Concord City Council
January 24, 2023

1 COUNCILMEMBERS
Laura M. Hoffmeister, Mayor
Edi E. Birsan, Vice Mayor
Dominic D. Aliano
Laura M. Nakamura
Carlyn S. Obringer
Civic Center
1950 Parkside Drive
Concord, CA 94519
www.cityofconcord.org
Regular Meeting of the
Concord City Council
Tuesday,
January 24, 2023
5:30 p.m. - Closed Session
6:30 p.m. - Open Session
Closed Session:

City Council
Conference Room
1950 Parkside Drive
Open Session:

Council Chamber
1950 Parkside Drive
and/or Various
telephonic/electronic
locations
NOTICE: The Closed Session portion of the meeting agenda will be held in person only in the City Council Conference Room, 1950 Parkside Drive. Public Comment for the Closed Session item will be taken in person only when the Closed Session begins at 5:30 p.m.

Members of the City Council, City staff/consultants, and the public will be able to participate in the Open Session either in- person and/or remotely via Zoom.

Pursuant to AB 361, the City is authorized to hold public meetings via teleconferencing and to make public meetings accessible telephonically or otherwise electronically to all members of the public. Tonight’s meeting will be conducted both in-person and remotely via Zoom. 2 How to Watch the Meeting:
Watch on TV on Comcast Channel 28, Astound/Wave Channel 1026, and AT&T U-verse Channel 99 Watch the TV broadcast through the City’s website by following THIS LINK Watching Live Streaming of the meeting by following THIS LINK Join the Zoom webinar by following THIS LINK
How to Submit Public Comments:

Please note that emailed comments will not be read aloud by staff.

Written: All comments received before 3:00 pm the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Councilmembers prior to the meeting.
Email comments to [email protected].
If you are commenting on a particular item on the agenda, please identify the agenda item number and letter.
If you are commenting on an item not listed on the agenda, please identify your comment as a General Public Comment.

To Participate in Public Comment During the Meeting:

Please note that emailed comments will not be read aloud by staff.

In-Person Comments: Blue Speaker Identification Cards are located near the Council Chamber entrance. Please complete a Speaker Card and give it to the City Clerk prior to the agenda item you wish to speak on and preferably prior to the Council meeting. When the Mayor opens a public comment period, the City Clerk will call speakers to provide comment in the order the Speaker Cards are received. Should you have any questions after consulting the Speaker Identification Card, please contact the City Clerk prior to the start of the Council meeting.

Live Remote Public Comments: Members of the public may submit a live remote public comment via Zoom video conferencing. Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here. Zoom also allows you to join the meeting by phone.
Join the meeting at any point, but be sure you are in the meeting prior to the City Council consideration of the item on which you would like to provide comments. From a PC, Mac, iPad, iPhone or Android:
https://cityofconcord.zoom.us/j/84628695787?pwd=NFBuc1ZsZm5UV3Q2UlhmejMyUmdzQT09 oWebinar ID: 846 2869 5787
oPasscode: 110293
oBy phone: US: +1 669 900 6833 or +1 346 348 7799 or 1 253 215 8782 Speakers will be asked to provide their name and city of residence, although providing this is not required for participation.
Each speaker will be afforded up to 3 minutes to speak. 3 Speakers will be muted until their opportunity to provide public comment. When called upon to speak, speakers will be promoted to panelists so they have the ability to turn on their cameras so they are visible to the Council and public.

When the Mayor opens a public comment period on the item on which you would like to comment, please use the “raise hand” feature (or press *9 if connecting via telephone) which will alert staff that you have a comment to provide.

CLOSED SESSION

1. OPENING
Roll Call

2. PUBLIC COMMENT
The public is entitled to address the City Council on Closed Session items appearing on the agenda before the City Council’s consideration of the items. Each speaker will be limited to approximately three minutes per Closed Session agenda item. Please see “How to Submit Public Comments” above.

3. CLOSED SESSION
a. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54957.6
Agency designated representatives: Valerie Barone, City Manager; Jasmin Loi, Director of Human Resources; Karan Reid, Director of Finance; Lisa Charbonneau, Esq., Liebert Cassidy Whitmore
Employee organizations: Administrative, Technical & Clerical Representation Unit and Field & Operations Representation Unit of International Brotherhood of Teamsters Local 856; Professional Representation Unit of OPEIU Local 29

4. RECESS TO OPEN SESSION
4 OPEN SESSION

5. OPENING
Roll Call
Pledge of Allegiance – Vice Mayor Birsan

6. PUBLIC COMMENT PERIOD
This is a 15-minute Public Comment Period for items within the City Council’s subject matter jurisdiction that are not on this agenda. Each speaker will be limited to approximately three minutes.

State law prohibits the City Council from acting at this meeting on any matter raised during the Public Comment Period. Please see “How to Submit Public Comments” above.

7. CITY COUNCIL CONSENT CALENDAR
The public is entitled to address the City Council on items appearing on the Consent Calendar before or during the City Council’s consideration of the Consent Calendar. Adoption of the Consent Calendar may be made by one motion of the City Council, provided that any Councilmember, individual or organization may request removal of an item from the Consent Calendar for separate consideration.

If a request for removal of an item from the Consent Calendar has been received, the Mayor may defer action on the particular item and place the same on the regular agenda for consideration in any order s/he deems appropriate. Please see “How to Submit Public Comments” above. a. Considering – approval of a Professional Services Agreement with BKF Engineers in the not-to-exceed amount of $670,450 (base agreement of $609,500 plus Staff authority to spend up to a 10% contingency of $60,950) for design engineering and related services for Clayton Road Pavement Rehabilitation (Project No. 2609), on Clayton Road from Maynard Street to the City limits at the City of Clayton; and authorize the City Manager to execute the agreement in a form acceptable to the City Attorney (Measure V Funds). Recommended by the Director of Community Development.

CEQA: Not a project/exempt per Public Resources Code Section 21065, CEQA Guidelines Sections 15060(c)(2), 15378 and/or 15061(b)(3). b. Considering – acceptance of the Annual Comprehensive Financial Report with the Independent Auditors' Report and Required Communications Letter for the Fiscal Year Ending June 30, 2022. Recommended by the Director of Finance.

CEQA: Not a project/exempt under Pursuant to Public Resources Code Section 21065, Guidelines Sections 15060, 15061, 15306, and/or 15378. c. Considering – the following:

1. Award of a construction contract in the amount of $1,539,953.50 to Bay Pacific Pipelines, Inc. for the Whitman Road Sanitary Sewer Improvements 5 Project (Project No. 2513) on Whitman Road from Oak Grove Road to Gaylord Place; authorizing Staff to utilize the available project contingency for contract change orders that become necessary up to 15% of the contract amount; and authorizing the Mayor to execute the contract in a form acceptable to the City Attorney.

2. Approval of a task order with Ghirardelli Associates in the amount of $231,087.33 (base agreement of $210,079.39 plus staff authority to spend up to a 10% contingency of $21,007.94) to provide construction management, inspection, and materials testing services for the Whitman Road Sanitary Sewer Improvements Project (Project No. 2513) on Whitman Road from Oak Grove Road to Gaylord Place; and authorizing the City Manager to execute the agreement in a form acceptable to the City Attorney. Recommended by the Director of Community Development.

CEQA: Not a project/exempt per CEQA Guidelines Sections 15301, 15302, and 15304.
d. Considering – approval of an Agreement for Professional Services with Bellecci & Associates, Inc. in the not-to-exceed amount of $118,243.40 (base agreement of $107,494 plus staff authority to spend up to a 10% contingency of $10,749.40) to provide design engineering and related services for Alberta Way Pavement Rehabilitation (Project No. 2615) located on Alberta Way between Ygnacio Valley Road and Clayton Road; and authorizing the City Manager to execute the agreement in a form acceptable to the City Attorney.

For detailed locations see Attachment 1 to the staff report. Recommended by the Director of Community Development.

CEQA: Not a project/exempt per CEQA Guidelines Sections 15060(c), 15061(b)(3), 15378, 15262, and/or Public Resources Code Section 21065. e. Considering – adoption of a Resolution amending Resolution No. 22-77, A Resolution Establishing a Homeless Strategic Plan Working Group, by removing the Concord residency requirement for the business community representative. Recommended by the City Clerk.

CEQA: Not a project/exempt pursuant to Public Resources Code Section 21065, CEQA Guidelines Sections 15060(c), 15061(b)(3), 15262, and/or 15378.

8. CITY COUNCIL CONSIDERATION ITEM
The public is entitled to address the City Council on items appearing on the agenda before or during the City Council’s consideration of that item. Each speaker will be limited to approximately three minutes. Please see “How to Submit Public Comments” above. 6 a. Considering – interview questions, interview applicants to fill four seats on the Homeless Strategic Plan Working Group, select and vote on the applicants, and appoint two Councilmembers to serve on the Working Group as Chair and Vice Chair. Recommended by the City Clerk.

9. CONTINUED PUBLIC COMMENT (IF NEEDED)

10. CORRESPONDENCE
Correspondence received at the City Council meeting will be listed here on the Annotated Agenda.

11. REPORTS AND ANNOUNCEMENTS
Closed Session Announcements
City Manager or Staff Reports

12. Council Reports
a. Considering appointing Councilmembers to represent the City Council on Council committees and regional bodies and boards of various external organizations of which the City is a member.

13. ADJOURNMENT
Next Meeting: Continued Special Meeting (continued from January 7, 2023) Date: 1/28/2023 9:00 AM

NOTICE TO THE PUBLIC
There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited by California law to raising only those issues you or someone else raised in the hearing or in a written correspondence delivered to the City Council prior to or at the hearing.

In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of Concord to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the ADA Coordinator Tianjun Cao at (925) 671-3243 or [email protected], at least 24 hours in advance of the meeting. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility.

Staff Report
Date: January 24, 2023
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: Kevin Marstall, PE, Director of Community Development Carlton Thompson, PE, City Engineer
Bernard Enrile, PE, CIP Manager
Prepared by: Justine Gee, PE, Associate Civil Engineer
[email protected]
(925) 671-3284
Subject: Considering approval of a Professional Services Agreement with BKF Engineers in the not-to-exceed amount of $670,450 (base agreement of $609,500 plus Staff authority to spend up to a 10% contingency of $60,950) for design engineering and related services for Clayton Road Pavement Rehabilitation (Project No. 2609), on Clayton Road from Maynard Street to the City limits at the City of Clayton; and authorize the City Manager to execute the agreement in a form acceptable to the City Attorney (Measure V Funds).

CEQA: Not a project/exempt per Public Resources Code
Section 21065, CEQA Guidelines Sections 15060(c)(2), 15378 and/or 15061(b)(3).

Report in Brief
The Clayton Road Pavement Rehabilitation (Project No. 2609) will involve pavement rehabilitation on Clayton Road, from Maynard Street to the City limits at the City of Clayton.

Engineering services are needed to initiate the design of Project No. 2609, which involves the development of plans, specifications, construction cost estimates, bid documents, and construction support. Along with pavement rehabilitation, design

7.a7.a7.a7.a

City Council Agenda Report
Agenda Item No. 7.a
January 24, 2023
includes the installation of curb ramps at intersections to meet accessibility standards, minor sidewalk or curb and gutter repairs, and restriping.

The Clayton Road Pavement Rehabilitation design is expected to start in January 2023 and be completed by November 2024. Following design, staff will advertise for construction bids; advertising a paving project in fall/winter period will lead to more competitive bid prices. Construction is anticipated to begin in spring 2025.

The project is funded by Measure V Funds.

Recommended Action
Approve a Professional Services Agreement with BKF Engineers in the not-to-exceed amount of $670,450 (base agreement of $609,500 plus Staff authority to spend up to a 10% contingency of $60,950) for design engineering and related services for Clayton Road Pavement Rehabilitation (Project No. 2609), pavement rehabilitation on Clayton Road from Maynard Street to the City limits at the City of Clayton; and authorize the City Manager to execute the agreement in a form acceptable to the City Attorney; and make the CEQA determinations as provided in this staff report.

Background
On June 1, 2021, City Council approved the proposed Five-Year Pavement Expenditure plan, which included Clayton Road Pavement Rehabilitation (Project No. 2609).

On June 28, 2022, the City Council adopted the 2-year CIP Budget for Fiscal Years 2022-23 and 2023-24, which included appropriation of $10,261,000 to fund the design and construction of Project No. 2609.

Analysis/Procurement Process
Staff issued a Request for Proposals (RFP) on September 22, 2022 for consultants to provide design and related services for Clayton Road Pavement Rehabilitation (Project No. 2609). The RFP was advertised in the local newspaper and on the City’s Procurement Website (Public Purchase). Four proposals were received, reviewed, and ranked by the selection committee comprised of City Staff from Engineering Services.

Based on the analysis of the proposals, interviews, and references, BKF Engineers was selected as the most qualified firm to provide design and related services for Project No. 2609. City Staff and BKF Engineers negotiated the scope of work, cost for the services, and agreed upon $609,500 as a fair and reasonable compensation for the services needed to complete the design phase of the project. BKF Engineers has extensive experience in the design of paving and complete streets projects in the Bay Area, and also designed Concord’s Treat Boulevard Paving Rehabilitation Project (City Project No. 2559).

City Council Agenda Report
Agenda Item No. 7.a
January 24, 2023
Financial Impact
Project No. 2609 is fully funded by Measure V funds (Fund 407). Based on the estimated cost, sufficient funds exist in the current budget to fully fund the design and construction of this project as $8,260,000 will be allocated to the project in Fiscal Year 2023-24.

Environmental Determination
This design activity does not constitute a “project” within the meaning of CEQA Guidelines Section 15060(c)(2) or CEA Guidelines Section 15378 because there is no potential that it will result in a direct or reasonable foreseeable indirect physical change in the environment. Even if the activity does comprise a project for CEQA analysis, it falls within the “common sense” CEQA exemption set forth in CEQA Guidelines Section 15061(b)(3), excluding projects where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” No unusual circumstances exist and none of the exceptions under CEQA Guidelines Section 15300.2 apply. This determination reflect the City’s independent judgment and analysis. Individual projects will undergo CEQA analysis as necessary.

Public Contact
The City Council Agenda was posted.

Attachments

1. Project Location Map

2. Professional Services Agreement with BKF with Exhibit A – Proposal

ATTACHMENT 1

CLAYTON ROAD PAVEMENT REHABILITATION PROJECT
PROJECT NO. 2609

PROJECT

LOCATION

AGREEMENT FOR PROFESSIONAL SERVICES
1 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
THIS AGREEMENT (“Agreement”) is entered into on January 24, 2023, between the City of Concord (“CITY”) and BKF Engineers, 1646 N. California Blvd, Suite 400, Walnut Creek, CA 94596 (“CONSULTANT”).

THE PARTIES ENTER THIS AGREEMENT based upon the following facts, understandings and intentions:

The CITY desires to contract with CONSULTANT to provide the professional services described in Section 2 of this Agreement, upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the parties herein contained, the parties hereto agree as follows:

1. TERM. This Agreement shall commence on January 24, 2023, and expire on June 30, 2023.

2. SCOPE OF SERVICES. Subject to such policy direction and approvals provided by the CITY's Authorized Representative, CONSULTANT shall provide civil design services for Clayton Road Pavement Rehabilitation, Project No. 2609 described in detail in Exhibit A, a proposal from BKF Engineers dated December 19, 2022, attached hereto and made a part hereof. CITY retains all rights of approval and discretion with respect to the projects and undertakings contemplated by this Agreement.

3. PAYMENT. The compensation to be paid to CONSULTANT including payment for professional services and reimbursable expenses, shall be at the rate and schedules in detail in Exhibit A. However, in no event shall the amount CITY pays CONSULTANT exceed six hundred seventy- thousand four-hundred fifty dollars ($670,450.00) for the term of this Agreement. The total includes the sum of the base contract of six hundred-nine thousand five- hundred dollars ($609,500.00) and a 10% contingency of sixty-thousand nine-hundred fifty dollars ($60,950.00). Any Amendment to this Agreement that includes an increase to this compensation amount shall be made in accordance with Section 5 below.

CONSULTANT may submit monthly statements for services rendered; all statements shall include adequate documentation demonstrating work performed during the billing period. It is intended that CITY review such statement and pay CONSULTANT for services rendered within 30 days of Attachment 2

2 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
receipt of a statement that meets all requirements of this Agreement. Payment by CITY shall not be deemed a waiver of unsatisfactory work, even if such defects were known to the CITY at the time of payment.

4. AUTHORIZED REPRESENTATIVES. Authorized representatives shall represent CITY and CONSULTANT in all matters pertaining to the services to be ordered by CITY or rendered by CONSULTANT under this Agreement except where approval for the CITY is specifically required by the City Council. The CITY’s authorized representative is Carlton Thompson, City Engineer of the Community Development Department. The CONSULTANT’s authorized representative is Daniel Schaefer, Principal and Vice President.

5. AMENDMENT TO AGREEMENT. This Agreement may be amended in writing, subject to approval by both parties. If additional services are requested by CITY other than as described in the above Scope of Services, this Agreement may be amended, modified, or changed by the parties subject to mutual consent and in accordance with the CITY’s Municipal Code by execution of an Amendment by authorized representatives of both parties setting forth the additional scope of services to be performed, the performance time schedule, and the compensation for such services.

A. Amendment for Additional Compensation. CITY’s Authorized Representative is authorized to execute amendments to the Agreement on behalf of CITY, including amendments providing for additional compensation to CONSULTANT not to exceed the Minimum Threshold, including the base contract amount, throughout the term of this Agreement. “Minimum Threshold” means the dollar amount over which Council approval is required during each fiscal year as set forth in Concord City Council Resolution 21-43 pursuant to Concord Municipal Code Section

3.10.040(a). The Minimum Threshold for Fiscal Year 2021-22 is $75,000 and increases by $5,000 each subsequent fiscal year such that by Fiscal Year 2026-27 the Minimum Threshold is $100,000. Any additional compensation to CONSULTANT that is greater than the Minimum Threshold, including the base contract amount, must be approved by City Council. CONSULTANT’s failure to secure CITY’s written authorization for additional compensation or changes to the Scope of Work shall constitute a waiver of any and all right to adjustment in the price or time due, whether by way of compensation,

3 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
restitution, quantum merit, or similar relief.

6. INDEPENDENT CONTRACTOR. Both parties understand and acknowledge that CONSULTANT, its agents, employers and subcontractors are and shall at all times remain as to the CITY wholly independent contractors. Neither the CITY nor any of its officers or employees shall have any control over the manner by which the CONSULTANT performs this Agreement and shall only dictate the results of the performance. CONSULTANT shall not represent that CONSULTANT or its agents, employees or subcontractors are agents or employees of the CITY, and CONSULTANT shall have no authority, express or implied, to act on behalf of the CITY in any capacity whatsoever as an agent, and shall have no authority, express or implied, to bind the CITY to any obligation whatsoever, unless otherwise provided in this Agreement.

As an independent contractor, CONSULTANT shall not be eligible for any benefits, which the City may provide to its employees and all persons, if any, hired by CONSULTANT shall be employees or subcontractors of CONSULTANT and shall not be construed as employees or agents of the CITY in any respect. CONSULTANT shall receive no premium or enhanced pay for work normally understood as overtime, i.e., hours that exceed forty (40) hours per work week, or work performed during non- standard business hours, such as in the evenings or on weekends. CONSULTANT shall not receive a premium or enhanced pay for work performed on a recognized holiday. CONSULTANT shall not receive paid time off for days not worked, whether it be in the form of sick leave, administrative leave, or for any other form of absence. CONSULTANT shall pay all taxes, assessments and premiums under the federal Social Security Act, any applicable unemployment insurance contributions, Workers Compensation insurance premiums, sales taxes, use taxes, personal property taxes, or other taxes or assessments now or hereafter in effect and payable by reason of or in connection with the services to be performed by CONSULTANT.

7. STANDARD OF PERFORMANCE. CONSULTANT represents and warrants to CITY that CONSULTANT is skilled and able to provide such services described in the Scope of Work and that such services shall be performed in an expeditious manner, and with the degree of skill and care that is required by current, good, and sound procedures and practices. CONSULTANT further

4 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
agrees that the services shall be in conformance with generally accepted professional standards prevailing at the time work is performed.

