.5%
Required em ployee contribution rates 8.00% 7.00% 6.75% Required employer contribution rates (1) 10.985% 10.985% 10.985% Monthly benefits, as a % of eligible com pensation
Safety
Hire date
Classic Prior to
January 1, 2013
PEPRA On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50 - 57
3.0% 2.0% - 2.7%
Required em ployee contribution rates 9.0% 11.75%
Required employer contribution rates (1) 21.812% 21.812% (1) Rates represented blended contribution
rates, from 6.30.19 Valuation
Monthly benefits, as a % of eligible com pensation
Beginning in fiscal year 2016, Ca lPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans for the year ended June 30, 2021 were $6,549,761 and $6,943,591 respectively, which were made under the monthly payment option.
Employees Covered
The following employees were covered by the benefit terms for each Plan as of the most recent actuarial valuation date of June 30, 2019 and measurement date of June 30, 2020:
Miscellaneous Safety
Inactive em ployees or beneficiaries currently receiving benefits 446 176 Inactive employees entitled to but not yet receiving benefits 411 62 Active employees 250 149
Total 1,107 387
82
CITY OF CONCORD JUNE 30, 2021
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) Net Pension Liability
The City’s net pension liability for each plan is meas ured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods us ed to determine the net pension liability is shown below.
Actuarial Assumptions – The total pension liabilities in the Ju ne 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
All Plans
V aluation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Ass umptions:
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investm ent Rate of Return 7.15% (2)
Mortality Derived using CalPERS Mem bership
Data for all Funds (3)
Post Retirement Benefit Increase The lesser of contract COLA or 2.5% until Purchasing Power Protection
Allowance Floor on Purchasing
Power applies, 2.50% thereafter
(1) Depending on age, service and type of em ploym ent
(2) Net of pension plan investm ent ex penses, including inflation (3) The m ortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Ex perience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected m ortality im provem ent using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Ex perience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
83
CITY OF CONCORD JUNE 30, 2021
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website at www.calpers.ca.gov.
Discount Rate – The discount rate used to measure the total pension liability for each Plan was 7.15%. The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from empl oyers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF.
Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations as well as the expect ed pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single e quivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the long-term expected real rates of return by asset class.
Asset C l ass (a)
New
Strategic
Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+ ( c)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(a) In the CalPERS Com prehensive Annual Financial Report, Fix ed Incom e is included in G lobal Debt Securities; Liquidity is included in Short-term Investm ents; Inflation Assets are included in both G lobal Equity Securities and G lobal Debt Securities. (b) An expected inflation of 2.0% used for this period. (c) An ex pected inflation of 2.92% used for this period. 84
CITY OF CONCORD JUNE 30, 2021
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) Changes in the Net Pension Liability
The changes in the net pension liability for each Plan follows:
Mis cellaneous Plan
Increase (Decrease)
Total Pens ion
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(As s et)
Balance at June 30, 2019 237,412,583$ 154,085,961 $ 83,326,622 $ Changes in the year:
Service cost 3,795,519 - 3,795,519
Interest on the total pension liability 16,701,703 - 16,701,703 Differences between actual and expected experience 614,997 - 614,997 Changes in assum ptions - - -
Plan to plan resource m ovem ent - - -
Contribution - em ployer - 8,260,289 (8,260,289)
Contribution - em ployee - 1,648,254 (1,648,254)
Net investm ent incom e - 7,673,817 (7,673,817)
Adm inistrative ex penses - (217,223) 217,223
Benefit paym ents, including refunds of -
employee contributions (12,670,194) (12,670,194) - Other m iscellaneous incom e/(ex pense) - - -
Net changes 8,442,025 4,694,943 3,747,082 Balance at June 30, 2020 245,854,608$ 158,780,904$ 87,073,704$ Safety Plan
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2019 291,688,027$ 183,719,487$ 107,968,540$ Changes in the year:
Service cost 5,819,371 - 5,819,371
Interes t on the total pension liability 20,716,215 - 20,716,215 Differences between actual and ex pected ex perience 2,037,227 - 2,037,227 Changes in assumptions - - -
Plan to plan resource movement - - -
Contribution - em ployer - 10,238,493 (10,238,493)
Contribution - em ployee - 1,923,865 (1,923,865)
Net inves tment income - 9,090,255 (9,090,255)
Adm inistrative ex penses - (258,999) 258,999
Benefit paym ents, including refunds of
em ployee contributions (13,795,343) (13,795,343) - Other m iscellaneous incom e/(ex pense) - - - Net changes 14,777,470 7,198,271 7,579,199 Balance at June 30, 2020 306,465,497$ 190,917,758$ 115,547,739$ Total for Both Plans 552,320,105$ 349,698,662$ 202,621,443$ 85
CITY OF CONCORD JUNE 30, 2021
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each plan, calculated using the discount rate for each plan, as well as what the City’s net pension liability would be if it were calculated using a disc ount rate that is 1- percentage point lower or 1- percentage point higher than the current rate.
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pens ion Liability 117,291,418$ 158,245,104$
Current Discount Rate 7.15% 7.15%
Net Pension Liability 87,073,704$ 115,547,739$
1% Increase 8.15% 8.15%
Net Pens ion Liability 61,684,732$ 80,547,422$
Pension Plan Fiduciary Net Position – Detailed information about eac h pension plans’ fiduciary net position is available in the separately issued CalPERS financial reports.
Pension expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the fiscal year ending June 30, 2021, the City recognized pension expense of $11,888,204 for the Miscellaneous plan and $19,538,884 for the Safety plans, for total pension expense of $31,427,088. At June 30, 2021, the City reported deferred outflows of reso urces and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date 8,886,832$ - $ Differences between actual and ex pected ex perience 993,095 - C hanges i n assum pti ons - -
Net differences between projected and actual earnings on plan investm ents 1,230,152 -
Total 11,110,079$ -$
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date 10,836,764$ - $ Differences between actual and ex pected ex perience 7,515,505 (275,077) Changes in assumptions 1,947,463 (308,155) Net differences between projected and actual earnings on plan investm ents 1,735,560 -
Total 22,035,292$ (583,232)$
Combined total 33,145,371$ (583,232)$
86
CITY OF CONCORD JUNE 30, 2021
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) $8,886,832 and $10,836,764 reported as deferred outflows of resources related to pensions for the miscellaneous and safety plans respectively resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Miscellaneous Plan:
Year Ended Annual
June 30 Amortization
2022 312,858 $
2023 466,181
2024 798,424
2025 645,784
Total 2,223,247$
Safety Plan:
Year Ended Annual
June 30 Amortization
2022 4,409,258 $
2023 3,089,919
2024 2,057,391
2025 1,058,728
Total 10,615,296$
Reduction of CalPERS Discount Rate
In July 2021, CalPERS reported a preliminary 21.3% net return on in vestments for the 12-month period that ended June 30, 2021. Under the Funding Risk Mitigation Policy, approved by the CalPERS Board of Administration in 2015, the 21.3% ne
t return will trigger a reduction in the discount rate used to calculate employer and Public Employees' Pension Reform Act (PEPRA) member contributions. The Funding Risk Mitigation Policy seeks to reduce CalPERS fundi ng risk over time, in which CalPERS investment performance that significantly outperforms the discount rate will trigger adjustments to the discount rate, expected investment return, and strategic asset allo cation targets. This is the first time it has been triggered. The discount rate, or assumed rate of return, will drop to 6.8%, from its current level of 7%.
Based on these preliminary fiscal year returns, the CalPERS has announced the funded status of the overall Public Employees Retirement Fund (PERF) is an estimated 82%. This estimate is based on a 7% discount rate. Under the new 6.8% discount rate, however, CalPERS indicated the funded status of the overall PERF drops to 80%. This is because existing assets are assumed to grow at a slightly slower rate annually into the future. As intended under the Fund ing Risk Mitigation Policy, the lo wer discount rate increases the likelihood that CalPERS can reach its target over the longer term. The CalPERS Board of Administration will continue to review the discount rate through its Asset Liability Management process during the rest of the calendar year.
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CITY OF CONCORD JUNE 30, 2021
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) CalPERS' final fiscal year 2021 investment perform ance will be calculated ba sed on audited figures and will be reflected in contribution levels for contracting cities, counties, and special districts in fiscal year 2024.
Summary Information
For fiscal year 2020-2021, total pension expense for the Miscellaneous, Safety and City of Concord’s Retirement System Plans amounted to $33,263,371.
As of June 30, 2021, the City reported total net pension liability, deferred outflows of resources and deferred inflows of resources for the Miscellaneous, Safety and Concord Retirement System Plans were as follows:
Deferred Deferred
Net Pension Outflows Inflows
Plan Liability of Resources of Resources
CalPERS Plans:
Miscellaneous 87,073,704 $ 11,110,079 $ - $ Safety 115,547,739 22,035,292 (583,232) CCRS Retirement 19,950,558 - (2,396,560)
Total 222,572,001$ 33,145,371$ (2,979,792)$ Pension liabilities are liquidated by the fund that have recorded the lia bility. The long-term portion of the governmental activities pension liability are liquidated primarily by the General Fund.
NOTE 13 – OTHER POST-EMPLOYMENT HEATH CARE BENEFITS
Plan Description
Substantially all full-time City employees and their e ligible dependents are eligible for post-employment health care benefits under Agent Multiple Employer CalPERS sponsored health plans currently funded during the employees’ active service. During fiscal year 2018, the City implemented the provisions of Governmental Accounting Stan dards Board Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes uniform financial reporting standards for employers pr
oviding postemployment benefits other than pensions (OPEB).