8. PERFORMANCE BY CONSULTANT. CONSULTANT shall not employ other consultants, subconsultants, experts, or contractors without the prior written approval of the CITY.

Notwithstanding the foregoing, CITY shall not be obligated or liable for payment hereunder to any party other than the CONSULTANT. CONSULTANT hereby designates the CONSULTANT’S representative as the person primarily responsible for the day-to-day performance of CONSULTANT'S work under this Agreement. CONSULTANT shall not change the CONSULTANT’S representative without the prior written consent of the CITY. Unless otherwise expressly agreed by the CITY, CONSULTANT'S representative shall remain responsible for the quality and timeliness of performance of the services, notwithstanding any permitted or approved delegation hereunder.

9. OWNERSHIP AND MAINTENANCE OF DOCUMENTS. All documents furnished by CONSULTANT pursuant to this Agreement are instruments of CONSULTANT’s services in respect to this project. They are not intended nor are represented to be suitable for reuse by others except CITY on extensions of this project or on any other project. Any reuse without specific written verification and adoption by CONSULTANT for the specific purposes intended will be at user’s sole risk and without liability or legal exposure and expenses to CONSULTANT, including attorney’s fees arising out of such unauthorized reuse.

CONSULTANT’s records, documents, calculations, and all other instruments of service pertaining to actual project shall be given to CITY at the completion of the project. The CITY reserves the right to specify the file format that electronic document deliverables are presented to the CITY.

Title to all plans, specifications, maps, estimates, reports, manuscripts, drawings, descriptions and other final work products compiled by the CONSULTANT under the Agreement shall be vested in the CITY, none of which shall be used in any manner whatsoever, by any person, firm, corporation, or agency without the expressed written consent of the CITY. Basic survey notes and sketches, charts, computations, and other data prepared or obtained under the Agreement shall be made available, upon request, to the CITY without restriction or limitations on their use. CONSULTANT may retain copies

5 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
of the above-described information but agrees not to disclose or discuss any information gathered, discussed or generated in any way through this Agreement without the written permission of CITY during the term of this Agreement, unless required by law.

10. INDEMNIFICATION.

A. For Design Professional Services Only. Pursuant to California Civil Code Section 2782.8, CONSULTANT agrees to indemnify the CITY (including its officers, agents, employees and volunteers) against liability for claims against the CITY that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT in the performance of this Agreement. The CONSULTANT will reimburse the CITY for any expenditures, including reasonable attorney fees, incurred by the CITY in defending against claims ultimately determined to arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT.

B. For All Other Services. CONSULTANT agrees to defend, indemnify and hold harmless the CITY (including its officers, officials, employees, agents and volunteers) from and against all claims, demands, actions, losses, damages, injuries, and liability (including all attorney’s fees and other litigation expenses) arising out of the CONSULTANT’s performance under the terms of this Agreement. This indemnification obligation on CONSULTANT’s part shall not apply to the demands, actions, losses, damages, injuries, and liability arising out of the sole negligence or willful misconduct on the part of the CITY.

11. INSURANCE. CONSULTANT shall, at its own expense, procure and maintain in full force at all times during the term of this Agreement the following insurance:

A. Commercial General Liability Coverage. CONSULTANT shall maintain commercial general liability insurance with limits of no less than one million dollars ($1,000,000) combined single limit per occurrence or two million dollars ($2,000,000) aggregate limit for bodily injury, personal injury, and property damage.

B. Automobile Liability Coverage. CONSULTANT shall maintain automobile liability insurance covering all vehicles used in the performance of this Agreement providing a one

6 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
million dollar ($1,000,000) combined single limit per occurrence for bodily injury, personal injury, and property damage.

C. Professional Liability Coverage (Errors and Omissions). CONSULTANT shall maintain professional liability insurance with coverage for all negligent errors, acts or omissions committed by CONSULTANT, its agents and employees in the performance of this Agreement. The amount of this insurance shall be not less than one million dollars ($1,000,000) on a claims made annual aggregate basis or a combined single limit per occurrence basis.

D. Compliance with State Workers' Compensation Requirements.

CONSULTANT covenants that it will insure itself against liability for Workers' Compensation pursuant to the provisions of California Labor Code §3700, et seq. CONSULTANT shall, at all times, upon demand of the City, furnish proof that Workers' Compensation Insurance is being maintained by it in force and effect in accordance with the California Labor Code. The insurer shall also agree to waive all rights of subrogation against the CITY, its officers, officials, employees and volunteers for losses arising from work performed by CONSULTANT for CITY. This provision shall not apply upon written verification by CONSULTANT that CONSULTANT has no employees.

E. Other Insurance Provisions. The policies are to contain, or be endorsed to contain the following provisions:
(1) Additional Insured. CITY, its officers, agents, employees, and volunteers are to be covered as an additional insured as respects: Liability arising out of activities performed by or on behalf of CONSULTANT and operations of CONSULTANT, premises owned, occupied, or used by CONSULTANT. The coverage shall contain no special limitations on the scope or protection afforded to CITY, its officers, officials, employees, or volunteers.

Except for worker's compensation and professional liability insurance, the policies mentioned in this subsection shall name CITY as an additional insured and provide for notice of cancellation to CITY. CONSULTANT shall also provide timely and prompt notice to CITY if CONSULTANT receives any notice of cancellation or nonrenewal from its insurer. (2) Primary Coverage. CONSULTANT'S insurance coverage shall be

7 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
primary insurance with respect to CITY, its officers, officials, employees, and volunteers. Any insurance, risk pooling arrangement, or self-insurance maintained by CITY, its officers, officials, employees, or volunteers shall be in excess of CONSULTANT'S insurance and shall not contribute with it.
(3) Reporting Provisions. Any failure to comply with the reporting provisions of the policy shall not affect the coverage provided to the CITY, its officers, officials, employees, or volunteers.
(4) Verification of Coverage. CONSULTANT shall furnish CITY with certificates of insurance and the original endorsements effecting coverage required by this Agreement.

The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The aforementioned policies shall be issued by an insurance carrier having a rating of Best A-7 or better which is satisfactory to the City Attorney and shall be delivered to CITY at the time of the execution of this Agreement or before work commences. Such policies and certificates shall be in a form approved by the City Attorney. CITY reserves the right to require complete certified copies of all required insurance policies at any time.

12. TIME OF PERFORMANCE. The time of performance of the services under this Agreement is of the essence, and all-time deadlines identified in this Agreement or Scope of Services shall be strictly construed.

13. SUSPENSION OF WORK. CITY may, at any time, by ten (10) days’ written notice, suspend further performance by CONSULTANT. All suspensions shall extend the time schedule for performance in a mutually satisfactory manner, and CONSULTANT shall be paid for services performed and reimbursable expenses incurred prior to the suspension date. During the period of suspension, CONSULTANT shall not receive any payment for services, or expenses, except for reasonable administration expenses, incurred by CONSULTANT by reason of such suspension.

14. TERMINATION. CITY may terminate this Agreement for any reason upon ten (10) days written notice to the other party. CITY may terminate the Agreement upon five (5) days written notice if CONSULTANT breaches this Agreement. In the event of any termination, CONSULTANT

8 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
shall promptly deliver to the CITY any and all finished and unfinished reports or other written, recorded, photographic, or visual materials, documents, data, and other deliverables (“Work Materials”) prepared for the CITY prior to the effective date of such termination, all of which shall become CITY’s sole property. After receipt of the Work Materials, CITY will pay CONSULTANT for the services performed as of the effective date of the termination.

15. COMPLIANCE WITH CIVIL RIGHTS. During the performance of this contract, CONSULTANT agrees as follows:

A. Equal Employment Opportunity. In connection with the execution of this Agreement, CONSULTANT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, or national origin. Such actions shall include, but not be limited to, the following: employment, promotion, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training including apprenticeship.

B. Nondiscrimination Civil Rights Act of 1964. CONSULTANT will comply with all federal regulations relative to nondiscrimination in federally assisted programs.

C. Solicitations for Subcontractors including Procurement of Materials and Equipment. In all solicitation, either by competitive bidding or negotiations, made by CONSULTANT for work to be performed under a subcontract including procurement of materials or leases of equipment, each potential subcontractor, supplier, or lessor shall be notified by CONSULTANT of CONSULTANT’S obligation under this Agreement and the regulations relative to nondiscrimination on the grounds of race, religion, color, sex, or national origin.

16. CONFLICT OF INTEREST.

A. CONSULTANT covenants and represents that neither it, nor any officer or principal of its firm, has, or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of CITY or which would in any way hinder CONSULTANT’s performance of services under this Agreement. CONSULTANT further covenants that in the performance of the Agreement, no person having any such interest shall be employed by it as an officer, employee, agent,

9 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
or subcontractor without the express written consent of the CITY. CONSULTANT agrees to at all times avoid conflicts of interest, or the appearance of any conflicts of interest, with the interests of the CITY in the performance of this Agreement.

B. CONSULTANT is not a designated employee within the meaning of the Political Reform Act because CONSULTANT:
(1) Will conduct research and arrive at conclusions with respect to its rendition of information, advice, recommendation or counsel independent of the control and direction of the CITY or of any CITY official, other than normal contract monitoring; and (2) Possesses no authority with respect to any CITY decision beyond the rendition of information, advice, recommendation or counsel. (2 Cal. Code Regs. § 18700(a)(2).)

17. COMPLIANCE WITH LAWS. CONSULTANT shall comply with all applicable Federal, State of California, and local laws, rules, and regulations and shall obtain all applicable licenses, including a business license with the City of Concord, and permits for the conduct of its business and the performance of the services. CONSULTANT shall ensure that all of its officers, employees, agents, and subcontractors who: (i) enter CITY premises in connection with the services to be performed by CONSULTANT hereunder, and/or (ii) have in-person contact with CITY officers, officials, employees, subcontractors, agents, and volunteers, and/or members of the public, in connection with the services to be performed by CONSULTANT hereunder, comply with all applicable Federal, State of California, Contra Costa County, and local laws, rules, and regulations, whichever is the most restrictive, regarding COVID-19 or similar public health matters, including regarding vaccinations, testing, reporting, social distancing, social gathering, mask wearing, and associated requirements.

18. CHOICE OF LAW. This Agreement shall be construed and interpreted in accordance with the laws of the State of California, excluding any choice of law rules which may direct the application of the laws of another jurisdiction. In the event that suit shall be brought by either party hereunder, the parties agree that trial of such action shall be held exclusively in a state court in the County of Contra Costa, California.

10 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

19. NON-WAIVER. The waiver by either party of any breach of any term, covenant, or condition contained in the Agreement, or any default in their performance of any obligations under the Agreement shall not be deemed to be a waiver of any other breach or default of the same or any other term, covenant, condition, or obligation, nor shall any waiver of any incident of breach of default constitute a continuing waiver of same.

20. ENFORCEABILITY; INTERPRETATION. In the event that any of the provisions or portions of application of any of the provisions of the Agreement are held to be illegal or invalid by a court of competent jurisdiction, CITY and CONSULTANT shall negotiate an equitable adjustment in the provisions of the Agreement with a view toward affecting the purpose of the Agreement. The illegality or invalidity of any of the provisions or portions of application of any of the provisions of the Agreement shall not affect the legality or enforceability of the remaining provisions or portions of application of any of the provisions of the Agreement. This Agreement shall be interpreted as though it was a product of a joint drafting effort, and no provisions shall be interpreted against a party on the ground that said party was solely or primarily responsible for drafting the language to be interpreted.

21. INTEGRATION. All exhibits identified in this Agreement are attached hereto and incorporated herein by reference. The Agreement contains the entire agreement and understanding between the parties as to the subject matter of this Agreement. It merges and supersedes all prior or contemporaneous agreements, commitments, representation, writings, and discussions between CONSULTANT and CITY, whether oral or written.

22. SUCCESSORS AND ASSIGNS: NO THIRD PARTY BENEFICIARIES; NO JOINT VENTURE. CITY and CONSULTANT respectively, bind themselves, their successors, assigns, and legal representatives to the terms and obligations of this Agreement. CONSULTANT shall not assign or transfer any interest in the Agreement without the CITY's prior written consent, which consent shall be in the CITY’s sole discretion. Any attempted assignment or transfer in breach of this provision shall be void. This Agreement is not intended and shall not be construed to create any third- party benefit. This Agreement is not intended and shall not be construed to create a joint venture or partnership between the parties. CONSULTANT, its officers, employees and agents shall not have any

11 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
power to bind or commit the CITY to any decision.

23. FINANCIAL RECORDS. Records of CONSULTANT’s direct labor costs, payroll costs, and reimbursable expenses pertaining to this project covered by this Agreement will be kept on a generally recognized accounting basis and made available to CITY if and when required.

24. NOTICES. All notices required hereunder shall be in writing and mailed postage prepaid by certified or registered mail, return receipt requested, or by personal delivery to the CITY's address as shown below, or such other places as CITY or CONSULTANT may, from time to time, respectively, designate in a written notice given to the other. Notice shall be deemed received three (3) days after the date of the mailing thereof or upon personal delivery.

To CITY: Carlton Thompson, City Engineer
Community Development Department
City of Concord
1950 Parkside Drive
Concord, CA 94519-2578
Phone: (925) 671-3182
To CONSULTANT: Daniel Schaefer, Principal and Vice President BKF Engineers
1646 N. California Blvd, Suite 400
Walnut Creek, Ca 94596
Phone: (925) 940-2214

25. NON-LIABILITY. No member of the CITY and no other officer, employee or agent of the CITY shall be personally liable to CONSULTANT or otherwise in the event of any default or breach of the CITY, or for any amount which may become due to CONSULTANT or any successor in interest, or for any obligations directly or indirectly incurred under the terms of this Agreement.

26. EXECUTION . Each individual or entity executing this Agreement on behalf of CONSULTANT represents and warrants that he or she or it is duly authorized to execute and deliver this Agreement on behalf of CONSULTANT and that such execution is binding upon CONSULTANT.

This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce

12 of 12
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
or account for more than one such counterpart.

IN WITNESS WHEREOF, the parties have executed this Agreement in one (1) or more copies as of the date and year first written above.

CONSULTANT CITY OF CONCORD, a Municipal
Corporation
By:_________________________________ By:______________________________ Name: Daniel Schaefer Name: Valerie Barone
Title: Principal, Vice President Title City Manager Address: 1646 N. California Blvd, Suite 400 Address: 1950 Parkside Drive Walnut Creek, Ca 94596 Concord, CA 94519 Telephone: (925) 940-2214 Telephone: (925)671-3150
Email: [email protected]
APPROVED AS TO FORM: ATTEST:

City Attorney City Clerk
Date: _____________________________, 2023
FINANCE DIRECTOR'S CERTIFICATION:

Concord, California
Date: _____________________________, 2023

I HEREBY CERTIFY THAT ADEQUATE FUNDS EXIST OR WILL BE RECEIVED DURING THE CURRENT FISCAL YEAR 22/23 TO PAY THE ANTICIPATED EXPENSES TO BE INCURRED PURSUANT TO THIS CONTRACT.

THE SUM OF $670,450.00
Account Code: 4079500C999-74500 / 4072609113-74500
Finance Director's Signature

Clayton Road Pavement Rehabilitation 12/19/2022 Page 1 of 6 BKF ENGINEERS

CLAYTON ROAD PAVEMENT REHABILITATION
CITY PROJECT NO. 2609

SCOPE OF WORK

1. PROJECT MANAGEMENT

1.1. Project Management: B KF will manage the design team as well as track progress, schedule, and budget.

BKF will be responsible for documenting all design decisions and keeping an official record of the project. BKF will submit monthly progress reports identifying tasks completed, budget status, and issues status.

1.2. Coordination and Meetings: BKF will attend meetings with City staff to coordinate the design (we have allocated time for 10 meetings). We assume that there will be a weekly or bi-weekly conference call to provide update and feedback on the project task items.

1.3. Public outreach and Exhibits: We have allocated time for up to three (3) community meetings either virtual or in person. Additionally, we have allocated time to have a separate stakeholder meeting with the City, schools, transit agencies, and public utilities.
a. Project Visioning (Pre-35% Design) - 2 Meetings Total • Dev elop outreach plan to, identify stakeholders, develop an outreach calendar, venue locations, plan and coordinate in person outreach events.
• Provide project graphics (plans and sections) and social media content for posting to City website and social media channels.
• Facilitate (2) two in person community outreach meeting b. Community Update (60% Design) - 1 Meeting Total
• Pla n and coordinate (1) meeting to provide project update • Update design collateral information
c. Stakeholder Meetings (e.g. Transit, Public Utilities) - 2 Meetings

1. 4. Administration and QA/QC: A senior member of BKF’s team from our office in Walnut Creek will perform an independent quality control review of the team’s documents prior to submittal. There is NO cost for this task.1.

2. PR EPARE BASE MAPS AND PLAN SHEETS

2.1. Survey and Base Studies:
2 .1.1. Research: BKF will acquire information from public utility companies who possess infrastructure in th
e project area as well as their current and future CIP projects.

2.1.2. FWD Pavement Evaluation: Applied Research Associates, Inc. (ARA) will provide Falling Weight De
flectometer (FWD) testing and analysis. In addition, Ground Penetrating Radar (GPR) for continuously determining the pavement layer thicknesses will also be provided. A Google Earth map showing the FWD tested locations, a set of right-of-way pictures taken during FWD data collection, pavement structural analysis using Caltrans Test Method (CTM) 356 and Highway Design Manual (HDM), pavement maintenance and rehabilitation recommendations, and a report will be provided.

2.1.3. FWD testing will be conducted on Clayton Road. FWD testing will be conducted at preset testing Exhibit A to Attachment 2

Clayton Road Pavement Rehabilitation 12/19/2022 Page 2 of 6 BKF ENGINEERS intervals in each main travel lane (turning lanes are not included) at 200-foot intervals. Each FWD test point will be geo-referenced using our sub-meter accuracy GPS system. The tests will be staggered between the lanes to increase the coverage over the test section. It is anticipated that the testing will take two (2) days to complete. The testing and analysis will be performed in accordance with Caltrans CTM 356 and HDM.

2.1.4. Pavement and Utilities GPR Evaluation: A wide-array 3D GPR system will be used to collect pavement thicknesses and types as well as buried utilities within 5 feet of the surface. GPR is used to determine the pavement thicknesses and types by means of emitting a series of radar waves to the pavement structure while the vehicle is traveling at traffic speed. The GPR data will be analyzed using RADAN 7 software package to estimate the dielectric properties of the pavement and determine the layer thicknesses. The resulting correlated dielectric constants are then filtered to determine pavement thicknesses and types as well as shallow utilities.

2.1.5. ADA Inspections at Intersections: BKF will visit the street intersections to document areas of damage to curbs and gutters, and conflicts/issues with accessibility (e.g. sidewalks, ramps, push buttons, and other traffic signal equipment). We will compile both a photographic log and field notes of the investigation.

2.1.6. Survey Base Mapping: BKF will compile base mapping for streets to receive improvements using the City and County’s GIS information and aerial photogrammetry. BKF will set control and have an aerial survey flow for initial planning. BKF will plot available utility record drawings in the base mapping as well as compile right-of- way from GIS information. We will assemble the drawings in AutoCAD Civil 3D format for use in final design.

2.1.7. Complete Streets Base Map: Based on the surveyed information from 2.1.6, BKF will provide an exhibit showing all existing curb to curb widths, cross-sections, street furniture and lane markings.

This will serve as the basis for the complete streets options analysis in 2.2. below.

2.2. Complete Streets and Green Infrastructure Options: BKF will evaluate options for Complete Streets and green infrastructure based on the existing Bicycle Master Plan from Maynard to City limit of the Town of Clayton.

We understand that a separate study will model the potential for lane removal and/or widening of the existing roadway to accommodate enhanced complete streets options. We have assumed that our initial complete streets analysis will include:
• Identification of sidewalk gap areas
• Identification of bus stop locations with potential accessibility deficiencies • Identification of potential locations for bicycle facilities within the current right-of-way (strip map of corridor)
• Identification for potential improvements to access schools, trails, and bus stops within corridor (strip map of corridor)
• Identification of potential impacts to underground electrical conduits for the streetlights and underground joint trench/electrical facilities
• BKF will consider the potential for stormwater treatment (C3) and trash capture (C.10) measures with a focus at locations that could accommodate swales or basins. • Review of existing traffic volumes and data to determine baseline. • Review the potential for eliminating on-street parking to accommodate complete streets goal

Clayton Road Pavement Rehabilitation 12/19/2022 Page 3 of 6 BKF ENGINEERS • Review the existing street widths (curb to curb and medians) to determine what complete streets options are available within the current geometry.

2.3. Rehabilitation Scope Refinement (Basis of Design): BKF will evaluate alternatives for repairs that offer the highest benefit. We will develop cost analysis and potentially refine the rehabilitation strategy to remain within the defined budget for streets. BKF will provide the following as part of the Basis of Design documentation or appendixes:
• A
rea and severity of pavement distress
• Curb ramp replacement and accessibility enhancements
• Pedestrian and bicycle improvements
• Stormwater Treatment
• Cost analysis to complete defined scope of work
• Suggested alternatives to complete the project in phases

3. PREPARE PLANS, SPECIFICATIONS, & ESTIMATE (PS&E)

3.1. 35% Design (Preliminary): BKF will develop drawings to a 35 level of design, including:

3.1.1. Plans with the following components:
• T itle Sheet
• Roadway Rehabilitation Plan
• Curb Ramp Replacement Diagram
• Striping Plan (existing and proposed striping including complete streets enhanced crossings deemed feasible from task 2.2)
• Cross-sections at all points where changes in existing ROW or curb to curb width occur • Stormwater Treatment Potential Areas
• Phasing Concepts
• Magnitude Engineer’s Estimate with Options

3.1.2. Cost Analysis: BKF will refine our estimate c
onfirming that the scope of work for the pavement
rehabilitation is within budget. Should the scope exceed the budget, we will include value-engineering strategies in our analysis, which may include alternative rehabilitation strategies or delaying repairs to certain streets.

3.2. 60% Design

3.2.1. Construction Documents: BKF will further the design of the Plans prepared in Task 3.1 to the 60% level of design. We will add the following elements to the 35% set:
• C
urb Ramp and Sidewalk Detail Grading Plans (concepts)
• Sign and Striping Plans
• Minor Traffic Signal Modifications (push button on existing signal poles, push button on new push button poles). We understand that the replacement of existing cabinets, controllers, safety

Clayton Road Pavement Rehabilitation 12/19/2022 Page 4 of 6 BKF ENGINEERS street lighting, and VDS is being separately designed and will be furnished by the City if the improvements have not already been installed prior to this project. • Construction Details
• Project Technical Specifications (outline at 60%)
• Bid Schedule
• Engineer’s Estimate

3.2.2. Coordinate with Public Utilities in Project A rea: BKF will meet with public utility companies to introduce the project and discuss potential impacts to utility infrastructure. We will provide both written notice and hold a paving is complete.

3.2.3. Potholing Optional Service: We can have BESS Test Lab pothole critical locations to determine the depth and location of existing utilities that may be in conflict with new facilities. If the level of effort, we have provided a fee allowance for this service as the exact number of potholes is unknown.

3.3. 90% Design

3.3.1. Construction Documents: BKF will further the design of the Plans prepared under the prior contract to the 90% level of design:
• C
urb Ramp and Sidewalk Detail Grading Plans
• Sign and Striping Plans
• Construction Details
• Project Technical Specifications
• Bid Schedule
• Construction Staging and Phasing Concepts

3.3.2. Coordinate with Public Utilities in Project A rea: BKF will coordinate with the City and the public utilities within the corridor as to the modifications to their facilities.

3.4. Final Design

3.4.1. Construction Documents: BKF will update the PSE, Bid Schedule and appurtenant materials based on City comments and issue them to the City for Bid and Construction.

3.4.2. Coordinate with Public Utilities in Project Area: BKF will work with the City to finalize the requests for utility adjustments with the utility companies.

4. BID AND CONSTRUCTION SUPPORT

4.1. Bid Support

4.1.1. Construction Documents: BKF will update the PSE, Bid Schedule and appurtenant materials based on City Comments and issue them to the City for Bid and Construction.

4.1.2. Coordinate with Public Utilities in Project Area: BKF will work with the City to finalize the requests for utility adjustments with the utility companies.

4.2. Construction Support

Clayton Road Pavement Rehabilitation 12/19/2022 Page 5 of 6 BKF ENGINEERS

4.2.1. Construction Support Services: BKF has allocated up to a maximum of three hundred (275) hours of combined staff time to support the contractor and design team during the construction phase of the project. Anticipated services include written response to requests for information (RFI’s), submittal reviews, substitution requests, informational bulletins, addendums, and record drawings.

4.2.2. Construction Meetings: BKF has budgeted for two site meetings with the contractor during the construction process. Anticipated meetings include the following:
• P
re-construction meeting
• Final punch-list walk with the City

DESIGN ASSUMPTIONS AND SCOPE QUALIFICATIONS
BKF Engineers’ services are limited to those expressly set forth in the scope. We understand that BKF will have no other obligations or responsibilities for the project except as provided in this scope of work, or as otherwise agreed to in writing. BKF will provide the scope of services consistent with, and limited to, the standard of care applicable to such services. Any participation in non-adversarial procedures, or other right to repair items, is considered as additional services. For the scope of work identified, we have assumed the following:

1. City Provided Information - City will provide the following services:
a. City will make available any existing record drawings (as-built) of the existing and improved roadways and aerial mapping of the City.
b. Right-of-way Maps/Title Report: A current title report or right-of-way maps for the roadway will be provided by the City.
c. Traffic Signal Plans: BKF will utilize a City provided existing PDF of as-built the signal and lighting plans as a base file and annotate the new design components on the PDF

2. Signal Modifications: We have assumed that no signal modifications will be required with this project and that only minor installation of push button poles to accommodate existing pedestrian crossings at existing signalized intersections will be needed and installation of City furnished cabinets, controllers, safety street lighting, and VDS to replace existing equipment at existing locations. The City will provide specifications and details for these City furnished items as well as sample specifications for their integration into the overall project specifications. We have assumed that the new equipment will not require new foundations.

3. Fiber Design: Fiber design, including fiber splicing diagrams and conduit layout, is not included with the design. Additional site work may be needed to accommodate the fiber installation.

4. Existing Utilities: Unless otherwise indicated or provided by others, any existing utilities identified on BKF’s drawings/plans are based on information obtained by BKF, or provided to BKF, and may not be accurately documented in their horizontal location or vertical profile. Other utilities may be present that were not disclosed. Additionally, existing utilities have adequate capacity to serve the proposed improvements and that utility system capacity studies are not required.

5. CEQA: We have presumed that the project will be a Categorical Exemption based on the CEQA checklist (since the project limits will be within an existing disturbed roadway areas). We presume that the City will use internal staff to make the findings and file the paperwork with the compliance agency.

6. NPDES C.3 Compliance: Based on a preliminary review, the site could likely be subject to the NPDES Stormwater regulations. The City of Concord has a Stormwater Compliance Checklist that BKF will assist the project team in completing for a demonstration rain garden. This checklist will provide guidance on

Clayton Road Pavement Rehabilitation 12/19/2022 Page 6 of 6 BKF ENGINEERS the limited stormwater quality measures that could be implemented. We have not included time to process an official application or provide a detailed analyses of the stormwater treatment measures.

7. Lighting Design & Photometric Analysis: Lighting design and photometric analysis for the existing roadways are not anticipated and not part of this scope of work.

8. Postponements: If the execution of the scope of work is delayed more than one year BKF reserves the right to adjust our billing rates to be consistent with our normal schedule of charges in the year work actually commences. Rates to be evaluated yearly after notice to proceed.

9. NEPA: We have assumed that the City will conduct all NEPA analyses for the project. We have allocated time for the environmental consultant to develop a CEQA checklist and CEQA documentation assuming a categorical exemption.

10. Drawings: We have assumed that the project is focused on street rehabilitation and that profiles of the roadway will not be required and that major regrading will not be required.

11. Future Complete Streets Study: We understand that the City’s transportation team is pursuing a grant to complete a thorough complete streets study and improvement project for the entire Clayton Road corridor (from downtown to the City of Clayton border) that could include a full traffic operations analysis throughout the corridor that could result in additional complete streets improvements (e.g. with lane width reduction). This study will be contracted separately.

12. Complete Streets: The current scope of work included in this segment of Clayton Road is limited to work within the existing right of way, existing curb to curb street widths, and existing traffic signalization and existing traffic operations. The complete streets elements included in the final design will be limited to those feasible within the confines of these parameters as studied in task 2.2.

13. Traffic Analysis/Counts: Based on conversations with the City’s transportation team, no traffic counts, traffic study, or Traffic Operations analysis is needed for the proposed scope of work. The City’s transportation team will provide traffic counts if needed for general background. We have not included traffic engineering services in this scope or fee allocation.

$272 $231 $213 $174 $151 $325
Task 1 PROJECT MANAGEMENT

1.1 Project Management 12 52 64 15,276$

1.2 Coordination and Meetings 10 24 40 74 16,784$

1.3 Public Outreach and Exhibits (3 public + 2 stakeholder meetings) 6 12 12 24 54 10,584$

1.4 Administration & QA/QC 0 No Charge
28 88 52 0 24 0 192 42,644$
Task 2 PREPARE BASE MAPS AND PLAN SHEETS

2.1 Survey and Base Studies 4 32 60 40 172 88 396 82,792$

2.2a Complete Streets Traffic Review - Geometrics 4 8 16 24 52 9,968$

2.2b Complete Streets and Green Infrastructure Options 4 16 20 20 60 12,064$

2.3 Rehabilitation Scope Refinement (Basis of Design) 4 16 40 40 100 19,344$ 16 72 136 40 256 88 608 124,168 $
Task 3 PREPARE PLANS, SPECIFICATIONS & ESTIMATE (PS&E)

3.1 35% PSE (Preliminary) 12 52 96 60 160 380 70,324$

3.2 60% PSE 12 58 96 80 160 406 75,190$

3.3 90% PSE 8 52 80 60 140 340 62,808$

3.4 Final Combined PS&E Package 2 10 40 20 60 132 23,914$ 34 172 312 220 520 0 1258 232,236 $
Task 4 Construction Support Services

4.1 Bid Support and Conform Plans 6 10 20 36 6,536$

4.2 Kickoff Meeting and Submittal Review 4 10 24 38 6,678$

4.3 RFCs (assume 20 week construction) w/out weekly meetings 12 48 80 140 25,076$

4.4 Record Drawings Preparation 1 4 16 40 61 10,644$
1 26 84 0 164 0 275 48,934$
Labor Hours 79 358 584 260 964 88 2,333 447,982 $
Traffic Engineering and Traffic Counts (additional service) -$ Circlepoint (Environmental) 15,000$
ARA - Deflection Testing 27,300$
ARA - 3D GPR 33,500$
Core Samples - Allowance 10,000$
Traffic Control - Allowance 15,000$
Aerial Survey 15,000$
BESS TestLab (Utility Locating & Potholing) - Allowance 40,000$ Subtotal Consultants 155,800
Printing, Postage, and Travel 5,718$
Subtotal Reimbursable Expenses 5,718
Total Labor Plus Reimbursable Expenses 609,500
Total Fee
Field Crew
27,300
15,000
15,000
-
10,000
Total Hours
33,500
Engineer/Survey
Manager
Project
Engineer/Surveyor
Clayton Road
Pavement Rehabilitation
Design
Engineer/Surveyor 12/19/2022 Engineering Manager
Task 1 Subtotal:

Task 2 Subtotal:

Task 3 Subtotal:

Reimbursable Expenses
Support Consultants
5,718
BKF Engineers
Project Management - Engineering - Surveying
Principal & QaQC
40,000
15,000
Task 4 Subtotal:

Staff Report
Date: January 24, 2023
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: Karan Reid, Director of Finance
Prepared by: Suzanne McDonald, Financial Operations Manager [email protected]
(925) 671-3136
Subject: Considering acceptance of the Annual Comprehensive Financial Report with the Independent Auditors' Report and Required Communications Letter for the Fiscal Year Ending June 30, 2022.

CEQA: Not a project/exempt under Pursuant to Public
Resources Code Section 21065, Guidelines Sections 15060, 15061, 15306, and/or 15378.

Report in Brief
The Annual Comprehensive Financial Report (ACFR) with the independent auditors’ report for the year ending June 30, 2022, and the Required Communications Letter has been completed. The auditors expressed an opinion that the City's financial statements for Fiscal Year 2021-2022 are fairly stated in conformity with accounting principles generally accepted in the United States. This is the most favorable conclusion and is commonly known as an "unqualified" or "clean" opinion.

Recommended Action
Accept the Annual Comprehensive Financial Report with Independent Auditors' Report for the fiscal year ending June 30, 2022 along with the Required Communications Letter for fiscal year ending June 30, 2022, and make the CEQA determinations as provided in this staff report.

7.b7.b7.b

City Council Agenda Report
Agenda Item No. 7.b
January 24, 2023
Background
The financial statements of the City of Concord are subject to an annual independent audit, performed by Maze & Associates Accountancy Corporation. The audit is a comprehensive review of the financial records of the City and the internal control procedures in place, which safeguard the City's assets. The audit also looks at the City's compliance with generally accepted accounting principles, with the various requirements of the Governmental Accounting Standards Board (GASB) and with standards developed by the Government Financial Officers Association (GFOA). The Independent Auditor's Report is included in the ACFR (Attachment 1). The auditor is required to communicate areas of deficiency in the City’s internal control over financial reporting. The Required Communications Letter (Attachment 2) is the report in which this communication occurs and is also provided in a standardized format.

Analysis
The Independent Auditor's Report indicates that the financial statements present fairly both the financial position of the City as of June 30, 2022, and the financial activity for the year then ended. This opinion is considered "clean" or "unqualified," which means that the financial records reflect appropriately the financial activity of Fiscal Year 2021- 2022.

The ACFR includes a wealth of financial information about the City of Concord, along with the City’s Mission Statement, Vision, Organizational Values, Corporate Goals, organizational structure and statistical information pertaining to the City. Each year the ACFR is submitted to the GFOA to be considered for its Excellence in Financial Reporting award program. A copy of the award for fiscal year 2020-2021 is included in this ACFR, and we anticipate that the City will be successful in attaining the award in fiscal year 2021-2022.

The Financial Section of the ACFR reflects the actual audited financial statements of the City of Concord. This section is developed in conformance with the guidelines established by GASB and includes the Management Discussion and Analysis, Government-Wide Financial Statements and Fund Financial Statements as required under Government Accounting Standards Statement 34. The Financial Section also includes the Notes to the Basic Financial Statements, which describe the various policies and methods used to manage the finances of the City.

For fiscal year ended June 30, 2022, the General Fund fund balance increased $3.3 million from the previous year. The fund balance increase was primarily due to sales tax and property tax revenue outperforming prior year values. Transaction and Use Tax Revenue from Measure V had noticeable increases due to its first full year of tax collections. Property taxes increased during FY 2021-22 due to an increase in assessed property values. The General Fund also noted increases in expenditures to offset a portion of these revenue increases. General Fund operating expenditures increased $7.7 million primarily due to a citywide increase in personnel costs. General

City Council Agenda Report
Agenda Item No. 7.b
January 24, 2023
Government costs increased as the City set aside $2.6 million in additional funding for the City of Concord Retirement System to increase the pension system’s funded status.

At June 30, 2022, the Unassigned (“Available”) General Fund balance was 42% of General Fund Operating Expenditures. A portion of this excess reserve is included in the FY2023 Budget to cover future operating expenditures. The General Fund Reserve Balances will be discussed in more detail during the FY2022-2023 mid-cycle budget review, anticipated to occur at the March 7, 2023 Council meeting.

GASB frequently releases new accounting and financial reporting standards which may have a significant impact on the Financial Section of the ACFR. For fiscal year 2021- 2022, the City implemented several new standards, all of which are disclosed in Note 1 to the financial statements.

The Statistical Section of the ACFR includes tables, graphs and other historical information regarding the overall financial health of the City of Concord. While the Statistical Section is not audited, the information included is useful in helping readers understand the finances of the City.

In order to include the City’s full disclosure in one document, the final section of the ACFR reflects additional information necessary to continue compliance with the bond covenants for previous debt issues, which are still outstanding. While not required to be a part of the ACFR, the information contained in this section is subject to disclosure requirements. Staff believes that including this section completes a concise financial package for the public.

The Required Communications Letter (Attachment 2) includes: discussion of accounting policies; disagreements with management or difficulties encountered during the audit; and significant audit findings. For the current year under audit, the auditors did not encounter any difficulties during the audit nor did they note any significant audit findings.

Environmental Determination
Council action on this item is exempt from California Environmental Quality Act (CEQA) review because none of the activities has the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, the activities consist of continuing administrative or maintenance activities, creation of government funding mechanisms or other government fiscal activities, and/or organizational or administrative activities of governments, which do not constitute a "project" within the meaning of Public Resources Code Section 21065, CEQA Guidelines Section 15060(c)(2), and CEQA Guidelines Section 15378 (including subsections (b)(2), (4) and/or (5)), the activities do not commit the City to a definite course of action, and the activities do not constitute discretionary approval of a specific project. If any activity were determined to be a “project” for CEQA analysis, such activity is either subject to a categorical exception set

City Council Agenda Report
Agenda Item No. 7.b
January 24, 2023
forth in CEQA Guidelines Section 15061(b)(2) and/or 15306, or falls within the "Common Sense" CEQA exemption set forth in CEQA Guidelines Section 15061(b)(3).

No unusual circumstances exist and none of the exceptions under CEQA Guidelines Section 15300.2 apply. This determination reflects the City’s independent judgment and analysis.

Financial Impact
There is no fiscal impact.

Public Contact
The City Council Agenda was posted.