Required disclosures are presented below. In order to fund retiree health benefits, the City established an irrevocable trust with California Employers Retiree s Benefit Trust (CERBT). CERBT is administered by CalPERS and is managed by an appointed board not unde r the control of City Coun cil. This Trust is not considered a component unit by the City and has been excluded from these financial statements. Separately issued financial statements for CERBT may be obtained from CalPERS at P.O. Box 942709, Sacramento, California 94229-2709.
By Council resolution and through agreements with its labor units, the City provides certain health care benefits for retired employees under third-party in surance plans. A summary of contribution rates is shown below:
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CITY OF CONCORD JUNE 30, 2021
NOTE 13 – OTHER POST-EMPLOYMENT HEATH CARE BENEFITS (CONTINUED) Benefits Provided
Retiree Couple Fam ily
City pays health insurance prem ium s up to $ 672 1,344$ 1,747$ Employees Covered
As of the June 30, 2020 measurement date, membership in the Plan consisted of the following:
Number of
Covered
Participants
Inactives currently receiving benefits 458
Inactives entitled to but not yet receiving benefits 52 Active em ployees 361
Total 871
Net OPEB Liability
The City’s net OPEB liability for each plan is measured as the total OP EB liability, less the OPEB plan’s fiduciary net position. The net OPEB liability of each of the plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2020. The long-term portion of the governmental activities Net OPEB Liabilities is liquidated primarily by the Post-Retirement Health Benefit Internal Service Fund.
Actuarial Assumptions – The total OPEB liability in the plan’s June 30, 2020 actuarial valuation was determined using the following actuarial assumptions:
Actuarial As s umptions
Valuation Date June 30, 2020
Measurement Date June 30, 2020
Actuarial Cos t Method Entry age Normal, Level % of pay Actuarial As s umptions :
Discount Rate 6.25% at June 30, 2020 and 6.75% and June 30, 2019 Inflation 2.75%
Payroll G rowth Aggregate Increase - 3.00%
Investment Rate of Return 6.25% at June 30, 2020 and 6.75% and June 30, 2019 Mortality CalPERS 1997-2015 Experience Study
Mortality Im provem ent
Mortality projected fully generational with Society of Actuaries Scale MP- 2020
Non-Medicare - 7.00% for 2022, decreasing to an ultimate rate 4.00% in 2076 and later years
Medicare (Non-Kaiser) - 6.10% for 2022, decreasing to an ultimate rate of
4.00% in 2076 and later years
Medical Trend
Medicare (Kaiser) - 5.00% for 2022, decreasing to an ultimate rate of 4.00% in 2076 and later years
Currently covered - 100%
Currently waived - 80%
Healthcare Participation PEHMCA Minimum Only - 60%
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CITY OF CONCORD JUNE 30, 2021
NOTE 13 – OTHER POST-EMPLOYMENT HEATH CARE BENEFITS (CONTINUED) The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These geometric rates of return are net of administrative expenses.
Ex pected Real Rate of
Asset Class Target Allocation Return
G lobal Equity 40.0% 4.82%
Fixed Income 43.0% 1.47%
TIPS 5.0% 1.29%
Commodities 4.0% 0.84%
REITs 8.0% 3.76%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.75%
Expected Long-Term Net Rate of Return, Rounded 6.25%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.25 percent for the plan.
The project of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City ’s contributions will be made at rates equal to the difference between actuarially determined contri bution rates and the employee rate. Based on those assumptions, the plan’s fiduciary ne t position was projected to be ava ilable to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in the Net OPEB Liability
The changes in the net OPEB liability for each plan measured as of June 30, 2020, are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net P osition Liability
Balance at June 30, 2019 66,216,009$ 30,560,561$ 35,655,448$ Change s in the ye ar:
Service cost 1,514,047 - 1,514,047
Differences between actual and expected (773,805) - (773,805) Assumption changes (524,260) - (524,260)
Interest 4,404,719 - 4,404,719
Contribution - employer - 5,075,158 (5,075,158)
Net investment income - 1,195,733 (1,195,733)
Administrative expenses - (55,919) 55,919
Benefit payment, including refundings
of employee contributions (4,949,938) (4,949,938) - Net Changes (329,237) 1,265,034 (1,594,271)
Balance at June 30, 2020 65,886,772$ 31,825,595$ 34,061,177$ Fiscal Year Ending
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CITY OF CONCORD JUNE 30, 2021
NOTE 13 – OTHER POST-EMPLOYMENT HEATH CARE BENEFITS (CONTINUED) Sensitivity of the Net OPEB Liability to Changes in the Discount Rate – The following presents the net OPEB liability of the City for the plan, calculated using the discount rate for each plan, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1 percentage point higher than the current rate. 1% Decrease Current Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability 40,363,880 $ 34,061,177 $ 28,684,154 $ Sensitivity of the net OPEB liability to chan ges in the Healthcare Cost Trend Rates – The following presents the net OPEB liability of the City for the plan , calculated using the healthcare cost trend rate for the plan, as well as what the City’s net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage point lower or 1-percentage point higher than the current rate. 1% Decrease Current Trend 1% Increase
Net OPEB Liability 31,952,207$ 34,061,177$ 36,790,335$ OPEB expenses and deferred outflows/inflows of resources related to OPEB For the fiscal year ending June 30, 2021, the City recognized OPEB expense of $2,665,925 for the plan. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date 4,487,392$ -$ Changes in assumptions - (744,314)
Differences between expected and actual experience 262,033 (622,079) Net differences between projected and actual earnings on plan investments 549,872 -
Total 5,299,297$ (1,366,393)$
$4,487,392 reported as deferred outflows of resources related to OPEB for the miscellaneous and safety plans respectively resulting from the City’s contributio ns subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Annual
Y ear Ended June 30, Am ortization
2022 (317,045) $
2023 (112,133)
2024 (38,728)
2025 (61,127)
2026 (25,455)
Thereafter -
Total (554,488)$
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CITY OF CONCORD JUNE 30, 2021
NOTE 14 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their comp ensation under City sponsored Deferred Compensation Plans created in accordance with Internal Revenue Code Section 457 and 401K. Under these plans, participants are not taxed on the deferred portion of their compensation until distributed to them; distribution may be made only at termination, retirement, death or in an emergency as defined by the Plans.
The laws governing deferred compensation plan assets re quire plan assets to be held by a Trust for the exclusive benefit of Plan participants and their beneficiaries. Since the assets held under these plans are not the City's property and are not subject to City cont rol, they have been excluded from these financial statements.
NOTE 15 – RISK MANAGEMENT AND INSURANCE
Insurance Risk Pool
In July 2003, the City joined th e California State Association of Counties - Excess Insurance Authority (CSAC- EIA), a joint powers authority. During fis cal year 2019-2020, CSAC-EIA began operating under the name PRISM. PRISM provides coverage against the following types of loss risks, including commercial insurance coverage, under the terms of a joint-powers agreement with the City and several other cities and governmental agencies as follows:
Type of Coverage (Deductible) Coverage Lim its
General Liability ($500,000) 25,000,000 $
Optional Exces s Liability ($25,000,000) 25,000,000 $
Workers' Compensation ($500,000) Statutory
All Ris k Property 600,000,000$
($10,000 per occurrence)
Property Flood Risk 225,000,000 $
($100,000 per occurrence)
Earthquake (2 percent with a $100,000 minimum) 465,000,000 $ PRISM was established for the purpose of creating a risk management pool for all California public entities.
PRISM is governed by a Board of Directors consisting of representatives of its member public entities.
The City's deposits with PRISM are in accordance with formulas established by PRISM. 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.
Audited financial statements for PRISM are availa ble from PRISM at 75 Iron Point Circle, Folsom, California 95630.
The City is self-insured for auto physical damage claims.
For the years ended June 30, 2021, 2020 and 2019, the amount of settlements did not exceed insurance coverage.
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CITY OF CONCORD JUNE 30, 2021
NOTE 15 – RISK MANAGEMENT AND INSURANCE (CONTINUED)
Uninsured Claims Payable
The City provides for the uninsure d portion of claims and judgments in its Risk Management (general liability and auto physical dama ge) and Workers' Compensation Inte rnal Service Funds. Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable.
The City's liability for uninsured claims is limited to worker's compen sation, general liability and auto physical damage claims, as discussed above, which are reported at their present value using expected future investment yield assumptions ranging from 3 percent. In addition, the gene ral liability claims are based on an 80 percent confidence level. The discounted work er's compensation claims totaled $13,501,802 and undiscounted general liability claims totaled $4,210,603 at June 30, 2021.
The change in the claims liabilities, including clai ms incurred but not reported are based on independent actuarial studies and were computed as follows for the years ended June 30, 2020 and June 30, 2021:
Workers Risk
Compensation Management/
Internal Service Liability Internal Total Total
Fund Service Fund 2021 2020
Beginning balance 13,122,704$ 4,007,929$ 17,130,633$ 15,104,371$ Liability for current fiscal year claims 2,819,000 993,236 3,812,236 6,048,908 Change in liability for prior fiscal year claims and
claims incurred but not reported (IBNR) (976,181) - (976,181) (1,178,590) Claims paid (1,463,721) (790,562) (2,254,283) (2,844,056) Ending balance 13,501,802$ 4,210,603$ 17,712,405$ 17,130,633$ Current portion 2,313,982$ 945,050$ 3,259,032$ 4,039,004$ Health Care
The City provides its employees with a choice of five different medical insurance plans through CalPERS.
The City pays the premium up to $1 ,878 per month per employee. The Ci ty also provides its employees with Dental Insurance paying premiums up to $211 per month per employee. The City also provides long- term disability and life insurance to its employees.
NOTE 16 – COMMITMENTS AND CONTINGENCIES
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no additional pending litigation, which is likely to have material adverse effect on the financial position of the City.
The City participates in several Federal and State grant programs. Th ese programs have been audited through the fiscal year ended June 30, 2021. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City
expects such amounts, if any, to be immaterial.