Attachments

1. Annual Comprehensive Financial Report with Independent Auditors’ Report for fiscal year ending June 30, 2022

2. Required Communications Letter for fiscal year ending June 30, 2022

Annual Comprehensive
Financial Report
Fisca
l Year Ending June 30, 2022
City of Concord ● California
Attac hment 1

CITY OF CONCORD, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

Fiscal Year Ended June 30, 2022

Prepared by

The Finance Department

Karan Reid
Director of Finance

This Page Left Intentionally Blank

CITY OF CONCORD JUNE 30, 2022

i
Page
Table of Contents ........................................................................................................................................... i Mission Vision & Values Statement ............................................................................................................. v Corporate Goals .......................................................................................................................................... vii Organizational Values .................................................................................................................................. ix

INTRODUCTORY SECTION:

Letter of Transmittal .................................................................................................................................. xiii Principal Officers ...................................................................................................................................... xxii Organization Chart ................................................................................................................................... xxiii GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................. xxiv

FINANCIAL SECTION:

Independent Auditor’s Report ................................................................................................................... 1

Management Discussion and Analysis ...................................................................................................... 5

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ..................................................................................................................... 23 Statement of Activities ......................................................................................................................... 24

Fund Financial Statements:

Major Governmental Funds:

Balance Sheet – Governmental Funds ........................................................................................... 28 Reconciliation of the Governmental Funds – Balance Sheet to the Statement of Net Position ........................................................................................................ 29 Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds to the Statement of Activities .................................................................................................. 31 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual General Fund ........................................................................................................................... 32 Concord Housing Special Revenue Fund ................................................................................ 33 ARPA Special Revenue Fund ................................................................................................. 34

Proprietary Funds:

Statement of Net Position – Proprietary Funds .............................................................................. 36 Statement of Revenues, Expenses and Changes in Fund Net Position .......................................... 37 Statement of Cash Flows – Proprietary Funds ............................................................................... 38

Fiduciary Funds:

Statements of Fiduciary Net Position ............................................................................................ 40 Statement of Changes in Fiduciary Net Position ........................................................................... 41

CITY OF CONCORD JUNE 30, 2022

ii
Page
FINANCIAL SECTION (CONTINUED):

Notes to the Basic Financial Statements:

Note 1 – Summary of Significant Accounting Policies ................................................................. 44 Note 2 – Budgets and Budgetary Accounting ................................................................................ 55 Note 3 – Cash and Investments ...................................................................................................... 56 Note 4 – Interfund Transactions ............................................................................................... ..... 65 Note 5 – Loans and Notes Receivables .......................................................................................... 67 Note 6 – Capital Assets .................................................................................................................. 69 Note 7 – Long-Term Debt .............................................................................................................. 71 Note 8 – Fund Balances ................................................................................................................. 74 Note 9 – Stewardship, Compliance and Accountability ................................................................ 75 Note 10 – City of Concord Retirement System Plan ..................................................................... 75 Note 11 – City of Concord Early Retirement Plans ....................................................................... 79 Note 12 – Pension Plan .................................................................................................................. 80 Note 13 – Other Post-Employment Health Care Benefits ............................................................. 88 Note 14 – Deferred Compensation Plans ....................................................................................... 93 Note 15 – Leases ............................................................................................................................ 93 Note 16 – Risk Management and Insurance .................................................................................. 97 Note 17 – Commitments and Contingencies .................................................................................. 98 Note 18 – Redevelopment Successor Agency Activities ............................................................. 100

REQUIRED SUPPLEMENTARY INFORMATION:

Schedule of Changes in the Net Pension/OPEB Liability and Related Ratios - Last Ten Years:

Miscellaneous Plan ........................................................................................................... ........... 106 Safety Plan .................................................................................................................. ................. 108 City of Concord Retirement System ........................................................................................... 110 Other Post Employment Benefit Plan .......................................................................................... 112 Schedule of Contributions – Last Ten Years:

Miscellaneous Plan ........................................................................................................... ........... 113 Safety Plan .................................................................................................................. ................. 114 City of Concord Retirement System ........................................................................................... 115 Other Post Employment Benefit Plan .......................................................................................... 116

SUPPLEMENTARY INFORMATION:

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

GENERAL FUND:

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ................................... 119 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual.........................................................................................................................120

NON MAJOR GOVERNMENTAL FUNDS:

Combining Balance Sheet ..........................................................................................................................128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 132 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual.........................................................................................................................136

CITY OF CONCORD JUNE 30, 2022

iii
Page
SUPPLEMENTARY INFORMATION (CONTINUED):

INTERNAL SERVICE FUNDS:

Combining Statement of Net Position ...................................................................................................... 146 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................................. 148 Combining Statements of Cash Flows ....................................................................................................... 150

STATISTICAL SECTION:

STATISTICAL TABLES AND OTHER SCHEDULES (UNAUDITED)

Table 1 - Net Position by Component ....................................................................................................... 157 Table 2 - Changes in Net Position ............................................................................................................ 158 Table 3 - Fund Balances of Governmental Funds ..................................................................................... 160 Table 4 - Change in Fund Balances of Governmental Funds ................................................................... 162 Table 5 - Assessed and Estimated Actual Value of Taxable Property ...................................................... 164 Table 6 - Property Tax Rates, Direct and Overlapping Governments ...................................................... 165 Table 7 - Principal Property Taxpayers .................................................................................................... 166 Table 8 - Property Tax Levies and Collections ......................................................................................... 167 Table 9 - Taxable Sales by Category ........................................................................................................ 168 Table 10 - Sales Tax Rates ........................................................................................................................ 169 Table 11 - Top 25 Sales Tax Producers .................................................................................................... 170 Table 12 - Ratios of Outstanding Debt by Type ....................................................................................... 171 Table 13 - Direct and Overlapping Debt ................................................................................................... 172 Table 14 - Computation of Legal Bonded Debt Margin ........................................................................... 173 Table 15 - Sewer Revenue Bonds Coverage ............................................................................................. 174 Table 16 - Bonded Debt Pledged Revenue Coverage, 2004 (Refunded), and Tax Allocation Refunding Bonds Series 2014 ................................................................... 175 Table 17 - Demographic and Economic Statistics .................................................................................... 176 Table 18 - Principal Employers ................................................................................................................ 177 Table 19 - Full-Time Equivalent (FTE) City Government Employees By Function ................................ 178 Table 20 - Operating Indicators by Function/Program ............................................................................. 179 Table 21 - Capital Asset Statistics by Function/Program ......................................................................... 180

CITY OF CONCORD JUNE 30, 2022

iv
MUNICIPAL DEBT CONTINUING DISCLOSURE:

Municipal Debt Continuing Disclosure – See Rule 15c2-12(b)(5)

City of Concord Joint Powers Financing Authority
Wastewater Revenue Refunding Bonds Series 2012
2018 Wastewater Revenue Refunding Bonds

Table 1 – Ten Largest Users of the Wastewater System ....................................................... 183 Table 2 – Sewer Rates for Fiscal Year 2021-22 .................................................................... 184

Successor Agency of the Former Redevelopment Agency of the City of Concord (Contra Costa County, California) Tax Allocation Refunding Bonds Series 2014

Table 3 – Assessed Valuation by Category of Use ............................................................... 185 Table 4 – Historic Tax Revenues .......................................................................................... 186 Table 5 – Top 10 Taxpayers for Project Area ....................................................................... 187 Table 6 – Assessed Value Appeals for Project Area ............................................................. 188 Table 7 – Projection of Tax Revenues for Debt Service ....................................................... 189

Map .......................................................................................................................................................... 190

Mission Statement for the Organization

Our mission is to join with our community to make Concord a city of the highest quality.

We do this by providing responsive, cost-effective, and innovative local government services.

Our Vision for the Future

• We will be a customer based, performance driven, results oriented organization, focused on finding the answer, solving the problem, and achieving positive outcomes.
• We will partner with the Concord community to maximize resources, deliver high quality services, and be recognized as setting the standard for excellence. • We will be trustworthy guardians of the public's resources. • We will make Concord a premier business location.
• We will collaborate to provide "seamless" services that benefit both our external and internal customers, streamlining our work processes and removing barriers wherever they arise.
• We will accept the challenge of change and be committed to continually enhancing the safety, environment, quality of life, and economic vitality of our community. • We will constantly look for new and better ways to deliver services. We will seek to be innovative, take reasonable risks, learn from our mistakes and always strive for excellence.
• We will welcome diversity in our community and our work place. • We will conduct our work in an atmosphere of trust, respect and courtesy with open doors and open communication for our customers and each other. • We will provide ethical, dynamic and effective leadership, establish clear direction and priorities, and model the mission and values in support of our common Vision. • We will be accountable for our performance and our organization's success, and be recognized for our achievements.

v

This Page Left Intentionally Blank

Cor
porate Goals
Goal 1 Continue to make Concord a desirable place to live, work, and raise a family.

Goal 2 Be responsive to the needs of Concord citizens, maintain a high level of customer satisfaction, and provide quality public information and outreach.

Goal 3 Promote and improve Concord as a premier location for existing, expanding, and new businesses.

Goal 4 Ensure a balanced budget for a ten-year planning period with adequate replacement funds for buildings and equipment.

Goal 5 Preserve and enhance the livability of Concord's residential neighborhoods with opportunities for a broad range of housing options.

Goal 6 Offer an array of recreation, leisure, and cultural events and programs to meet the needs of citizens of all ages, with an emphasis on the well-being of youth.

Goal 7 Maintain a safe and efficient traffic circulation system.

Goal 8 Have Concord be among the safest cities of comparable size in California and have citizens feel safe in their homes, places of work, and throughout the City.

Goal 9 Maintain City parks, recreation facilities, streets, buildings, and other infrastructure to meet high standards of condition and appearance.

Goal 10 Guide Concord's development according to the General Plan and manage physical resources based on sound environmental
principles.
vii

This Page Left Intentionally Blank

Organizational Values

Integrity and Trust - We say what we mean and mean what we say. We honor our word and keep our commitments. We are worthy of the public's and each other's trust.

Commitment to Service - We put our customers first. We respond to our internal customers and treat them with the same courtesy and respect as our external customers. We facilitate, enable, and problem-solve.

Partnerships - We place a high value on building partnerships with members of our community to assure we understand their needs and continue to deliver the services they desire in the most effective manner possible.

Innovation and Continuous Improvement - We strive for excellence in the quality and productivity of our work. We create a work environment in which we look for new solutions and experiment with innovative ways to do things - even if they don't always work the first time. We recognize the need to be dynamic in meeting the community's changing needs. Each and every employee is given the opportunity to develop and grow.

Performance Accountability - We set measurable performance goals which support the priorities of the City and our individual work groups. We are given the necessary authority, training and resources to enable us to achieve these goals. Performance reviews are conducted in a timely and effective manner. Employee advancement and other incentives are based on performance. We are proud of the professionalism, competency and dedication that exist throughout the organization.

Long Range Planning - We conduct long range strategic and financial planning to maximize service delivery and build the economic stability of the City. We practice sound fiscal management to protect the public's resources.

Team Work - We respect each other as individuals, and we take the time and effort to show it. Although certain positions have more decision-making authority, we treat all members of the organization with the same consideration for their ideas and concerns.

We really listen to, and give each other honest feedback. We recognize partnerships among work groups and employees as essential to effectively maximizing resources and delivering high quality services.

Individual Worth and Diversity - We recognize and appreciate the uniqueness of each individual. We value the contribution made and the synergy created by different experiences and perspectives. We are committed to treating each and every person within the organization and the larger community with respect and dignity. ix

This Page Left Intentionally Blank

I

NTRODUCTORY SECTION

This Page Left Intentionally Blank

December 30, 2022
Honor
able Mayor, City Council and
Members of the Concord Community:

The City of Concord follows the best management practice of publishing a complete set of financial statements presented in conformity with accounting principles generally accepted in the U
nited States of America (U.S. GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants within six months of the close of the fiscal year. This report is prepared by the City of Concord’s Finance Department in accordance with Municipal Code, Title 2, Section 15.030. Pursuant to the requirements, we hereby issue the Annual Comprehensive Finance Report (ACFR) of the City for the fiscal year ended June 30, 2022.

The ACFR consists of management’s representations concerning the finances of the City and its blended component units. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management of the City. To provide a reasonable basis for making those representations, management of the City has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statement in conformity with U.S. GAAP. This first note in the Notes to the Financial Statements provides a detailed explanation of the City’s significant accounting policies. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive frameworks of internal controls has been designed to provide reasonable assurance that the financial statements will be free from material misstatement. As management, we asse rt that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Maze & Associates Accountancy Cor poration, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit is to provide reasonable assurance that the financial statements of the city and its blended component unit s for the fiscal year ended June 30, 2022, are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion on the City’s basic financial statem ents as of and for the year ended June 30, 2022. The independent auditors’ report is presented in the first component of the financial section of this report.

City of Concord
Finance Department
1950 Parkside Drive MS/06
Concord, CA 94519-2578
Fax (925) 671-3353
Telephone (925) 671-3192
xiii

The analysis of the financial condition and the results of operations are in the Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report. The MD&A complements this letter of transmittal and should be read in conjunction with it.

The City of Concord is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget's Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (2 CFR 200). Information related to this single audit, including a schedule of federal expenditures of federal awards, the independent auditor's report on internal control and compliance with applicable laws and regulations are included in a separately issued single audit report.

The Report
The ACFR is presented in three sections:
 The Introduction section includes this letter of transmittal, City Council introduction, the City’s organizational chart, and certificate of achievement.  The Financial section includes the report of the independent auditors; Management’s Discussion and Analysis (MD&A); the basic financial statements, including the government-wide financial statements; and the accompanying notes to the financial statements. The Financial Section also includes the fund financial statements including the governmental funds financial statement, the proprietary funds financial statement, the fiduciary funds financial statements, and the combining individual funds financial statement for the non-major governmental funds and the internal service funds. Required supplementary information other than the MD&A is also included in the Financial Section.  The Statistical section includes selected financial and demographic information, presented on a multi-year basis.

The ACFR includes all funds of the City and the City’s component units, which are legally separate organizations for which the City is financially accountable or whose relationship with the City is of a nature and significance that would cause the City’s financial statements to be incomplete were it not included. These include the Concord Public Financing Authority (the Authority), the City of Concord Retirement System, and the Concord/ Pleasant Hill Health Care District.

The Concord Redevelopment Agency (RDA) was dissolved on February 1, 2012, and was replaced by the Redevelopment Successor Agency (SA). The SA is not a component unit of the City and is instead a separate legal entity overseen by the County Oversight Board and the State Department of Finance. The City’s role in the SA is fiduciary in nature. The SA is reported as a private-purpose trust fund, a fiduciary fund type. Additional information about the dissolution of the RDA is included in the notes to the financial statements.

City Profile
Located 29 miles east of San Francisco, Concord is the largest city in Contra Costa County with a population of 123,634. The City covers 31.13 square miles and provides a full range of services including: police protection, recreational activities, community and economic development, street improvements and maintenance services, parks maintenance, sewer, and xiv

general administrative and support services. In addition, the City oversees management of the Concord Pavilion, Diablo Creek Golf Course and Camp Concord in South Lake Tahoe, California.

Concord is a General Law city formed under the State legislative process and structured under provisions of the California constitution. Concord’s governing body, the City Council, is comprised of five elected members, who serve by district, each for four-year terms. City voters also elect a City Treasurer who serves a four-year term.

Every year, the Council selects one of its members to serve as Mayor and one to serve as Vice Mayor.

Concord is operated under the Council-Manager form of government. The Council hires the City Manager, who is then responsible for all management functions of the City, including the development of the budget, delivery of services, hiring of personnel and implementation of capital projects. The City Council also directly hires the City Attorney who serves as the City's primary legal advisor.

Concord is the job center of Contra Costa County and is the County's strongest retail location.

Concord offers the amenities that many businesses require for success. In Concord, business- friendly government policies, outstanding Class A office space values, numerous industrial parks and excellent transportation options combine with favorable home prices, an educated workforce and a dynamic retail environment to create ideal conditions for businesses to locate and expand. These qualities make Concord a premier business location.

The City Council's commitment to families and to the community fosters a high quality of life with attractive residential neighborhoods, and abundant recreational and entertainment opportunities for all ages. Concord, the city where "Families Come First," is a community of friendly neighborhoods with an excellent park system, convenient shopping, large preserves of open space, and an exciting downtown, which features Todos Santos Plaza as the focal point.

Concord's housing mix offers residents to live where they work and play. An extensive transportation system, including easy freeway access, two rapid rail transit stations (Bay Area Rapid Transit (BART)), bus services and a regional airport operated by Contra Costa County, makes Concord's location convenient to San Francisco and other Bay area cities.

xv

Economic Condition and Outlook

The City of Concord’s diverse economy is supported by approximately 3.1 million square feet of Class A office space, 7 million square feet of industrial space, and four regional shopping centers, along with a variety of other commercial spaces, making Concord the largest employment center within Contra Costa County.

During the COVID-19 pandemic, the City of Concord focused its economic development efforts on supporting existing businesses through a variety of programs, including the Small Business Grant Program, which provided $5,000 grants to 130 businesses, and the Measure V Commercial Rent Relief Grant Program, which provided $10,000 commercial rent relief grants to 95 businesses. A third Small Business Grant program will be launched during FY2022/2023.

Through programs like these, the City of Concord is helping existing businesses remain operational and in their commercial spaces, keeping people employed, which stabilizes families, despite state mandated limitations on capacity and operations.

Concord is seeing signs of recovery in its retail and manufacturing sectors. Currently, the occupancy rate of Concord’s industrial market remains high at 97.8%, and is a strong sign of success but leaves little opportunity to attract new tenants or retain tenants looking to expand.

Concord’s industrial space is attractive due to its central location in the Bay Area and access to a strong workforce. As of August 2022, Concord’s retail vacancy rate is 4.5%. Office space is the one sector showing a decline, its vacancy rate is currently 17.3%, compared to 13.9% this time last year.

At Council’s direction, the City began implementing a fiscal stability plan in 2018 in order to start addressing the City’s unfunded maintenance needs. The City had previously implemented fiscal stability measures in order to address the revenue declines of the Great Recession, which began in 2007, and again in 2020 due to the COVID-19 pandemic. The City addressed both recessions by significantly reducing staff and cutting all non-essential spending. Those reductions allowed the City to remain fiscally solvent during both of those recessions.

A major step toward achieving long-term fiscal sustainability for the City occurred with two voter approved local transaction and use tax measures. Originally approved by voters in 2010 and extended in 2014, the City’s local transactions and use tax, Measure Q, has been a vital, locally controlled, revenue source supporting day-to-day City operations. Measure Q was a voter approved half-cent transactions and use tax that was scheduled to sunset in March 2025.

On November 3, 2020, voters approved a one-cent transaction and use tax, Measure V, to replace Measure Q. Measure V stays in place until ended by voters. Collections from Measure V began April 1, 2021, ensuring that the City can maintain essential City services and begin addressing the City’s remaining fiscal challenges. Council has prioritized continuing to use the original ½ cent to support operations and has been dedicating the remaining ½ cent towards infrastructure maintenance and other Council and community priorities. The table below provide an overview of the use of the Measure V funds through the end of FY 2021-22.

xvi

Table 1: Annual Measure V Use Tax Receipts and Uses
As of June 30, 2022 (Dollars in Millions)
Sales tax revenue (Measure V Transactions & Use Tax and the City’s Bradley Burns Sales Tax) remains the largest
General Fund revenue source and provides for 45 percent of general municipal services such as public safety, street maintenance, and parks and recreation programs. With the exception of the prior year, sales tax revenue has noted steady increases annually. The adoption of Measure V, combined with recovering regular Bradley Burns sales tax, resulted in sales tax revenue increasing by $15.1million from fiscal year 2020-21 to a total of $73.9 million in FY2021-22.

Property tax revenue represents the second most significant General Fund revenue source making up 15 percent of total General Fund revenues. Property taxes increased $1.1 million over fiscal year 2020-2021. The City’s net taxable assessed value increased 3.6% in fiscal year 2021-22, comparable to the countywide increase of 3.4%. Looking ahead, Beacon Economics Fall 2022 Regional Outlook for the East Bay notes weakness in the housing market for the East Bay. During the first quarter of 2022-2023, single-home sales and condominium sales were down significantly from the impact of rising interest rates.

The City’s unemployment rate was 2.9% in June 2022 compared to 6.9% in the previous year.

This is similar to the County’s rate of 3.2% in June 2022 (vs. 7.3% in June 2021). The region’s unemployment rates are lower than the State rate of 4%. Beacon Economics Fall 2022 Regional Outlook for the East Bay recognizes that job growth in the area is slowing as the region comes closer to regaining the jobs lost during the pandemic.

The City’s current general obligation credit rating is Aa2 from Moody’s Investor Service.

Significant Community Events and Accomplishments
During FY 2021-22, the effects of the COVID pa
ndemic began to shift and the City was able to
provide several programs to assist the community and advance many City Council initiatives.

Examples of significant accomplishments for the fiscal year ended June 30, 2022 include the following:

Pandemic Recovery:

Shop Concord Gift Card Program: This is a co
mmunity e-gift card program that is free to
businesses which was run Black Friday/Small Business Saturday and Memorial Day. To date, $50,000 in contributions from the City for bonus promotions has generated over $156,000 in gift card sales, of which 80% has been redeemed at the 70 participating businesses. This is a joint program with the Concord Chamber of Commerce.

Measure VR eceipts
General Fund
Programs &
Reserves
Measure V
Fund Balance
Fiscal Year 2020-21 Activity (April 1 through June 30) $7.437 $2.549 $4.888 Fiscal Year 2021-22 $32.971 $32.416 $0.555
Total $40.408 $34.965 $5.443
xvii

Temporary Outdoor Operations: Interdepartmental staff worked collaboratively to permit temporary, flexible outdoor business setups at no cost to 35 businesses. Five restaurants have applied to continue as permanent outdoor setups through the City’s fee waiver program, which expires September 30, 2022.

Day Camps Return: Successfully returned to offering youth and teen summer day camp programs. City-run camps provided full-day activities for over 600 children and half-day activities for preschoolers. By working with independent contractors specializing in youth activities/subjects such as art, cooking, tennis, and a variety of sports, an additional 700 youth attended half or full day programs during the summer of 2022.

Reuse Project: Negotiated an Exclusive Negotiating Agreement with Concord First Partners, LLC, which was approved by Council on October 26, 2021.

American Rescue Plan Act (ARPA) Spending: Completed significant community outreach including a statistically significant community satisfaction survey; community outreach meetings; and provided surveys to residents, businesses, and non-profits on the City’s ARPA webpage with over 900 responses. The outreach results were presented to Council on April 26, 2022 with funding allocation options for the remaining uncommitted $19M of ARPA funding.