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CITY OF CONCORD JUNE 30, 2021
NOTE 16 – COMMITMENTS AND CONTINGENCIES (CONTINUED)
Encumbrances
The City uses an encumbrance system as an extens ion of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of a pplicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities.
Outstanding encumbrances at year-end are automa tically reappropriated for the following year.
Unencumbered and unexpended appropriations lapse at year-end.
Encumbrances outstanding as of June 30, 2021, were as listed below:
Am ount
Major G overnm ental Funds
General Fund 2,096,815 $
Concord Housing Special Revenue Fund 26,775
G eneral Projects Capital Projects Fund 3,084,885
Total Major G overnm ental Funds 5,208,475
Non-Major G overnm ental Funds:
State G as Tax Special Revenue Fund 994,725
Maintenance District Special Revenue Fund 58,239
Housing and Com m unity Services Special Revenue Fund 909,536 Storm Water Managem ent Special Revenue Fund 11,218
Asset Forfeiture Special Revenue Fund 55,097
Public Education and G overnm ent Special Revenue Fund 123,245 Special Developers Capital Projects Fund 124,169
Inter G overnm ental Capital Projects Fund 417,244
Total Non-Major G overnm ental Funds 2,693,473
Total G overnm ental Funds 7,901,948$
Major Enterprise Funds:
Sewer Fund 1,431,366$
Non-Major Enterprise Funds:
G olf Course Fund 46,168$
Internal Service Funds:
Workers Compensation Fund 86,034$
Risk Managem ent/Liability Fund 453,478
Post-Retirement Health Care Benefits Fund 10,085
Fleet Maintenance/Replacement Fund 711,494
Inform ation Technology Replacem ent Fund 1,225,450
Building Maintenance Fund 131,029
Total Internal Service Funds 2,617,570$
Total Encumbrances Outstanding 11,997,052$
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CITY OF CONCORD JUNE 30, 2021
NOTE 17 – REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES
Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new re development activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligati ons, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1
26. ABx1 26 and AB1484 created the regulatory authorit y, the Successor Agency Oversight Board, under the direction of the State Controller and Department of Finance (DOF), to review former Agency's asset transfer, obligation payments a nd wind down activities. ABx1 26 specifically directs the State Controller to review the activities of all redevelopment agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contra ctually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the Redevelopment Agency or, on or after February 1, 2012, to the Successor Agency.
Effective January 31, 2012, the Redevelopment Agency was dissolved. Certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund we re distributed to a Housing Successor; and all remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.
Under the provisions of AB 1484, the City elected to become the Housing Successor and retain the housing assets. On February 1, 2012, certain housing assets were transferred to the City's Concord Housing Fund, a special revenue fund.
The activities of the Housing Successor are reported in the Concord Housing Special Revenue Fund as the City has control of those assets, which may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law.
The City also elected to become the Successor Ag ency and on February 1, 2012 the Redevelopment Agency's remaining assets were distributed to and liabilities were assumed by the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established in April 2012 . The activities of the Successor Ag ency are subject to review and approval of the Oversight Board, which is comprise d of seven members, including one City employee appointed by the Mayor.
The activities of the Successor Agen cy are reported in the Successor Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency. 95
CITY OF CONCORD JUNE 30, 2021
NOTE 17 – REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES (CONTINUED) The following notes provide more information regarding assets and liabilities of the Successor Agency.
Loans Receivable
The Successor Agency assumed the non-housing loans receivable of the former Redevelopment Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs designed to encourage construction of, or improvement to, low-to-moderate income housing. Under these programs, grants or loans were provided under favorable terms to homeowners or developers who agreed to expend these funds in accordance with the former Agency's terms. The ba lances of the notes receivable arising from the non- housing programs at June 30, 2021 are set forth below:
Concord Residential Club
Low and no interest loans were made by the former Redevelopment Agency to provide businesses assistance for rehabilitating buildings in the downtown area and to businesses or individuals for the rehabilitation of housing within the City of Concord owned and/or occupied by persons of low and moderate income. As of June 30, 2021, the loan balance was $230,003.
Pooled Investments
As of June 30, 2021, the Successor Agency held assets within the City investment pool totaling $1,452,311.
Cash with Fiscal Agents
As of June 30, 2021, the Successor Agency held assets with fiscal agents totaling $6,656.
Long-Term Debt
The Successor Agency assumed the long-term debt of the former Redevelopment Agency as of February 2012.
The Successor Agency's debt issu es and transactions are summari zed below and discussed in detail thereafter.
Current Year Transactions and Balances
Balance as of Balance as of Current
June 30, 2020 Retirements June 30, 2021 Portion
2014 Tax Allocation Refunding Bonds
4.0-5.00%, due 03/01/2025 12,995,000$ 2,560,000$ 10,435,000$ 2,690,000$ Plus premium on refunding bonds 2,471,807 494,361 1,977,446 - Total Tax Allocation Bonds 15,466,807 3,054,361 12,412,446 2,690,000 Loan Payable
(Direct Borrowing):
Housing Successor Loan 2,076,547 2,076,547 - - Total Successor Agency 17,543,354$ 5,130,908$ 12,412,446$ 2,690,000$ 96
CITY OF CONCORD JUNE 30, 2021
NOTE 17 – REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES (CONTINUED) Debt Service Requirements
Annual debt service requirements are shown below:
For the Y ear Ending
June 30: Principal Interest
2022 2,690,000 $ 521,750 $
2023 2,825,000 387,250
2024 2,400,000 246,000
2025 2,520,000 126,000
Plus Unamortized 1,977,446 -
Total 12,412,446$ 1,281,000$
Bonds
Tax Allocation Bonds (TABs) Outstanding
On August 27, 2014 the California Department of Fi nance approved for the Successor Agency to issue $37,550,000 of Series 2014 Tax Allocation Refunding Bonds to defease and retire the 2004 Tax Allocation Bonds and retire the Concord Joint Powers Financ ing Authority Lease Revenue Bonds secured by a reimbursement agreement between the Successor Agen cy and the City of Concord for pledged tax increment revenues from the Central Concord Redevelopment Project. On October 1, 2014, the Series 2014 bonds were issued and the 2004 Bonds and Lease Reve nue bonds were fully red eemed on November 3, 2014.
The 2014 TABs are payable annually on March 1. The 2014 TABs are special obligations of the Agency and are secured by the Agency's tax increment revenues. With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distri buted, and instead the Successor Agency receives payments from the County's Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and no n-housing revenues. In addition, under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. The TABs are 100 percent secured by a surety bond issued by AMBAC Assurance as of June 30, 2021.
The pledge of future tax increment revenues ends upon repayment of the $11,716,000 (principal and interest) in remaining debt service on the Agency's Tax Allocation Bond s which is scheduled to occur in 2025. For fiscal year 2021 RPTTF amounted to $5,355 ,695 which represented cove rage of 2.19 over the $3,209,750 in debt service. With
the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County's Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund repayment under the reimbursement agreement. In additi on, under the provisions of the la ws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. The outstanding balance on the bonds as of June 30, 2021 was $10,435,000 with interest rates ranging from 4 to 5 percent.
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CITY OF CONCORD JUNE 30, 2021
NOTE 17 – REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES (CONTINUED) Housing Successor Loan Payable
Beginning in 1986, the former Redevelopment Agency's General Capital Projects Fund has been required by the State to set aside 20 percent of property tax increments for low and moderate income housing.
However, under a transition rule, pursuant to Health and Safety Code Section 33334.6, the former Redevelopment Agency was permitted to set aside less than 20 percent of the tax increment that it received to the extent that it spent the ta x increment revenue for the Agency’s debt incurred prior to 1986 or for Agency projects approved prior to 1986, as long as it had a written plan for repaying these amounts to the Concord Housing Special Revenue Fund. The Agency's General Capital Projects Fund has been allowed to use these set-asides for current capital projects as long as it had a written plan for repaying these amounts to the Low and Moderate Income Housing Special Revenue Fund. The loan did not bear interest.
The above loan had previously been reported as an interfund advance within the Redevelopment Agency, but with the transfer of the former Redevelopment Agency's liabilities to the Successor Agency, the advance became long-term debt of the Successor Agency.
This loan has been approved by the Department of Finance on the Recognized Obligation Payment Schedule. As of June 30, 2021, the principal balance outstanding on the loan was fully repaid.
Commitments and Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) annually that contains all proposed expenditures for the subsequent twelve-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time . The City expects such amounts, if any, to be immaterial.
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CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Miscellaneous Plan – Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Total Pension Liability
Service Cost 2,890,989$ 3,018,180$ 2,997,825$ 3,355,005$ 3,868,011$ Interest 13,096,282 13,671,707 14,191,823 14,505,723 15,288,854 Differences between expected and actual experience - 738,338 22,946 (1,288,985) 5,255,833 Changes in assumptions - (3,200,990) - 11,460,291 (1,752,822) Changes in benefits - - - - -
Benefit payments, including refunds
of employee contributions (9,206,786) (9,773,556) (10,033,970) (10,318,668) (11,016,016) Net change in total pension liability 6,780,485 4,453,679 7,178,624 17,713,366 11,643,860 Total pension liability - beginning 177,774,980 184,555,465 189,009,144 196,187,768 213,901,134 Total pension liability - ending (a) 184,555,465$ 189,009,144 $ 196,187,768 $ 213,901,134 $ 225,544,994 $ Plan fiduciary net position
Contributions - employer 4,399,819 $ 4,836,917 $ 5,333,899 $ 6,081,150 $ 6,548,823 $ Contributions - employee 1,342,831 1,338,554 1,349,589 1,502,951 1,632,544 Net investment income 19,760,541 2,942,666 659,376 14,191,716 11,752,209 Benefit payments, including refunds
of employee contributions (9,206,786) (9,773,556) (10,033,970) (10,318,668) (11,016,016) Plan to plan resource movement - (53,698) (1,397) - (342) Administrative expense - (147,283) (79,697) (188,978) (217,012) Other miscellaneous income/(expense) - - - - (412,110) Net change in plan fiduciary net position 16,296,405 (856,400) (2,772,200) 11,268,171 8,288,096 Plan fiduciary net position - beginning 115,328,525 131,624,930 130,768,530 127,996,330 139,264,501 Plan fiduciary net position - ending (b) 131,624,930$ 130,768,530 $ 127,996,330 $ 139,264,501 $ 147,552,597 $ Net pension liability - ending (a)-(b) 52,930,535 $ 58,240,614 $ 68,191,438 $ 74,636,633 $ 77,992,397 $ Plan fiduciary net position as a percentage of the
total pension liability 71.32% 69.19% 65.24% 65.11% 65.42% Covered payroll 16,255,025 $ 17,128,929 $ 17,838,673 $ 19,770,939 $ 21,505,077 $ Net pension liability as percentage of covered payroll 325.63% 340.01% 382.27% 377.51% 362.67% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.
Source: CalPERS Accounting Valuation
Changes in assumptions. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, 2018, 2019, and 2020, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. All other assumptions for the June 30, 2014 measurement date were the same as those used for the June 30, 2015 and 2016 measurement dates.
Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
100
CITY OF CONCORD JUNE 30, 2021
6/30/2019 6/30/2020
3,885,056$ 3,795,519$
16,115,663 16,701,703
3,945,856 614,997
- -
- -
(12,078,986) (12,670,194)
11,867,589 8,442,025
225,544,994 237,412,583
237,412,583$ 245,854,608$
7,398,652$ 8,260,289$
1,657,850 1,648,254
9,660,803 7,673,817
(12,078,986) (12,670,194)
-
(105,297) (217,223)
342 -
6,533,364 4,694,943
147,552,597 154,085,961
154,085,961$ 158,780,904$
83,326,622$ 87,073,704$
64.90% 64.58%
21,773,599$ 21,334,818$
382.70% 408.13%
101
CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Safety Plan – Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Total Pension Liability
Service Cost 4,891,960$ 4,792,943$ 4,928,814$ 5,509,705$ 5,876,593$ Interest 14,566,113 15,446,471 16,367,363 17,045,112 18,416,291 Differences between expected and actual experience - 158,327 659,410 (2,108,933) 8,302,892 Changes in assumptions - - - 14,930,559 (924,463) Changes in benefits - (4,010,136) - - - Benefit payments, including refunds
of employee contributions (7,354,430) (8,359,469) (9,498,430) (10,436,636) (11,442,104) Net change in total pension liability 12,103,643 8,028,136 12,457,157 24,939,807 20,229,209 Total pension liability - beginning 195,446,083 207,549,726 215,577,862 228,035,019 252,974,826 Total pension liability - ending (a) 207,549,726$ 215,577,862 $ 228,035,019 $ 252,974,826 $ 273,204,035 $ Plan fiduciary net position
Contributions - employer 5,732,219 $ 5,993,768 $ 6,411,727 $ 7,481,823$ 8,023,738$ Contributions - employee 1,679,332 1,620,500 1,655,293 1,756,319 1,905,328 Net investment income 21,758,280 3,290,091 766,604 16,371,961 13,638,015 Benefit payments, including refunds
of employee contributions (7,354,430) (8,359,469) (9,498,430) (10,436,636) (11,442,104) Plan to Plan Resource Movement - (73,112) 1,397 - (404) Administrative Expense - (167,255) (90,535) (218,214) (253,615) Other miscellaneous income/(expense) - - - - (481,619) Net change in plan fiduciary net position 21,815,401 2,304,523 (753,944) 14,955,253 11,389,339 Plan fiduciary net position - beginning 124,432,457 146,247,858 148,552,381 147,798,437 162,753,690 Plan fiduciary net position - ending (b) 146,247,858$ 148,552,381$ 147,798,437$ 162,753,690$ 174,143,029$ Net pension liability - ending (a)-(b) 61,301,868$ 67,025,481$ 80,236,582$ 90,221,136$ 99,061,006$ Plan fiduciary net position as a percentage of the
total pension liability 70.46% 68.91% 64.81% 64.34% 63.74% Covered payroll 17,162,893$ 17,550,805$ 17,858,904$ 18,960,776$ 19,289,474$ Net pension liability as percentage of covered payroll 357.18% 381.89% 449.28% 475.83% 513.55% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.
Source: CalPERS Accounting Valuation
Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, 2018, 2019, and 2020, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. All other assumptions for the June 30, 2014 measurement date were the same as those used for the June 30, 2015 and 2016 measurement dates.
102
CITY OF CONCORD JUNE 30, 2021
6/30/2019 6/30/2020
5,836,758$ 5,819,371$
19,693,768 20,716,215
5,676,340 2,037,227
-
-
(12,722,874) (13,795,343)
18,483,992 14,777,470
273,204,035 291,688,027
291,688,027$ 306,465,497$
9,097,712$ 10,238,493$
1,908,372 1,923,865
11,417,116 9,090,255
(12,722,874) (13,795,343)
-
(124,272) (258,999)
404 -
9,576,458 7,198,271
174,143,029 183,719,487
183,719,487$ 190,917,758$
107,968,540$ 115,547,739$
62.98% 62.30%
19,522,648$ 19,395,698$
553.04% 574.23%
103
CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS City of Concord Retirement System – Single Employer Defined Benefit Pension Plan Last 10 Years*
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Total Pension Liability
Interest 3,879,000$ 3,769,962$ 3,970,093$ 3,539,085$ 3,426,180$ 3,304,303$ Differences between expected and actual experience - - - (1,612,351) - 586,695 Changes in assumptions - 3,337,481 - 1,006,364 - 64,501 Differences between projected and actual earnings
on plan investments - 1,483,884 - - - -
Changes in benefits - - - - - -
Benefit payments, including refunds
of employee contributions (5,516,000) (5,525,159) (5,499,628) (5,415,808) (5,425,844) (5,489,099) Net change in total pension liability (1,637,000) 3,066,168 (1,529,535) (2,482,710) (1,999,664) (1,533,600) Total pension liability - beginning 62,399,000 60,762,000 63,828,168 62,298,633 59,815,923 57,816,259 Total pension liability - ending (a) 60,762,000$ 63,828,168$ 62,298,633$ 59,815,923$ 57,816,259$ 56,282,659$ Plan fiduciary net position
Contributions - employer 1,971,829$ 2,035,017$ 2,041,611$ 2,845,258$ 5,885,064$ 2,822,000$ Contributions - employee - - - - - -
Net investment income 3,423,144 775,186 630,598 2,370,458 1,496,946 2,081,149 Benefit payments, including refunds
of employee contributions (5,516,398) (5,525,159) (5,499,628) (5,415,808) (5,425,844) (5,489,099) Admi
nistrative Expense (193,523) (208,204) (175,715) (160,582) (165,543) (179,003) Net change in plan fiduciary net position (314,948) (2,923,160) (3,003,134) (360,674) 1,790,623 (764,953) Plan fiduciary net position - beginning 37,640,518 37,325,570 34,402,410 31,399,276 31,038,602 32,829,225 Plan fiduciary net position - ending (b) 37,325,570$ 34,402,410$ 31,399,276$ 31,038,602$ 32,829,225$ 32,064,272$ Net pension liability - ending (a)-(b) 23,436,430$ 29,425,758$ 30,899,357$ 28,777,321$ 24,987,034$ 24,218,387$ Plan fiduciary net position as a percentage of the
total pension liability 61.43% 53.90% 50.40% 51.89% 56.78% 56.97% Covered payroll (1) (1) (1) (1) (1) (1)
Net pension liability as percentage of covered payroll N/A N/A N/A N/A N/A N/A (1) The Plan was closed in 1999 and there are no active participants, therefore there is no covered payroll.
Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation of GASB 68 and fiscal year 2014 was the first year of implementation of GASB 67, therefore only eight years are shown.