Infrastructure Maintenance: Adopted CIP Budget of $121.2M in June 2022, which is the largest two-year CIP that Council has ever approved and is the result of voters supporting Measure V and Council leveraging the Measure V funding to borrow $114M to front load roadway improvements over the next five years.

Bicycle and Pedestrian Advisory Committee: Completed the fifth year of technical assistance and oversight of the Bicycle and Pedestrian Advisory Committee (BPAC). The BPAC reviewed capital transportation projects including roadway, pedestrian, and bicycle improvements, and provided input to staff on complete street features, and reviewed for conformity with the City’s Bicycle, Pedestrian and Safe Routes to Transit Plan.

Residential Tenant Protections. A residential tenant anti-harassment ordinance was developed. The purpose of the new ordinance is to prevent tenant harassment by landlords and their representatives, to encourage landlords to follow the law and uphold their responsibility to provide habitable rental properties, and to give tenants legal recourse through the adopted ordinance when they are subjected to harassment by owners.

Updated City Council Districts. The City carried out a public process to redraw City Council district boundaries using new demographic data from the 2020 Census. The updated boundaries reflect how local populations have changed, including underrepresented and non- English-speaking communities. The process has allowed the City to remain compliant with the California Voting Rights Act of 2001.

Solid Waste Ordinance Update. The City initiated major changes to how solid waste is handled to allow compliance with Senate Bill 1383. The process involved changes to City’s municipal code, franchise agreement with Mt. Diablo Resource Recovery, and a rate review and update to ensure that the costs of complying with SB 1383 were recoverable.

Parks Make Life Better: Successfully implemented several new sports program options for the community, including the addition of new pickleball instructors, a junior pickleball camp, adult xviii

tennis lessons, and Chicago Ball and Cornhole Leagues. These new sports programs offer healthy and fun activities for youth, families and adults.

Camp Concord: Camp Concord successfully booked the entire 2022 season from May 13, 2022, to October 9, 2022, with waiting lists for Family Specialty Camps, Friends of Camp Concord Youth Camp, and City-run Fifty and Better Camps (FAB camps). In total Camp Concord will serve over 1800 individual campers during the 2022 Camp season.

Tree City USA: Named a Tree City USA community by the National Arbor Day Foundation for the 41st consecutive year. The national award honors Concord's commitment to its community forest.

Budgetary Control
The City maintains budgetary controls through the City Council’s adoption of an annual budget and by maintaining an encumbrance accounting system. Expenditures for City operations and other purposes identified in the annual budget cannot legally exceed the budgeted amounts approved by the City Council.

The Concord Municipal Code requires the City Manager to present the Annual Operating Budget to the City Council for approval. In June 2021, the City Council adopted a biennial budget encompassing Fiscal Years 2021-22 and 2022-23. The City Council has adopted a number of Policies & Procedures, including Budget and Fiscal Policies; Budget Preparation; Budget Appropriation and Transfer Controls, which provide direction in the development of the Annual Operating Budget. The City Manager has also authorized several Administrative Directives, which further clarify budget policies, processes and related controls.

Ultimate budgetary control resides at the fund level; however, the City has adopted a number of budgetary appropriation and transfer procedures to provide strong internal controls while encouraging improved accountability and administrative responsiveness. All budgetary transfers require Director of Finance review and approval. All transfers of appropriations affecting Personnel Services (wages & benefits) require Director of Human Resources and City Manager review and approval. Additionally, all transfers between funds and between departments require City Manager or City Council review and approval.

All capital project appropriation transfers require City Manager approval. Transfers in excess of $75,000 require City Council approval. The City Council’s approval is required for new appropriations with the exception of money received for specific purposes (e.g. Developer Contributions) where the appropriation and revenue received are of equal value. Special revenue budget appropriations based on funds provided by grants, donations or contributions require City Manager and City Council approval.

The City also uses encumbrance accounting as another technique for accomplishing budgetary control. An encumbrance is a commitment of a future expenditure earmarked for a particular purpose that reduces the amount of budgetary authority available for general spending. At the end of the fiscal year, encumbered appropriations are carried forward and become part of the following year’s budget while appropriations that have not been encumbered lapse.

The City continues to meet its responsibility for sound financial management as demonstrated by the statements and schedules included in the financial section of this report. xix

Internal Controls

In developing and enhancing the City's accounting system, significant consideration is given to the adequacy of the City's system of internal accounting controls. Internal controls are designed to provide reasonable assurance regarding the safeguarding of assets against the loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived, and that the evaluation of costs and benefits requires estimates and judgments by management.

Budget and Fiscal Policies: Long Range Financial Forecasting

The City of Concord has utilized a Ten Year Financial Forecast Program since 1995. The Ten Year Financial Forecast Program requires that the City Manager biennially present balanced ten-year financial forecasts for all major funds. Beginning with 2018, the City developed a long- range forecast for the General Fund that projects out twenty years, in order to provide a longer- term view of the City’s fiscal condition, and incorporates both the operating and capital needs in the community. All other funds still present balanced ten-year forecasts. These funds include Special Revenue Funds, Capital Improvement Funds, and Proprietary Funds including the Post-Retirement Benefits Funds. In addition, the Twenty Year Financial Forecast for the General Fund is updated annually. The Twenty Year Financial Forecast includes all projected sources of revenue and all projected expenditures including salaries, benefits, materials, services and capital improvement projects. Each budget cycle, all forecasts are revisited, and assumptions are evaluated and updated.

Reserve Policy

To address financial uncertainties, the City maintains various General Fund reserves and contingency funds that, when combined, total not less than 17% of the General Fund’s operating expenditures, with a Council adopted goal of 30%. 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 General Fund reserve balance for these funds is $43.8 million or 42% of General Fund Operating Expenditures.

Awards

The Government Finance Officers Association (GFOA) of the United States and Canada awarded its Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2021. This was the twenty-ninth consecutive year that the City of Concord has been recognized for excellence in financial reporting. To qualify for the Certificate of Achievement, the governmental entity must publish an easily readable and efficiently organized ACFR, the content of which conform to program standards. Such report must satisfy accounting principles generally accepted in the United States of America, as well as all applicable legal requirements.

xx

xxi

PRINCIPAL OFFICERS
(June 30, 2022)
Elected Officials
Executive Team
Dominic Aliano
Mayor
Edi Birsan
Councilmember
Laura M. Hoffmeister
Vice Mayor
Carlyn Obringer
Councilmember
Patti Barsotti
City Treasurer
Valerie Barone
City Manager
Susanne Brown
City Attorney
Kevin Marstall
Director of Community
Development
Guy Bjerke
Director of Economic
Development and
Base Reuse
Karan Reid
Director of Finance
Jasmin Loi
Director of
Human Resources
Greg Taylor
Director of
Information Technology
Steve Voorhies
Director of
Parks & Recreation
Mark Bustillos
Chief of Police
William Tarbox
Director of
Public Works
Justin Ezell
Assistant City
Manager
Tim McGallian
Councilmember
xxii

The People of the City of Concord
Community
Development
Affordable Housing
Programs
Building
Engineering
Multi-Family Rent al
Inspections
Planning
Transportation
Board of Appeals
Design Review Board
Planning Commission
Econo mic Development
& Base Reuse
Conveyance Strategies
Base Management
Economic Development
Programs
Financial Feasibility
Fiscal Sustainability
Public Outreach
Redevelopment
Successor Agency
Reuse Planning
Police
Field Operations
Internal Operati ons
Investigations
Professional Standards
Volunteer Emergency
Services
Administration
Finance
Budget & Financial
Planning
City Treasury
Disbursements
Financial Analysis &
Reporting
Purchasing & Materials
Management
Revenue Generation
Lease Management
Public Works
Citywide Streetlight
Assessment Dist rict &
Traffic Signals
Facility Maintenance &
Custodial Services
Fleet Management
Graffit i Removal
Landscape & Lighting
Assessment Districts
Parks Services
Sewer Enterprise
Street Maintenance ,
Signs & Markings
Street Sweeping
Traffic Operations
Information
Technology
City Boundaries
Parcel O wnership
Land Management
Geospat ial Analytics
GIS Data Layers
Street Addressing
Help Desktop Support
Web Sit es
Client-side Security
Technology Training
Enterprise
Applications & Data
Bases
Application & Data Base
Security
Project Management
Office (PMO)
Network Services
Telephone Services
Voice Mail Services
Radio/Wireless
Communications
Network Security
Office of the
City Manager
City Clerk /
Administrative
Services
City Council Support
Community Relations
Document Imaging /
Records Management
Measure V Oversight
Committee
Parks &
Recreation
Aquatics
Camp Concord
Facility Operations &
Programs
Golf Course Enterprise
Agreements
Pavilion Management &
Operat ions Agreement
Senior & Special
Recreation Services
Adult Sports & Events
Youth & Teen Programs
Commission on Aging
Concord Pavilion
Community Outreach
Committee
Parks, Recreation &
Open Space
Commission
City Council
Mayor and Four Council Members
Appointive Advisory Boards ,
Committees or Commissions
City Treasurer
Deposits
Investments
City Attorney
City Manager
Claims Processing
Legal Council to City Council, Commissions, Committees, City Management, City Departments and City Staff
Litigation and Liability Defens e
Municipal Code Violation Prosecution
Ordinances, Resolutions, Contracts
The City of Concord has a City Council/City Manger form of government. Five Council Members and the City Treasurer are elected. The Council appoints the City Manager and the City Attorney. The City Manager appoints the City Clerk and department heads and hires employees to carry out program services. The City Council appoints qualified citizens from the community to serve on advisory boards and commissions.

Assistant City Manager
Human
Resources
Employee Services
Benefits Administration
Classificat ion &
Compensation
Employee Relations
Labor Relations
Organizational Training
& Development
Recruitment & Selection
Safety & Workers
Compensation
xxiii

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Concord
California
For its
Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xxiv

FINANCIAL SECTION

This Page Left Intentionally Blank

INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
City of Concord, California
Report on the Audit of the Financial Statements
Opinions
We hav
e audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Concord, California, as of and for the year ended June 30, 2022, and th e related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, th e business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ende d in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing sta ndards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Ou r responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fa ir presentation of these financial statements in accordance with accounting principles generally accep ted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement da te, including any currently known information that may raise substantial doubt shortly thereafter. 1

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assu rance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accord ance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inte ntional omissions, misrepresentatio ns, or the override of internal control. Misstatements are considered material if, individually or in th e aggregate, they could reasonably be expected to influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material misstate ment of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expres sing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by ma nagement, as well as evaluate the overall presentation of the financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Change in Accounting Principles

Management adopted the provisions of the following Governmental Accounting Standards Board Statement No. 87, Leases, which became effective during the year ended June 30, 2022 and required the restatement of certain balances as discussed in Note 1 to the financial statements.

The emphasis of these matters does not constitute a modification to our opinions.

2

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial stat ements, is required by th e Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or hi storical context. We have applied certain limited procedures to the required supplementary informa tion in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for th e purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedur es in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an un corrected material misstatement of the other information exists, we are required to describe it in our report.
3

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued ou r report dated December 29, 2022, on our consideration of the City’s internal cont rol over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
December 29, 2022
4

CITY OF CONCORD JUNE 30, 2022
MANAGEMENT’S DI

SCUSSION 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 2022 FINANCIAL HIGHLIGHTS
Financial highlights of the year include the following:

Government-Wide
 The City’s total net position was up $38 million, from $582 million at June 30, 2021 to $620 million at June 30, 2022. Of this total, $528 million was governmental activities net position and $92 million was business-type activities net position.  Government-wide governmental revenues included program revenues of $40 million and general revenues of $126 million for a total of $166 million, an increase of $24 million from the prior year’s total.
 Total government-wide governmental activities expenses were $137 million, down $9 million from the prior year.
 Government-wide business-type activities revenues were $43 million while expenses were $35 million.

Fund Level
 Governmental Fund balances increased $24 million in fiscal 2022 to $277 million.  Governmental Fund revenues increased $24 million in fiscal 2022 to $165 million.  Governmental Fund expenditures increased to $141 million in fiscal 2022, up $8 million from the prior year.
 General Fund revenues of $136 million in fiscal 2022 reflected an increase of $17 million from the prior year.
 General Fund expenditures of $105 million reflected a decrease of $8 million when compared to the prior year.
 General Fund balance of $62 million at June 30, 2022 was $3 million more than June 30, 2021.

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual 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 the General Fund, Non-Major Governmental Funds and Internal Service Funds; and

5. Statistical information and other schedules.
5

CITY OF CONCORD JUNE 30, 2022

THE BASIC

FINANCIAL STATEMENTS
The Basic 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 Government-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 net 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 fiduciary 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 Statement of Net Position and the Statement of Activities present information about the following:
 Governmental Activities - All of the City’s basic services are considered 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 City’s Governmental 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.

Government-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

CITY OF CONCORD JUNE 30, 2022
Fund
Financial Statements
The Fund Financial 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-Major 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 the General Fund, Concord Housing Fund, ARPA (American Rescue Plan Act) Fund, General Projects Fund, and the 2021 COP Projects Fund.

Fund Financial Statements include Governmental, Proprietary, and Fiduciary Funds as discussed below.

Governmental 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.

Proprietary Fund Financial Statements are prepared on the full accrual basis, and include all their assets, liabilities, and deferred outflows of resources, current and long-term.

Since the 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.

Comparisons 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 presented 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 Position and Statement of Activities stated more fully in the Financial Section of this report. 7

CITY OF CONCORD JUNE 30, 2022
Table 1: Citywide Net Position
As of June 30, 2022 and 2021 (Dollars in Millions)
Governmental Business-Type Total
Activities Activities
2022 2021 2022 2021 2022 2021
Cash and Investments $334.1 $293.6 $67.0 $58.5 $401.1 $352.1 Other Assets 67.1 56.0 1.4 1.4 68.5 57.4
Current and Other Assets 401.2 349.6 68.4 59.9 469.6 409.5 Capital Assets, net of depreciation 541.3 558.9 61.0 63.2 602.3 622.1 Total Assets 942.5 908.5 129.4 123.1 1,071.9 1,031.6
Deferred Outflows of Resources 37.1 38.4 37.1 38.4
Current and Other Liabilities 55.6 43.8 26.0 27.4 81.6 71.2 Noncurrent Liabilities 338.3 400.5 10.5 11.7 348.8 412.2 Total Liabilities 393.9 444.3 36.5 39.1 430.4 483.4
Deferred Inflows of Resources 58.2 4.3 0.5 58.7 4.3
Net Position:

Net Investment in Capital Assets 530.3 541.7 49.5 50.5 579.8 592.2 Restricted 91.2 66.9 91.2 66.9
Unrestricted (94.0) (110.3) 42.9 33.5 (51.1) (76.8)
Total Net Position $527.5 $498.3 $92.4 $84.0 $619.9 $582.3 Note: Fisal year 2021 has not been restated for the implementation of GASB Statement No. 87. 8

CITY OF CONCORD JUNE 30, 2022
Table 2: Citywide Changes in Net Position
For the Years Ended June 30, 2022 and 2021 (Dollars in Millions) The analyses below 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 Total
Activities Activities
2022 2021 2022 2021 2022 2021

EXPENSES
General Government $42.4 $39.0 $42.4 $39.0
Public Safety 55.9 66.3 55.9 66.3
Public Works 13.6 13.6 13.6 13.6
Community Development 12.0 15.4 12.0 15.4
Economic Development and Base Reuse 1.5 4.2 1.5 4.2
Parks and Recreation Services 7.0 6.0 7.0 6.0
Interest on Long-Term Debt 4.2 1.5 4.2 1.5
Sewer $33.2 $35.3 33.2 35.3
Golf Course 1.8 1.7 1.8 1.7
Total Expenses 136.6 146.0 35.0 37.0 171.6 183.0

REVENUES
Program Revenues:

Charges for Services 17.3 12.4 43.6 42.3 60.9 54.7
Operating Grants and Contributions 9.6 5.2 9.6 5.2
Capital Grants and Contributions 13.3 13.4 13.3 13.4
Total Program Revenues 40.2 31.0 43.6 42.3 83.8 73.3
General Revenues:

Taxes:

Property Taxes 25.2 24.1 25.2 24.1
Sales Taxes 41.1 40.3 41.1 40.3
Measure Q Sales Taxes 0.4 11.1 0.4 11.1
Measure V Sales Taxes 32.4 7.4 32.4 7.4
Other Taxes 15.0 14.2 15.0 14.2
Motor Vehicle in Lieu 13.2 12.8 13.2 12.8
Investment Earnings (1.7) 0.7 (0.2) 0.3 (1.9) 1.0
Total General Revenues 125.6 110.6 (0.2) 0.3 125.4 110.9 Total Revenues 165.8 141.6 43.4 42.6 209.2 184.2
Change in Net Position 29.2 (4.4) 8.4 5.6 37.6 1.2
Beginning Net Position 498.3 502.7 84.0 78.4 582.3 581.1 Ending Net Position $527.5 $498.3 $92.4 $84.0 $619.9 $582.3 9

CITY OF CONCORD JUNE 30, 2022
Governmental Activities
Table 3: Governmental Net Position
As of June 30, 2022 and 2021 (Dollars in Millions)
The City’s net position from Governmental Activities increased $29.2 million to $527.5 million in 2022.

The increase in Governmental Net position is due primarily to the increase in the City’s Cash and Investments.
 Current and other assets increased $51.6 million, $40.5 million of which is attributable to an increase in cash and investments. $7.9 million in American Rescue Plan Act funds were received in fiscal year 2022 but had not yet been spent by June 30, 2022. The City also allocated $12.8 million in Measure V funds to capital projects that were also unspent at fiscal year-end.
 Capital assets, net of depreciation, decreased $17.6 million, primarily due to depreciation.

The majority of the depreciation decrease is from the City’s streets and storm drains.

Although the City capitalized $7.2 million in street assets in fiscal year 2022, $16.8 million in depreciation was recognized on the existing $486 million in street assets. Storm drain assets recognized $4.4 million in depreciation. For more on Capital Assets see Note 6.  Current and other liabilities increased by $11.8 million, mostly due to a $7.9 million increase in unearned revenue associated with the unspent funds from the American Rescue Plan Act.  Noncurrent liabilities decreased $62.2 million, mainly due to a decrease in long-term pension liabilities. Deferred inflows of resources increased by $53.9 million, which is due in part to a 2022 2021
Current and other assets $401.2 $349.6
Capital Assets, net of depreciation 541.3 558.9
Total Assets 942.5 908.5
Deferred Outflows of Resources 37.1 38.4
Current and other liabilities 55.6 43.8
Noncurrent Liabilities 338.3 400.5
Total Liabilities 393.9 444.3
Deferred Inflows of Resources 58.2 4.3
Net Position:

Net investment in Capital Assets 530.3 541.7
Restricted 91.2 66.9
Unrestricted (94.0) (110.3)
Total Net Position $527.5 $498.3
Governmental
Activities
Note: Fisal year 2021 has not been restated for the implementation of GASB Statement No. 87.
10

CITY OF CONCORD JUNE 30, 2022
change in pension liabilities and in part to the recognition of lease receivable through the implementation of GASB 87.
 The reduction in Capital Assets resulted in the decrease of net investment in capital assets by $11.4 million.
 Restricted net position increased $24.3 million from the prior fiscal year.  Unrestricted net position reflects the resources that can be used to finance day-to-day operations. Unrestricted net position increased $16.3 million from the prior fiscal year to negative $94.0 million at June 30, 2022.

Governmental Activities - Sources of Revenues
For the Year Ended June 30, 2022 (see Table 4)
As the Sources of Revenues Chart above shows, 45%, or $73.9 million, of the City’s fiscal 2022 governmental activities revenue came from sales taxes; 15%, or $25.2 million, came from property taxes; 10%, or $17.3 million, came from charges for services; 9%, or $15.0 million, came from other taxes; 8%, or $13.3 million, came from capital grants; and 8%, or $13.2 million, came from motor vehicle in lieu. The remaining 5% came primarily from two sources – operating grants and contributions, and investment earnings.