Source: CalPERS Accounting Valuation
Schedule of Investment Returns
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Annual money rated rate of return,
net of investment expense 11.37% 2.52% 2.49% 8.86% 5.26% 7.13% 104
CITY OF CONCORD JUNE 30, 2021
6/30/2020 6/30/2021
3,211,973$ 3,081,001$
- (131,677)
- 1,188,841
- -
- -
(5,499,565) (5,290,086)
(2,287,592) (1,151,921)
56,282,659 53,995,067
53,995,067$ 52,843,146$
2,715,000$ 2,715,000$
- -
1,409,436 5,099,067
(5,499,565) (5,290,086)
(176,807) (143,729)
(1,551,936) 2,380,252
32,064,272 30,512,336
30,512,336$ 32,892,588$
23,482,731$ 19,950,558$
56.51% 62.25%
(1) (1)
N/A N/A
6/30/2020 6/30/2021
4.25% 17.77%
105
CITY OF CONCORD JUNE 30, 2021
SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Other Post Employment Benefit Plan - Agent Multiple Employer Last 10 Fiscal Years*
Measurement Date 6/30/17 6/30/18 6/30/19 6/30/20
Total OPEB Liability
Service cost 1,560,983$ 1,607,812$ 1,469,949$ 1,514,047$ Interest 4,213,727 4,282,178 4,338,953 4,404,719 Changes of assumptions - (763,100) - (524,260) Differences betw
een expected and actual experience - 619,351 - (773,805) Benef
it payments, including refunds
of employee contributions (4,887,795) (4,727,102) (4,807,448) (4,949,938) Net change in total OPEB liability 886,915 1,019,139 1,001,454 (329,237) Total OPEB liability - beginning 63,308,501 64,195,416 65,214,555 66,216,009 Total OPEB liability - ending (a) 64,195,416$ 65,214,555$ 66,216,009$ 65,886,772$ Plan fiduciary net position
Plan to plan resource movement -$ -$ -$ -$
Contributions - employer 4,146,795 4,540,452 4,988,337 5,075,158 Contributions - employee - - - - Net investment income 2,669,004 2,157,582 1,859,144 1,195,733 Differences between projected and actual
earnings on plan investments - - - - Administrative expenses (13,562) (50,236) (54,242) (55,919) Benefit payments, including refunds
of employee contributions (4,887,795) (4,727,102) (4,807,448) (4,949,938) Net Change in Fiduciary Net Position 1,914,442 1,920,696 1,985,791 1,265,034 Plan fiduciary net position - beginning 24,739,632 26,654,074 28,574,770 30,560,561 Plan fiduciary net position - ending (b) 26,654,074$ 28,574,770$ 30,560,561$ 31,825,595$ Net OPEB liability - ending (a)-(b) 37,541,342$ 36,639,785$ 35,655,448$ 34,061,177$ Plan fiduciary net position as a percentage of the
total OPEB liability 41.52% 43.82% 46.15% 48.30%
Covered-employee payroll 38,731,716$ 40,794,552$ 41,296,247$ 40,730,516$ Net OPEB liability as a percentage of covered-employee pay 96.93% 89.82% 86.34% 83.63% Fiscal Year June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 Notes to schedule
* Fiscal year 2018 was the first year of implementation, therefore, only four years are shown. 106
CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
Miscellaneous Plan – Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
Fiscal Y ear E nd ed June 30 2015 2016 2017 2018 2019 2020 2021 Actuarially determ ined contribution 4,836,917 $ 5,333,899 $ 6,081,150 $ 6,546,333 $ 7,355,334 $ 8,266,205 $ 8,886,832 $ Contributions in relation to the actuarially determ ined contributions 4,836,917 5,333,899 6,087,756 6,546,333 7,355,334 8,266,205 8,886,832 Contribution deficiency (ex cess) -$ -$ (6,606)$ -$ -$ -$ -$ Covered payroll 17,128,929$ 17,838,673$ 19,770,939$ 21,505,077$ 21,773,599$ 21,334,818$ 21,553,654$ Contributions as a percentage of covered payroll 28.24% 29.90% 30.79% 30.44% 33.78% 38.75% 41.23% Notes to Schedule
Valuation date: 6/30/2013 6/30/2014 6/30/ 2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Methods and assum ptions used to determ ine contribution rates:
Actuarial cos t method
Am ortization m ethod
Asset valuation m ethod
Inflation
Salary increases
Investment rate of return
Retirement age
Retirement age and mortality
* - Fiscal year 2015 was the 1st year of im plem entation, therefore only seven years are shown.
The probabilities of m ortality are based on the
CalPERS Ex perience Study. Pre-retirem ent and Post-
retirement mortality rates include 20 years of
projected mortality improvement using Scale BB
published by the Society of Actuaries for 2015 to
2018. For 2019, 2020 and 2021, pre-retirement and
post-retirem ent m ortality rates include 15 years of
projected m ortality im provem ent using 90% of Scale
MP-2016 published by the Society of Actuaries.
Level percentage of payroll, closed
Entry age norm al
Actuarial valuation of assets
2.75% for 2015 to 2019, 2.625% for 2020, and 2.50% for
2021
V aries by entry age and service
7.5% for 2015 to 2018, 7.375% for 2019, 7.25% for
2020, and 7.00% for 2021, net of pension plan
investm ent ex pense, including inflation.
The probabilities of retirem ent are based on the
CalPERS Ex perience Study
107
CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
Safety Plan – Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
Fiscal Y ear E nd ed June 30 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution 5,993,768$ 6,411,727$ 7,481,823$ 8,023,715$ 8,943,686$ 10,246,008$ 10,836,764$ Contributions in relation to the actuarially determined contributions 5,993,768 6,411,727 7,481,823 8,023,715 8,943,686 10,246,008 10,836,764 Contribution deficiency (ex cess) -$ -$ -$ -$ -$ -$ -$ Covered payroll 17,550,805$ 17,858,904$ 18,960,776$ 19,289,474$ 19,522,648$ 19,395,698$ 20,035,014$ Contributions as a percentage of covered payroll 34.15% 35.90% 39.46% 41.60% 45.81% 52.83% 54.09% Notes to Schedule
Valuation date: 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
As s et valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Retirement age and mortality
*- Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.
Entry age normal
Level percentage of payroll, closed
The probabilities of mortality are based on the
CalPERS Ex perience Study. Pre-retirement and Post-
retirement mortality rates include 20 years of
projected mortality improvement using Scale BB
published by the Society of Actuaries for 2015 to
2018. For 2019, 2020 and 2021, pre-retirement and
post-retirem ent m ortality rates include 15 years of
projected mortality improvement using 90% of Scale
MP-2016 published by the Society of Actuaries.
Actuarial valuation of as s ets
2.75% for 2015 to 2019, 2.625 for 2020 and, 2.50% for
2021
V aries by entry age and service
7.5% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020
and 7.00% for 2021, net of plan investment expense,
including inflation.
The probabilities of retirem ent are based on the
CalPERS Ex perience Study
108
CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
City of Concord Retirement System Plan – Single Employer Defined Benefit Pension Plan Last 10 Years*
Fiscal Y ear E nd ed June 30 2014 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution 2,045,000$ 2,478,000$ 2,478,000$ 2,715,000$ 2,715,000$ 2,493,000$ 2,491,000$ 2,377,000$ Contributions in relation to the actuarially
determ ined contributions 1,971,829 2,035,017 2,041,611 2,845,258 5,885,064 2,822,000 2,715,000 2,715,000 Contribution deficiency (excess) 73,171$ 442,983$ 436,389$ (130,258)$ (3,170,064)$ (329,000)$ (224,000)$ (338,000)$ Covered payroll (1) (1) (1) (1) (1) (1) (1) (1)
Contributions as a percentage of covered payroll N/A N/A N/A N/A N/A N/A N/A N/A (1) Plan was closed in 1999.
Notes to Schedule
Valuation date: 6/30/2012 6/30/2014 6/30/2014 6/30/2016 6/30/2016 6/30/2018 6/30/2018 6/30/2020 Methods and assum ptions used to determ ine contribution rates:
Actuarial cost method
Am ortization m ethod
Am ortization period
Asset valuation m ethod Market value of assets
Inflation
Salary scale Not applicable
Investm ent rate of return
*- Fiscal year 2014 was the 1st year of im plem entation, therefore only eight years are shown.
Entry age normal
Level dollar
15-year fix ed period for 2020/21
2.75%, net of pension plan investm ent ex pense
5.50%, net of pension plan investm ent ex pense,
109
CITY OF CONCORD JUNE 30, 2021
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
Other Post Employment Benefit Plan - Agent Multiple-Employer Last 10 Years*
Fiscal Year 2018 2019 2020 2021
Actuarially determined contribution 4,266,000$ 4,333,000$ 4,250,000$ 4,340,000$ Contributions in relation to the
actuarially determined contribution 4,540,452 4,243,337 4,246,158 4,430,392 Contribution deficiency (excess) (274,452)$ 89,663$ 3,842$ (90,392)$ Covered-employee payroll 40,794,552$ 41,296,247$ 40,730,516$ 41,588,668$ Contributions as a percentage of
covered-employee payroll 11.13% 10.28% 10.43% 10.65%
Notes to Schedule
Valuation Date June 30, 2018 June 30, 2020
Methods and assumptions used to
determine contribution rates:
Actuarial cost method Entry Age Normal, Level % of Pay Entry Age Normal, Level % of Pay Entry Age Normal, Level % of Pay Entry Age Normal, Level % of Pa y Amortization method Level percentage of payroll, closed Level percentage of payroll, closed Level percentage of payroll, closed Level percentage of payroll, closed Asset valuation method
Investment gain and losses spread
over 5-year rolling period
Investment gain and losses spread
over 5-year rolling period
Investment gain and losses spread over
5-year rolling period
Investment gain and losses spread over 5
-
year rolling period
Discount Rate 6.75% 6.75% 6.75% 6.25%
Inflation 2.75% 2.75% 2.75% 2.75%
Medical Trend
Non-Medicare - 7.25% for 2019,
decreasing to an ultimate rate of
4.00% in 2076 and later years.
Medicare - 6.50% for 2019,
decreasing to an ultimate rate of
4.00% in 2076 and later years
Non-Medicare - 7.25% for 2021,
decreasing to an ultimate rate of
4.00% in 2076 and later years.
Medicare - 6.30% for 2021,
decreasing to an ultimate rate of
4.00% in 2076 and later years
Non-Medicare - 7.25% for 2021,
decreasing to an ultimate rate of 4.00%
in 2076 and later years. Medicare -
6.30% for 2021, decreasing to an
ultimate rate of 4.00% in 2076 and
later years
Non-Medicare - 7.00% for 2022,
decreasing to an ultimate rate of 4.00%
in 2076 and later years. Medicare (Non-
Kaiser) - 6.10% for 2022, decreasing to
an ultimate rate of 4.00% in 2076 and
later years.
Medicare (Kaiser) - 5.00% for 2022,
decreasing to an ultimate rate of 4.00%
Mortality
CalPERS 1997-2011 Experience
Study
CalPERS 1997-2015 Experience
Study
CalPERS 1997-2015 Experience
Study CalPERS 1997-2015 Experience Study
Mortality Improvement
Mortality projected fully generational
with Society of Actuaries Scale MP-
2016
Post retirement mortality projected
fully generational with Scale MP-2018
Post retirement mortality projected
fully generational with Scale MP-2018
Post retirement mortality projected fully
generational with Scale MP-2020
Notes to Schedule
* Fiscal year 2018 was the first year of implementation, therefore, only four years are shown.
June 30, 2016 June 30, 2018
110
CITY OF CONCORD JUNE 30, 2021
SUPPLEMENTARY INFORMATION
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CITY OF CONCORD JUNE 30, 2021
NON-MAJOR GOVERNMENTAL FUNDS
State Gas Tax Fund. To account for restricted revenue appor tioned to the City from State-collected gasoline taxes and expended for construction and maintenance of City streets.
Maintenance Districts Fund. To account for revenue from property tax and annual assessments against property owners and expended for their share of the City's cost for maintenance in the areas of the service provided.
Art in Public Places Fund. To account for fees applied to new construction and expended for the purchase and installation of art objects in the City.
Traffic System Management Fund. To account for monies from in-lieu parking fees, to be expended for traffic management facilities.
Housing Assistance Program Fund. To account for monies from the former Redevelopment Agency and developers' contributions to be expended for low-income housing loans.
Housing and Community Services Fund. – To account for monies received from the Department of Housing and Urban Development and expended for development of jobs and suitable housing for low- income residents.
Storm Water Management Fund. To account for activities necessary to comply with the Federal Clean Water Act.
Health Care District Fund. To account for funds needed for hea lth programs. The program is funded through property taxes.
Asset Forfeiture Fund. To account for revenues received from ad judicated sales of assets seized during drug related arrests and to disburse for authorized public safety activities.
Vehicle Abatement Fund. To account for monies received by the California Department of Motor Vehicles to be expended on abatement, remova l or the disposal of vehicle relate d public nuisances from private or public property.
Public Education and Government Fund. To account for monies received by cable operators to support public education and government (PEG) channel facilities and activities.
General Plan Reimbursement Fee Fund. To account for the accumulation of revenue levied on building permits for payment of expenditures related to th e City’s General Plan Update and Housing Element Update.
Technology Fee Fund. To account for revenues received from a surcharge of administrative processing, plan review, and inspection fees applying to Buil ding, Engineering and Plan ning Divisions, for the purchase, maintenance, and replacement of Development Review services software and hardware.
Tree Special Revenue Fund. To account for the revenues received from fines or fees associated with tree removal. The fines or fees will be used for costs associated with planting, replacing, and maintaining trees. 113
CITY OF CONCORD JUNE 30, 2021
NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED)
ABAG Fund. To account for transfers of revenue from th e General Fund for payment of interest and principal on Association of Bay Area Governments (ABAG) certificates of participation.
Performing Arts Revenue Bonds Fund. To account for the accumulation of revenue provided by Bill Graham Presents for payment of interest and principal on the Pavilion lease revenue bonds issued in 1995.
Assessment Districts Fund. To account for accumulation of special assessment taxes for payment of special assessment bond interest and principal.
Energy Lease Fund. To account for a lease agreement issued to finance several energy conservation projects throughout the City.
Infrastructure Lease Agreement Fund. To account for lease agreement in connection with the financing of street and other infrastructure improvements.
Special Developers Fund. To account for capital projects within the City funded by various fees collected from developers.
Inter-Governmental Capital Projects Fund. To account for approved capital projects funded from other governmental agencies.
114
This Page Left Intentionally Blank
Art in Traffic Housing
State Maintenance Public System Assistance
Gas Tax Districts Places Management Program
ASSETS:
Cash and Investments 7,338,603$ 5,973,280$ 153,310$ 62,134$ 560,124$ Receivables, Net
Accounts Receivable - - - - -
Interest - - - - 23,929
Due from Other Governments 235,186 - - - -
Loans and Notes - - - - 185,445
Total Assets 7,573,789$ 5,973,280$ 153,310$ 62,134$ 769,498$
LIABILITIES, DFERRED INFLOWS OF
RESOURCES AND FUND BALANCES:
Liabilities:
Accounts, Deposits and Contracts Payable 93,971$ -$ -$ -$ -$ Accrued Liabilities 60,736 24,877 - - - Refundable Deposits - - - - -
Unearned Revenue - - - - -
Total Liabilities 154,707 24,877 - - - Deferred Inflows of Resources:
Unavailable Revenue - - - - 23,929
Fund balance:
Restricted 7,419,082 5,948,403 153,310 62,134 745,569 Assigned - - - - -
Unassigned - - - - -
Total Fund Balances (Deficit) 7,419,082 5,948,403 153,310 62,134 745,569 Total Liabilities, Deferred Inflows
and Fund Balances 7,573,789$ 5,973,280$ 153,310$ 62,134$ 769,498$
SPECIAL REVENUE FUNDS
CITY OF CONCORD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
116
SPECIAL REVENUE FUNDS
General
Housing and Storm Health Public Plan
Community Wate r Care Asset Vehicle Education and Reimbursement Technology Services Management District Forfeiture Abatement Government Fee Fee 2,854,429$ 6,555,740 $ 243,873 $ 345,884 $ 255,553 $ 1,528,317 $ 2,635,717$ 1,733,572$ - - - - - 94,738 - -
103,489 - - - - - - -
298,963 - 24,170 - 25,437 - - -
1,525,382 - - - - - - -
4,782,263$ 6,555,740$ 268,043$ 345,884$ 280,990$ 1,623,055$ 2,635,717$ 1,733,572$ 654,603$ -$ -$ -$ -$ 31,023$ -$ -$ 516,303 31,512 935 - - 2,665 - - - - - - - - - -
70,000 - - - - - - -
1,240,906 31,512 935 - - 33,688 - - 1,539,653 - - - - - - -
2,001,704 6,524,228 267,108 345,884 280,990 1,589,367 2,635,717 1,733,572 - - - - - - - -
- - - - - - - -
2,001,704 6,524,228 267,108 345,884 280,990 1,589,367 2,635,717 1,733,572 4,782,263$ 6,555,740$ 268,043$ 345,884$ 280,990$ 1,623,055$ 2,635,717$ 1,733,572$ (Continued)
117
SPECIAL
REVENUE
FUND DEBT SERVICE FUNDS
Performing
Tree Arts Assessmen t Energy
Fund ABAG Revenue Bonds Districts Lease
ASSETS:
Cash and Investments 47,725 $ - $ -$ 7,398$ 1$ Receivables, Net
Accounts Receivable - - - - -
Interest - - - - -
Due from Other Governments - - - - -
Loans and Notes - - - - -
Total Assets 47,725$ -$ -$ 7,398$ 1$
LIABILITIES, DFERRED INFLOWS OF
RESOURCES AND FUND BALANCES:
Liabilities:
Accounts, Deposits and Contracts Payable -$ -$ -$ 8,479$ -$ Accrued Liabilities - - - - -
Refundable Deposits - - - - -
Unearned Revenue - - - - -
Total Liabilities - - - 8,479 -
Deferred Inflows of Resources:
Unavailable Revenue - - - - -
Fund balance:
Restricted 47,725 - - - 1
Assigned - - - - -
Unassigned - - - (1,081) -
Total Fund Balances (Deficit) 47,725 - - (1,081) 1 Total Liabilities, Deferred Inflows
and Fund Balances 47,725$ -$ -$ 7,398$ 1$
CITY OF CONCORD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
118
DEBT
SERVICE
FUND
Total
Infrastructure Nonmajor
Lease Special Inter- Governmental
Agreement Developers Governmental Funds
19,825$ 7,598,378 $ 7,685,103 $ 45,598,966 $ - - 65,666 160,404
- - - 127,418
- - 2,051,898 2,635,654
- - - 1,710,827
19,825$ 7,598,378$ 9,802,667$ 50,233,269$ -$ 12,054$ 6,213$ 806,343$
- 1,388 4,867 643,283
- 28,885 - 28,885
- - - 70,000
- 42,327 11,080 1,548,511
- - 389,482 1,953,064
19,825 - 9,402,105 39,176,724
- 7,556,051 - 7,556,051
- - - (1,081)
19,825 7,556,051 9,402,105 46,731,694 19,825$ 7,598,378$ 9,802,667$ 50,233,269$
CAPITAL PROJECTS FUNDS
119