Property Taxes,
$25.2M, 15%
Sales Taxes,
$73.9M, 45%Charges for
Services, $17.3M,
10%
Capital Grants,
$13.3M, 8%
Other Taxes,
$15.0M, 9%
Motor Vehicle in
Lieu, $13.2M, 8%
Operating Grants &
Contributions,
$9.6M, 6% Investment
Earnings, (1.7), -1%
11

CITY OF CONCORD JUNE 30, 2022
Governmental Activities - Functional Expenses
For the Year Ended June 30, 2022 (see Table 4)
The Functional Expenses Chart above includes only current year expenses, which are discussed in detail below. Public Safety accounted for $55.9 million or 41% of expenses, while General Government accounted for $42.4 million or 31% of expenses, followed by Public Works, which accounted for $13.6 million or 10% of expenses. The remaining 18% was spread among Community Development, 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 2022, the City capitalized $10.7 million dollars in infrastructure and equipment. The details of the changes in capital assets are discussed in Note 6.

Public Safety,
$55.9M, 41%Public Works,
$13.6M, 10%
Community
Development,
$12.0M, 9%
Economic
Development
and Base Reuse,
$1.5M, 1%
General
Government,
$42.4M, 31%
Parks &
Recreation
Services, $7.0M,
5% Interest on Long
Term Debt,
$4.2M, 3%
12

CITY OF CONCORD JUNE 30, 2022
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:

Table 4: Changes in Governmental Net Position
For the Years Ended June 30, 2022 and 2021 (Dollars in Millions) Total governmental expenses were $136.6 million in fiscal year 2022, reflecting a $9.4 million decrease from the prior year. This decrease is due to a decrease of $10.4 million in pension costs.

Community Development decreased $3.4 million, Economic Development and Base Reuse decreased $2.7 million. General Government increased $3.4 million and Parks and Recreation increased 1.0 million.

Total governmental revenues increased $24.2 million to $165.8 million in fiscal 2022. Sales tax increased $15.1 million primarily due to fiscal year 2022 being the first full fiscal year of Measure V.

Program revenues increased $9.2 million due to the increase in charges for services caused in part by the continued recovery from the COVID-19 shutdown.

Governmental
Activities
2022 2021

EXPENSES
General Government $42.4 $39.0
Public Safety 55.9 66.3
Public Works 13.6 13.6
Community Development 12.0 15.4
Economic Development and Base Reuse 1.5 4.2
Parks & Recreation Services 7.0 6.0
Interest on Long-Term Debt 4.2 1.5
Total Expenses 136.6 146.0

REVENUES
Program Revenues:

Charges for Services 17.3 12.4
Operating Grants and Contributions 9.6 5.2
Capital Grants and Contributions 13.3 13.4
Total Program Revenues 40.2 31.0
General Revenues:

Taxes:

Property Taxes 25.2 24.1
Sales Taxes 41.1 40.3
Measure Q 0.4 11.1
Measure V 32.4 7.4
Other Taxes 15.0 14.2
Motor Vehicle in Lieu 13.2 12.8
Investment Earnings (1.7) 0.7
Total General Revenues 125.6 110.6
Total Revenues 165.8 141.6
Change in Net Position $29.2 ($4.4)
13

CITY OF CONCORD JUNE 30, 2022
Governmental Activities
Table 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 $18.6 million compared to the prior year. The biggest contributor to the reduction in net program expense is the decrease in Public Safety pension costs.

Table 5: Governmental Activities Net Program Expense
As of June 30, 2022 and 2021 (Dollars in Millions)
Business-Type Activities
The net position of Business-Type Activities increased to $92.4 million in fiscal 2022, up $8.4 million from $84.0 million from the prior year. Sewer expenditures decreased by $2.1 million primarily due to a decrease in the annual payment made to Central Contra Costa Sanitary District for sewer treatment services. Sewer revenue increased by $1.5 million as sewer fees were increased to help fund future capital improvement projects.

Table 6: Business-Type Activities Net Position
As of June 30, 2022 and 2021 (Dollars in Millions)
Net (Expense) Revenue from Services
2022 2021
General Government ($40.1) ($37.4)
Public Safety (53.3) (64.0)
Public Works 3.3 (3.0)
Community Development (1.5) (4.2)
Economic Development and Base Reuse 2.2 (0.6)
Parks & Recreation Services (2.8) (4.4)
Interest on Long-Term Debt (4.2) (1.4)
Total ($96.4) ($115.0)
Business-Type
Activities
2022 2021
Current and Other Assets $68.4 $59.9
Capital Assets, net of depreciation 61.0 63.2
Total Assets 129.4 123.1
Deferred Outflows of Resources 0.0 0.0
Current and Other Liabilities 26.0 27.4
Long-Term Debt Outstanding 10.5 11.7
Total Liabilities 36.5 39.1
Deferred Inflows of Resources 0.5 0.0
Net Position:

Net investment in Capital Assets 49.5 50.5
Unrestricted 42.9 33.5
Total Net Position $92.4 $84.0
14

CITY OF CONCORD JUNE 30, 2022
Table 7:

Changes in Business-Type Activities Net Position
As of June 30, 2022 and 2021 (Dollars in Millions)
The Sewer Fund generated service fee revenues of $41.2 million in fiscal 2022, reflecting a $1.5 million increase over the prior year. Operating expenses decreased by $2.1 million, to $33.2 million.

As a result, the Sewer Fund experienced an $8 million operating gain for the year while the Golf Course Fund realized a $0.6 million gain in fiscal year 2022.

THE CITY’S FUND FINANCIAL STATEMENTS
Governmental Funds
At June 30, 2022, the City’s governmental funds reported combined fund balances of $277.4 million, a $23.5 million increase when compared with last year’s combined fund balance of $253.9 million.

The Measure V Projects fund is a new non-major fund that was separated from the General Projects major fund this year. General fund balance increased $3.3 million and the General Projects fund balance increased by $3.6 million. The 2021 COP Projects fund balance decreased $2.1 million, and Concord Housing fund balances decreased $0.1 million.

Governmental fund revenues increased $24.2 million this year to $165.4 million from $141.2 million in the prior year. This increase is due to: General Fund revenues increased $17.3 million; Concord Housing Fund revenues declined $0.3 million; General Projects fund revenues decreased $0.1 million; and Other Governmental fund revenues increased $2.9 million. The ARPA fund had a revenue increase of $4.2 million this year. The 2021 COP Project fund ended with a $0.2 million increase over the prior year.

Governmental expenditures increased $8.1 million this year to $141.5 million from $133.4 million in the prior year. This increase is due to the changes noted in the following funds: General Fund increased by $7.7 million; ARPA expenditures increased by $4.1 million; and 2021 COP Projects fund increased by $1.5 million. Other Governmental Funds expenditures decreased by $3.1 million while the General Projects fund expenditures decreased $2.2 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 2022, the General Fund transferred out $27.2 million to fund capital projects. Additional information regarding these transfers can be found in Note

4. Business-Type
Activities
2022 2021
Net Revenues/(Expense) from Business-Type Activities:

Sewer Fund $8.0 $4.4
Golf Course Fund 0.6 0.9
General Revenues:

Investment Earnings (0.2) 0.3
Other 0.0 0.0
Total $8.4 $5.6
15

CITY OF CONCORD JUNE 30, 2022
Proprietary Funds
Enterprise fund net position increased to $92.4 million in fiscal 2022, up $8.4 million from $84.0 million in the prior year. Enterprise operating revenues were $43.6 million this year, up $1.3 million from last year. Enterprise Fund operating expenses were $34.6 million in fiscal 2022, down $2.0 million from $36.6 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.

Internal service fund net position increased to $54.3 million in fiscal 2022, up $3.7 million from the net position of $50.7 million at the end of the prior year. This increase is due largely in part to an increase of $2.4 million in net position in the Workers’ Compensation Fund and additional $1.3 million increase to the Risk Management/Liability fund net position.

ANALYSES OF MAJOR GOVERNMENTAL FUNDS
General Fund
General Fund revenues totaled $135.6 million, reflecting an increase of $17.3 million, or 15%, over the prior fiscal year. Transaction Use Tax revenue increased $15.1 million due to the first full year of revenue of Measure V. Property tax revenue increased $1.1 million due to an increase in taxable assessed property values. Parks and Recreation revenue increased $1.2 million as programs returned to full operations after the COVID-19 pandemic. General Fund operating expenditures increased $7.7 million primarily due to a citywide increase in personnel costs. General Government costs increased $3.5 million as the City set aside $2.6 million in additional funding for the City of Concord Retirement System to increase the pensions funded status. 16

CITY OF CONCORD JUNE 30, 2022
Table 8: Changes in General Fund
As of June 30, 2022 and 2021 (Dollars in Millions)
At June 30, 2022, the General Fund balance totaled $61.9 million compared to $58.6 million in the prior year. The increase of $3.3 million in fund balance was primarily due to sales tax and property tax revenue outperforming prior year values.

Fiscal year 2022 had transfers out of $27.2 million, which mainly supported construction projects.

Details of the City’s transfers can be found in Note 4. This year’s ending fund balance consisted of $11.9 million categorized as non-spendable, $3.3 million as assigned and $45.5 million as unassigned. Refer to Note 8 for more information regarding the fund balance details. 2022 2021

REVENUES
Taxes:

Property Taxes $21.1 $20.0
Sales Taxes 41.1 40.3
Measure Q Sales Taxes 0.4 11.1
Measure V Sales Taxes 32.4 7.4
Other Taxes 14.7 13.8
Motor Vehicle In Lieu, Unrestricted 13.2 12.8
Licenses and Permits 2.2 2.2
Intergovernmental 1.6 1.5
Charges for Services 7.6 6.8
Use of Money and Property (2.3) 0.0
Miscellaneous Revenues 3.6 2.4
Total Revenues 135.6 118.3

EXPENDITURES
General Government 19.0 15.4
Public Safety 64.5 58.6
Public Works 7.1 8.2
Community Development 8.9 9.4
Economic Development and Base Reuse 0.6 0.8
Parks and Recreation Services 4.9 4.9
Interest on Long-Term Debt 0.4 0.4
Total Expenditures 105.4 97.7
Excess (Deficiency)
of Revenues Over Expenditures 30.2 20.6

OTHER FINANCING SOURCES (USES)
Proceeds from Sale of property 0.0 0.0
Transfers In 0.3 0.4
Transfers Out (27.2) (5.2)
Total Other Financing Sources (Uses) (26.9) (4.8)
Net Change in Fund Balance 3.3 15.8
Fund Balance at Beginning of Year 58.6 42.8
Ending Fund Balance $61.9 $58.6
General Fund
Revenues and Expenditures
17

CITY OF CONCORD JUNE 30, 2022
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, 2022 was $34.1 million, a decrease of $0.1 million over last year’s fund balance of $34.2 million. The decrease in fund balance was mainly attributable to expenditures exceeding revenue from loan interest.

General Projects Fund
This fund tracks capital project costs funded by General Fund money or that are reimbursable from other external sources. The fund’s revenues were $4.7 million in fiscal 2022, a decrease of $0.1 million from fiscal 2021. Fund expenditures were $6.2 million in fiscal 2022 compared to $8.4 million in fiscal 2021. The fund balance increased by $3.6 million to $3.5 million primarily due to funding of projects by the General Fund.

ARPA
This fund accounts for Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan Act of 2022. The fund’s revenues were $5.8 million and fund expenditures were $5.7 million in fiscal 2022. The cash balance of $19.9 million will be spent in future years. 2021 COP Projects
This 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
These 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 $88.9 million, an increase of $7.8 million compared to $81.1 million at June 30, 2021. Net investment in capital assets was $47.9 million and unrestricted net position was $41.0 million at June 30, 2022. 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
Generally accepted accounting principles require 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 accordance 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 52 of 234
CITY OF CONCORD JUNE 30, 2022
acquisition dates. At the end of fiscal 2022, 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, 2022 and 2021 (Dollars in Millions) The principal additions to governmental capital assets in fiscal 2022 were in the streets asset group, which included $3.5 million for the Zone 3 and Zone 4 Pavement Rehabilitation projects and rehabilitation of numerous streets throughout the City. Business-Type Activities experienced an increase of $2.3 million in construction in progress, due to sewer projects still in progress as of June 30, 2022. 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, 2022 June 30, 2021
Governmental Activities
Land $26.4 $26.4
Construction in Progress 9.7 9.1
Ground Improvements 23.8 23.8
Buildings and Improvements 81.7 81.7
Right to Use Leased Buildings and Improvements 0.1 0.1
Machinery and Equipment 25.1 24.9
Vehicles 13.0 12.5
Streets 493.3 486.1
Sidewalks 62.2 61.6
Storm Drains/Catch Basins 444.8 443.6
Street Lights 5.9 5.8
Traffic Signals 32.4 31.6
Less: Accumulated Depreciation (677.1) (648.2)
Governmental Activities Capital Assets, Net $541.3 $559.0 Business-Type Activities
Land $0.4 $0.4
Construction in Progress 19.5 17.2
Buildings and Improvements 8.7 8.7
Machinery and Equipment 0.5 0.4
Sewer Lines 219.8 219.8
Less: Accumulated Depreciation (187.9) (183.3)
Business-Type Activities Capital Assets, Net $61.0 $63.2 19

CITY OF CONCORD JUNE 30, 2022

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, 2022, the City’s debt was comprised of the following issues:

Table 10: Outstanding Debt
As of June 30, 2022 and 2021 (Dollars in Millions)

Total Governmental Activities debt decreased by $6.1 million due to principal payments made during the year. Business-Type Activities Debt decreased slightly over prior year because of the scheduled pay down of outstanding debt.

ECONOMIC OUTLOOK AND MAJOR INITIATIVES

The economy of the City and its major initiatives for fiscal year 2021/2022 are discussed in detail in the accompanying Transmittal Letter.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT

This Annual Comprehensive Financial Report is int ended 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, 2022 June 30, 2021 Net Change
Governmental Activities Debt:
2022 Certificates of Participation
2-4%, due 4/1/41 105.3 109.5 (4.2)
Plus premium on bonds 14.5 15.3 (0.8)
Leas e Purchas e Agreement

2.78%, due 12/01/26 3.9 4.6 (0.7)
Capital Lease:

Motorola Lease Agreement, due 11/15/26 1.8 2.2 (0.4)
Total Governmental Activities Debt $125.5 $131.6 ($6.1) Business-Type Activities Debt:

Enterprise Long Term Debt :
2012 - Wastewater Revenue Refunding Bonds, 1.50-4.00%, due 2/1/29 $4.7 $5.3 ($0.6)
2018 - Wastewater Revenue Refunding Bonds, 1.25-3.24%, due 2/1/32 6.8 7.4 (0.6)
Total Business-Type Activities Debt $11.5 $12.7 ($1.2)
20

CITY OF CONCORD JUNE 30, 2022

BASIC FINANCIAL STATEMENTS

CITY OF CONCORD JUNE 30, 2022

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 reports the difference betw een the City's total assets and deferred outflows of resources and the City's total liabilities and deferred inflows of resources, including all the City's capital assets and all its long-term debt. 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, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments (Note 3) 219,492,430 $ 66,980,769 $ 286,473,199 $ Cash with Fiscal Agents (Note 3) 114,597,011 6 114,597,017 Receivables (Net of Allowances for Uncollectibles):

Accounts 8,459,137 285,085 8,744,222 Due from Other Governments 15,620,472 - 15,620,472 Interest 5,699,965 19,876 5,719,841 Loans and Notes (Note 5) 25,693,285 - 25,693,285 Leases Receivable (Note 15) 12,120,234 471,248 12,591,482 Inventories 176,597 - 176,597 Internal Balances (Note 4) (698,823) 698,823 - Capital Assets (Note 6):

Nondepreciable Capital Assets 36,051,629 19,872,479 55,924,108 Depreciable Capital Assets, Net of Accumulated Depreciation 505,242,508 41,114,405 546,356,913 Total Assets 942,454,445 129,442,691 1,071,897,136

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pension - CalPERS (Note 12) 28,651,292 - 28,651,292 Deferred Outflows Related to Pension - CCRS (Note 10) 2,248,691 - 2,248,691 Deferred Outflows Related to OPEB - (Note 13) 6,244,010 - 6,244,010 Total Deferred Outflows of Resources 37,143,993 - 37,143,993

LIABILITIES
Accounts, Deposits and Contracts Payable 9,369,249 24,680,545 34,049,794 Accrued Liabilities 4,891,149 16,861 4,908,010 Interest Payable 1,150,760 170,566 1,321,326 Refundable Deposits 7,085,928 - 7,085,928 Unearned Revenue 21,068,445 - 21,068,445 Compensated Absences (Note 7):

Due in Less Than One Year 3,101,806 45,066 3,146,872 Due in More Than One Year 2,439,321 126,236 2,565,557 Claims Payable (Note 16):

Due in Less Than One Year 3,870,364 - 3,870,364 Due in More Than One Year 13,376,575 - 13,376,575 Long-Term
Debt (Note 7):

Due in Less Than One Year 4,987,712 1,110,000 6,097,712 Due in More Than One Year 120,555,705 10,405,157 130,960,862 Leases Payable (Note 15):

Due in Less Than One Year 30,604 8,478 39,082 Due in More Than One Year 2,558 - 2,558 Net OPEB Liability, Due in More Than One Year (Note 13) 27,845,500 - 27,845,500 Net Pension Liability CCRS, Due in More Than One Year (Note 10) 21,157,172 - 21,157,172 Net Pension Liability CalPERS, Due in More Than One Year (Note 12) 152,936,821 - 152,936,821 Total Liabilities 393,869,669 36,562,909 430,432,578

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases (Note 15) 12,276,736 467,829 12,744,565 Deferred Inflows Related to Pension - CalPERS (Note 12) 39,769,250 - 39,769,250 Deferred Inflows Related to OPEB (Note 13) 6,159,997 - 6,159,997 Total Deferred Inflows of Resources 58,205,983 467,829 58,673,812 NET POSITION (Note 1)
Net Investment in Capital Assets 530,314,569 49,463,249 579,777,818 Restricted for:

Streets/Transportation 7,336,184 - 7,336,184 Housing and Community Services 3,405,244 - 3,405,244 Other Special Revenue Programs 8,489,330 - 8,489,330 Capital Projects 20,212,389 - 20,212,389 Debt Service 13,166 - 13,166 Community Development Projects 51,769,334 - 51,769,334 Total Restricted Net Position 91,225,647 - 91,225,647 Unrestricted Net Position (94,017,430) 42,948,704 (51,068,726) Total Net Position 527,522,786$ 92,411,953$ 619,934,739$ See accompanying notes to basic financial statements
23

CITY OF CONCORD

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 42,401,112$ 1,626,091$ 715,464$ -$ Public Safety 55,878,311 1,140,958 1,423,047 - Public Works 13,612,352 2,464,246 5,711,870 8,717,462 Economic Development and Base Reuse 1,510,058 7,095 - - Community Development 11,981,076 8,272,450 1,630,015 4,271,828 Parks and Recreation Services 7,031,117 3,802,648 72,500 336,032 Interest on Long-Term Debt 4,157,942 - - - Total Governmental Activities 136,571,968 17,313,488 9,552,896 13,325,322 Business-type Activities:

Sewer 33,219,397 41,236,631 - -
Golf Course 1,801,508 2,359,290 - - Total Business-type Activities 35,020,905 43,595,921 - - Total 171,592,873$ 60,909,409$ 9,552,896$ 13,325,322$ 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
(40,059,557)$ (40,059,557)$
(53,314,306) (53,314,306)
3,281,226 3,281,226
(1,502,963) (1,502,963)
2,193,217 2,193,217
(2,819,937) (2,819,937)
(4,157,942) (4,157,942)
(96,380,262) (96,380,262)
- 8,017,234$ 8,017,234
- 557,782 557,782
- 8,575,016 8,575,016
(96,380,262) 8,575,016 (87,805,246)
25,239,418 - 25,239,418
41,082,948 - 41,082,948
32,808,034 - 32,808,034
2,197,673 - 2,197,673
4,016,929 - 4,016,929
8,811,400 - 8,811,400
13,236,505 - 13,236,505
(1,770,361) (194,088) (1,964,449)
(3,000) 3,000 -
125,619,546 (191,088) 125,428,458
29,239,284 8,383,928 37,623,212

498,283,502 84,028,025 582,311,527
527,522,786$ 92,411,953$ 619,934,739$
Net (Expense) Revenue and
Changes in Net Position
25

This Page Left Intentionally Blank

CITY OF CONCORD JUNE 30, 2022

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 2022. 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 and accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Concord, these services include general government, public safety, public works, economic development, community development, and parks and recreation services.