Art in Traffic Housing
State Maintenance Public System Assistance
Gas Tax Districts Places Managemen t Programs
REVENUES:
Taxes - $ 1,639,938$ -$ -$ -$
Licenses and Permits - - - - -
Franchises - - - - -
Intergovernmental 5,238,396 - - - -
Charges for Services - - - - -
Use of Money and Property 112,114 83,316 2,179 - 7,961 Other - 5,075 - - -
Total Revenues 5,350,510 1,728,329 2,179 - 7,961 EXPENDITURES:
Current:
General Government - - - - -
Public Safety - - - - -
Public Works 2,627,923 1,314,931 - - - Community and Economic Development - - - -
Capital Outlay 1,775,133 - - - -
Debt service:
Principal Repayment - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 4,403,056 1,314,931 - - -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 947,454 413,398 2,179 - 7,961 OTHER FINANCING SOURCES (USES):
Issuance of long-term debt - - - - -
Transfers In - - - - -
Transfers (Out) - (333,257) - - -
Total Other Financing Sources (Uses) - (333,257) - - - Net Changes in Fund Balances 947,454 80,141 2,179 - 7,961 Fund Balances (Deficit) at the Beginning of Period 6,471,628 5,868,262 151,131 62,134 737,608 FUND BALANCES (DEFICIT) AT END OF PERIOD 7,419,082$ 5,948,403$ 153,310$ 62,134$ 745,569$
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
SPECIAL REVENUE FUNDS
CITY OF CONCORD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
120
SPECIAL REVENUE FUNDS
General
Housing Storm Health Public Plan
and Community Water Care Asset Vehicle Education and Reimbursemen t Technology Services Managemen t District Forfeiture Abatemen t Government Fee Fee -$ 2,119,190$ 381,498$ -$ -$ -$ -$ -$ 61,876 - - - - - - -
- - - - - 396,111 - -
1,073,587 - - 69,431 94,830 - - - - 65,855 - - - - 420,058 441,067 65,128 79,634 2,925 4,560 3,373 21,566 34,022 21,319 - - 50,000 - - - - -
1,200,591 2,264,679 434,423 73,991 98,203 417,677 454,080 462,386 - - - - - 332,522 - -
- - - 46,632 45,583 - - -
- 777,043 - - - - - -
1,525,836 1,009,458 378,092 - - - - 45,508 - - - - - - - -
- - - - - - - -
- - - - - - - -
1,525,836 1,786,501 378,092 46,632 45,583 332,522 - 45,508 (325,245) 478,178 56,331 27,359 52,620 85,155 454,080 416,878 - - - - - - - -
- 478,213 - - - - - -
- (163,930) - - - - - -
- 314,283 - - - - - -
(325,245) 792,461 56,331 27,359 52,620 85,155 454,080 416,878 2,326,949 5,731,767 210,777 318,525 228,370 1,504,212 2,181,637 1,316,694 2,001,704$ 6,524,228$ 267,108$ 345,884$ 280,990$ 1,589,367$ 2,635,717$ 1,733,572$ (Continued)
121
SPECIAL
REVENUE
FUND DEBT SERVICE FUNDS
Performing
Tree Arts Assessment Energy
Fund ABAG Revenue Bonds Distric t Lease
REVENUES:
Taxes - $ -$ -$ -$ -$
Licenses and Permits - - - - -
Franchises - - - - -
Intergovernmental - - - - -
Charges for Services 7,700 - - - -
Use of Money and Property 654 - 34 63 -
Other - - - - -
Total Revenues 8,354 - 34 63 -
EXPENDITURES:
Current:
General Government - - - - -
Public Safety - - - - -
Public Works 3,258 - - - -
Community and Economic Development - - - - -
Capital Outlay - - - - -
Debt service:
Principal Repayment - - 270,000 - 670,000 Interest and Fiscal Charges - - 11,649 - 142,822 Total Expenditures 3,258 - 281,649 - 812,822
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,096 - (281,615) 63 (812,822) OTHER FINANCING SOURCES (USES):
Issuance of long-term debt - - - - -
Transfers (In) - - - - 812,822
Transfers (Out) - (65,243) (95,909) - -
Total Other Financing Sources (Uses) - (65,243) (95,909) - 812,822 Net Changes in Fund Balances 5,096 (65,243) (377,524) 63 - Fund Balances (Deficit) at the Beginning of Period $42,629 65,243 377,524 (1,144) 1 FUND BALANCES (DEFICIT) AT END OF PERIOD 47,725$ -$ -$ (1,081)$ 1$
CITY OF CONCORD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
122
DEBT
SERVICE
FUND
Total
Infrastructure Nonmajor
Lease Special Inter- Governmental
Agreement Developers Governmental Funds
-$ -$ -$ 4,140,626$
- 1,042,006 - 1,103,882
- - - 396,111
- - 2,101,073 8,577,317
- 209,432 - 1,144,112
(5,106) 52,275 109,213 595,230
- 13,590 50,000 118,665
(5,106) 1,317,303 2,260,286 16,075,943 - - - 332,522
- - - 92,215
- - - 4,723,155
- 196,698 261,711 3,417,303
- 303,678 818,026 2,896,837
11,850,000 - - 12,790,000
257,861 - - 412,332
12,107,861 500,376 1,079,737 24,664,364 (12,112,967) 816,927 1,180,549 (8,588,421) 9,609,870 - - 9,609,870
2,497,991 46,971 207 3,836,204
- (207) - (658,546)
12,107,861 46,764 207 12,787,528
(5,106) 863,691 1,180,756 4,199,107 24,931 6,692,360 8,221,349 42,532,587 19,825$ 7,556,051$ 9,402,105$ 46,731,694$
CAPITAL PROJECTS FUNDS
123
CITY OF CONCORD
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
STATE GAS TAX MAINTENANCE DISTRICTS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:
Taxes - $ -$ -$ 1,590,678 $ 1,639,938$ 49,260$ Licenses and Permits - - - - - -
Franchises - - - - - -
Intergovernmental 5,377,776 5,238,396 (139,380) - - - Charges for Services - - - - - -
Use of Money and Property 78,115 112,114 33,999 76,112 83,316 7,204 Other - - - - 5,075 5,075
Total Revenues 5,455,891 5,350,510 (105,381) 1,666,790 1,728,329 61,539 EXPENDITURES:
Current:
General Government - - - - - -
Public Safety - - - - - -
Public Works 4,214,645 2,627,923 1,586,722 1,602,263 1,314,931 287,332 Community and Economic Development - - - - - -
Capital Outlay 4,118,159 1,775,133 2,343,026 156,494 - 156,494 Debt Service:
Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 8,332,804 4,403,056 3,929,748 1,758,757 1,314,931 443,826
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,876,913) 947,454 3,824,367 (91,967) 413,398 505,365 OTHER FINANCING SOURCES (USES):
Issuance of long-term debt - - - - - -
Transfers In - - - - - -
Transfers (Out) - - - (333,257) (333,257) - Total Other Financing Sources (Uses) - - - (333,257) (333,257) - Net Changes in Fund Balances (2,876,913)$ 947,454 3,824,367$ (425,224)$ 80,141 505,365$ Fund Balances (Deficit) at Beginning of Year 6,471,628 5,868,262 Fund Balances (Deficit) at End of Year 7,419,082$ $5,948,403 124
ART IN PUBLIC PLACES TRAFFIC SYSTEM MANAGEMENT HOUSING ASSISTANCE PROGRAM Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
495 2,179 1,684 - - - 7,622 7,961 339 - - - - - - - - -
495 2,179 1,684 - - - 7,622 7,961 339 - - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - 68,000 - 68,000 - - -
36,443 - 36,443 - - - - - -
- - - - - - - - -
- - - - - - - - -
36,443 - 36,443 68,000 - 68,000 - - - (35,948) 2,179 38,127 (68,000) - 68,000 7,622 7,961 339 - - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
(35,948)$ 2,179 38,127$ (68,000)$ - 68,000$ 7,622$ 7,961 339$ 151,131 62,134 737,608
153,310$ 62,134$ 745,569$
(Continued)
125
CITY OF CONCORD
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
HOUSING AND COMMUNITY SERVICES STORM WATER MANAGEMENT
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:
Taxes - $ -$ -$ 2,000,000 $ 2,119,190$ 119,190$ Licenses and Permits - 61,876 61,876 - - - Franchises - - - - - -
Intergovernmental 1,120,000 1,073,587 (46,413) - - - Charges for Services - - - 35,000 65,855 30,855 Use of Money and Property 30,190 65,128 34,938 50,660 79,634 28,974 Other - - - - - -
Total Revenues 1,150,190 1,200,591 50,401 2,085,660 2,264,679 179,019 EXPENDITURES:
Current:
General Government - - - - - -
Public Safety - - - - - -
Public Works - - - 1,145,107 777,043 368,064 Community and Economic Development 1,356,970 1,525,836 (168,866) 1,736,260 1,009,458 726,802 Capital Outlay 1,683,740 - 1,683,740 968,446 - 968,446 Debt Service:
Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 3,040,710 1,525,836 1,514,874 3,849,813 1,786,501 2,063,312 .