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 federal 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

CITY OF CONCORD

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
Other Total
Concord General 2021 COP Governmental Governmental
General Housing ARPA Projects Projects Funds Funds
ASSETS:

Cash and Investments (Note 3) 52,469,402$ 12,228,338$ $19,891,110 18,147,148$ -$ 65,381,563$ 168,117,561$ Cash with Fiscal Agents (Note 3) - - - - 114,591,690 5,321 114,597,011 Receivables (Net of Allowances for Uncollectible):

Accounts 3,954,735 - - 79,058 - 83,584 4,117,377 Due from Other Governments 13,026,340 - - 1,105,073 - 1,489,059 15,620,472 Interest 148,760 5,408,353 - - - 142,852 5,699,965 Due from Other Funds (Note 4) 5,632,714 - - - - - 5,632,714 Loans and Notes (Note 5) - 24,062,077 - - - 1,631,208 25,693,285 Leases Receivable (Note 15) 12,120,234 - - - - - 12,120,234 Inventories 176,597 - - - - - 176,597
Advances to Other Funds (Note 4) 11,704,631 2,034,709 - - - - 13,739,340 Total Assets 99,233,413$ 43,733,477$ 19,891,110$ 19,331,279$ 114,591,690$ 68,733,587$ 365,514,556$ LIABILITIES:

Accounts, Deposits and Contracts Payable 8,374,538$ -$ - 4,641$ 50,790 818,417$ 9,248,386$ Accrued Liabilities 4,300,674 12,640 - - - 536,260 4,849,574 Refundable Deposits 7,085,928 - - - - - 7,085,928 Unearned Revenue 444,981 - 19,772,948 780,516 - 70,000 21,068,445 Due to Other Funds (Note 4) - - - - 2,311,018 - 2,311,018 Advances from Other Funds (Note 4) 4,891,795 - - 14,080,983 - - 18,972,778 Total Liabilities 25,097,916 12,640 19,772,948 14,866,140 2,361,808 1,424,677 63,536,129 DEFERRED INFLOWS OF RESOURCES:

Related to Leases (Note 15) 12,276,736 - - - - - 12,276,736 Unavailable Revenue - 9,579,587 - 944,015 - 1,754,327 12,277,929 Total Deferred Inflows of Resources 12,276,736 9,579,587 - 944,015 - 1,754,327 24,554,665 FUND BALANCES:

Fund Balances (Note 8):

Nonspendable 11,881,228 - - - - - 11,881,228
Restricted 1,173,144 34,141,250 - 2,331,978 112,229,882 43,535,000 193,411,254 Assigned 3,314,375 - 118,162 1,189,146 - 22,020,628 26,642,311 Unassigned 45,490,014 - - - - (1,045) 45,488,969
Total Fund Balances 61,858,761 34,141,250
118,162 3,521,124 112,229,882 65,554,583 277,423,762 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 99,233,413$ 43,733,477$ 19,891,110$ 19,331,279$ 114,591,690$ 68,733,587$ 365,514,556$ 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, 2022
TOTAL FUND BALANCES -- TOTAL GOVERNMENTAL FUNDS 277,423,762$ 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. 519,027,692

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. 54,326,700

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. 12,277,929

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 - CCRS 2,248,691 Deferred outflows of resources related to pension - CalPERS 28,651,292 Deferred outflows resources related to OPEB 6,244,010
Deferred inflows of resources related to pension - CCRS - Deferred inflows of resources related to pension - CalPERS (39,769,250) Deferred inflows of resources related to OPEB (6,159,997)

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 (123,707,828)
Lease Payable (33,162)
Interest Payable (1,067,560)
Net Pension Liability CCRS (21,157,172)
Net Pension Liability CalPERS (152,936,821)
Net OPEB Liability (27,845,500)
NET POSITION OF GOVERNMENTAL ACTIVITIES 527,522,786$
See accompanying notes to basic financial statements
29

CITY OF CONCORD

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
Other Total
Concord General 2021 COP Governmental Governmental
General Housing ARPA Projects Projects Funds Funds

REVENUES
Taxes:

Property 21,073,745$ -$ -$ -$ -$ 4,165,673$ 25,239,418$ Sales Tax:

Sales Tax 41,082,948 - - - - - 41,082,948
Sales Tax - Transaction Use Tax 32,808,034 - - - - - 32,808,034 Transient Occupancy 2,197,673 - - - - - 2,197,673 Franchise Fees 8,476,416 - - - - 334,984 8,811,400 Business License 4,016,929 - - - - - 4,016,929 Motor Vehicle In Lieu, Unrestricted 13,236,505 - - - - - 13,236,505 Licenses and Permits 2,240,252 - - - - 1,965,862 4,206,114 Intergovernmental 1,561,130 - 5,667,946 3,784,425 - 10,672,830 21,686,331 Charges for Services 7,609,708 - - - - 1,169,918 8,779,626 Fines, Forfeitures and Penalties 394,006 - - - - 29,593 423,599 Parks and Recreation 2,565,628 - - - - - 2,565,628 Use of Money and Property (2,317,690) 161,436 94,723 1 $256,583 381,906 (1,423,041) Special Assessment Collections 7,795 - - - - - 7,795
Other 663,567 - - 868,940 - 210,541 1,743,048 Total Revenues 135,616,646 161,436 5,762,669 4,653,366 256,583 18,931,307 165,382,007

EXPENDITURES
Current:

General Government 19,000,248 - 1,076,903 204,202 - 182,201 20,463,554 Public Safety 64,423,044 - - 155,426 - 88,408 64,666,878 Public Works 7,138,158 - 3,211,963 - - 5,228,381 15,578,502 Economic Development and Base Reuse 582,027 - - 1,000,859 - - 1,582,886 Community Development 8,975,226 274,664 - 1,590,753 - 2,530,136 13,370,779 Parks & Recreation Services 4,866,145 - 1,379,078 - - 34,344 6,279,567 Capital outlay - - - 3,220,073 2,359,331 5,156,894 10,736,298 Debt Service:

Principal 29,286 - - - - 4,925,000 4,954,286 Interest and Fiscal Charges 414,127 - - - - 3,417,341 3,831,468 Total Expenditures 105,428,261 274,664 5,667,944 6,171,313 2,359,331 21,562,705 141,464,218

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 30,188,385 (113,228) 94,725 (1,517,947) (2,102,748) (2,631,398) 23,917,789

OTHER FINANCING SOURCES (USES)
Transfers in (Note 4) 297,579 - - 5,247,314 - 21,988,709 27,533,602 Transfers (Out) (Note 4) (27,243,325) - - (156,331) - (534,422) (27,934,078) Total Other Financing Sources (Uses) (26,945,746) - - 5,090,983 - 21,454,287 (400,476) NET CHANGES IN FUND BALANCES 3,242,639 (113,228) 94,725 3,573,036 (2,102,748) 18,822,889 23,517,313

FUND BALANCES
AT BEGINNING OF YEAR 58,616,122 34,254,478 23,437 (51,912) 114,332,630 46,731,694 253,906,449

FUND BALANCES
AT END OF YEAR 61,858,761$ 34,141,250$ 118,162$ 3,521,124$ 112,229,882$ 65,554,583$ 277,423,762$ See accompanying notes to basic financial statem
ents
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, 2022
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 23,517,313$ 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 10,738,469 Depreciation expense is deducted from the fund balance (25,295,729) (Depreciation expense is net of internal service fund depreciation of $4,114,579 which has already been allocated to the internal service funds.)

LONG-TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing 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 re
payment reduces long-term liabilities.

Repayment of debt principal 4,925,000
Repayment of lease principal 29,286
Amortization of bond premium 764,359

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 3,438,637
Pension expense CalPERS 6,004,525
OPEB expense 2,423,786
Deferred inflow of resources - Unavailable revenues 26,366 Interest Payable (1,002,712)

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 3,669,984
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 29,239,284$ 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, 2022
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Taxes:

Property 20,341,900 $ 20,341,900 $ 21,073,745 $ 731,845 $ Sales Tax:

Sales Tax 36,200,000 40,800,000 41,082,948 282,948 Sales Tax - Transaction Use Tax 27,000,000 29,600,000 32,808,034 3,208,034 Transient Occupancy 1,700,000 1,700,000 2,197,673 497,673 Franchises 7,982,000 7,982,000 8,476,416 494,416 Business License 3,401,700 3,401,700 4,016,929 615,229 Motor Vehicle In Lieu, Unrestricted 12,947,000 12,947,000 13,236,505 289,505 Licenses and Permits 1,856,620 1,856,620 2,240,252 383,632 Intergovernmental 972,000 972,000 1,561,130 589,130 Charges for Services 5,947,452 5,861,452 7,609,708 1,748,256 Fines, Forfeitures and Penalties 307,500 307,500 394,006 86,506 Parks and Recreation 2,007,264 2,007,264 2,565,628 558,364 Use of Money and Property 1,428,458 1,428,458 (2,317,690) (3,746,148) Special Assessment Collections - - 7,795 7,795
Other 939,649 414,649 663,567 248,918 Total Revenues 123,031,543 129,620,543 135,616,646 5,996,103 EXPENDITURES:

Current:

General Government:

Council 562,313 576,516 518,120 58,396 Manager 3,217,843 3,295,968 3,049,754 246,214 Attorney 1,744,084 1,816,061 1,665,414 150,647 Human Resources 2,594,989 2,687,168 2,523,693 163,475 Finance 10,097,119 12,902,854 11,243,267 1,659,587 Total General Government 18,216,348 21,278,567 19,000,248 2,278,319 Public Safety 61,222,257 62,403,476 64,423,044 (2,019,568) Public Works 11,007,095 8,199,832 7,138,158 1,061,674 Economic Development and Base Reuse 807,668 924,401 582,027 342,374 Community Development 9,651,630 9,525,772 8,975,226 550,546 Parks & Recreation Services 6,339,762 5,041,587 4,866,145 175,442 Capital Outlay - 1,199,714 - 1,199,714
Debt Service:

Principal - - 29,286 (29,286)
Interest and Fiscal Charges 304,601 304,601 414,127 (109,526) Total Expenditures 107,549,361 108,877,950 105,428,261 3,449,689

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 15,482,182 20,742,593 30,188,385 9,445,792

OTHER FINANCING SOURCES (USES)
Transfers In 304,333 409,054 297,579 (111,475) Transfers (out) (16,315,195) (28,283,695) (27,243,325) 1,040,370 Total Other Financing Sources (Uses) (16,010,862) (27,874,641) (26,945,746) 928,895 NET CHANGE IN FUND BALANCE (528,680)$ (7,132,048)$ 3,242,639 10,374,687$ FUND BALANCE AT BEGINNING OF YEAR 58,616,122
FUND BALANCE AT END OF YEAR 61,858,761$
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, 2022
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Use of Money and Property 52,116 $ 52,116$ 161,436$ 109,320$ Total Revenues 52,116 52,116 161,436 109,320 EXPENDITURES:

Current:

Community and Economic Development 406,249 603,024 274,664 328,360 Total Expenditures 406,249 603,024 274,664 328,360 NET CHANGE IN FUND BALANCE (354,133)$ (550,908)$ (113,228) 437,680$ FUND BALANCE AT BEGINNING OF YEAR 34,254,478
FUND BALANCE AT END OF YEAR 34,141,250$
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, 2022
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Intergovernmental - $ 13,520,442$ 5,667,946$ (7,852,496)$ Use of Money and Property - - 94,723 94,723 Total Revenues - 13,520,442 5,762,669 (7,757,773) EXPENDITURES:

Current:

General Government - 350,000 1,076,903 (726,903) Public Works - 3,231,917 3,211,963 19,954
Parks & Recreation Services - 1,379,078 1,379,078 - Total Expenditures - 4,960,995 5,667,944 (706,949) NET CHANGE IN FUND BALANCE -$ 8,559,447$ 94,725 (8,464,722)$ FUND BALANCE AT BEGINNING OF YEAR $23,437
FUND BALANCE AT END OF YEAR 118,162$
See accompanying notes to basic financial statements
34

CITY OF CONCORD JUNE 30, 2022

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, 2022
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) 64,360,080 $ 2,620,689 $ 66,980,769 $ 51,374,869 $ Cash with Fiscal Agents (Note 3) 6 - 6 - Accounts Receivable 167,276 117,809 285,085 4,341,760 Interest Receivable 19,179 697 19,876 - Total Current Assets 64,546,541 2,739,195 67,285,736 55,716,629 Non-Current Assets:

Advances to Other Funds (Note 4) 1,472,471 - 1,472,471 4,534,615 Lease Receivable (Note 15) - 471,248 471,248 - Capital Assets (Note 6):

Land 334,838 60,344 395,182 - Construction In Progress 19,477,297 - 19,477,297 2,323,186 Buildings and Improvements 2,832,944 5,876,042 8,708,986 48,362,156 Machinery and Equipment 320,142 136,177 456,319 38,107,086 Sewer Collection System 219,772,435 - 219,772,435 - Intangible Asset - 25,435 25,435 - Less: Accumulated Depreciation (183,337,747) (4,511,023) (187,848,770) (66,525,983) Net Capital Assets 59,399,909 1,586,975 60,986,884 22,266,445 Total Non-Current Assets 60,872,380 2,058,223 62,930,603 26,801,060 Total Assets 125,418,921 4,797,418 130,216,339 82,517,689 LIABILITIES:

Current Liabilities (Payable from Current Assets):

Accounts and Contracts Payable 24,677,656 2,889 24,680,545 120,863 Accrued Liabilities 15,349 1,512 16,861 41,575 Due to Other Funds (Note 4) - - - 3,321,696
Interest Payable 170,544 22 170,566 83,200 Compensated Absences Payable (Note 7) 45,066 - 45,066 3,101,806 Capital Lease Payable (Note 7) - - - 347,712 Revenue Refunding Bonds (Note 7) 1,110,000 - 1,110,000 - Lease Payable (Note 15) - 8,478 8,478 - Claims Payable (Note 16) - - - 3,870,364 Total current liabilities 26,018,615 12,901 26,031,516 10,887,216 Noncurrent Liabilities:

Compensated Absences Payable (Note 7) 126,236 - 126,236 2,439,321 Advance from Other Funds (Note 4) - 773,648 773,648 - Long-Term Debt
Due in More Than One Year (Note 7) 10,405,157 - 10,405,157 1,487,877 Claims Payable
Due in More Than One Year (Note 16) - - - 13,376,575 Total Noncurrent Liabilities 10,531,393 773,648 11,305,041 17,303,773 Total Liabilities 36,550,008 786,549 37,336,557 28,190,989

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases (Note 15) - 467,829 467,829 - NET POSITION:

Net Investment in Capital Assets 47,884,752 1,578,497 49,463,249 20,430,856 Unrestricted 40,984,161 1,964,543 42,948,704 33,895,844 Total Net Position 88,868,913$ 3,543,040$ 92,411,953$ 54,326,700$ 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, 2022
Business-type Activities-Enterprise Funds Governmental
Non-Major Activities-
Enterprise/ Internal Service
Sewer Golf Course Totals Funds

OPERATING REVENUES
Service Fees 41,236,631 $ - $ 41,236,631$ - $ Charges for Services - - - 28,733,238 Golf Course Fees and Charges - 2,270,357 2,270,357 - Other - 88,933 88,933 4,914,108 Total Operating Revenues 41,236,631 2,359,290 43,595,921 33,647,346

OPERATING EXPENSES
Operating and Maintenance 28,450,540 1,642,396 30,092,936 24,750,610 Cost of Sales and Services - - - 61,567 Depreciation (Note 6) 4,403,942 159,047 4,562,989 4,114,579 Claims and Judgments - - - 1,765,840 Total Operating Expenses 32,854,482 1,801,443 34,655,925 30,692,596 Operating Income (Loss) 8,382,149 557,847 8,939,996 2,954,750

NON-OPERATING REVENUES (EXPENSES)
Investment Income (234,483) 40,395 (194,088) 405,879 Interest Expense (364,915) (65) (364,980) (88,121) Total Non-Operating Revenues (Expenses) (599,398) 40,330 (559,068) 317,758 Income (Loss) Before Contributions and Transfers 7,782,751 598,177 8,380,928 3,272,508 Transfers In (Note 4) 3,000 - 3,000 600,000 Transfers Out (Note 4) - - - (202,524) Net Contributions and Transfers 3,000 - 3,000 397,476 Changes in Net Position 7,785,751 598,177 8,383,928 3,669,984 Total Net Position - Beginning 81,083,162 2,944,863 84,028,025 50,656,716 Total Net Position - Ending 88,868,913$ 3,543,040$ 92,411,953$ 54,326,700$ See accompanying notes to basic financial statements
37

CITY OF CONCORD

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
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 41,070,002$ 2,321,610$ 43,391,612$ 27,426,402$ Payments to Suppliers (27,878,571) (1,482,497) (29,361,068) (13,708,762) Payments to Employees (1,964,400) (161,140) (2,125,540) (5,097,187) Claims Paid - - - (2,231,306)
Net Cash Provided by (Used for) Operating Activities 11,227,031 677,973 11,905,004 6,389,147

CASH FLOWS FROM NON-CAPITAL

FINANCING ACTIVITIES
Borrowings of Advances From/(To) Other Funds 638,256 - 638,256 (527,574) Transfers In 3,000 - 3,000 600,000
Transfers (Out) - - - (202,524)
Net Cash Provided by (Used for)
Non-Capital Financing Activities 641,256 - 641,256 (130,098)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (2,313,759) - (2,313,759) (959,561) Principal Paid on Lease - (16,957) (16,957) - Principal Paid on Debt (1,075,000) - (1,075,000) (338,519) Interest and Fiscal Charges Paid (450,336) (43) (450,379) (59,043) Net Cash Provided by (Used for) Capital and Related
Financing Activities (3,839,095) (17,000) (3,856,095) (1,357,123)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received (Paid) (226,555) 39,698 (186,857) 405,879 Net Cash Provided by (Used for) Investing Activities (226,555) 39,698 (186,857) 405,879 Net Increase (Decrease) in Cash and Cash Equivalents 7,802,637 700,671 8,503,308 5,307,805 Cash and Cash Equivalents at Beginning of Period 56,557,449 1,920,018 58,477,467 46,067,064 Cash and Cash Equivalents at End of Period 64,360,086$ 2,620,689$ 66,980,775$ 51,374,869$ Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:

Operating Income (Loss) 8,382,149$ 557,847 $ 8,939,996 $ 2,954,750 $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:

Depreciation 4,403,942 159,047 4,562,989 4,114,579 Change in assets and liabilities:

Receivables, Net (166,629) (34,261) (200,890) (109,054) Accounts payable and other accrued expenses (1,368,160) 2,702 (1,365,458) 106,768 Accrued Liabilities (52,347) (3,943) (56,290) (135,936) Compensated Absences 28,076 - 28,076 (76,494)
Leases-related activity - (3,419) (3,419) -
Self Insurance Claims Payable - - - (465,466)
Net Cash Provided by (Used for) Operating Activities 11,227,031 $ 677,973 $ 11,905,004$ 6,389,147 $ See accompanying notes to basic financial statements
38

CITY OF CONCORD JUNE 30, 2022

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.

Th
e 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, 2022
City of Concord Successor Tourism
Retirement Agency Improvemen t
System Private District
Pension Purpose Custodial
Trust Trust Fund Fund
ASSETS:

Cash and Investments (Note 3)
U.S. Treasury Notes 3,774,904 $ - $ -$
U.S. Government Agencies Obligations 3,997,846 - -
Medium-Term Corporate Notes 5,619,599 - -
Municipal Bonds 476,045 - -
Foreign Bonds 254,939 - -
Mutual Funds 12,109,728 - -
Pooled Investments 2,937,995 1,008,595 116,850 Cash with Fiscal Agents (Note 3) - 6,769 -
Total Cash and Investments 29,171,056 1,015,364 116,850 Receivables (Net of Allowances for Uncollectibles):

Account - 610,219 -
Interest on Loan Receivable (Note 18) - 438,150 -
Loan Receivable (Note 18) - 230,003 -
Total Assets 29,171,056 2,293,736 116,850 DEFERRED OUTFLOW OF RESOURCES:

Deferred Charge on Refunding - 236,820 -
LIABILITIES:

Accounts Payable and Due to Others - - 116,850
Interest Payable - 129,085 -
Long-Term Debt (Note 18):

Due in One Year - 2,825,000 -
Due in More Than One Year - 6,403,084 -
Total Liabilities - 9,357,169 116,850
NET POSITION:

Net Position Restricted for Pension
Benefits and Held in Trust for Other Purposes 29,171,056 (6,826,613) - Total Net Position (Deficit) 29,171,056$ (6,826,613)$ -$ See accompanying notes to basic financial statements
40

CITY OF CONCORD

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
City of Concord Successor Tourism
Retirement Agency Improvement
System Private-Purpose District
Pension Purpose Custodial
Trust Trust Fund Fund

ADDITIONS
Employer Contributions 5,087,000$ -$ -$
Property Taxes, Net of Pass Through Payments - 4,030,676 - Net Investment Income:

Investment Income (3,358,636) 17,839
Investment Management Fees (173,932) - -
Total Additions 1,554,432 4,048,515 -

DEDUCTIONS
Retirement and Other Benefits 5,276,196 - -
Economic Development and Base Reuse - 1,247,989 -
Community Planning and Economic Development - 15,130 -
Interest Expense - 103,021 -
Total Deductions 5,276,196 1,366,140 - NET CHANGES IN NET POSITION (3,721,764) 2,682,375 - Net Position (Deficit) Held in Trust, Beginning of Year 32,892,820 (9,508,988) - Net Position (Deficit) Held in Trust, End of Year 29,171,056$ (6,826,613) $ - $ See accompanying notes to basic financial statements
41

This Page Left Intentionally Blank

CITY OF CONCORD JUNE 30, 2022

NOTES TO THE BASIC FINANCIAL STATEMENTS

CITY OF CONCORD JUNE 30, 2022
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), streets and roads, 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. The City of Concord Retirement System does not issue separate financial statements. 44

CITY OF CONCORD JUNE 30, 2022
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 general operating fund of the City and accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Concord, these services include general government, public safety, public works, economic development, community development, and parks and recreation services. 45

CITY OF CONCORD JUNE 30, 2022
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 fo r federal Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan Act (ARPA).

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, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. 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, 2022

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, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Proceeds of long-term debt and financing through 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, including lease liabilities, which is recogni zed 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, 2022
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, except for intangible right to use leased assets, the measuremen t of which is discussed in Note 15 below. 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. 48

CITY OF CONCORD JUNE 30, 2022

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Capital Assets (Continued)

The amount charged to depreciation expense each year repr esents that year's pro rata share of the cost of capital assets.

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
Right-to-use leased buildings and im provem ents 2 Y ears 7,500 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 assets that applies 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 assets 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 intergovernmental revenue and deferred inflows of resources related to leases. 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:
49

CITY OF CONCORD JUNE 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Net Position and Fund Balances (Continued)
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.

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 im posed 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, 2022
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 $43.7 million or 41.5% percent of General Fund Operating Expendi tures. These funds, alon g 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 $45,490,014.

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.
51

CITY OF CONCORD JUNE 30, 2022

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

New Effective Accounting Pronouncements

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 implemented the provisions of the Statement No. 87 during the year ended June 30 , 2022. As a result, the City dete rmined that beginning the balances of leases receivable and deferred inflows of resources related to leases were $14,149,648 and the balances of the leases payable and intangible ri ght-to-use assets were $87,883 as of July 1, 2021 and restated and increased the balances in those amounts, and the net effect on beginning net position and fund balance was zero. See the Leases disclosure in Note 15.

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 beginning after December 15, 2020. GASB Statement No. 89 did not have an effect on the fiscal year 2022 financial statements.

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 pe riods beginning after June 15, 2021. GASB Statement No. 92, did not have an effect on the fiscal year 2022 financial statements.

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. GASB Statement No. 89 did not have an effect on the fiscal year 2022 financial statements.

52

CITY OF CONCORD JUNE 30, 2022
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 2021-2022. 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 certain requirements in the Statement. The City implemented the provisions of the Statement in fiscal year 2021/2022, which required revisions to the disclosure related to deferred compensation plans in Note 14.

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. 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.

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.
53

CITY OF CONCORD JUNE 30, 2022

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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.

GASB Statement No. 99 – In April 2022, GASB issu ed GASB Statement No. 99, Omnibus 2022. 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 (1) practice issues that have been identified during implementation and application of certain GASB statements and (2) accounting and financial reporting for financial guarantees. Th e requirements of the statement ar e effective as follows: (1) the requirements related to extension of the use of LIBOR, accounting for SNAP distri butions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance; (2) the requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting pe riods thereafter; and (3) the requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.

The City has not determined the effect of this Statement.

GASB Statement No. 100 - In June 2022, GASB issued GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62 . The requirements of this Statement are effective for fiscal years ending after June 15, 2023. The City has not determined the effect of this Statement.

GASB Statement No. 101 - In June 2022, GASB issu ed GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurem ent guidance under a unified model and by amending certain previously required disclosures. The requireme nts of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City has not determined the effect of this Statement.

New and Closed Funds

The Measure V Projects Capital Projects Fund was established during the fiscal year ended June 30, 2022 to account for capital projects that are to be funded with funds received from the Measure V one-cent sales tax. Additionally, the Performing Arts Debt Service Fund was closed as of June 30, 2022.

54

CITY OF CONCORD JUNE 30, 2022

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.

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 $75,000 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.

55

CITY OF CONCORD JUNE 30, 2022
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, 2022:

Internal
Governmental Enterprise Service Fiduciary
Funds Funds Funds Funds Total
Cash and investments 168,117,561$ 66,980,769$ 51,374,869$ 30,296,501$ 316,769,700$ Cash with fiscal agents 114,597,011 6 - 6,769 114,603,786 Total cash and investments 282,714,572$ 66,980,775$ 51,374,869$ 30,303,270$ 431,373,486$ 56

CITY OF CONCORD JUNE 30, 2022

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. Treas ury Bills , Bonds and Notes 5 years None None None Federal Agency or United States 5 years None None None
G overnm ent Sponsored Obligations**
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 Depos it 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 million per
account
$75 million per
account
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
**Federal agency securitized securities (including, but not lim ited to, m ortgage-backed securities, collateralized m ortgage obligations and commercial mortgage backed securities) are not permitted.

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 accordance with the California Government Code.

57

CITY OF CONCORD JUNE 30, 2022

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 M aturity 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
Money Market Mutual Funds None Top rating category
Investment Ag reements None Top rating categ ory
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 trusts, 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

58

CITY OF CONCORD JUNE 30, 2022

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

Remaining Maturity (in Months)
12 Months or 13 to 24 25 to 36 37 to 60
Less Months Months Months Total
Investment Type:

U.S Treasury Notes $ 518,952 $ 13,438,439 $ 3,177,157 $ 11,525,777 $ 28,660,325 U.S. Government Agencies Obligations 39,103 4,358,725 1,531,507 2,737,019 8,666,354 Medium-Term Corporate Notes - 1,960,357 7,901,437 4,909,565 14,771,359 Negotiable Certificates of Deposit 2,800,314 - - - 2,800,314 Supranationals - 906,527 1,106,539 - 2,013,066 Municipal Bonds - - 941,701 1,435,173 2,376,874 LAIF 199,593,585 - - - 1 99,593,585 CAMP 103,329,978 - - - 1 03,329,978 CalTrust 22,487,291 - - - 22,487,291 Money Market Mutual Funds 289,379 - - - 289,379 Total $ 329,058,602 $ 20,664,048 $ 14,658,341 $ 20, 607,534 384,988,525 Cash deposits with banks and on hand 17,213,905
Total Cash and Investments $ 402,202,430

Retirement System Pension Trust Fund

Remaining Maturity (in Months)
12 Months or 13 to 24 25 to 36 37 or More
Less Months Months Months Total
Investment Type:

U.S. Treasury Notes -$ $ 694,163 -$ $ 3,080,741 $ 3,774,904 U.S. Government Agencies Obligations - 400 9,656 3,9 87,790 3,997,846 Medium-Term Corporate Notes 80,320 119,074 709,218 4,710,987 5 ,619,599 Municipal Bonds - - - 476,045 476,045 Foreign Bonds - 199,306 - 55,633 254,939 Total $ 80,320 $ 1,012, 943 $ 71 8,874 $ 12,311,196 14,123,333 Non-Maturing Investments:

Pooled Cash and Accrued Income 2,937,995
Mutual Funds 12,109,728
Total Cash and Investments $ 29,171,056

59

CITY OF CONCORD JUNE 30, 2022
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, 2022 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. Government Agencies Obligations -$ 8,666,354$ -$ -$ -$ 8,666,354$ Medium-Term Corporate Notes - 5,099,365 - 7,974,936 1,697,058 14,771,359 Supranationals 2,013,066 - - - - 2,013,066
Municipal Bonds 166,144 1,882,780 - 97,655 - 2,146,579 CAMP 103,329,978 - - - - 103,329,978
CalTrust - - 22,487,291 - - 22,487,291
Money Market Mutual Funds 289,379 - - - - 289,379 Totals 105,798,567$ 15,648,499$ 22,487,291$ 8,072,591$ 1,697,058$ 153,704,006 Exempt from credit rating disclosure:

U.S. Treasury Notes 28,660,325
Not rated:

Negotiable Certificates of Deposit 2,800,314
Municipal Bonds 230,295 (1)
LAIF 199,593,585
Cash deposits with banks and on hand 17,213,905
Total Investments 402,202,430$
(1) Credit ratings listed above are based on ratings provided by Standard & Poor's (S&P). Municipal Bonds listed as "Not Rated" abo ve have no rating per S&P, although they are rated as "Baa2" per Moody's. 60

CITY OF CONCORD JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Retirement System Pension Trust Fund
Investm ent Type AAA/AAAm AA+/AA/AA- A+/A/A- BBB+/BBB/BBB- Total U.S. G overnment Agencies Obligations -$ 3,997,846$ -$ -$ 3,997,846$ Medium-Term Corporate Notes 547,195 751,073 403,067 3,536,489 5,237,824 Municipal Bonds - 383,709 92,336 - 476,045 Foreign Bonds - - - 254,939 254,939
Totals 547,195$ 5,132,628$ 495,403$ 3,791,428$ 9,966,654 Exempt from credit rating disclosure:

U.S. Treasury Notes 3,774,904
Not rated:

Medium -Term Corporate Notes 381,775
(1)
Pooled Cash and Accrued Incom e 2,937,995
Mutual Funds 12,109,728
Total Investm ents 29,171,056$
(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 rated as "Aaa", "Baa2" 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, 2022:

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 2,739,590 $ 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 regulated 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, 2022, the City’s balance in the financial institutions was $18,736,046 of that amount, $250,000 was covered by FDIC insurance, and $18,486,046 was covered by collateral held in the pledging bank’s trust department.
61

CITY OF CONCORD JUNE 30, 2022

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, 2022. 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.

62

CITY OF CONCORD JUNE 30, 2022

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, 2022, 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
As s ets 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 28,660,325 $ 28,660,325 $ - $ - $ U.S. G overnment Agencies Obligations 8,666,354 - 8,666,354 - Medium-Term Corporate Notes 14,771,359 - 14,771,359 - Negotiable Certificates of Deposit 2,800,314 - 2,800,314 - Municipal Bonds 2,376,874 - 2,376,874 - Supranationals 2,013,066 - 2,013,066 - Total Investments Measured at Fair Value 59,288,292 28,660,325$ 30,627,967$ -$ I nv estm ents M easure at Net Asset Value Per Share:

CAMP 103,329,978
Investments Measured at Amortized Cost:

Money Market Mutual Funds 289,379
Not Subject to Fair Value Hierarchy:

LAIF 199,593,585
CalTrust 22,487,291
Cash deposits with banks and on hand 17,213,905
Total Investments 402,202,430$

63

CITY OF CONCORD JUNE 30, 2022
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
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 3,774,904 $ 3,774,904 $ -$ -$ U.S. G overnm ent Agencies Obligations 3,997,846 - 3,997,846 - Medium-Term Corporate Notes 5,619,599 - 5,619,599 - Municipal Bonds 476,045 - 476,045 -
Foreign Bonds 254,939 - 254,939 -
Equity Securities:

Mutual Funds 12,109,728 12,109,728 - - Total Investments Measured at Fair Value 26,233,061 15,884,632$ 10,348,429$ -$ Not Subject to Fair Value Hierarchy:

Pooled Cash and Accrued Incom e 2,937,995
Total Investments 29,171,056$
64

CITY OF CONCORD JUNE 30, 2022
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, 2022, the interfund balances are:

Due To Other Funds Due from Other Funds Amount
2021 COP Projects Capital Projects Fund General Fund 2,311,018$ Post-Retirement Healthcare Benefit
Internal Service Fund General Fund 3,321,696
5,632,714$
Long-Term Interfund Advances
At June 30, 2022, the funds below had made the following advances:

Amount of
Fund Receiving Advance Fund Making Advance Advance
General Fund Concord Housing Special Revenue Fund 2,034,709$ (a) Sewer Enterprise Fund 1,091,702 (a)
Sewer Enterprise Fund 380,769 (b)
Workers' Compensation Internal Service Fund 1,384,615 (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) 19,746,426$
(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.
65

CITY OF CONCORD JUNE 30, 2022
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, 2022, were as follows:

Amount
Fund Receiving Transfers Fund Maki ng Transfers Purpose Transferred Major Funds:

General Fund General Projects Fund Return Funding to Source 14,377 $ General Fund General Projects Fund To Fund Capital Projects 24,010 General Fund Special Revenue - Storm Water Mana gement Fund To Fund Operating Costs 168,848 General Fund General Projects Fund Return Funding to Source 90,344 General Projects Fund Capital Projects - Special Developers Fund To Fund Capital Projects 314 General Projects Fund Special Revenue - General Plan Reimbursement Fee Fund To Fund Capital Projects 19,000 General Projects Fund General Fund To Fund Capital Projects 5,228,000 Special Revenue Fund:

Storm Water Management Fund General Fund To Fund Street Sweeping 524,001 State Gas Tax Fund General Projects Fund To Fund Capital Projects 24,600 Debt Service Funds:

Energy Lease Fund General Fund To Fund Debt Service 295,347 Energy Lease Fund Special Revenue - Maintenance Districts Fund To Fund Debt Service 345,978 Energy Lease Fund Internal Service Fund - Building Maintenance Fund To Fund Debt Service 202,524 Infrastructure Lease Agreement Fund General Fund To Fund Debt Service 7,495,977 Capital Projects
Inter-Governmental Fund Capital Projects - Special Developers Fund To Fund Capital Projects 282 Measure V Projects Fund General Fund To Fund Capital Projects 13,100,000 Internal Services Funds
Building Maintenance Fund General Fund To Fund Capital Projects 600,000 Proprietary Funds:

Sewer Fund General Projects Fund To Fund Capital Projects 3,000 28,136,602$
66

CITY OF CONCORD JUNE 30, 2022
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 2022. These loans and notes were comprised of the following at June 30, 2022:

Concord Housing Fund
Downtown Revitalization and
Low and Moderate Income Hous ing Rehabilitation 10,053,484$ 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 24,062,077
Non-major Governmental Funds
Housing Conservation 782,570
Housing Assistance 50,000
Virginia Lane 473,193
Lakeside Apartments 325,445
Total Non-major Governmental Funds 1,631,208
Total Loans and Notes Receivable 25, 693,285$
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 persons of low and moderate income.
67

CITY OF CONCORD JUNE 30, 2022
NOTE 5 – LOANS AND NOTES RECEIVABLE (CONTINUED)
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, 2022 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, 2022, 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, 2022, the loan receivable balance was $2,716,945.

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, 2022 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, 2022, the loan receivable balance was $782,570. 68

CITY OF CONCORD JUNE 30, 2022
NOTE 5 – LOANS AND NOTES RECEIVABLE (CONTINUED)
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, 2022, the loan receivable balance was $50,000.

NOTE 6 - CAPITAL ASSETS
Capital asset transactions and balances comprise the following at June 30, 2022:

Balance at
June 30, 2021 Balance at
(As Restated) Additions Retirements Transfers June 30, 2022 Governmental Activities
Capital Assets Not Being Depreciated:

Land 26,379,019 $ - $ -$ -$ 26,379,019$ Construction in Progress 9,052,780 1,451,949 - (832,119) 9,672,610 Total Capital Assets Not Being Depreciated 35,431,799 1,451,949 - (832,119) 36,051,629 Capital Assets Being Depreciated:

Ground Improvements 23,822,650 - - - 23,822,650 Buildings and Improvements 81,664,958 - - - 81,664,958 Right to Use Leased Buildings and Improvements 62,448 - - - 62,448 Machinery and Equipment 24,908,837 182,256 - - 25,091,093 Vehicles 12,491,383 181,048 (488,557) 832,119 13,015,993 Streets 486,138,557 7,236,786 - - 493,375,343 Sidewalks 61,577,917 664,225 - - 62,242,142 Storm Drains/Catch Basins 443,639,096 1,121,925 - - 444,761,021 Street Lights 5,804,240 60,160 - - 5,864,400 Traf
fic Signals 31,616,999 799,681 - - 32,416,680 Total Capital Assets Being Depreciated 1,171,727,085 10,246,081 (488,557) 832,119 1,182,316,728 Less Accumulated Depreciation For:

Ground Improvements (13,426,638) (550,815) - - (13,977,453) Buildings and Improvements (53,597,769) (2,335,802) - - (55,933,571) Right to Use Leased Buildings and Improvements - (29,975) - - (29,975) Machinery and Equipment (19,811,034) (1,786,553) - - (21,597,587) Vehicles (11,683,411) (995,260) 488,557 - (12,190,114) Streets (359,755,365) (16,763,965) - - (376,519,330) Sidewalks (30,629,849) (1,239,560) - - (31,869,409) Storm Drains/Catch Basins (131,650,065) (4,442,001) - - (136,092,066) Street Lights (2,104,415) (194,478) - - (2,298, 893) Traf
fic Signals (25,493,923) (1,071,899) - - (26,565,822) Total Accumulated Depreciation (648,152,469) (29,410,308) 488,557 - (677,074,220) Governmental Activities Capital Assets, Net 559,006,415$ (17,712,278)$ -$ -$ 541,294,137$ 69

CITY OF CONCORD JUNE 30, 2022
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Balance at
June 30, 2021 Balance at
(As Restated) Additions June 30, 2022
Business-Type Activities
Capital Assets Not Being Depreciated:

Land 395,182$ -$ 395,182$
Construction in Progress 17,163,538 2,313,759 19,477,297 Total Capital Assets Not Being Depreciated 17,558,720 2,313,759 19,872,479 Capital Assets Being Depreciated:

Buildings and Im provem ents 8,708,986 - 8,708,986
Right to Use Leased Buildings and Im provem ents 25,435 - 25,435 Machinery and Equipm ent 456,319 - 456,319
Sewer Lines 219,772,435 - 219,772,435
Total Capital Assets Being Depreciated 228,963,175 - 228,963,175 Less Accum ulated Depreciation For:

Buildings and Im provem ents (7,013,773) (144,408) (7,158,181) Right to Use Leased Buildings and Im provem ents - (16,956) (16,956) Machinery and Equipm ent (320,699) (20,795) (341,494)
Sewer Lines (175,951,309) (4,380,830) (180,332,139) Total Accumulated Depreciation (183,285,781) (4,562,989) (187,848,770) Business-Type Activities Capital Assets, Net 63,236,114$ (2,249,230)$ 60,986,884$ 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:

Governmental Activities
General Government 23,896,953 $
Public Works 395,738
Parks and Recreation Services 1,003,038
Internal Service Funds 4,114,579
Total 29,410,308$
Business-Type Activities
Sewer 4,403,942$
Golf Course 159,047
Total 4,562,989$
70