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,890,520) (325,245) 1,565,275 (1,764,153) 478,178 2,242,331 OTHER FINANCING SOURCES (USES):
Issuance of long-term debt - - - - - -
Transfers In - - - 478,213 478,213 - Transfers (Out) - - - (163,930) (163,930) - Total Other Financing Sources (Uses) - - - 314,283 314,283 - Net Changes in Fund Balances (1,890,520)$ (325,245) 1,565,275 $ (1,449,870) $ 792,461 2,242,331 $ Fund Balances (Deficit) at Beginning of Year 2,326,949 5,731,767 Fund Balances (Deficit) at End of Year 2,001,704$ 6,524,228$ 126
HEALTH CARE DISTRICT ASSET FORFEITURE VEHICLE ABATEMENT Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) 325,000$ 381,498 $ 56,498 $ - $ -$ -$ -$ -$ -$ - - - - - - - - -
- - - - - - - - -
- - - - 69,431 69,431 100,000 94,830 (5,170) - - - - - - - - -
2,097 2,925 828 13,240 4,560 (8,680) 2,508 3,373 865 - 50,000 50,000 - - - - - -
327,097 434,423 107,326 13,240 73,991 60,751 102,508 98,203 (4,305) - - - - - - - - -
- - - 284,175 46,632 237,543 99,453 45,583 53,870 - - - - - - - - -
340,215 378,092 (37,877) - - - - - - 13,000 - 13,000 86,095 - 86,095 - - - - - - - - - - - -
- - - - - - - - -
353,215 378,092 (24,877) 370,270 46,632 323,638 99,453 45,583 53,870 (26,118) 56,331 82,449 (357,030) 27,359 384,389 3,055 52,620 49,565 - - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
(26,118)$ 56,331 82,449$ (357,030)$ 27,359 384,389$ 3,055$ 52,620 49,565$ 210,777 318,525 228,370
267,108$ 345,884$ 280,990$
(Continued)
127
CITY OF CONCORD
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
PUBLIC EDUCATION AND GOVERNMENT GENERAL PLAN REIMBURSEMENT FEE Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:
Taxes - $ -$ -$ -$ -$ -$
Licenses and Permits - - - - - -
Franchises 450,000 396,111 (53,889) - - - Intergovernmental - - - - - -
Charges for Services - - - 210,000 420,058 210,058 Use of Money and Property 11,564 21,566 10,002 14,484 34,022 19,538 Other - - - - - -
Total Revenues 461,564 417,677 (43,887) 224,484 454,080 229,596 EXPENDITURES:
Current:
General Government 181,039 332,522 (151,483) - - - Public Safety - - - - - -
Public Works - - - - - -
Community and Economic Development - - - - - -
Capital Outlay 1,213,615 - 1,213,615 1,314,210 - 1,314,210 Debt Service:
Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 1,394,654 332,522 1,062,132 1,314,210 - 1,314,210
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (933,090) 85,155 1,018,245 (1,089,726) 454,080 1,543,806 OTHER FINANCING SOURCES (USES):
Issuance of long-term debt - - - - - -
Transfers In - - - - - -
Transfers (Out) - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balances (933,090)$ 85,155 1,018,245$ (1,089,726)$ 454,080 1,543,806$ Fund Balances (Deficit) at Beginning of Year 1,504,212 2,181,637 Fund Balances (Deficit) at End of Year 1,589,367$ 2,635,717$ 128
TECHNOLOGY FEE TREE FUND ABAG
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ - -$ -$
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
302,000 441,067 139,067 - 7,700 7,700 - - - $7,112 $21,319 14,207 $654 654 - - -
- - - - - - - - -
309,112 462,386 153,274 - 8,354 8,354 - - - - - - - - - - - -
- - - - - - - - -
- - - - 3,258 (3,258) - - - 219,500 45,508 173,992 - - - - - - 315,100 - 315,100 - - - - - -
- - - - - - - - -
- - - - - - - - -
534,600 45,508 489,092 - 3,258 (3,258) - - - (225,488) 416,878 642,366 - 5,096 5,096 - - - - - - - - - - - -
- - - - - - - - -
- - - - - - - (65,243) (65,243)
- - - - - - - (65,243) (65,243)
(225,488)$ 416,878 642,366 $ - $ 5,096 5,096$ -$ (65,243) (65,243)$ 1,316,694 $42,629 65,243
1,733,572$ 47,725$ -$
(Continued)
129
PERFORMING ARTS REVENUE BONDS ASSESSMENT DISTRICTS E
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget REVENUES:
Taxes - $ - $ - $ - $ - $ - $ -$
Licenses and Permits - - - - - - -
Franchises - - - - - - -
Intergovernmental - - - - - - -
Charges for Services - - - - - - -
Use of Money and Property - 34 34 - 63 63 - Other - - - - - - -
Total Revenues - 34 34 - 63 63 -
EXPENDITURES:
Current:
General Government - - - - - - -
Public Safety - - - - - - -
Public Works - - - - - - -
Community and Economic Development - - - - - - -
Capital Outlay - - - - - - -
Debt Service:
Principal Repayment 270,000 270,000 - - - - 670,000 Interest and Fiscal Charges 14,224 11,649 2,575 - - - 142,823 Total Expenditures 284,224 281,649 2,575 - - - 812,823
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (284,224) (281,615) 2,609 - 63 63 (812,823) OTHER FINANCING SOURCES (USES):
Issuance of long-term debt - - - - - - -
Transfers In 284,224 - (284,224) - - - 812,823 Transfers (Out) - (95,909) (95,909) - - - -
Total Other Financing Sources (Uses) 284,224 (95,909) (380,133) - - - 812,823 Net Changes in Fund Balances - $ (377,524) (377,524)$ -$ 63 63 $ -$ Fund Balances (Deficit) at Beginning of Year 377,524 (1,144) Fund Balances (Deficit) at End of Year - $ (1,081)$
CITY OF CONCORD
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
130
ENERGY LEASE INFRASTRUCTURE LEASE AGREEMENT
Variance Variance
Positive Positive
Actual (Negative) Budget Actual (Negative)
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- - - - -
- - - (5,106) (5,106)
- - - - -
- - - (5,106) (5,106)
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
670,000 - 2,280,000 11,850,000 (9,570,000) 142,822 1 218,531 257,861 (39,330) 812,822 1 2,498,531 12,107,861 (9,609,330) (812,822) 1 (2,498,531) (12,112,967) (9,614,436) - - - 9,609,870 9,609,870
812,822 (1) 2,498,531 2,497,991 (540) - - - -
-
812,822 (1) 2,498,531 12,107,861 9,609,330 - -$
-$ (5,106) (5,106)$
1 24,931
1$ 19,825$
131
This Page Left Intentionally Blank
CITY OF CONCORD JUNE 30, 2021
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
The concept of major funds does not extend to internal service funds because they do not do business with outside parties. Generally accepted accounting principles require that for the Stat ement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Governmental Activities Statement of Net Position.
However, internal service funds are still presented sepa rately in the Fund financial statements, including the funds below:
Worker's Compensation Fund. To account for workers' compensation expenses. This fund is financed by fees charged to the City departments.
Risk Management/Liability Fund. To account for the non-reimbursable portion of insurance claims.
Post-Retirement HealthCare Benefit Fund. To account for the contributions and benefits paid in relation to the Post-Retirement Health Care Program.
Fleet Maintenance/Replacement Fund. To accumulate resources to fund the replacement of City licensed vehicles and motorized equipment.
Information Technology Replacement Fund. To accumulate resources to fund the replacement of computers and software for City staff.
Building Maintenance Fund. To accumulate resources required to maintain City facilities.
Compensated Absences Fund. To accumulate funds for the City’s liability associated with employee leave balances attributable to past service and it is probab le that the City will compensate the employees for the benefits through paid time off or some other means, such as cash payment at termination or retirement. 133
CITY OF CONCORD
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2021
Risk Post-Retirement Fleet
Workers' Mana gement/ Healthcare Maintenance/
Compensation Liabilit y Benefit Re placement
ASSETS
Current Assets:
Cash and Investments 15,792,121 $ 3,815,466 $ - $ 8,174,185 $ Accounts Receivable 9,306 400 4,223,000 -
Total Current Assets 15,801,427 3,815,866 4,223,000 8,174,185 Advances to Other Funds 4,611,538 - - -
Capital Assets
Buildings and Improvements - - - -
Equipment - - - 12,491,383
Construction In Progress - - - 597,615
Less: Accumulated Depreciation - - - (11,683,411)
Net Capital Assets - - - 1,405,587
Total Assets 20,412,965 3,815,866 4,223,000 9,579,772
LIABILITIES
Current Liabilities:
Accounts Payable - - - 5,731
Accrued Liabilities 567 23,402
Due to Other Funds - - 3,926,193 -
Interest Payable - - - -
Compensated Absences Payable - - - 19,043
Capital Lease Payable - - - -
Claims Payable 2,313,982 945,050 - -
Total Current Liabilities 2,314,549 945,050 3,926,193 48,176 Non-Current Liabilities
Compensated Absences Payable - - - -
Claims Payable 11,187,820 3,265,553 - -
Long-Term Debt:
Due in More Than One Year - - - -
Total Liabilities 13,502,369 4,210,603 3,926,193 48,176
NET POSITION
Net Investment in Capital Assets - - - 1,405,587
Unrestricted 6,910,596 (394,737) 296,807 8,126,009 Total Net Position 6,910,596$ (394,737)$ 296,807$ 9,531,596$ 134
Information
Technology Building Compensated
Replacement Maintenance Absences Total
16,079,218$ 2,206,074 $ - $ 46,067,064 $
- - - 4,232,706
16,079,218 2,206,074 - 50,299,770
- - - 4,611,538
- 48,362,156 - 48,362,156
24,908,837 - - 37,400,220
1,961,433 - - 2,559,048
(19,811,034) (31,405,516) - (62,899,961)
7,059,236 16,956,640 - 25,421,463
23,138,454 19,162,714 - 80,332,771
3,909
4,455 - 14,095
104,578 48,964 - 177,511
- - - 3,926,193
54,122 - - 54,122
45,667 50,506 2,430,012 2,545,228 338,519 - - 338,519
- - - 3,259,032
546,795 103,925 2,430,012 10,314,700 147,891 43,476 2,881,026 3,072,393 - - - 14,453,373
1,835,589 - - 1,835,589
2,530,275 147,401 5,311,038 29,676,055 4,885,128 16,956,640 - 23,247,355
15,723,051 2,058,673 (5,311,038) 27,409,361 20,608,179$ 19,015,313$ (5,311,038)$ 50,656,716$ 135
CITY OF CONCORD
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
Risk Post-Retirement Fleet
Workers' Mana gement/ Healthcare Maintenance/
Compensation Liabilit y Benefit Re placement
OPERATING REVENUES
Charges for services 2,537,360$ 1,733,344$ 4,492,122$ 3,534,090$ Other 19,565 - 4,223,000 10,981
Total Operating Revenues 2,556,925 1,733,344 8,715,122 3,545,071
OPERATING EXPENSES
Operations and Maintenance 667,291 1,064,157 8,598,420 1,814,562 Cost of Sales and Services - - 69,010 -
Depreciation - - - 1,030,522
Claims and Judgments 1,789,599 790,562 - - Total Operating Expenses 2,456,890 1,854,719 8,667,430 2,845,084 Operating Income (Loss) 100,035 (121,375) 47,692 699,987
NONOPERATING REVENUES (EXPENSES)
Interest and Other Income 216,464 49,052 - 111,766 Interest and Other Expense - - - -
Gain (Loss) from Sale of Capital Assets - - - 1,196
Total Non-Operating Revenues (Expenses) 216,464 49,052 - 112,962 Income (Loss) Before Transfers 316,499 (72,323) 47,692 812,949 Capital Contributions - - - -
Transfers Out - - - -
Net Contributions and Transfers - - - -
Changes in Net Position 316,499 (72,323) 47,692 812,949 Net Position (Deficit) Beginning 6,594,097 (322,414) 249,115 8,718,647 Net Position (Deficit) Ending 6,910,596$ (394,737)$ 296,807$ 9,531,596$ 136